The Monetary Authority has granted virtual banking licences to Livi VB, SC Digital Solutions and ZhongAn Virtual Finance which take effect today.

The authority’s Chief Executive Norman Chan said the introduction of virtual banks in Hong Kong is a key pillar supporting Hong Kong's entry into the Smart Banking Era and is a major milestone in reinforcing Hong Kong's position as a premier international financial centre.

“I believe that virtual banks will not only help drive fintech and innovation, but also bring about brand new customer experiences and further promote financial inclusion in Hong Kong,” he said.

According to their business plans, these three newly licenced virtual banks will launch their services within six to nine months.

The move brings the number of licensed banks in Hong Kong to 155.

The authority is processing the remaining five virtual bank applications.