Safety first as city banks tap into a growing market - ResearchInChina

Date:2008-06-10liaoyan  Text Size:

SAFE-DEPOSIT boxes are becoming increasingly popular with Shanghai's growing middle class.

"The holidays normally triggers clients' idea of putting their precious things at banks' safe-deposit boxes while they are traveling out of the city,'' said an Agricultural Bank of China official. "Once they embrace these services, the majority of them will rent their boxes for a long time."

The bank began offering such a service in the city in 1992. With the development of the economy, there was an increasing demand for a place to keep valuable things in safety.

ABC now has more than 50,000 such boxes in its outlets in the city. It charges an annual rental of 150 yuan (US$21.61) to 2,000 yuan depending on the size of the box.

Lenders such as Bank of China, Industrial & Commercial Bank of China and China Construction Bank also offer such services in some of their branches. "The services are for sure not as popular as deposits and lending," said a Shanghai branch of the Bank of China official. "But, it meets the demand of a certain group of clients."

BOC Shanghai has six outlets offering safe-deposit boxes - in Lujiazui area, Huaihai Road, Yan'an Road, Dahua area and Jiading District.

Jewelry, antiques and property documents were the most common items that clients put in their boxes. The contents of their boxes are known only to the clients, but the storage of illegal items is forbidden.

Though more clients here are making use of the service, it is still not as popular as in more mature markets such as Hong Kong.

A Hongkong and Shanghai Banking outlet in central Hong Kong has more than 20,000 boxes which are all rented out and the service is so popular there is a waiting list. HSBC has the largest network of banks in the special administrative region.

2005-2011 www.researchinchina.com All Rights Reserved 京ICP备05069564号-1