Bank puts focus on internet innovation

China CITIC Bank Corp Ltd is boosting its internet finance business, to enhance market performance, as profits based on interest-rate spreads are decreasing, according to senior executives.

"The Chinese banking industry is transforming as the profit model from earning interest spreads on deposits and loans cannot last. Innovation in internet finance is a key part of our retail banking business transformation," said Fang Heying, vice-president of China CITIC Bank.

China CITIC Bank has joined hands, Fang added, with Baidu to establish the online Baixin Bank, in which China CITIC Bank will hold a 70 percent stake and Baidu will have a 30 percent share. Baixin Bank is expected to open at the end of the year.