ING and Bank of Beijing create digital bank in China
Bank of Beijing and ING are working together to set up a new digital bank in China through a combined investment of CNY3 billion ($447 million).
As reported by Retail Banker, ING will hold a 51% stake in the new bank and the Chinese bank will own the remaining 49%.
The Dutch giant originally formed an alliance with Bank of Beijing in 2015, taking a minority stake. At this moment, this stake is 13%, worth around $2.7 billion.
This would be the first Chinese bank with an international bank holding a majority stake.
ING also has stakes in Thai bank TMB and Indian Kotak Mahindra Bank.
The partnership is aimed at countering the growing threat to banking from technology firms, the firms say – specifically, Tencent and Alibaba.
ING is also increasing its investment in its Chinese mainland branches, aiming to double the number of its wholesale banking clients in China.