WeLab joins fintech race to become Hong Kong’s first licensed virtual bank

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WeLab was founded by Frances Kang (left) and Simon Loong, who is also the chief executive of the company. The two were married after completing mid-career studies in the US in 2012. Photo: Jonathan Wong

Published: 9:04am, 7 May 2018Updated: 11:01am, 25 Nov 2019

WeLab, Hong Kong’s home-grown fintech unicorn, is poised to be among the first batch of companies to apply for a virtual banking license from the Hong Kong Monetary Authority, according to its co-founders.

“We have been working closely with the HKMA over the consultation of the virtual banking regulation over the past few months. We would like to be among the first to file a formal application for a virtual banking license which I believe would be an important step forward for the development of smart banking in Hong Kong,” said Simon Loong Pui-chi, the founder and chief executive of WeLab in an exclusive interview with the South China Morning Post.

In the coming weeks, the HKMA is due to issue guidelines for virtual banking regulation based on a consultation in February. Expectations are for the first licenses to be issued by the end of the year. The HKMA’s chief executive Norman Chan Tak-lam last September announced plans to introduce virtual banking in Hong Kong in what he described as a “new era of smart banking”.

Developing virtual banking in Hong Kong would also allow the city to catch up with international markets

Simon Loong, founder of WeLab

Loong, 41, a native Hongkonger, co-founded WeLab with his 34-year old Taiwanese wife Frances Kang Tzu-ping and another partner, Kelly Wong, in 2013. In five years, the company has grown to 600 staff and 30 million customers in Hong Kong and mainland China. While Loong refused to talk about the company’s valuation or listing plan, Hong Kong stockbrokers speculated the company could have a valuation of more than US$1 billion.

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