Saxo and the Zhejiang Geely Holding Group (Geely) subsidiary Geely Sweden Holdings have said the new entity will provide solutions to local financial institutions such as banks and fintechs.
The ownership structure will be an equal split between Saxo and Geely.
The venture has plans to use technologies such as cloud-based services, big data and artificial intelligence to offer Chinese institutions with “full-suite” solutions, particularly across trading and investment, robo-advice, asset management, risk solutions and regtech.
Saxo has provided its experience in providing investment platform development and digital services while Geely will support the deployment and operation of the venture, offering local knowledge.
Through the venture, Saxo Bank said it will significantly build its presence in the Chinese market, an integral part of its long-term strategy.
Kim Fournais, chief executive and founder of Saxo commented the fintech entity is a milestone for the bank, presenting “unique commercial opportunities”.
“This is a very important first step in strengthening our presence in China,” Mr Fournais said.
“And we will continue to explore further opportunities, working in tandem with regulators and the opening of Chinese markets, to provide transparent, efficient and safe access to investment opportunities in global financial markets.”
Daniel Donghui Li, executive vice-president and chief financial officer of Geely Holding Group commented: “We are very pleased to deepen our cooperation and partnership with Saxo Bank and introduce the bank’s global financial and regulatory technology to the Chinese market.”
“We are confident that with Saxo’s successful experience in the global market and Geely’s rich local know-how, the JV will improve China’s fintech capabilities in areas including trading, investment, pricing, investment consulting and regtech.”
Geely Holding Group became a significant shareholder of Saxo Bank in September 2018.
Sarah Simpkins is a journalist at Momentum Media, reporting primarily on banking, financial services and wealth.
Prior to joining the team in 2018, Sarah worked in trade media and produced stories for a current affairs program on community radio.
Sarah has a dual bachelor's degree in science and journalism from the University of Queensland.