"Many of our customers felt that it was too inconvenient and time-consuming to carry out transactions or to check account balances over the counter," he explained. "After thorough research, we decided that it was the right time to provide a web-based electronic channel for these customers."

CITIC Ka Wah rolled out three basic services to corporate clients under the collective name, Banking Online.

Click2Trade Station aimed at importers and exporters, allows for the issuance of import letters of credit, standby letters of credit, shipping guarantees, collections, making payment or acceptance instruction, and so on via the Internet. The service eliminates tedious backroom paper work and reduces chances of errors.

Internet Cash Management empowers users to initiate transactions in one single window anytime, anywhere – telegraph transfers, fund transfers, statement requests, bill payment, account balance and transaction history enquiries. Users can also obtain financial information, such as deposit and foreign exchange rates.

DocPrep streamlines the preparation of export documentation with a wide range of standardised export forms, such as commercial invoices, packing lists, weight lists and shipment advice. It substantially reduces the time and effort needed to prepare documents and expedites payment cycles for exporters.

According to Mr Wong, the introduction of Internet banking services has been a success. "Customers tell us that the system is much more convenient than the old manual one. After we had launched the services, some of our customers significantly increased their transactions with our bank – some by 40 per cent – which led to our decision to introduce more Internet banking services in the near future.

"Previously, customers needed to complete L/C applications by typewriter and have the documents delivered by hand to the bank. Now, with our Internet banking service, the whole process can be completed online. Furthermore, customers can also check the application progress and transaction history through computers. It not only assures convenience in the whole application process but also adds efficiency and effectiveness to the operational management."

Of course, Internet banking could not succeed without paying close attention to security. Studies repeatedly show that the biggest obstacle to the growth of online commerce, aside from inertia, is user concern over security and privacy.

CITIC Ka Wah employed the latest technologies in the very beginning of its programme to provide Internet services to corporate customers. All its services incorporate Public Key Infrastructure (PKI), which employs separate electronic keys for sending and receiving information and ensures that the data can only be seen by the parties who have both of the keys.

CITIC Ka Wah also uses ID-Certs - digital certificates issued by Digi-Sign, a wholly owned subsidiary of Tradelink Electronic Commerce Ltd. These certificates are used to encrypt and digitally sign electronic documents submitted over the Internet, making electronic communication secure, verifiable and legally binding.

"Digi-Sign has been a great help. We've worked with other e-certification issuers, and we very much appreciate how Digi-Sign has enabled a much faster turn-around time. Most of our customers are now aware of what e-certification is, realise that doing transactions via the Internet is not all that complicated and believe that they are dealing with a bank, not an imposter."

Online business has transformed this venerable banking institution. It is now perceived as one of Hong Kong's more progressive and innovative financial institutions.

How it works?

• When a customer requests to use CITIC Ka Wah Bank's corporate Internet banking services, the bank will assist the customer in applying for digital certificates and submit the application to Digi-Sign on the customer's behalf.
• Digi-Sign will process the application and issue passwords to the customer directly. At the same time, the digital certificates will be sent to CITIC Ka Wah Bank.
• CITIC Ka Wah Bank will arrange with the customer for onsite certificate installation and, at the same time, provide onsite demonstration and related instructions.
• When the customer logs on to the bank's online banking services, he /she will need to key in the password to gain access.
• The bank will authenticate the customer's identity with the information stored in its system and the customer can continue to conduct online transactions.