Beijing Liandong Youshi (UMPay), an affiliate of China Mobile (CHL) which is responsible for the company's mobile phone banking service, has announced that China Mobile has reached an agreement with 19 domestic banks to jointly promote a mobile phone SMS-based banking service.

With this new service, which is called "Yin Xin Tong", mobile phone users will be able to obtain financal information through their mobile phones and wireless POS by sending text messages or logging in through GPRS and WAP.

A representative from China Mobile has told local media that some of the 19 banks include Industrial and Commercial Bank of China, China Construction Bank, China Merchants Bank, Industrial Bank and Huaxia Bank. According to their agreements, the 19 banks will buy a mobile phone short message and group message sending terminal from China Mobile to provide financal service to their clients.

At present, the service can be used to remind users about card use, notify them about account transfers and loan payments, and make inquiries on bank accounts, bank transaction, stock and foreign exchange information.

UMPay says that because the service is being tested, it is free for the time being. But a detailed charging system will come out soon.

UMPay is a joint venture between China Mobile and China UnionPay. Each holds 50% stake in the company.