The Hong Kong Monetary Authority has granted three virtual bank licenses and is processing five more, deputy chief executive Arthur Yuen said in a briefing on Wednesday. Firms that got the permits have partnered with Standard Chartered, BOC Hong Kong Holdings Ltd. and ZhongAn Online P&C Insurance Co and they intend to begin operating within nine months, Mr Yuen said.
The city is playing catch up with regional economies, notably China and India, by allowing fintech to shake up retail banking. A reliance on cash and strong household savings had yielded high profitability for a clutch of lenders and kept the industry concentrated. That could see the sector vulnerable to disruption as competition gets fiercer.
“This will help foster fintech development in Hong Kong and promote financial inclusion,” the Hong Kong Association of Banks said in a statement. “The industry can leverage this opportunity to develop new business models.”
Read More.. Source The Straits Times