Hong Kong is ready to welcome Stanchart’s application for virtual banking license

Hong Kong is ready to welcome Stanchart’s application for virtual banking license

A British multinational banking and services company, Standard Chartered has recently made plans to apply for a virtual banking licence in Hong Kong. It is one of the first global banks that has announced its intentions like this in the field of digital banking.

The idea of virtual banking and permitting new challengers to enter the industry dominated by traditional banks is currently trembling up the Hong Kong market. With that being said, Stanchart is also making plans on setting up some task forces to study the details and revised guidelines of the Hong Kong Monetary Authority.

Hong Kong’s virtual banking platform is also strategizing on becoming fully licenced retail bank. After becoming one, StanCharts dreams will also come closer to building up new business in the city. “The reason for them to do it would be to bring something sufficiently distinct from their current offerings,” asserts James Lloyd, the head of financial technology for EY in Asia-Pacific.

A whooping amount of $15 billion to $17 billion is said to be invested by HSBC in the areas related to technology and core Asian markets of Hong Kong and China.

In the recent report, the central bank has claimed on how HKMA is receiving tons of enquiries from the interested companies, just after the announcement of virtual banking in Hong Kong.

Samir Subberwal, Head of Retail banking for Greater China and North Asia, Standard Chartered has made a pretty clear statement by saying on how people expect one account and a simplified financial life.

He further asserts, “That is why we believe that the launch of a virtual bank will give clients the choice of going completely digital for their everyday-banking needs”