Ant Financial's bid to invest in an online banking platform has sold its stakes to investors in order to launch their services "MYbank" on June 25, 2015. External investors that gave their trust on Alibaba's affiliate include China Development bank Capital Co and an undisclosed amount from Yunfeng Capital.

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The small micro finance services gained Beijing's nod on the venture partly because of the capital's need to shake up the conventional type of banking in China, wherein state-owned banks have overwhelmingly taken over small financial businesses and borrowers. According to Reuters, China's National Security Fund participated in the stakes, acquiring 5 percent of its shares.

Ant Financial is taking advantage of its affiliation with Alibaba, operating under the e-Commerce giant Alibaba's Alipay. Ant Financial will be able to service thousands of shoppers online by providing an easy way to pay their purchases online. The online payment platform will revolutionize the otherwise conventional banking in China.

In 2014, MYbank has run its course under the name of Zhejiang Online Business Bank. Under the China Banking Regulatory Commission, MYbank was one of the five approved private banks that were put on trial before they can become legitimate.

According to ChinaTechNews, MYbank became legitimate in September 2014, and was deemed legal for construction  approval before operation. Under the Zhenjiang Online Business Bank, Ant Financial will hold the largest stake at 30 percent, followed by Fosun International at 25 percent, Wanxiang Group to own 18 percent of its stake and Ningbo Jinrun Asset Management will have a 16 percent stake.

Previously, MYbank planned to launch its online bank account opening, wherein the company did not get the approval of the authorities because of its lack of security that can lead to stolen personal information online.

Nevertheless, Alibaba continues to develop their security management, especially in the remote banking system while simultaneously working with the authorities to eventually allow them to open the remote service online, once they abide by the rules of security concerns.

Ant Financial is now valued at $45 billion after making deals with private investors.

Tagsonline banking, finance, invest, Ant Financial