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Travel and financial services provider American Express said in Hong Kong on Tuesday it is considering applying for a banking license on the Chinese mainland to enhance the company's diversified presence in the market.
"We are interested in China's banking market and considering applying for a banking license from the authorities," said David Wong, the company's executive director and Asia Pacific region head, told China Daily. "We will provide financial services to both business and individual customers."
Wong also said he hoped the license could be issued sometime this year.
The company's move is the latest attempt from an overseas bank to capitalize on the open-up of the mainland's banking sector.
According to market watchdog China Banking Regulatory Commission, there are currently 19 foreign banks with ownership stakes in 16 mainland institutions, representing an investment of almost US$17 billion.
About 200 foreign banks have operations on the mainland.
As an early bird in the then-newly opened market, American Express established a representative office in Beijing in 1979. The company has since focused on tourism and the payment market in the past decades.
Experienced in travel-related network services, American Express successfully tapped into the mainland's tourism market by establishing a travel service joint venture with China International Travel Services in January 2002.
The popular venture was the mainland's first Sino-US travel company.
It provides a wide range of business travel management services, including obtaining and handling visas, flight and hotel reservations, and other arrangements throughout the mainland.
Last March, the company entered into an alliance with the mainland's largest lender Industrial and Commercial Bank of China (ICBC) to issue a credit card tailor-made for Chinese consumers, tourists and business travelers alike.
The card can be used through the network of ICBC and China UnionPay, as well as in 200 countries and regions where American Express' network is available.
"ICBC is one of the biggest bank card issuers in China," said Wong, who declined to disclose the total number of card holders. "We start the partnership with ICBC and look forward to cooperate with other mainland banks in the future."
Founded in 1850, American Express operates through three main subsidiaries, including American Express Travel Related Services, American Express Financial Advisors and American Express Bank.
(China Daily January 20, 2006)
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