Instant messaging service WeChat’s parent company recently launched China’s first online-only bank. Tencent, the firm behind the hugely-successful messaging platform, got approval from Chinese regulators in June last year to set up WeBank – the first ever private internet bank in Asia.

The website at the moment doesn’t host much information – it only displays a QR code that takes visitors to a mobile application once scanned.

“Are we a bank? Are we an internet company? We are an internet bank!” reads a single line on the page.

The mobile app takes curious visitors through a series of informational slides.

“We will lower costs for and deliver practical benefits to small clients, while forcing traditional financial institutions to accelerate reforms. It’s one small step for WeBank, one giant step for financial reform,” the official Xinhua news agency quoted Chinese premier Li Keqiang during an opening ceremony in Shenzhen.

According to various news sources, the online-only bank has a registered capital of around $482 million, and is invested in by a number of groups. While Tencent has the majority 30% share in the bank, investment companies Baiyeyuan Investment and Liye Group have a 20% stake each, and the remaining 30% is divided up among smaller shareholders.

But the bank may have a problem when it comes to attracting potential customers.

“A key challenge for WeBank and other internet lenders will be attracting deposits. WeBank will be China’s first online-only bank and will not have any physical branches, the main channel by which traditional banks draw in funds,” Financial Times wrote.

There has been no word on whether South Africa might also be getting an online-only bank through the social messaging platform.

[Source – Financial Times/Tech In Asia]