Livi VB, SC Digital Solutions and ZhongAn Virtual Finance have secured banking licences from the Hong Kong Monetary Authority (HKMA) to operate as virtual banks.
Image: Headquarters of Hong Kong Monetary Authority (HKMA) at the International Finance Centre in Central, Hong Kong. Photo: courtesy of Alan Mak/Wikipedia.org.
The virtual banking licenses, which were granted under the Banking Ordinance, come into effect immediately, said HKMA.
As a result of the new licences issued to the three virtual banks, the number of licensed banks in Hong Kong will be increased to 155.
A total of 29 institutions applied to the regulator to get banking licences.
The Hong Kong monetary authority said that the three newly licenced virtual banks, as per their business plans, are looking to launch their services within 6-9 months.
HKMA said that it is progressing well in the processing of the other five virtual bank applications it has at hand.
HKMA chief executive Norman Chan said: “The introduction of virtual banks in Hong Kong is a key pillar supporting Hong Kong’s entry into the Smart Banking Era. It is a major milestone in reinforcing Hong Kong’s position as a premier international financial centre.
“I believe that virtual banks will not only help drive FinTech and innovation, but also bring about brand new customer experiences and further promote financial inclusion in Hong Kong.”
Chan said that virtual banks will have to come up with innovative and customer-centric services to bring in customers and should also help promote financial inclusion in the region.
Livi VB is a joint venture of Bank of China (Hong Kong), JF Digits and Jardines, while Zhong An Virtual Finance is co-owned by ZhongAn Online and Sinolink.
SC Digital Solution, on the other hand, is a joint venture between Standard Chartered Bank (Hong Kong) with a stake of 65.1%, HKT (15.0%), PCCW (10%) and Ctrip Finance (9.9%).
The joint venture expects to integrate virtual banking into the service offerings to well-established customer bases of PCCW, HKT and Ctrip. It is planned to offer a suite of retail financial services and products and also bring together the telecom, entertainment and travel propositions from the partners, all in one place.
Standard Chartered Bank (Hong Kong) CEO Mary Huen said: “Today, we are delighted to be among the first to receive a virtual bank licence from the HKMA and we are excited to partner with PCCW, HKT and Ctrip Finance.
“The strengths of our partners combined with our own rich banking expertise mean that we are in a strong position to provide diverse financial solutions to redefine the banking experience for customers in Hong Kong.”