Commercial Banks' Strategies in 'Fingertip Healthcare': An Overview of Digital Health Initiatives and Product Offerings
Premier Li Keqiang’s remark that “riding the wave of ‘Internet Plus’ will propel China’s economy to new heights” has sparked a nationwide surge in the “Internet Plus” initiative. Within this landscape, “Internet Plus Healthcare” is particularly thriving, benefiting from highly favorable conditions.
In this field, apart from the well-known BAT (Baidu, Alibaba, Tencent), Microsoft, Apple, and internet healthcare pioneers such as Chunyu Doctor and DXY, there are many cross-industry players from other sectors. These include Jumei Youpin, a cosmetics retailer; LeEco, an online TV provider; real estate developers; and major figures in the financial industry.
VCBeat has noted that this powerful undercurrent is sweeping toward internet healthcare, yet public attention has been almost exclusively focused on the BAT companies, with negligible regard for others. What strategic moves have these other players made in the “Internet + Healthcare” sector?
China Minsheng Bank
According to public information, China Minsheng Bank officially entered the internet healthcare sector this June.
In early June, a strategic partnership was established with E-Tech (Qianhai Ance) regarding the O2O model of “Internet + Healthcare + Health + Elderly Care.” The two parties reached a cooperation intention worth RMB 500 million. China Minsheng Bank will provide comprehensive support and collaboration to E-Tech in areas such as private equity (PE), corporate banking (CB), public-private partnerships (PPP), mergers and acquisitions, fund management, and resource sharing. Leveraging E-Tech’s Ance Health Cloud Platform and health management service team, along with China Minsheng Bank’s network of over 5,000 community banks across China, both parties will engage in business cooperation to deliver “Internet + Health Management” services to China Minsheng Bank’s premium customers.
In late June, China Minsheng Bank leveraged medical appointment registration as a strategic entry point and collaborated with the National Healthcare Guidance Platform, designated by the National Health and Family Planning Commission, to develop and launch medical services covering more than 1,000 key hospitals across China. This initiative has made it the bank with the most extensive coverage of mobile banking medical services in the industry. According to VCBeat, China Minsheng Bank will continue to work with the platform to further expand the network of participating hospitals, providing the public with more convenient access to medical care.
Entry Point:Medical Appointment Registration, “Internet + Healthcare + Health + Elderly Care” O2O
Bank of Communications
On August 21, 2014, Bank of Communications signed a comprehensive strategic cooperation agreement with Sinopharm Health Development Co., Ltd., a subsidiary of China National Pharmaceutical Group Corporation (Sinopharm), and launched Shanghai’s first mobile medical payment product, “Health Gold.” Henceforth, patients can complete appointment registration, fee payments, reimbursement claims, and report viewing via the Bank of Communications’ mobile client app, eliminating the need for time-consuming queueing.
However, there is currently no information regarding “Health Gold” on the official website. In early July, Bank of Communications partnered with Peking Union Medical College Hospital to launch the “Union Silver-Medical Service.” Through Bank of Communications’ self-service channels (such as online banking and multimedia inquiry kiosks), customers can schedule appointments at Peking Union Medical College Hospital for dates within seven calendar days (inclusive). Additionally, real-time payment can be made via the hospital’s outpatient payment counters and self-service payment kiosks.
Entry Point:Medical Appointment Registration, Payment, Reimbursement, and Report Viewing
China CITIC Bank
Compared to other commercial banks’ ventures into internet healthcare, its “ambitions” are considerable, aiming to build an ecosystem for the healthcare industry.
In mid-January 2015, a cooperation agreement was signed with the Qingdao Municipal Health and Family Planning Commission to jointly build a medical informatization platform covering healthcare institutions across Qingdao. According to the agreement, once completed, the platform will provide Qingdao residents with convenient and beneficial services, including a city-wide universal health card for medical visits, cross-hospital use of diagnosis and treatment fees, convenient point-of-care payment, access to personal health records, and mobile appointment registration.
On the 22nd of the same month, a strategic cooperation agreement was signed with Alibaba Health in Beijing. Both parties will jointly build and promote an online-to-offline (O2O) e-commerce platform for pharmaceuticals, collaborate to explore partnerships in areas such as medical institutions and health insurance, and achieve sharing of big data on drug information, medical resources, and customer resources.
CITIC Bank stated that it will further strengthen close collaboration with enterprises within the CITIC Group, leveraging equity and debt financing as capital linkages. By harnessing the Group’s advantages in hospital management, network technology, and payment and settlement services, the bank aims to build a comprehensive healthcare industry ecosystem, with strategic layouts in areas such as the restructuring of public hospitals, acquisitions of private hospitals, health and elderly care, mobile healthcare, and remote diagnosis and treatment.
In addition, CITIC Bank’s subsidiary, Xinyin Zhenhui, has partnered with the Xiangya Medical Consortium to jointly develop and deploy “Smart Healthcare” products leveraging big data and data mining technologies, offering services such as medical data hosting, mobile healthcare, and health management.
Entry Point:Medical Insurance, Big Data, Medical Information Platforms, Pharmaceutical E-commerce, Telemedicine
Industrial and Commercial Bank of China
On June 26, 2015, a strategic cooperation agreement was signed with Baidu. The two parties will collaborate on internet healthcare through the dual-selection platform for doctors and patients, “Baidu Doctor,” including services such as appointment registration. Currently, Baidu Doctor has launched physician appointment services in nine provinces across China, covering approximately 2,000 hospitals and more than 40,000 physicians.
Entry Point:Medical Appointment Registration
China UnionPay
Patients can register an account and link their UnionPay card via the mobile app or in-hospital self-service kiosks, enabling them to schedule outpatient appointments through their smartphones. Additionally, after the consultation, physicians can process all payments with a simple mouse click, ensuring that fees are settled simultaneously when examination orders are issued and medications are dispensed.
Moreover, through UnionPay’s “Modern Hospital” system, patients’ social security payments and out-of-pocket expenses are automatically settled in real time as separate transactions: the portion covered by social insurance is still deducted from the patient’s social security account, while the self-pay portion is charged to the linked bank card.
On July 24, China UnionPay’s Guangdong Branch partnered with the First Affiliated Hospital of Jinan University (Guangzhou Overseas Chinese Hospital) to announce the official launch of the “Yichengtong” app, which incorporates UnionPay’s Modern Hospital Payment Service Solution. With the “Yichengtong” app, users can conveniently register for appointments, make same-day registrations, check queue status, pay outpatient fees, and cover hospitalization deposits anytime and anywhere. The app also enables functions such as consolidated medical insurance settlement and inquiry of medical insurance account balances.
In addition to collaborating with hospitals, we have also partnered with hardware manufacturers to facilitate mobile healthcare payments.
In late May, Codoon and Industrial Bank co-hosted the “Get Moving, Get Rewarded” launch event in Shanghai. At the event, Codoon unveiled China’s first wearable mobile payment solution and introduced the “Xing Dongli” credit card, pioneering a new model that allows users to redeem calorie data for credit card points through cloud-based data sharing.
Entry Point:Mobile Healthcare Payments
China Merchants Bank
On April 22, 2015, the first “mobile healthcare” platform in Northwest China, jointly established by China Merchants Bank’s Xi’an Branch and Xi’an No. 1 Hospital, was successfully launched.
China Merchants Bank’s “Mobile Healthcare” product leverages smartphone mobile platforms to directly connect hospitals with patients, serving as a comprehensive, on-the-go healthcare assistant. Its services span the pre-consultation, during-consultation, and post-consultation phases, enabling patients to enjoy a new healthcare experience where triage guidance is accessible without leaving the consultation room and payment settlements can be completed without leaving the hospital bed, all with just a few taps.
Entry Point:Medical Process Services
Shanghai Pudong Development Bank
Bank of Beijing
In April 2015, the real-name IC medical card “Jingyitong” (launched on April 21, 2012), jointly initiated by Bank of Beijing, the Beijing Municipal Health and Family Planning Commission, and the Beijing Hospitals Administration, was officially integrated with WeChat. Leveraging the “Official Account + WeChat Pay” framework and WeChat’s mobile entry point, it delivered a comprehensive and seamless smart healthcare service.
After “Jing Yi Tong” was integrated into WeChat’s Smart Healthcare system, nearly 30 departments across 23 Grade-A tertiary hospitals—including Beijing Shijitan Hospital, Beijing Tongren Hospital, and the Capital Institute of Pediatrics—gained immediate access to WeChat’s end-to-end medical consultation services and WeChat Pay.
Patients can follow the “Jingyitong” WeChat service account on their mobile phones and link their personal “Jingyitong” card. They can then select a hospital in Beijing and, following the on-screen prompts, sequentially choose same-day or advance registration, department, date, and available appointment slots, thereby completing payment of the registration fee directly via WeChat Pay.
Entry Point:Mobile Healthcare Payments, Medical Appointment Registration
Industrial Bank
As early as 2013, the Fuzhou Branch of Industrial Bank had already pioneered pilot initiatives.
That year, the branch launched the “Bank-Hospital Connect” cash management service solution at Fujian Provincial Hospital and deployed “Bank-Hospital Connect” self-service kiosks. The solution was subsequently rolled out to more than 10 key regional hospitals, including the First Affiliated Hospital of Fujian Medical University, Fujian Provincial People’s Hospital, and Fujian Cancer Hospital.
One year later (on July 1, 2014), Industrial Bank’s Foshan Branch, in partnership with Kingdee Medical Software Technology Co., Ltd. and Foshan Hospital of Traditional Chinese Medicine, announced the successful launch of a patient mobile service and payment system at Foshan Hospital of Traditional Chinese Medicine, integrated with its WeChat Service Account. This milestone marked the integration of traditional Chinese medicine with modern information technology, ushering in the era of mobile internet.
By following the “Foshan Hospital of Traditional Chinese Medicine” WeChat Service Account, patients can access Kingdee Medical’s mobile patient service software features, including appointment registration, fee payment, viewing laboratory test reports and itemized billing statements, and providing feedback on medical service satisfaction, thereby obtaining hospital services and completing payments.
Nearly a year later (on June 1, 2015), Industrial Bank Co., Ltd. Fuzhou Branch and Fujian Provincial Maternity and Child Health Hospital jointly launched the “Mobile MCH” service platform. This platform comprises two mobile applications: a hospital app and a WeChat official account. Patients can complete appointment registration, self-service top-ups, waiting for consultation, visit guidance, and viewing of test reports and medical orders via mobile devices such as smartphones and iPads without leaving home. Since its launch, the number of registered users has exceeded 20,000, with cumulative transactions surpassing 5,000.
Furthermore, in early this year, it partnered with Yilianzhong to develop China’s first “One-Card Medical Payment” platform, which integrates medical consultation services, financial payments, and health insurance settlements, enabling seamless cross-regional and cross-hospital medical payment services.
Currently, the platform has been successfully launched at Fujian Provincial People’s Hospital, the Stomatological Hospital of Fujian Medical University, and Union Hospital. According to VCBeat, the platform will subsequently be gradually replicated and promoted to other major key hospitals in Fujian Province, as well as expanded into the public services and personal consumer sectors.
Entry Point:Medical Appointment Registration, Payment, Report Viewing, and Mobile Healthcare Payment
Ping An Bank
On April 21, 2015, Ping An Insurance announced the official launch of its first internet-based health management product, “Ping An Good Doctor.” Positioned as a user’s portable “mobile doctor,” this innovative product centers on physician resources to provide real-time consultations and health management services. Offerings such as “one-on-one exclusive online family doctor services,” “professional consultations with 5,000 renowned specialists from top-tier (Grade A tertiary) hospitals, along with additional outpatient appointment slots and scheduled lead surgeon services,” and “weekly pro bono consultations by 50,000 attending-level physicians” are designed to create a convenient, efficient, and high-quality new O2O health management experience for users.
Entry Point:Online Services
Based on the above information, commercial banks’ entry points into internet healthcare primarily focus on three areas: appointment registration, mobile medical payments, and process-oriented services such as fee payment and report access. Few banks have launched online services that directly connect patients with physicians; instead, they appear to prefer collaborating with institutions and organizations. According to banking insiders, banks are not prioritizing profitability when introducing internet healthcare services. Rather, they aim to enhance customer stickiness and expand credit businesses through value-added services, which explains the aforementioned trend.
Regardless of the approach, what is truly striking is the cross-industry transformation sweeping the entire sector.