With a registered capital of CNY4bn ($644m), MYbank’s 30% will be owned by Alibaba’s financial affiliate, Ant Financial Services Group.
According to Bloomberg, the bank aims to provide loans to an estimated 10 million small enterprises in the next five years.
The bank still needs to receive additional regulatory approval for setting up accounts and accepting deposits. It intends to issue small loans of around $805,500 to micro businesses.
Ant Financial president who will also be MYbank’s executive chairman Eric Jing said: "Answering to the needs of those who have limited access to financial services in China is our mission.
"MYbank is here to give affordable loans for small and micro enterprises, and we are here to provide banking services, not for the rich, but for the little guys."
Currently, the bank employs 300 people.
Zhejiang Ant Small and Micro Financial Services CEO Lucy Peng was quoted by Bloomberg as saying that the new bank will avoid the use of technology from Oracle, International Business Machines and EMC and will use Alibaba’s native cloud computing capabilities instead.
Image: MYbank will initially issue small loans of around $805,500 to micro businesses. Photo: courtesy of Alibaba Group Holding.
