HKMA grants first licenses for virtual banking

Chinese mainland internet companies are at the cutting edge of virtual banking in Hong Kong, as they strive to ratchet up their presence and strengthen their position in the financial technology race.

The Hong Kong Monetary Authority (HKMA) on Wednesday granted the first batch of licences to firms that have partnered with Standard Chartered, Bank of China (BOC) Hong Kong Holdings and ZhongAn Online P&C Insurance.

The much-awaited license, which attracted more than 30 city-wide applications last year, allows institutions to offer services online instead of operating brick and mortar branches.