Fintech unicorn WeLab bags Hong Kong’s fourth virtual bank licence
- HKMA says four more applications for virtual banks are being processed
- Chan Ka-keung, former Secretary for Financial Services and the Treasury, will become the chairman of WeLab Digital
A unit of home-grown fintech unicorn WeLab Holdings has won the fourth virtual bank licence granted by the Hong Kong Monetary Authority on Wednesday, making it the first stand-alone company to receive the new licence.
Simon Loong, the founder and chief executive of WeLab, said that the licence for WeLab Digital was a validation and recognition of “our innovative mindset and proven fintech capabilities”.
The HKMA said it was still processing four more candidates who are among the final eight shortlisted among 33 applicants. Last month licences were granted to three joint ventures led by Bank of China (Hong Kong), Standard Chartered Bank and online insurer ZhongAn Online.
“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,” the HKMA said in a statement.
Loong said WeLab Digital will be operational in six to nine months, adding that the virtual bank will use artificial intelligence, big data and machine learning to design its services and products.
Chan Ka-keung, former Secretary for Financial Services and the Treasury and WeLab’s senior adviser, will become chairman of WeLab Digital.