July 28, 2015 at 23:24Alibaba Launches Own Online Banking
The Chinese company Alibaba Group is launching a new online bank, MyBank. This startup will not only perform the functions of an online bank, all financial operations carried out by Alibaba and its subsidiaries will go through this structure, writes Pravda Chai. Thus, on the day MyBank will process transactions for approximately $ 9.3 billion.
The idea of creating such a bank is not new, but over the past few years (and the project appeared back in 2010) Alibaba had to postpone the launch of MyBank 3 times. The reasons for this were various. In 2015, the company nevertheless decided to breathe life into the project, and increased the speed of work on the service. On June 25, MyBank became a reality.
Alibaba invited Eric Jing to the post of startup executive. This is a notable figure in the Chinese financial sector. In particular, Jing is one of the co-founders of Alipay.
The main difference between MyBank and hundreds of other banks will be focusing only on working with loans for individuals. In addition, the bank will provide loans to small and medium-sized businesses. You can request a loan of 5 million yuan (about 800 thousand dollars) in your bank’s personal account. In addition, MyBank will also provide microloans. All transactions are conducted in electronic form - there are no branches, except for the main office.
“The interest on loans in our bank will always be below the market average due to low maintenance costs and the lack of physical departments, unlike traditional banks,” said Eric Jing.
It is worth noting that MyBank does not have many employees - there are about 300 people in all of China. The starting capital of the company is $ 646 million.
The idea of creating such a bank is not new, but over the past few years (and the project appeared back in 2010) Alibaba had to postpone the launch of MyBank 3 times. The reasons for this were various. In 2015, the company nevertheless decided to breathe life into the project, and increased the speed of work on the service. On June 25, MyBank became a reality.
Alibaba invited Eric Jing to the post of startup executive. This is a notable figure in the Chinese financial sector. In particular, Jing is one of the co-founders of Alipay.
The main difference between MyBank and hundreds of other banks will be focusing only on working with loans for individuals. In addition, the bank will provide loans to small and medium-sized businesses. You can request a loan of 5 million yuan (about 800 thousand dollars) in your bank’s personal account. In addition, MyBank will also provide microloans. All transactions are conducted in electronic form - there are no branches, except for the main office.
“The interest on loans in our bank will always be below the market average due to low maintenance costs and the lack of physical departments, unlike traditional banks,” said Eric Jing.
It is worth noting that MyBank does not have many employees - there are about 300 people in all of China. The starting capital of the company is $ 646 million.