Chinese Banks See the Opportunity for Global Growth

http://online.wsj.com/article/SB10001424127887324784404578144401439337788.html

I finally got a chance to read this article about the new efforts by China’s largest bank to branch out globally. It is interesting to see where the Industrial & Commercial Bank of China see the best opportunities for cross border growth. They have named their key target markets as Spain, Peru, Poland, Saudi Arabia and Kuwait. In addition they intend to have operations in 37 countries/regions within the next two years. This is similar to the models undertaken by HSBC as well as Banco Santander in the past.

The effect this will have on global cross border commerce is immense. Additionally there will be an increased need to manage international data quality concerns such as Name, Address and other customer contact details for these growth markets. I suspect there will be many interesting challenges when one thinks about back office applications that are built for the Chinese market needing to be adjusted to handle the variances associated with Brazilian names and addresses. The IT companies that maintain a world view on how they deliver technology to these businesses will be in the best position to capture the new business opportunities out there.