Shao Bank: The Future of Banking with Neobank Strategy
While trust in traditional banks is declining, a Chinese technology and finance corporation is creating what could become the most powerful FinTech in the world.
A few months ago, the Global Future Enterprise Group corporation effectively challenged the entire global banking industry. While the average bank pays less than half a percent on savings accounts, this technology company with a capital of 1 billion dollars announced that it would offer corporate bonds to depositors for a period of 3 years, with weekly payments to a bank account and a guarantee. The release of this new product comes at a time when regional banks are trying to retain their deposit bases after the banking crisis in Silicon Valley, and fintech startups, facing a cash shortage, are also facing difficulties.
The company SHAO LIMITED is regulated by the Hong Kong government, and its CEO is Chen Li. This company is responsible for the technical aspect of the bank, while the financial activities have been transferred to the United Kingdom, where SHAO GLOBAL FUTURE LIMITED, headed by Yang Shao, was registered.
Technically, SHAO GLOBAL FUTURE LIMITED does not have a banking license, but it has a registered capital of 1 billion US dollars, insured by Go Insurance. It is a subsidiary of Global Future Enterprise Group, which has been registered in Beijing and has been successfully developing since 2006.
In fintech language, Shao is a neobank that has no equal, with its own payment system supporting over 20 cryptocurrencies and enormous growth potential, considering that there are over 500 million people worldwide currently using cryptocurrencies.
The new account is only available to customers with the Shao virtual card, Shao Card. These users can set up an account in a matter of minutes, and dividends from corporate bonds and deposits, referred to as cash funds, are automatically directed to the customer's account. All necessary information is displayed on the control panel in the digital wallet, where users can track their balance and earned interest. The product allows Shao to offer another significant advantage, strengthening its built-in digital wallet.
This is not the first time a trusted company unrelated to banking has tried to enter consumers' financial lives. In 2015, Tether Limited issued the Tether cryptocurrency token. The company claims that 80 percent of its value is backed by reserves of US dollars in bank accounts or their equivalent.
Tether has long held the top spot in daily and monthly trading volume on cryptocurrency exchanges. For example, in China, it is prohibited to buy bitcoins with money, but people can buy Tether and then exchange it for bitcoins or other cryptocurrencies.
Today, Shao has a multitude of diverse functions, including issuing loans, deposits, insurance policies, and corporate bonds. Shao Bank positions its digital wallet as a comprehensive toolkit for consumers' financial lives, combining savings, peer-to-peer transfers, and payments.
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