Authorities in the special administrative region have issued another batch of permits to operate digital-only banks.
The Hong Kong Monetary Authority (HKMA) has granted virtual banking licenses to Ant SME Services, Infinium, Insight Fintech, and OneConnect, the banking regulator said in a statement on Thursday.
Under their business plans, which were taken into consideration when granting the licenses, the four operators will launch their services in six to nine months' time.
The regulator said it would closely monitor the operations of virtual banks after they have commenced business, including customers’ reactions to the new modes of delivery of financial services, as well as their impact on the banking sector in general.
Strong Backing
The licensees come with strong backing: Ant SME Services is part of Ant Financial, the highest valued fintech company in the world and the world's most valuable unicorn company, with a valuation of US$150 billion.
Infinium is a joint venture between Tencent, the Asian subsidiary of Chinese banking giant Industrial and Commercial Bank of China, Hong Kong stock exchange operator Hong Kong Exchanges and Clearing, private equity firm Hillhouse Capital, and Adrian Cheng, executive vice chairman of New World Development and executive director of Chow Tai Fook.
Insight Fintech is a joint venture of Xiaomi, which holds 90 percent, and independent investment bank AMTD Group, while OneConnect is a unit of Ping An Insurance, China’s largest insurer by market value.
Financial Innovation
«The launch of virtual banks in Hong Kong, which is a key component of the Smart Banking Initiatives, will certainly facilitate financial innovation, enhanced customer experience, and financial inclusion,» Norman Chan, HKMA chief executive, said.
in 2018, HKMA announced a series of measures to boost smart banking and bring fresh air to financial services in the city. The first batch of virtual banking licenses was issued in March to Livi VB, SC Digital Solutions and ZhongAn Virtual Finance, with the fourth license issued to fintech company WeLab in April.
