ICBC Is China's First Bank to Start Taking Applications for Private Pension Accounts - Yicai Global

(Yicai Global) Nov. 23 -- Industrial and Commercial Bank of China has become the first of the country's commercial lenders to begin accepting applications to open personal pension accounts after China gave the green light to its first-ever private pension system in April.

During the trial bookings period, only ICBC staff and their family members will be able to make an appointment to open an individual pension account through the bank's WeChat mini program, according to staff at branches of the lender in Beijing. As the function is still being improved, the back-end system became unresponsive once following too many requests. Once the function goes live, accounts will open automatically.

Beijing-based ICBC is the only bank so far to have announced the launch of trial reservations, Yicai Global understands. An employee of China Construction Bank said staff there had not been notified about the opening of personal pension accounts, while a customer service staffer at China Merchants Bank said it expects to incorporate the new function into its system before next month.

Every person who wants a private pension plan needs to open two accounts: a personal pension account and a personal pension fund account, according to a document previously released by the Ministry of Human Resources and Social Security and four other agencies under the State Council. China's cabinet.

The personal pension account is for registration and management of personal identifiable information linked to China's basic pension insurance system. It can be opened on unified national information platforms and commercial lender channels. The personal pension fund account is used for funds with a dedicated purpose, and can be opened in commercial banks that offer a private pensions business.

Once ICBC's booking system is fully operational, customers can open the two accounts together after giving their consent. It will also be possible to apply through ICBC's mobile banking app and smart terminals at branches, a customer service staffer said, noting that clients will not get a physical card for their personal pension fund account, as it is a dedicated electronic fund.

The personal pension fund account does not belong to a savings account or an investment account, but it is a channel for customers to buy special wealth management products with the money they have in their bank cards, an ICBC manager said.

ICBC will also allow the customers of other lenders to open personal pension fund accounts through its channels. The system will accept cards issued by the other five big banks: Agricultural Bank of China, Bank of China, China Construction Bank, Bank of Communications, and Postal Savings Bank of China.

Editor: Martin Kadiev