To facilitate the introduction of digital banks, the Hong Kong Financial Authority (HKMA) printed a revised Guideline on Authorisation of Digital Banks on May 30, 2018. These challenger banks, additionally known as as neobanks in elements of the globe, don’t have any bodily branches and give attention to the shopper’s necessities of digital banking.
A digital bank is outlined as a bank which primarily delivers retail banking companies by the web or different types of digital channels as an alternative of bodily branches.
The introduction of those banks in Hong Kong has been a key pillar supporting Hong Kong’s entry into the sensible banking period. The HKMA believes that the event of such banks will promote FinTech and innovation within the area and supply a brand new type of buyer expertise. These challenger banks will help promote monetary inclusion as they usually goal the retail section, together with the small and medium-sized enterprises (SMEs).
Airstar Bank is a collectively established entity by Xiaomi and AMTD Group. The bank was granted a banking licence by the HKMA in May 2019.
Previously referred to as Perception Fintech, the digital bank, on the finish of March this yr, introduced the launch of a pilot trial performed inside the Fintech Supervisory Sandbox (FSS) of the HKMA.
Digital banking companies have been formally launched in June to the general public. Banking companies embody financial savings account, time deposit and private loan merchandise.
Ant Bank, by Ant Group, was integrated in Hong Kong in August 2018 and was beforehand referred to as Ant SME Providers. The bank has additionally formally opened in Macau. Primarily based on superior web expertise, it should progressively present environment friendly, handy and secure diversified web monetary companies to small and medium enterprises, entrepreneurs, and particular person shoppers in Macau.
The bank was granted its licence below the Banking Ordinance by HKMA in May 2019 to function within the type of a digital bank.
Fusion Bank is a three way partnership between Tencent, Industrial and Business Bank of China (Asia), Hong Kong Exchanges and Clearing, Hillhouse Capital and Hong Kong entrepreneur Adrian Cheng. This neobank was granted its licence in May 2019 to facilitate monetary innovation, enhanced buyer expertise and monetary inclusion as a part of HKMA’s sensible banking initiatives.
In August, livi bank opened up its digital doorways to the residents of Hong Kong. livi bank has partnered with UnionPay Worldwide which entails the combination of the UnionPay QR Fee into the bank’s livi’s digital banking app, which is out there starting right now.
This month, Wolters Kluwer was chosen by the digital bank for the OneSumX for Regulatory Reporting answer which can handle livi’s regulatory reporting obligations.
livi bank is backed by Bank of China Hong Kong, Jingdong Digits Expertise and the Jardine Matheson Group.
Mox is backed by Commonplace Chartered (SC), in partnership with HKT, PCCW and Journey.com. In April, the bank introduced its availability on an invite foundation to chose exterior prospects, following its model launch in March. The purpose of the exterior pilot was to assemble suggestions from prospects and put together Mox for a launch to the broader public later this yr.
This month, the bank formally launched in Hong Kong the place the corporate has first invited pre-registrants who had signed up on its waitlist for companies. These pre-registrants will probably be invited in phases to open their Mox accounts.
The digital bank will begin with its first 3,000 pre-registrants, who will obtain the limited-edition steel Mox Card upon the profitable opening of an account. Later, different pre-registrants will probably be progressively eligible for a steel Mox Card. Over 20,000 have pre-registered.
Ping An OneConnect Bank
PAOB is a wholly-owned subsidiary of OneConnect Monetary Expertise (OneConnect) and a member of Ping An Insurance coverage. The bank has talked about that it’s dedicated to establishing a digital banking ecosystem by optimising customer-centric companies by its expertise. PAOB was granted a digital banking licence by the HKMA in May 2019. PAOB is growing various enterprise segments together with retail banking and SME banking.
In June, Ping An OneConnect Bank introduced its pilot trial below the Fintech Supervisory Sandbox (FSS) of HKMA. The bank had invited about 200 chosen small and medium enterprises (SMEs) and roughly 2,000 particular person prospects in Hong Kong to expertise PAOB SME and retail banking companies.
This bank launched within the area on the finish of July this yr and reported over 10ok account opening functions inside 10 days of its launch.
The utterly digital neobank allows prospects to open an account inside 5 minutes with no month-to-month charges. Providers comparable to time deposits, an interest-bearing deposit account with an on the spot digital debit card, and real-time funds powered by Sooner Fee System (FPS), amongst others are provided by the bank.
WeLab Bank introduced this month that it chosen Solace as a core part of its expertise structure to ascertain multi-cloud vendor communication. Utilizing Solace PubSub+, the neobank will run its total infrastructure on a number of clouds to make sure buyer info is properly protected and secured.
Previously referred to as ZhongAn Digital Finance, ZA Bank obtained its digital banking license in March 2019. It obtained the primary batch of digital banking licenses issued by the HKMA.
Its most up-to-date partnership is with Evanston-based Accuity, a world supplier of monetary crime screening, funds and counterparty know your buyer (KYC) options. The bank has carried out Accuity’s screening answer to enhance buyer experiences, and on the identical time, meet home and worldwide regulatory necessities.
This challenger bank was formally opened by the HKMA in March 2020 and is alleged to have change into the primary digital bank within the area.