BEIJING, China -- Diebold, Incorporated (NYSE: DBD) has been awarded two contracts with a total value of more than U.S. $15 million by China Construction Bank (CCB).
Under the agreements with CCB, Diebold will introduce its new 3030 Bulk Cash Recycler Model in addition to cash dispensers and advanced function ATMs for CCB branches in more than 20 provinces across China.
Twenty Diebold 3030 Bulk Cash Recycler Models (BCRM) will be piloted in Shanghai, where they will be installed in high-volume locations throughout the city to provide service to CCB's Dragon Card holders who want to pay their housing loans or process stock transactions using the self-service terminals. The 3030 BCRM offers the capacity to accept bulk quantities of bank notes for a deposit transaction and credit the customer account immediately.
After this initial installation, another 20 branches will come to Shanghai for a site inspection and evaluate the BCRM for future use, according to a news release.
Daniel Hu, managing director of Diebold Greater China Area, noted that the contract is being signed at a time when Chinese banks are preparing themselves for the emerging competition from financial institutions outside of China.
"Overall, Chinese domestic household savings have reached more than U.S. $1 trillion, so this represents a huge potential market for all financial institutions and is attracting new global banks," Hu said. "Chinese banks on one hand want to keep their traditional customers with more efficient services; on the other hand they have to develop strategies that are competitive with those being introduced by banks from outside China in order to attract new customers. Reshaping their traditional business outlets to include additional self-service solutions will definitely be a trend for Chinese banks in the next several years."
CCB operates more than 13,000 branches throughout Greater China. It is one of China's four large state-owned commercial banks and is listed at number 364 in Fortune magazine's Global 500 ranking.
