Xiaomi will become a minority partner in a bank in China : Sichuan Hope Bank

Jun 14, 2016

Xiaomi has invested in Sichuan Hope Bank – a bank oriented towards individual consumers, small and medium-sized companies, as well as those engaged in the agricultural sector.

Sichuan Hope Bank

The bank, which received government approval on Monday, will provisionally be called “Sichuan Hope Bank”, as an English name has not been finalised, according to a statement filed by Chengdu Hongqi Chain to the Shenzhen Stock Exchange on Monday.

Xiaomi will be the second-largest investor with a 29.5 per cent stake, while Chinese conglomerate New Hope Group will own a 30 per cent stake and Chengdu Hongqi Chain will own a 15 per cent, according to the filing. The new bank has a registered capital of 3 billion yuan (HK$3.5 billion).

“The Sichuan Hope Bank will become the first mobile internet bank in central western China,” said a spokesman for the bank in a statement. “It will focus on the needs of the younger demographic and small enterprises.” source: scmp.com

Banks need reliable partners in IoT

Xioami involvement in modern banking system we should see it as the desire of Chinese firm to expand, but also as a necessity of the new bank to have a partner prepared to face the challenges of IoT.

If we look around us, we see a trend to ease carrying and confirming payments using gadgets. The time that we needed to go to the bank to make a payment is past. Now we only have, for example, to approach a smartphone to a screen to make a payment.

For this reason, I regard this involvement in the bank system as a collaboration in which all parts will benefit.

By Tudor
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