Ping An’s Hong Kong virtual bank to showcase tech prowess as it harbours ambition to go global

Ping An Insurance (Group), China’s largest insurer by market value, plans to leverage its proprietary technology that it has developed for its soon-to-open Hong Kong virtual bank, setting it apart from the rest of the crowd as it looks to expand globally, according to its co-chief executive.

Ping An OneConnect Bank, one of eight firms that has been given a virtual bank licence by the Hong Kong Monetary Authority since March, is likely to be launched by the end of the year. These banks cannot have any physical branches and can only offer banking services through the internet, mobile phones, computers or ATMs.

“Initially, our virtual bank will directly offer lending to individuals and SMEs to show that our risk assessment models and technology can work,” Jessica Tan Sin-yin, co-chief executive of Shenzhen-based Ping An Insurance, said in an exclusive interview with the South China Morning Post after the company reported strong interim results for the first half this week. “After we have showcased them, we will sell these models and technology to other banks for a fee. We can then create a platform for SME loans which will allow Ping An and other lenders to earn money together.”