MasterCard CEO Addresses China Development Forum

  MasterCard CEO Addresses China Development Forum

  Ajay Banga Advocates Innovation as a Key to China’s Economic Success among

  Tweet: CEO Ajay Banga advocates#innovationas a key to#China’s #economic
     success among #SMEs @ China Development Forum

Business Wire

BEIJING -- March 24, 2013

In a speech delivered today at the China Development Forum in Beijing, Ajay
Banga, President and CEO of MasterCard (NYSE: MA), shared his views on how
innovation can help drive economic growth. Banga noted that China’s current
wave of industrialization – which has resulted in unprecedented growth based
on low-cost labor – is challenged and the country needs a new model centered
around continuous innovation.

“China needs to focus on the right areas to enhance its innovation ecosystem –
an effort which will be instrumental in advancing China’s Small and Medium
Enterprise (SME) segment,” said Banga.

Bringing to bear MasterCard’s analysis and global experience in payments
innovation before more than 500 audience members consisting of global CEOs,
world leaders, and renowned scholars, Banga recommended four key imperatives
in order for China to move forward in creating an economic environment more
favourable for SMEs and future growth:

  *Create a more level playing field for SMEs by removing the significant
    structural advantages that State-Owned Enterprises have over SMEs;
  *Reform the interest rate regime, so that China’s banks will increase their
    focus on SME lending in order to preserve good interest margins;
  *Harness a local banking model with right mix of global banks, large
    national banks and smaller regional / local banks to create efficiency in
    financing and serving SMEs; and
  *Develop Electronic Payment Innovations that meet SMEs’ unique needs.

At the event, MasterCard released a White Paper titled New Wave of Growth in
China - Innovation through Developing SMEs to provide insights on how SMEs
will drive innovation and help China sustain its growth in the current global
economic environment.

MasterCard was the first international payments organization to enter the
Chinese market, having established the MasterCard Beijing Representative
Office in 1987 after receiving approval from the People’s Bank of China. Over
the past 25 years, MasterCard has established deep roots in China and
contributed to the development of the country’s electronic payments industry
by working closely with financial institutions and domestic payment technology
firms to make payments within and outside China more reliable, efficient and

About MasterCard

MasterCard (NYSE: MA),,  is a technology company in the
global payments industry. We operatethe world’s fastest payments processing
network, connecting consumers, financial institutions, merchants, governments
and businesses in more than 210 countries and territories. MasterCard’s
products and solutions make everyday commerce activities – such as shopping,
traveling, running a business and managing finances – easier, more secure and
more efficient for everyone. Follow us on Twitter @MasterCardNews, join the
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Huanyu Wu
MasterCard Worldwide
(86-10) 8519-9304
Coco Ji
Weber Shandwick
(86-10) 8569-9959
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