China Construction Bank, the mainland's third-largest lender, and strategic investor Bank of America have deepened their relationship with a customer service co-operation that allows their debit card holders to withdraw cash from each other's automated teller machines for free.
Starting next month, holders of the Beijing-based bank's 'Happy Investor' cards will be able to withdraw cash from Bank of America's 17,000 ATMs without any fee, while the US bank's debit card holders will be able to do the same with China Construction Bank's more than 11,000 machines. 'The successful operation of this project is a significant step for the strategic co-operation between [the two banks],' a joint statement quoted CCB chairman Guo Shuqing as saying.
'Our customers are now able to benefit from our partnership,' said Kenneth Lewis, Bank of America's chairman and chief executive.
Last year, Bank of America, the US debit card leader with a 20 per cent market share, bought a 9 per cent stake in the mainland lender for US$3 billion before and during the latter's initial public offering in Hong Kong.
A Chinese cardholder typically has to pay a 3 per cent transaction fee, with a minimum of US$3 charge per transaction, plus a US$2 service fee in 14 American states when withdrawing cash from Bank of America's ATMs.
Fox-Pitt Kelton analyst Samuel Chen Shun described the move as 'a symbolic first step' in their strategic co-operation with negligible financial impact on CCB.
