It was five years back when China embraced WTO and since then the country has seen a number of restrictions being removed for foreign companies to invest and continuing with its initiative last month China did away with restrictions in the banking sector and now it has allowed foreign banks to operate in local currency. This decision is being regarded as one of the biggest milestones for China’s banking system.
Foreign banks are smiling with this decision and China is expected to see network expansion and a wide variety of services being offered to the customers. Besides banks even the outsourcing industry of China is expected to gain which up till now was dependant on low end business from local and Japanese market. This will help the industry to get business from American and European markets too.
The outsourcing industry can help the banks recruit and train workforce. They could also help in offering infrastructure and support facilities. With partners the financial institutions are expected to set up their facilities in tier II and III cities which are cost efficient but one of the problem is that a very few of the providers are experienced in the banking sector. I think the gates have been opened it’s just that the Chinese outsourcing industry needs to create a road for itself. Now there are opportunities for both financial institutions and outsourcing sector in China.
