Mybank says no to Foreign Technology
Published By : 15 Jun 2015 | Published By : QYRESEARCH
MYbank, an online bank backed by Alibaba Group Holding Ltd., has built an in-house cloud computing system which seems to be in sync with the consistent demand from the Chinese authorities to pull away from U.S. technology. MYbank is an upstart firm supported by Ant Financial, Alibaba’s financial affiliate. The firm is expected to be launched by the end of this month, though a final date has not been announced yet. According to the reports, MYbank resisted itself from depending on software provided by U.S. based technology companies such as Oracle Corporation, EMC Corporation, and Business Machines Corp. The Chinese government has been stressing for long to reduce the dependence of the country’s financial system on foreign technology. The new trend of favouring domestic technology has been termed as “de-IOE” (IOE stands for IBM, Oracle, and EMC). The three U.S. technology firms are leading the network infrastructure at Chinese organizations.
According to Zhao Weixing, the deputy governor of MYbank, the in-house technology developed by the bank is expected to be cost-efficient. It is also the first “de-IOE” cloud banking system in the country. The new cyber security laws in Beijing has left some of the domestic banks uncomfortable. MYbank’s in-house cloud computing system will help other banks to adopt the self-reliance strategy. After reports came out about the U.S. spying on China through the means of support offered by the U.S. based technology firms, China focussed on removing the involvement of American technology firms in various sectors in the country.
However, the system developed by MYbank is expected to face regulatory issues. According to the reports, the system poses security risks. The police ministry and the Central Bank of China are concerned with the technology developed by MYbank. As it is an online bank, MYbank wants to bypass the requirement of in-person verification through their identification documents. The bank proposes digital photos to be uploaded that can be verified by the police. As this technology has not been used by any banking system earlier, the authorities are concerned about the security of the system.