Tencent to build fintech lab focused on ‘open banking’

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Tencent is putting two of its key subsidiaries together in a fintech innovation lab focused on the research and development of applications for “open banking.” The joint venture is between Tencent Cloud, a global cloud services provider, and WeBank, China’s first online bank.

Open banking can be defined as a collaborative model in which banking data are shared through APIs between two or more unaffiliated parties.

WeBank’s Wei Li Dai (微粒贷) financial product was the first in China to provide consumers with a complete online lending process, from application and approval to the provision of funds. Borrowers are not required to provide collateral or security for credit, and instead only need to provide their identification numbers and mobile phone numbers through Tencent’s ubiquitous social media app WeChat and instant messaging software service QQ in order to obtain loans of between RMB500 and RMB200,000.

Tencent Cloud and WeBank’s new collaboration will be based on the concept of “open banking” to explore technical innovations on its fundamental structure, financial application and experiential innovation.