China launches its first direct bank

China launched its first direct bank, a new mode of providing online banking services without any entity outlets.  The direct bank has been launched by the Bank of Beijing in co-operation with the Netherlands-based ING Group.

What is a Direct Bank?

A direct bank is a bank without any branch network that offers its services remotely via online banking and telephone banking and may also provide access via ATMs (often through interbank network alliances), mail and mobile. By eliminating the costs associated with bank branches, direct banks can make substantial savings which they may pass on to clients via higher interest rates or lower service charges.

Month: Current Affairs - September, 2013