This week, the Hong Kong Monetary Authority (HKMA) issued the first round of virtual banking licenses to Livi VB Limited, SC Digital Solutions Limited and ZhongAn Virtual Finance Limited - a significant step in the evolution of Hong Kong’s FinTech ecosystem.

The new virtual licences are part of the regulator's plan to encourage FinTech development and to help customers to do more in Hong Kong.

The new licences will enable the banks to offer a new range of digital banking services to their customers, taking the whole banking experience to the next level. This is a significant and positive step for Hong Kong and ought to help cement its position as a financial and FinTech hub of world importance. The announcement also shows that regulators play a valuable part in encouraging invention and encouraging companies to bring new products to market.

The FinTech Association of Hong Kong has always been keen on digital banking. Right from the start, it has supported startups, new entrants, existing banks and new virtual bank.

The first services offered under the new licences are expected to become available in the first half of 2020.