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Standard Chartered says it will apply to operate a virtual bank in Hong Kong

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Chief executive of Standard Chartered Hong Kong, Mary Huen Wai-yi, said the virtual bank licence is in line with the goal of supporting “a new era in smart banking”. Photo: Jonathan Wong

Hong Kong and London-listed Standard Chartered plans to apply for a virtual bank licence, making it the first traditional bank seeking a licence locally to operate purely online without physical branches.

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The Hong Kong Monetary Authority last month announced details on its virtual bank licences and set August 31 as the deadline for the first batch of applicants.

HKMA deputy chief executive Arthur Yuen said about 50 companies had expressed interest in applying for the virtual bank licence, while purely online lender WeLab and payment platform Yedpay! have separately told the South China Morning Post they would apply for the licence.

“Technology is at the heart of our bank’s strategy and we have embarked on a journey to take a step beyond and go truly digital,” said Samir Subberwal, regional head of retail banking in Greater China and North Asia at Standard Chartered.

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Gordon Tsui Luen-on, managing director of Hong Kong-based brokerage Hantec Pacific, said traditional banks such as Standard Chartered would need to apply for a virtual bank licence to capture the younger generation of new customers.

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