Date
19 November 2017
China will soon have a new online bank as a group of investors led by smartphone giant Xiaomi are set to kick off their venture.
China will soon have a new online bank as a group of investors led by smartphone giant Xiaomi are set to kick off their venture.

Xiaomi-backed online bank to begin operations soon

An online bank backed by smartphone maker Xiaomi Inc. is set to begin operations in China soon after the venture was officially established and rebranded recently, Reuters reports.

Citing New Hope Group Co., one of the investors in the new venture, the report said the online bank will operate under the name Sichuan XW Bank.

Services will be launched soon as shareholders and regulators had cleared the new entity.

“This is an important step in the process, marking the bank’s the official establishment,” New Hope Group was quoted as saying in a statement.

“[The bank] will be officially open to users in the near future.”

Sichuan XW Bank marks the latest in a string of new online banks backed by Chinese tech firms, which are hoping to tap the country’s underserved market of small enterprises and consumers.

WeBank, backed by Tencent Holdings, became China’s first operational online-only bank in 2015. It was followed by MYBank, a venture controlled by Alibaba Group affiliate Ant Financial Services.

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