Yucheng Technologies, a China-based provider of IT solutions to local banking industry, will provide its E-Banking ASP service to a consortium of 12 banks in China. Yucheng’s E-Banking ASP is designed to meet the needs of rural credit unions and smaller city commercial banks, which require quality IT solutions to remain competitive.
The E-Banking ASP platform bundles a variety of banking services, such as personal and business account management, wire transfers, payment services, and enterprise cash management services. In addition, the E-Banking ASP reduces the risks to banks of providing online banking services by ensuring not only that the solution remains current through system-wide upgrades, but also the software has the security features to protect user information and bank data.
This delivery platform allows Yucheng to extract recurring revenue streams. Banks utilizing the platform will pay an annual access fee as well as fees per transaction conducted on the platform. Yucheng now has contracts with 22 banks, of which 12 are already live on the system and another 4 are expected to launch by year-end.
Weidong Hong, CEO and chairman of Yucheng Technologies, said: “With the addition of these 12 banks, we have achieved critical mass and proven that outsourced solutions are a viable alternative in the Chinese e-banking market. We are intensifying the resources dedicated to this business and expect to see steadier growth in the future.”