Hong Kong-based ZA Bank has obtained a license from the Securities and Futures Commission (SFC) for Type 1 regulated activity, the digital bank announced.
The new license will allow the digital bank to deal with securities. In addition, it has become the first digital bank in the special administrative region to receive such a regulatory license.
ZA Bank is planning to offer simple and convenient investment services. It is focused on creating a different fund investment experience with its upcoming products. Though the company did not reveal any launch date, it said that it will launch its investment fund services in the ‘due course’.
Commenting on the new license, the Chief Executive Officer of ZA Bank, Rockson Hsu, said: “The obsession with user experience shows our determination to be the ‘Game Changer’ in the banking industry. Within just 2 years since our full launch, our dedication to innovative banking services has earned us the trust and support of more than 500,000 users. We look forward to further enhancing users’ experience with our game-changing investment fund services!”
The Growing Number of Virtual Banks
The popularity of virtual banks skyrocketed in recent years. These banks offer all services similar to any other bank but operate without any physical branch. Additionally, they are quick in implementing new-age technology.
Many virtual banks have spawned in Hong Kong over the past few years. All of these banks come directly under the supervision of the Hong Kong Monetary Authority (HKMA), which issued the first batch of its license to virtual banks in 2019.
Furthermore, the popular Chinese fintech, Ant Group launched a virtual bank in Hong Kong in 2020 to expand its services in Hong Kong by becoming one of the very few virtual banks in the region.
