iFast to acquire 85% stake in UK digital bank
iFAST has announced that the Group has signed an agreement with partner, Eagles Peak Holding Limited, to acquire BFC Bank Limited (“BFC Bank” or “UK bank”) from Bahrain-based BFC Group Holdings. The Group will have an 85% stake in the UK bank.
BFC Bank is a full licensed UK bank operating under the Financial Services Compensation Scheme, and is authorised by the Prudential Regulation Authority of the United Kingdom (“PRA”) and Financial Conduct Authority of the United Kingdom (“FCA”).
As shared in its Five-Year plan, the Group believes that the future of wealth management is one where many investors from various emerging markets will be looking for the best wealth management platforms across the world that can provide them seamless access and connectivity to global products and global exchanges.
“Wealth management platforms with seamless links to good digital banking services that allow consumers and investors to manage payment flows seamlessly across borders while getting attractive deposit rates in various currencies, will have strong advantages. With that in mind, the Group believes that one of the central components of the iFAST Ecosystem going forward will be a digital bank located in a trusted jurisdiction,” said Mr Lim Chung Chun, Chairman and CEO of iFAST Corp.
In the last three to four years, the Group has been evaluating ways of being able to add a digital bank to its growing Fintech Ecosystem to further accelerate the growth of its overall wealth management platform.
“A full licensed UK bank will fit these requirements very well, given London’s status as a top financial centre with strong connectivity to the world, and given the forward-looking regulatory frameworks. The proposed acquisition in the UK bank will allow the Group to acquire a banking licence in the UK, a reputable jurisdiction and a global financial centre,” said Mr Lim.
The Proposed Acquisition will enable the Group to add a digital bank to its Fintech Ecosystem. The Group sees synergy in adding the UK bank’s capabilities into its existing digital wealth management platform, strengthening its vision to become a truly global wealth management business and opening up other opportunities in the future.
The acquisition after some technology upgrades, will allow the Group’s clients in its current eco-system across the various Asian markets to have access to services including online account opening, multicurrency deposits, remittances and cross-border transactions, and Banking as a Service (BaaS).
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