DLA Piper advises Ping An OneConnect on Virtual Banking License

DLA Piper has advised Ping An OneConnect VB (OneConnect) on its successful application for a virtual banking license granted by the Hong Kong Monetary Authority (HKMA). Virtual Banks are a key innovation driver in Hong Kong and these licenced virtual banks key pillars to the expansion of financial inclusion to individuals and business of all levels and sizes.

The HKMA granted banking licences under the Banking Ordinance to OneConnect, Ant SME Services (Hong Kong) Limited, Infinium Limited and Insight Fintech HK Limited for them to operate in the form of a virtual bank. The granting of these banking licences takes effect from 9 May. According to their business plans, these four newly licenced virtual banks intend to launch their services in around 6 to 9 months.

Roy Chan, Senior Corporate Partner at DLA Piper, commented: "We are delighted that our long term client Ping An OneConnect has been granted a virtual banking licence by the HKMA. The launch of virtual banks in Hong Kong is a key milestone towards facilitating greater financial innovation in the city and the region. These licences and their holders provide a key avenue to attract The Greater Bay Area customers and an opportunity to enhance Hong Kong’s business prospects. We also see this as a great way to include more people and businesses in our financial market, as such we are pleased to work alongside our clients to capitalize on the opportunities this presents."

DLA Piper Litigation & Regulatory Partner, Leo Cheng advised Ping An on the regulatory issues in the course of the application