Standard Chartered is about to launch its first virtual bank in Hong Kong. The move shows how traditional banking is responding to the challenges of fintech innovation.
The Hong Kong Monetary Authority (HKMA) recently issued guidelines for the launch of virtual banks in the territory. While a number of fintechs are also interested, Standard Chartered is the first global bank to break cover. The U.K.-based bank, which generates the majority of its revenue in Asia, will work closely with HKMA to get a license for a virtual bank in the city, the company said in a statement on Monday.
«We are developing our virtual bank with innovation and client needs in mind so that their banking experiences cater to their digital lives,» said Mary Huen, CEO of Standard Chartered in Hong Kong.
Digital Priority
Since Hong Kong's central bank and banking regulator announced their intention to encourage virtual banking, they received inquiries and indications of interests from more than 50 companies, including applications from global institutes, as finews.asia reported.
Following its return to profit, Standard Chartered poured $400 million into digital banking operations. The bank appointed Michael Gorriz as chief information officer and Anju Patwardhan as chief innovation officer in July 2015 to kickstart the virtual revolution at the company.
