Standard Chartered Bank sees virtual bank licence as ticket to new business worldwide
The bank’s Hong Kong CEO says the new operation would be run separately, but that traditional banking and branches still have a role to play
Standard Chartered Bank sees its decision to apply for a virtual banking licence in Hong Kong – the first traditional bank in the city to do so – as opening up new areas of growth both in the city and overseas.
The Hong Kong Monetary Authority (HKMA) is poised to issue the city’s first virtual banking licences by the end of the year to promote fintech and tap into the growing trend for online finance.
Some 60 companies, also including online payment operator Yedpay! and online lender WeLab, have said they are interested ahead of an August 31 deadline for applications.
“We decided to apply for a virtual bank licence as we believe virtual banking is full of new opportunities and has a lot of room for development,” said Mary Huen Wai-yi, the bank’s chief executive in Hong Kong.
“For existing customers of Standard Chartered, they would have more choice when using new virtual banking services. The licence would be a new engine to attract new customers,” she said, adding that the bank would be looking at the mainland China market too should regulators there allow mainlanders to access its virtual bank.