China postal savings bank ties up with Ant Financial on fintech innovation

FILE PHOTO: People walk past a sign outside a branch of Postal Savings Bank of China (PSBC) in downtown Beijing, China, November 12, 2015. REUTERS/Kim Kyung-Hoon/File Photo

BEIJING (Reuters) - Postal Savings Bank of China (PSBC) 1658.HK, the state bank with the largest branch network, said it had signed a strategic cooperation agreement with fintech giant Ant Financial on Wednesday.

The pact with the Alibaba-backed BABA.N financial firm will focus on areas such as digital payments, online lending, rural finance and corporate finance, the bank said in a statement sent to Reuters.

The partners will also set up a joint lab to explore fintech innovations, and extend tie-ups in areas such as internet security and taking bank branches digital.

Reporting by Cheng Leng and Vincent Lee; Editing by Clarence Fernandez