After more than five years of working on a FinTech project with the Chinese e-commerce marketplace operator Jingdong Digits Technology Holding d/b/a JD (JD.com) and Joybuy (Joybuy.com), China Merchants Bank (CMB) has decided not to proceed with its planned direct banking joint venture. CMB’s board provided no reason for withdrawing a proposal that would have led to the opening of CMB’s Tuopu Bank with J.D., PYMNTS reported.
According to the article, CMB first planned to establish a wholly-owned direct bank with independent legal status and registered capital of CNY2 billion (US$296 million) in February 2017. The plan called for setting aside up to 30% of the capital, which could be available for future investors.
“In December 2020, regulators approved preparatory work for the joint venture, in which Jingdong Digits unit Wangyin Online Beijing Business Service holds the minority stake,” according to Yicai Global.com.
“China Merchants Tuopu Bank would take full advantage of the partners to improve customer acquisition, risk control and operational capabilities, and provide users with more efficient, cheaper and higher-quality financial services with the help of technology and talents, the CMB said in an article published shortly after regulators approved the joint venture,” the news portal said.