Home Challenger Banks In China Could Surge on Q4 2019
News, Technology

Challenger Banks In China Could Surge on Q4 2019

The fintech industry is growing all around the world, and Asia is not being left behind. According to a recent report released by the ADBI Institute, challenger banks could surge in China and Hong Kong this last quarter.

The Hong Kong Monetary Authority (HKMA) aims at embracing technology and innovations related to the fintech market.

Challenger Banks Could Gain Momentum in China

During the last few years, financial technology companies have been expanding all over the world. At the same time, financial regulators are also starting to embrace the technology and different innovations that emerge in the industry.

As reported by the ADBI Institute, the HKMA is adopting a risk-based and technology-neutral approach as a market supervisor.

The regulator is focused on learning and understanding the fintech space, maintain close contact with the industry and stakeholders, and achieving a balance between market development and customer protection.

It is also worth mentioning that the HKMA is working and in constant contact with regulators from other jurisdictions and countries. This is definitely important considering the worldwide reach of new technologies and how boundaries are becoming less important.

As per the HKMA document, the most recent developments in the fintech industry include an open application programming interface for banks (Open APIs or Open Banking), faster payment system, and common QR code standard for retail payments as well as trade finance initiatives and virtual banking.

Challenger banks have expanded in different regions with a focus on Europe, specifically in the United Kingdom and Europe.

The banking sector in Hong Kong and China is working to develop its virtual banking arm. This is very important considering that the HKMA granted eight virtual banking licenses from March to May 2019.

In addition to it, the banks are expected to launch their services around six to nine months after HKMA’s authorization. Considering the first licenses were granted in March, these challenger banks could start operating in China between October and December this year.

This would be the start of the Challenger Banks era in Hong Kong and China. China is the second-largest economy in the world after the United States. This could have a very positive impact on the whole virtual bank industry.

The report reads:

“Virtual banks could offer a new kind of customer experience. They could also encourage financial inclusion as they normally target the retail segment including small and medium-sized enterprises.”

Traditional banks would also have to compete with new companies that are offering better services and cheaper products to clients. Considering China’s economy is slowing compared to previous years, improved financial services would allow individuals in the country to have access to the financial world.

Trusted & Regulated Stock & CFD Brokers

Rating

What we like

  • 0% Fees on Stocks
  • 5000+ Stocks, ETFs and other Markets
  • Accepts Paypal Deposits

Min Deposit

$200

Charge per Trade

Zero Commission on real stocks

Rating

64 traders signed up today

Visit Now

67% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.

Available Assets

  • Total Number of Stocks & Shares5000+
  • US Stocks
  • German Stocks
  • UK Stocks
  • European
  • ETF Stocks
  • IPO
  • Funds
  • Bonds
  • Options
  • Futures
  • CFDs
  • Crypto

Charge per Trade

  • FTSE 100 Zero Commission
  • NASDAQ Zero Commission
  • DAX Zero Commission
  • Facebook Zero Commission
  • Alphabet Zero Commission
  • Tesla Zero Commission
  • Apple Zero Commission
  • Microsoft Zero Commission

Deposit Method

  • Wire Transfer
  • Credit Cards
  • Bank Account
  • Paypall
  • Skrill
  • Neteller

Rating

What we like

  • Sign up today and get $5 free
  • Fractals Available
  • Paypal Available

Min Deposit

$0

Charge per Trade

$1 to $9 PCM

Rating

Visit Now

Investing in financial markets carries risk, you have the potential to lose your total investment.

Available Assets

  • Total Number of Shares999
  • US Stocks
  • German Stocks
  • UK Stocks
  • European Stocks
  • EFTs
  • IPOs
  • Funds
  • Bonds
  • Options
  • Futures
  • CFDs
  • Crypto

Charge per Trade

  • FTSE 100 $1 - $9 per month
  • NASDAQ $1 - $9 per month
  • DAX $1 - $9 per month
  • Facebook $1 - $9 per month
  • Alphabet $1 - $9 per month
  • Telsa $1 - $9 per month
  • Apple $1 - $9 per month
  • Microsoft $1 - $9 per month

Deposit Method

  • Wire Transfer
  • Credit Cards
  • Bank Account

Justinas Baltrusaitis

Justinas Baltrusaitis

Justin is an editor, writer, and a downhill fan. He spent many years writing about finances, blockchain, and crypto-related news. He strives to serve the untold stories for the readers.