China-based Baidu has collaborated with China CITIC Bank, to launch a new direct bank dubbed AiBank.
China’s banking regulator approved the joint venture earlier this year and AliBank has opened its virtual doors for business. The direct bank will offer all of its services digitally instead of through physical branches.
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AiBank will initially focus on lending to consumers and small businesses. It will also harness artificial intelligence and data to design and build new risk control models.
Lu Qi, chief operating officer at Baidu, stated: “AiBank is the future of intelligent finance. It is an institution that understands customers best and understands finance best.”
The venture aims to capitalise on China’s fintech sector that has been growing rapidly. CITIC owns 70% of the venture, while Baidu controls 30%.
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