Tencent-backed Airwallex to join push for Hong Kong virtual bank license

Tencent-backed payment operator Airwallex has become the latest fintech company to show interest in joining the city’s virtual banking push.

The company shifted its headquarters to Hong Kong from Melbourne earlier this month as it prepares to submit a virtual banking license application, along with partners, ahead of Friday’s deadline.

Airwallex co-founder and chief executive Jack Zhang said the company will team up with a traditional bank and other local partners as part of the application process, although he declined to reveal their identities.

“We believe Hong Kong to be an ideal location to be our headquarters. Hong Kong is an international financial centre where we can serve our global clients worldwide,” Zhang said in an interview with the South China Morning Post in his newly installed office in Quarry Bay.

Another reason for the relocation to Hong Kong is proximity to major clients, including Tencent, online travel operator Ctrip, e-commerce JD.com as well as traditional lender Bank of East Asia.

“Applying for a virtual bank license in Hong Kong would allow us to offer more banking products. The requirement of a virtual bank in Hong Kong is very reasonable as it is capital light,” Zhang said.