Tencent has launched a China’s first private internet bank ‘WeBank’ , that was approved in July and obtained all necessary licenses and permits by October 22.
Currently, the domain just hold a placeholder site with a QR code that explain some general information about WeBank after scanning it on a mobile phone. WeBank’s scope covers personal banking, corporate banking, international banking and date for when operations will officially begin is still undisclosed.
As per TechinAsia report, the ownership structure of WeBank is as follows: Tencent owns 30 percent, investment firms Baiyeyuan Investment and Liye Group each own 20 percent while seven other shareholders together representing remaining 30 percent and the entity as a whole has a registered capital of USD 482 million.
At the moment, Alibaba and Tencent have already signed up and WeChat would also be one of its first customers. Besides this, the two also have their own high-interest saving funds set up in cooperation with existing banks. Alibaba and JD have set up small loan programs and credit systems for their merchants and customers, respectively.
This move is being made to allow the online businesses to be able to give out loans to their customers and merchants without routing them through a bank.
Image Source: WeBank.com