On September 24th, China Postal Savings Bank Co., Ltd. (Postal Savings Bank) announced its plan to absorb and merge with China Postal Wanjia Bank Co., Ltd. (Wanjia Bank), with the latter’s independent legal status to be cancelled upon completion of the merger. Wanjia Bank, established less than four years ago, will completely exit the market.
In the announcement titled “Notice on Absorbing and Merging Wholly-Owned Subsidiary” released by Postal Savings Bank on the 24th, it stated that after the absorption and merger of Wanjia Bank, the latter’s independent legal status would be cancelled in accordance with the law. All business, assets, debts, and other rights and obligations of Wanjia Bank will be taken over by Postal Savings Bank. The rights and obligations of Wanjia Bank’s customers will not be affected, and contracts and agreements that have been legally signed will remain valid.
Postal Savings Bank indicated that the merger with Wanjia Bank is primarily aimed at achieving strategic integration, optimizing resource allocation, and reducing management costs.
According to industry insiders interviewed by “Everyday Economic News,” as multiple banks have successively integrated their direct banking or digital financial subsidiaries, the industry is transitioning from the initial “multi-point trial” phase to the current “comprehensive integration” phase.
Public data shows that Wanjia Bank was established on January 7, 2022, with a registered capital of 5 billion RMB and registered address in Shanghai. The bank is wholly-owned by China Postal Savings Bank and operates as a first-level wholly-owned subsidiary. It is the first domestic independent legal entity direct bank subsidiary established by a bank.
A direct bank refers to a bank that does not have offline branches, instead operating solely through a “pure internet platform” where it integrates its own deposit, loan, and exchange services, as well as investment and wealth management products. In this operating model, the bank has no physical branches, does not issue physical bank cards, and customers mainly access bank products and services through remote channels like computers, email, mobile phones, and telephone, thereby saving on branch operation and management costs.
“Jiemian News” previously quoted industry insiders who commented that within the context of traditional bank digital transformation and competition between internet banks, the advantages of independent legal entity direct banks no longer seem as pronounced.
Apart from Wanjia Bank being merged and cancelled, TopBank, the direct bank that China Merchants Bank had been preparing for years, was halted before becoming fully operational.
In 2025, Beijing Bank migrated the direct bank service from the direct bank app to the “Jingcai Life” mobile banking app; in December 2019, Nanjing Bank merged and upgraded its mobile banking app and direct bank “Hello Bank” app; in 2018, ICBC announced the cessation of its direct bank brand “Ronge Hang”; in August 2017, Ping An Bank integrated its mobile banking, direct bank, and credit card channels apps and launched Ping An Pocket Bank, merging its direct bank.
“Everyday Economic News” reports that in recent years, over 20 banks have successively shut down or integrated direct banking operations, reflecting the trend of the banking industry shifting towards “integrated operation.”
Huazhang Era Cultural and Communication Co., Ltd.’s financial think tank, on September 24th, quoted industry insiders’ analysis, stating that the decline of direct banks is mainly due to the rise of mobile banking. In the early days, direct banks served as experimental fields for commercial banks to venture into mobile internet, undertaking the exploration task of digital transformation. However, with the comprehensive upgrade of mobile banking in user experience, business scenarios, and technological architecture, the independent value of direct banks has been diluted. Therefore, as a transitional product, direct banks have fulfilled their historical mission and are now entering history.
Postal Savings Bank’s 2024 financial report shows that in 2024, the bank achieved operating income of 243 million RMB, a 31.55% decrease compared to the previous year.