Ping An, China’s largest insurer by market value, is considering applying for a digital banking license in Singapore, following its successful application in Hong Kong, where it is set to launch a digital bank by year-end.
OneConnect, the fintech unit of Ping An Insurance, is considering applying for a digital banking license in Singapore, according to a «Bloomberg» report (behind paywall) that cited undisclosed sources.
As a foreign-owned entity, OneConnect can apply for a digital wholesale bank license for the upcoming digital banking regime in Singapore, which allows it to provide banking services to small and medium-sized businesses on the island.
A company representative told the publication via WeChat that it is «reaching out to organizations who are interested in virtual banking solutions» and that it «sees massive opportunities in the new virtual banking space that reaches out to the underserved segment in Singapore» but did not comment on the application.
Hong Kong License
Ping An’s «OneConnect Bank» is one of eight firms that were issued virtual banking licenses by the Hong Kong Monetary Authority since March.
The bank said OneConnect will likely launch by the end of the year and does not aim to compete using a traditional business model in Hong Kong’s crowded banking sector. Instead, it intends to use its virtual banking license for more innovative purposes including as a platform provider to share its risk technology to enable and generate revenue from banks.
Applications Open
The Monetary Authority of Singapore in June said it would issue up to five digital banking licenses – two digital full bank licenses, which are reserved for Singapore-owned entities, and three digital wholesale bank licenses.
Last Friday, it announced rules for the licenses and said it would accept applications until the end of the year. It expects to announce the successful license recipients in mid-2020, with a target of mid-2021 for the launch of operations.
