Xiaomi has been on a roll for past couple of months with the launch of many successful smartphones back to back. Xiaomi keeps looking for innovative ways to expand its business territories and has launched a couple of products like suitcases, electric cookers, bicycles,television sets, drones and many more to count. Now the device maker from China has forayed into the banking sector as well.
Xiaomi has entered into partnership with an animal feed producer in China and a convenience store operator to set up a private bank in South-West China. The name of this bank is Sichuan Hope Bank and it has a registered capital of RMB 3 Billion which comes to around $450 million. This bank is slated to start its services by the end of this year. Both small and medium sized business are on the target list of this bank and will also be helping the online buyers.
Xiaomi has 29.5% stake in the bank and this bank relies on mobile technologies and online to offline presence to trade with consumers, agricultural sector and other businesses. Xiaomi’s involvement in the banking sector comes in a bid to diversify its business as in its smartphone business it is facing stiff competition from local players like Huawei, Meizu, Oppo, Vivo etc. The smartphone business in China is said to have reached a point of saturation so brands like Xiaomi which is only 6 years old is looking for new ways to stay afloat in this cut throat competition.