Wecash and its 32-year-old founder are driving this joint bid for a virtual bank license in Hong Kong

Wecash, a Beijing-based fintech start-up has teamed up with Japanese financial firm ORIX and Hong Kong property developer SEA Group to apply for a virtual bank licence from the Hong Kong Monetary Authority, reflecting another international alliance seeking to enter the city’s online banking business.

George Zhi Zhengchun, 32, founder and chief executive of Wecash, said his company will be the largest stakeholder in the joint venture, without disclosing specific details of the underlying structure. The three stakeholders will invest a combined HK$1 billion (US$127.88 million) into the virtual bank to offer consumer financing in Hong Kong. The application was submitted before the deadline on August 31.

“The three major shareholders have their strengths and networks and they would all contribute to the virtual bank,” Zhi said in an exclusive interview with the Post in Hong Kong.

“Wecash has the technology to use big data and machine learning to assess various credit-based metrics to support banks to offer loans to customers and in the last year. Wecash makes about 20 million transactions in China annually, while ORIX has nearly 20 years of experience in running an online bank in Japan. SEA Group is a Hong Kong company which knows the local regulations and has a good network.”

The Wecash-led consortium is yet another multinational alliance among the 29 applicants seeking a virtual bank licence from the HKMA. The de facto central bank last year announced seven measures to promote fintech, and said it plans to issue the first batch of virtual bank licences by the end of 2018.