Published on : May 28, 2015
The Banking regulator in China has finally given a nod to the MYbank, which is the online bank affiliated with the country’s leading e-commerce giant Alibaba Group Holding Ltd. The bank will start operating soon, according to reports.
The bank is partially owned by Alibaba’s sister concern Ant Financial, and it is looking forward for an official launch in June, as the internet companies in China increasingly trespass the territory of traditional banks.
The head of MYbank, Yu Shengfa mentioned in comments emailed by Ant Financial to Reuters that the online bank will be a significant milestone developed by Ant Financial in its objective of making available financial services to small and micro enterprises in China.
Till April 2015, the Ant Financial made micro-loans worth US$64.5 billion or 400 billion yuan across 1.6 million small companies or more, who were previously registered with bad debt ratio of about 1 per cent, a spokesperson from Ant revealed.
According to reports, Ant Financial will have 30 per cent stake in the MYbank, while the other partners who are the subsidiaries of Fosun International Ltd and Wanxiang Group will have stake of 25 per cent and 18 per cent respectively, according to the latest reports.
The realms of Ant Financial is headed and controlled by the Executive Chairman of Alibaba, Jack Ma and other senior officials from Alibaba.
MYbank and its rival WeBank, owned by Tencent Holdings Ltd are among the numerous online private banks that have been recently shown a green light by the regulators as Beijing ventures to reconstruct the stodgy image of the country finances and the reshape the finance industry which is largely owned by the state itself.