Tencent ready to launch China's first private internet bank, WeBank

Chinese Internet giant Tencent on Monday launched the website for what will likely be the country's first ever private internet bank. China began a trial programme early this year that would allow five new private banks to be set up.

Are we a bank? Are we an internet company? We are an internet bank! 

For now, the domain just holds a placeholder site with a QR code. Scanning that QR code on a mobile phone leads the user to a presentation explaining some general information about WeBank. Forcing curious visitors to scan the QR code to learn more gives some indication about Tencent’s plans for the online bank – it will primarily be a mobile experience.

Tencent owns 30 per cent of WeBank, while investment firms Baiyeyuan Investment and Liye Group each own 20 per cent. Seven other shareholders make up the remaining 30 per cent, and the entity as a whole has a registered capital of 3 billion yuan (US$482 million). The bank was approved in July and obtained all of its necessary licences and permits by October 22.

Several internet giants have already taken a step into the finance realm by launching high-interest savings funds. Baidu, Tencent, and Alibaba each have their own, usually in cooperation with an existing bank. Alibaba’s has grown to be one of the biggest mutual funds in the world. Additionally, Alibaba and rival e-commerce company JD have set up small loan programmes and credit systems for their merchants and customers, respectively.

Setting up their own banks means these internet companies will administer their own customers’ assets rather than just being the fresh face of an existing bank. That includes greater flexibility to hand out loans and set interest rates.