Ping An OneConnect Bank to Pilot Virtual Banking Services

Source: Regulation Asia Editors, Regulation Asia 2020-06-28

Ping An OneConnect Bank is inviting 200 SMEs and 2,000 retail customers to pilot test its virtual banking services in the HKMA’s sandbox.

Ping An OneConnect Bank has announced the launch of its virtual banking pilot project, making it the fifth new virtual bank in Hong Kong to do so.

The bank is a wholly-owned subsidiary of OneConnect Financial Technology, the technology arm of China’s Ping An Insurance Group. Last year, it received one of the eight virtual bank licences granted by the HKMA (Hong Kong Monetary Authority).

Under the HKMA’s Fintech Supervisory Sandbox, Ping An OneConnect Bank will invite about 200 SMEs and approximately 2,000 retail customers in Hong Kong to pilot test its virtual banking services, including account opening, savings, funds transfers and lending.

“This is a prelude to [Ping An OneConnect Bank]’s official launch in the future, aiming to optimise banking services with high convenience, efficiency and security,” the bank said in a statement.

The pilot is aimed at shaking up conventional SME banking services, allowing trade SME customers to experience what it calls an “innovative lending experience” through “Trade-Connect Loan”, which leverages a partnership with Hong Kong-listed Tradelink to create a unique risk assessment platform so as SME clients don’t have to submit documents for trade loan approvals.

“The innovated risk assessment platform enables us to trim down operating time and serve trade SMEs with efficient account opening and lending, so as to optimise our SME banking services and fit in with market trends,” said Ping An OneConnect Bank Chief Executive Ryan Fung.

The bank is also participating in the 90% Guarantee Product under the SME Financing Guarantee Scheme, a government programme to support SMEs through Covid-19, from Q3 this year.

For retail customers, Ping An OneConnect Bank is offering 24/7 banking services via mobile app, simple account opening and basic savings interest rate of 1% p.a. A bonus interest rate up to 8.8% p.a. is also being offered on deposits up HKD 88,000, until 9 September.

To date, virtual banks ZA Bank (by ZhongAn/Sinolink) and Airstar Bank (by Xiaomi/AMTD) have launched full operations, while Mox Bank (by StanChart/PCCW/HKT/Ctrip) and WeLab Bank have launched pilot services.

The three approved virtual banks that have yet to make any formal launch announcements are: Ant SME Services (Hong Kong) Limited (by Ant Financial); Infinium Limited (by Tencent/ICBC HK/HKEX/Hillhouse Capital/Perfect Ridge; and Livi VB Limited (by BOCHK/JD Digits/Jardines).

Ping An OneConnect Bank

Virtual Banking Services

Ping An OneConnect Bank to Pilot Virtual Banking Services

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