Chinese search engine Baidu and China CITIC Bank has obtained the regulatory nod to begin business operations of their direct banking venture.
The venture, previously branded Baixin Bank, has now been named Citic aiBank. It will offer loans and deposit accounts predominantly to individuals along with micro and small companies.
It will not have any physical branch network and will deliver services through online banking.
“AI is the core element of the bank’s branding, and the bank will offer a spate of innovative services by riding on Baidu’s technology in AI and massive amounts of data,” Baidu said.
The bank will have a registered capital of RMB2bn ($300m). CITIC will own a 70% stake in the new bank, while Baidu will own the remaining 30% stake.