Core Viewpoint - Beijing Bank announced the discontinuation of its direct banking services through its app and website, effective November 12, 2025, due to adjustments in its direct banking business [1] Group 1 - The direct banking functionalities will be migrated to the "Jingcai Life" mobile banking app [1] - Customers are encouraged to download the Beijing Bank mobile banking app to manage their direct banking accounts [1] - The bank has provided a customer service contact for inquiries regarding the transition [1]

Core 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].

Core Viewpoint - The announcement by Beijing Bank marks the end of an era for direct banks in China, as it plans to migrate its direct banking services to its "Jingcai Life" mobile banking app by June 25, 2025, leading to the discontinuation of the first direct banking channel in the country [1] Group 1: Industry Trends - The number of operational direct banking apps has decreased to fewer than 20, a significant drop from 135 at its peak in 2017, indicating an over 85% market elimination rate [1] - Direct banks were initially popular due to their convenience and low operational costs, but have faced challenges leading to their decline [2] Group 2: Historical Context - Beijing Bank launched the first direct bank in collaboration with ING Group in September 2013, during a time of rapid growth in internet finance, with direct banks seen as a key tool for digital transformation [2] - By 2015, Beijing Bank's direct banking customer base reached 246,000, with savings deposits increasing by 463.1% compared to the beginning of the year [2] - The last reported customer count for Beijing Bank's direct banking was 476,000 in 2019, with 60.7% being external customers, but this segment has since disappeared from annual reports [2] Group 3: Challenges Faced - The decline of direct banks is attributed to overlapping positioning and structural dependencies, leading to unclear development paths and customer confusion [3] - The distinction between direct banks and mobile banking has blurred, as mobile banking apps have integrated various services, resulting in significant product overlap [3][4] - Direct banks often lack independent management structures, being subordinate to traditional banks, which hampers their ability to innovate and compete effectively [4] Group 4: Future Outlook - The closure and integration of direct banking services are seen as a trend that will continue in the industry [6] - Remaining independent direct banks, such as Baixin Bank and YouHui WanJia, are exploring new development paths that differ from traditional departmental structures [6] - Baixin Bank, established in January 2017, aims to bridge traditional banking and internet enterprises, but has faced challenges, including a 23.74% decline in net profit in 2024 [6] - The evolution of direct banks serves as a lesson for commercial banks to explore a hybrid online-offline business model while maintaining a clear positioning and leveraging their strengths [6]