The regional internet bank, which has been developed following extensive research on existing pure internet banks in the UK and the US, will target the 40 million ‘wired affluent’ consumers that are expected in Asia by 2005.

ANZ and OCBC Bank will invest a total of US$100 million in the 50:50 joint venture over three years, including investments in strategic partner companies - these will probably be e-companies involved in financial services, online content provision and other Internet-based services. The first partner for the venture will be Hong Kong-based online stockbroker Boom.com, in which ANZ already holds a 10% stake.

ANZ CEO John McFarlane said the joint venture reflected a shared vision by ANZ and OCBC Bank to lead the transformation of banking and financial services in Asia through e-commerce. He stated 'ANZ and OCBC Bank’s complementary networks, which include banking licences in all the major Asian countries, provide a natural foundation for the joint venture. The joint venture is a key part of ANZ’s strategy to rapidly develop new growth opportunities in Asia Pacific by focusing on e-commerce. We believe that the best way to achieve this is with a partner with a strong foundation and vision for the region.'

OCBC Bank vice chairman and CEO Alex Au said of the venture: 'Together, ANZ and OCBC Bank provide all the core skills for a successful e-partnership. Australia has a very well developed e-commerce infrastructure and ANZ is a leader amongst the local banks. The joint venture forms part of OCBC Bank’s US$590 million e-commerce strategy which includes the creation of new business models to take it to the forefront of the e-financial landscape. As partners, we intend to create and bring together a full suite of products and services that will meet the growing needs of increasingly sophisticated wired customers.'

The new regional Internet bank is yet to be named and is still looking for a suitable location to set up its headquarters. An OCBC official said the new Internet bank would soon be applying for a licence from the Monetary Authority of Singapore (MAS) and will be officially launched before the end of the year. It aims to offer consumers outside of Singapore and Australia a full range of products and financial services. It will do this via front-end banking, retail alliances, Internet service and online stockbroking, among others. Further details about products, services and strategic partners are due to be announced by the banks in the coming months.

The Internet bank is being designed for countries including China, Hong Kong, Taiwan, Korea and Japan, where there are large numbers of so-called 'wired emerging affluent individuals'. OCBC's deputy president Ooi Sin Teik said 'We think this is an approach that will effectively tap opportunities in Asia, and e-commerce is a more cost-efficient and lower-risk approach, as compared to investing in large physical networks.'