WeLab gets Hong Kong's fourth online-only banking licence

Boc Hong Kong Holdings

10/04/2019 10:41

HONG KONG, April 10 (Reuters) - WeLab Digital Limited was
awarded Hong Kong's fourth online-only banking licence on
Wednesday, the Hong Kong Monetary Authority said in a statement,
giving the fintech company access to a lucrative retail banking
market in the Asian financial hub.
    WeLab is a fintech company that offers mobile lending
services primarily in Hong Kong and mainland China.
    The HKMA had previously granted virtual banking licences to
joint ventures of Standard Chartered  STAN.L  and BOC Hong Kong
 2388.HK  as well as to a subsidiary of ZhongAn Technologies
International Group, the international arm of Chinese online
insurer ZhongAn Online P&C Insurance  6060.HK .  urn:newsml:reuters.com:*:nL3N21E28U
    The introduction of online-only banking has the potential to
be the biggest shake-up in years in the city's retail banking
sector dominated by old-guard lenders such as HSBC  HSBA.L ,
StanChart and a slew of Chinese banks.
    Many consumers are unhappy with the current options, however
the entrenched position of current retail banks is expected to
be a major challenge for the new online-only entrants.
    "The introduction of virtual banks in Hong Kong is a key
pillar supporting Hong Kong's entry into the smart banking era,"
the HKMA said in the statement announcing WeLab's licence.
    "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."
    The HKMA said WeLab intended to launch its services within
six to nine months.
    Some 33 virtual banking applications were submitted by the
deadline of Aug. 31 last year. The HKMA short-listed eight, and
said on Wednesday it was making good progress on the remaining
four applications.
    Besides individuals, small firms, which have long complained
of difficulties in opening bank accounts in Hong Kong, will also
be targeted by the new online lenders, with small loans, foreign
exchange and payment services among those on offer.

 (Reporting by Julia Fioretti; Editing by Himani Sarkar)
 ((julia.fioretti@thomsonreuters.com; +852 2912 6686; Reuters
Messaging: julia.fioretti.thomsonreuters.com@reuters.net))