Fast Growth of China Everbright Bank in Corporate Online Banking Business

    As of 31 December 2006, the corporate customers of China Everbright Bank’s online banking business had reached 6,680, an increase of 4,473 in the current year, up 203%. The transaction volume of corporate online banking business in the year reached RMB1.87 trillion, up 361% from last year, with the average monthly transaction volume of RMB156 billion, 4.6 times that of the average monthly level in 2005. Currently, corporate online banking business has become one of the most important channels of China Everbright Bank’s fund settlement.

    These statistics are a vivid reflection of the fast development of China Everbright Bank’s corporate online banking. Behind such remarkable accomplishments is the Bank’s continual effort and exploration to strengthen online banking construction, improve quality service, promote brand construction and develop comparative competitive advantages.

    I. Strengthen Business Innovation to Win the First Move Advantage

    Looking back on 2006, the major innovative products launched by China Everbright Bank are featured by their distinctive characteristics and prominent advantages, which has developed the Bank’s competitive edges and facilitated the fast development of its online banking business.

    1. Launched the first round-the-clock online “Bank Custom Guarantee” service

    In November 2006, China Everbright Bank took the initiative and launched the round-the-clock “Bank Custom Guarantee” service, which presents the tariff guarantee to the local Customs upon the application of import enterprises for the enterprises to benefit from the “Declaration before Duty” policy of tax guarantee along with “24×7” nonstop clearance service based on the “Bank Custom Express” service according to the relevant stipulations of the Custom Agency’s online tax payment guarantee; the enterprises can benefit from the “Declaration before Duty” policy of tax guarantee that circulates on a 15-day basis as well as the advantage of “Remote Declaration and Remote Payment” for the purpose of meeting their needs of clearance and tax payment without delay. In 2006, the business volume of China Everbright Bank’s “Bank Custom Guarantee” service had accounted for 2/3 of the aggregate Customs guarantee tax payment in China. Currently. Currently, China Everbright Bank has launched a series of “Bank Custom” cooperation online banking products, including “Bank Custom Guarantee”, “Bank Custom Loan”, “Bank Custom Express” and etc. and developed all-inclusive service of multilayered and integrated online clearance and tax payment to provide timely settlement convenience and short-term financing for the customers’ tax payment, which has been welcomed by the customers. As of the end of December 2006, China Everbright Bank’s “Bank Custom” products had acquired over 400 customers, including providing professional, considerate and convenient online tax payment service for numerous companies, such as Toyota, Formosa Plastic Group and etc. with its agency tax payment taking a leading position among the shareholding commercial banks.

    2. Launched the first “Online Banking Finance Authorized Payment Inquiry System”

    In August 2006, the Bank took the initiative and launched the “Online Banking Finance Authorized Payment Inquiry System” and fundamentally solved the issue of untimely information feedback existing in the previous manual transfer of paper check voucher with its powerful functions in terms of zero balance account inquiry, check, statement output and etc., which has won a good review from the customers. As of 31 December 31 2006, China Everbright Bank had realized RMB15.318 billion agency non-taxable income for Central Finance in the year, RMB94.6 billion agency direct income for Central Finance and RMB8.7 billion agency authorized income for Central Finance, where the agency direct income for Central Finance accounts for 60% of the market shares and secures the No. 1 place in China.

    3. Completed the first “Treasury Bank Tax Express” online tax payment in China.

    On 15 February 2006, China Everbright Bank took the initiative to launch the first “Treasury Bank Tax Express” online tax payment. The “Treasury Bank Tax Express” service has realized the integration of tax return and payment in that the customers can make various tax payments at China Everbright Bank, which saves the customers’ trouble of running between the tax bureau and the bank and has won a good review from the tax payers. Currently, the “Treasury Bank Tax Express” service of China Everbright Bank has been promoted in 6 major cities such as Beijing, Changsha, Xi’an, Shenyang, Haikou and Hefei. As of 31 December, the “Treasury Bank Tax Express” service of China Everbright Bank had processed 24,966 online tax payments on an accumulated basis (equal to the reduction of over 50,000 exchange bills and vouchers), realized an accumulated amount of agency tax payment of RMB1.4 billion (equal to stabilizing and attracting RMB0.13 billion/month) and signed 1,404 three-party agreements among the tax authority, bank and the tax payer (equal to stabilizing or opening 1,404 accounts).

    In order to further strengthen the system function and the stability of operation, China Everbright Bank made extensive efforts to upgrade its online banking system on a comprehensive basis in 2006. The online banking business has successively taken on a series of new functions, including “Virtual Account Cash Management”, “Comprehensive Inquiry List of Asset and Liability”, “Agency Salary Payment”, “Call Deposit”, “Scheduled Transfer”, “Time Deposit and Demand Deposit Interchange” and etc. Besides, the upgraded new system of online banking has taken the initiative to provide online banking support for corporate account overdraft in the banking sector, which has won a good review from the customers.

    II. Maintain Coordinated Planning to Link Marketing Customers

    In the meantime of strengthening business innovation, China Everbright Bank has been actively promoting customer marketing within the system and developed a number of quality and stable customer groups through link marketing, consolidated marketing, cross marketing and etc., which has laid a solid customer foundation for the continual and stable development of the online banking business.

    In the past year, China Everbright Bank had launched a number of “Online Banking Promotion Conference”, including 22 large successful promotion conferences of the “Online Banking”, “Bank Custom Express” and “Bank Tax Express” products in the major cities including Taiyuan, Chongqing, Nanjing, Hefei, Guangzhou, Shanghai, Fuzhou, Suzhou, Xiamen, Hangzhou, Tianjin as well as the Banking Department of the Head Office, which was attended by the leaders from the local government, Customs, tax authority, foreign trade, PBOC (People’s Bank of China) branch, SAFE (State Administration of Foreign Exchange) bureau, CBRC (China Banking Regulatory Commission) office and etc., which has aroused positive repercussions among the corporate customers and facilitated the fast development of the Bank’s corporate online banking business. Besides, China Everbright Bank made extensive efforts to develop the “City Exhibition and Marketing Promotion of Online Banking Security” campaign with China Financial Certification Authority (CFCA) and promote the “E Shield” electronic customer certificate to clear the doubts of the customers. The Bank has also made great efforts to promote the “Special Publicity of Using Online Banking with Ease” in 6 cities including Beijing, Wuhan, Qingdao, Jinan, Nanjing and Suzhou, which has further increased the social awareness and influence of China Everbright Bank’s online banking business, developed a strong competitive advantage on the local market and achieved positive social benefits and marketing results.

    III. Bring in Brand Strategy to Facilitate the Brand Development of Online Banking Business

    Going with the trend of the current financial business brand competition, China Everbright Bank has focused its attention on the present with a foothold on the future and introduced the brand strategy in 2006; with the successful launch of the “E Road Sunshine” online banking brand and the extensive publicity through a number of channels, the Bank has established a positive brand image of “Free Sharing, E Road Sunshine”. Currently, “E Road Sunshine” can provide various product portfolios regarding the different needs of the customers to meet their individual needs, which has won the recognition of more and more customers.

    In recent years, China Everbright Bank has attached great attention to the security issue of online banking and has taken various effective measures to prevent business risks. In the “2006 Joint Publicity Year of Online Banking Secure Use” co-hosted by CFCA and 14 commercial banks, the online banking of China Everbright Bank won the honor of “Best China Online Banking Customer Experience Prize” in 2006 with its distinctive features such as “Reasonable Design and Easy Operation” and etc. China Everbright Bank won the honor of “2006 China Banking Sector Innovation Prize – Electronic Banking” in the “2006 Exhibition of Finance and Economics” hosted by hexun.com, a well-known website of finance and economics in China.