Bank of Asia has been established in the British Virgin Islands ("BVI") to address the growing needs of offshore companies, their owners and other multinational conglomerates.
We are a digital bank with a strong emphasis on providing the best customer experience possible without sacrificing security. Account opening can be done from anywhere in the world with your smart device or computer and similarly transactions can be done from your other personal devices.
Our core value is to have a robust Know Your Customer and Anti Money Laundering regime leveraging on cutting edge technology and big data, and working together with strong and established partners to ensure that only legitimate customers are on-boarded and only legitimate transactions are handled by our bank. Our principles are to be user-friendly, transparent, compliant, credible, responsible and sustainable.
We have been granted a Restricted Class 1 Banking License by the BVI Financial Services Commission ("FSC") which allows us to bank companies and individuals other than individuals who are resident in the BVI. There are currently only 8 banks licensed in the BVI and this is the first time in over 20 years that a banking license has been granted by the BVI FSC. Our Tier 1 Capital has in April 2017 been increased to US$38 million which satisfied the Tier 1 Capital requirements of the FSC for our commencement of business.
Our cutting edge-technology and use of big data enable us to get accounts opened quickly for those who satisfy our robust KYC/AML requirements. Our technology driven platform also would enable customers to enjoy more user-friendly and cost-effective services than those currently available from traditional banks.
We are also setting up Hong Kong affiliated licensed companies to provide best-in-class wealth management platform to our customers, which will provide them with securities, foreign exchange, margin financing and wealth management services at competitive rates via cutting-edge technology that we use and the freedom from legacy issues faced by our competitors.
We look forward to being of service to you and your company.
Carson Wen, BBS, JP
Bank of Asia (BVI) Limited
The BVI is the world's leading offshore jurisdiction with over 410,000 active companies. According to Vistra's Offshore 2020 Report, 40% of offshore companies originate from Mainland China, 9% from Hong Kong, 4% from Taiwan and 4% from Singapore, thus 57% of BVI companies are owned by the Chinese. 7% of BVI companies originate from the UAE. There are in addition more than 100,000 companies that originate out of elsewhere in Asia and Russia. Most banks have, as a result of a tightened compliance culture borne out of the penalties imposed on traditional banks for their past misconducts, not been accepting offshore companies for opening of bank accounts. There is as such a backlog of companies needing to have bank accounts opened, thus providing a captive market. Counting say 50,000 newly incorporated companies in each of 2012, 2013, 2014 and 2015, and about 35,000 in 2016, there is a captive market of well over 200,000 unbanked BVI companies worldwide and some 150,000 companies in Asia alone. To that must be added offshore companies from Cayman Islands and elsewhere, which face similar account opening difficulties.
Behind every offshore company there is a private entrepreneur, listed company, trust or private equity fund. Given our unique access to offshore companies, we also hold the keys to high net-worth individuals and fund managers in the Asian markets, many of whom are not obtaining offshore banking services as a result of the risk adverse polices adopted by traditional banks during the past few years. We are as such positioning ourselves as a private banking and wealth management services provider for HNWIs across Asia.
The BVI is one of the largest sources of foreign direct investment into China. As of 2012, the ranking was Hong Kong (43.78%), BVI (9.56%), Japan (6.45%), US (5.19%), Singapore (4.38%), Taiwan (4.22%) and South Korea (3.91%). It should also be noted that of the FDI that came through Hong Kong, a sizable percentage of those should have come through a BVI parent of the Hong Kong company, given the usual way that such transactions are structured. The Offshore 2020 Report showed that the BVI, at 33%, is the second most popular jurisdiction to be used for Chinese outbound investment, second only to Hong Kong at 40%, followed by the Cayman Islands at 7%. The inability of offshore companies, and Hong Kong companies held through offshore companies, to open bank accounts would hinder the FDI and outbound investment activities involving the PRC and thus provide a captive market for the services of Bank of Asia.
What is hindering traditional banks from onboarding offshore companies and HNWI across Asia is partly the compliance and KYC-AML costs, with antiquated processes and a lot of manpower. We are building a cutting edge technology platform that would allow for KYC-AML to be conducted using advanced processes which take advantage of Big Data analytics and mining. Through which, we can get a better assessment of the character and credit-worthiness of a potential customer analyzing cloud-based data generated by their social media, e-commerce and other online data, such as Google and Baidu searches. These data are fed into our KYC-AML process and analyzed through algorithms by which the acceptability for on-boarding is determined with minimal human intervention, thus ensuring objectiveness, transparency, speed and cost effectiveness. That would enable our KYC-AML processes to be more robust than the traditional banks but at a vastly reduced cost.
Bank of Asia has no legacy issues, no expensive branch network, and no redundancies to deal with and pay for. As a new digital bank, Bank of Asia also has no legacy IT systems and can use cutting edge fintech to build a technology platform that is efficient, scalable, multi-functional and cost effective. In the future Bank of Asia and its affiliates may also play a vital role in the "Belt and Road" initiative, acting as a lender, investor and syndicator.
Bank of Asia believes strongly in and has built a matrix and multi-dimensional KYC screening process which independently screens applicants with third party outsource providers.
We believe in using established credible third parties to avoid possible conflicts of interest and provide independent KYC checks that will benefit the applicant and streamline the overall KYC and records keeping process.
We currently offer account opening services. We are working hard to bring you more products and services such as deposits, remittances, foreign exchange, ATM cards and credit cards. We are also setting up affiliated licensed companies to provide wealth management, securities trading, asset management, corporate finance and insurance products and services.