China’s tech giants have a bold plan to monetise their user base -- become their banker

China’s technology companies are rushing into financial services, converting hundreds of millions of captive users from gaming, social networking, and e-commerce into ready customers via mobile devices.

Market watchers said the changes brought by disruptive technology are reshaping China’s banking industry, prompting traditional lenders to beef up innovation and respond to tech-savvy customers.

Baidu Inc, the dominant Chinese internet search operator, became the latest tech guru to foray into the country’s banking industry. Baidu and China CITIC Bank said in January that they have obtained the go-ahead from the China Banking Regulatory Commission for their joint venture Baixin Bank.

“Through leveraging Baidu’s technology, massive user data and internet experience, Baixin Bank can help provide personalised financial solutions to users based on their backgrounds and preferences,” said Robin Li, chairman and CEO of Baidu, in a statement.

Tencent Holdings, which runs China’s largest social network app WeChat, was the first tech company to get a banking license in 2014 for WeBank. Tencent is the largest single shareholder in the company, with a 30 per cent stake.