Yucheng Technologies Limited (Nasdaq: YTEC), a leading provider of IT solutions to China's banking industry, today announced that it will provide its E-Banking ASP service to a consortium of 12 banks in China.
Yucheng's E-Banking ASP is a significant milestone in the development of an outsourced hosted service model for the Chinese FinTech space because it demonstrates that banks are willing to conform to IT requirements and adopt best practices. By providing limited customization of the platform, Yucheng is able to leverage standardized IT software and pooled hosting services to create economies of scale.
This unique delivery platform eliminates the need for high upfront costs for banks and 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. As the consortium grows, new member banks will have access to Yucheng's E-Banking ASP at the pre-negotiated group rates.
Yucheng's E-Banking ASP is tailored to the needs of Rural Credit Unions and smaller City Commercial Banks, which require high-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 that the software has the latest security features to protect user information and bank data.
Mr. Weidong Hong, CEO and Chairman of Yucheng Technologies, stated, "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."
E-Banking ASP is part of Yucheng's Channel Solutions offerings, which enable banks to better communicate with and serve their customers. Yucheng launched its E-Banking ASP in March of 2008.