A FINTECH joint venture between China CITIC Bank Corp. and Baidu Inc. is seeking as much as 7 billion yuan (US$1 billion) in a private funding round, according to people with knowledge of the matter.

aiBank, the digital bank operation, is aiming to complete the financing in the coming months, one of the people said. Deliberations are under way and details of the deal may change, according to the people.

Traditional lenders have been cutting staff and downsizing their branch network amid competition from online payment giants such as Alibaba Group Holding Ltd. affiliate Ant Financial and Tencent Holdings Ltd. More banking transactions in China are now completed outside brick-and-mortar branches.

A representative for Baidu declined to comment. aiBank said in an emailed response that it “has nothing further to disclose.”

The online lender, set up in 2015, provides personal loans of as much as 300,000 yuan without requiring collateral, according to its website.

It also operates deposit services, sells financial products and offers electronic wallet systems to businesses.

CITIC Bank controls 70 percent of the joint venture while Baidu owns the remaining stake, according to a 2018 statement. (SD-Agencies)