BOB(SH:601169) Zhong Guo Jing Ji Wang·2025-08-08 07:23Core Viewpoint - The direct banking model in China is experiencing a significant decline, with Beijing Bank announcing the migration of its direct banking services to its mobile banking app by June 25, 2025, effectively phasing out the standalone direct banking app [1][3][5]. Company Summary - Beijing Bank's direct banking service was launched on September 18, 2013, in collaboration with ING Group, marking the beginning of direct banking in China [3][4]. - The direct banking service saw rapid growth in its early years, with customer numbers reaching 246,000 and savings deposits amounting to 630 million yuan by the end of 2015, reflecting a 463.1% increase from the beginning of the year [4]. - By 2019, the last reported figures indicated that the direct banking customer base had grown to 476,000, with 60.7% being external customers, and cumulative sales reaching 11.56 billion yuan [4]. Industry Summary - The trend of shutting down or integrating direct banking services has been observed across the industry, with several banks, including Minsheng Bank and Hankou Bank, announcing similar actions [6][7]. - Industry experts suggest that the decline of direct banking is due to unclear positioning and overlapping functionalities with traditional banking services, leading to a decrease in customer engagement [7]. - As of now, fewer than 20 apps with "direct banking" in their names remain available, primarily from local banks and rural financial institutions [8].