Hong Kong's WeLab Sets Sights on Southeast Asia Digital Banks and Tech Services Export
WeLab plans to set up digital banks in Southeast Asia and export technology services to conglomerates in Malaysia, Vietnam, Thailand, and the Philippines. The company aims to reach 500 million users by 2032. WeLab's new digital bank in Indonesia, Bank Saqu, has already attracted a million users since its launch.
Hong Kong-based fintech unicorn, WeLab, backed by billionaire Li Ka-shing, is looking to expand its presence in Southeast Asia by establishing digital banks and exporting its technology services to conglomerates in Malaysia, Vietnam, Thailand, and the Philippines. This move is part of WeLab's ambitious goal to reach 500 million users by 2032, as stated by founder Simon Loong.
"WeLab is actively exploring different opportunities in Southeast Asia markets by applying for new licences, forming partnerships with other companies and selling our technology services to other companies," said Loong during a media briefing on Tuesday. He believes that with approximately 700 million people in Southeast Asia, there is a strong demand for financial technology, making the expansion of digital banking services and technology export services the key growth engines for WeLab.
Last August, WeLab signed an agreement with HSBC to explore a partnership in Malaysia, allowing WeLab to provide its technology support to the lender's Malaysian units. Additionally, WeLab's new digital bank in Indonesia, Bank Saqu, has already attracted a million users since its launch in November.
Currently, WeLab has served 1.7 million digital banking users in Hong Kong and Indonesia, with a total customer base of over 63 million across Asia. Loong highlighted that over 60% of Bank Saqu's customers are individuals who are entrepreneurs, particularly young people engaged in part-time jobs such as food delivery, online retailing, or on-demand driving services. These individuals require digital banking services to manage their online payments and various banking transactions.
WeLab, founded by Loong in 2013, has experienced rapid expansion in Hong Kong, mainland China, and Indonesia, offering digital banking and online lending services. The company received early investments from notable entities such as tycoon Li Ka-shing's Tom Group, ING Bank, Sequoia Capital, and Allianz Group's digital investment unit.
WeLab Bank Chairman and former Secretary for Financial Services and the Treasury of Hong Kong, Chan Ka-keung, emphasised that WeLab's success showcases the city's fintech development. He noted that Hong Kong was the first in Asia to introduce digital banking and that the successful launch of eight virtual banks in the city has inspired other Southeast Asian countries to plan their own digital banking licenses.
In 2019, the Hong Kong Monetary Authority issued eight virtual bank licenses to inject innovation and competition into the industry. These virtual banks, which started operating the following year, are not allowed to have physical branches. They collectively served 2.2 million customers in 2021, a 20% increase from the previous year. The HKMA plans to rename virtual banks as "licensed digital banks" to enhance confidence in the sector.
Chan attributed Hong Kong's success in promoting fintech and digital banking to the collaborative efforts of the government, regulators, and industry players in introducing new policies to support the sector.
While WeLab had applied to list its shares in Hong Kong in July 2018, the plan was shelved due to market volatility. Loong stated that they will wait for the IPO markets to improve further and for WeLab to grow before considering another attempt.
WeLab plans to set up digital banks in Southeast Asia and export technology services to conglomerates in Malaysia, Vietnam, Thailand, and the Philippines.
The company aims to reach 500 million users by 2032.
WeLab's new digital bank in Indonesia, Bank Saqu, has already attracted a million users since its launch.
Source: SCMP