Dechen Dolkar

ORO Bank, one of the first projects of the Gelephu Mindfulness City (GMC) initiative, will be Asia’s first full-reserve digital bank.

The bank will serve residents and investors of the GMC, as well as entrepreneurs and individuals worldwide interested in financing start-ups, supporting disruptive industries, and accessing stable banking services.

The bank fully integrates cutting-edge technology, including artificial intelligence (AI).

Established in Bhutan and regulated by Bhutanese authorities, the bank is being created to tackle key challenges in the global banking sector.

As global macroeconomic conditions become increasingly complex, with inflation and the risk of bank runs, entrepreneurs worldwide are seeking safer banking alternatives.

The chief executive officer (CEO) of ORO Bank, Mike Kayamori explained how the bank differs from legacy banks, stating that it is designed for global citizens and the residents of the GMC. “The first step for GMC was to create a financial utility.”

He explained that since 1994, traditional banks have struggled to keep up with the internet and technological advancements.

“Despite the growth of mobile and internet banking, the core banking model remains unchanged,” he added, noting that financial crises have emerged every decade, with the current banking system still reliant on net interest margins.

ORO Bank will operates as a full-reserve bank, meaning that if a customer deposits USD 100, the bank holds the full amount without lending it out. This model is designed to offer enhanced security and stability.

CEO Mike Kayamori emphasised the importance of customer co-creation in ORO Bank’s approach.

“We believe customers should have control over their finances. They can choose to park their money or earn interest, and we provide products to support these choices. For treasury management and payments, we handle that for our customers,” he said.

The bank works closely with clients to co-develop key features and services.

The CEO also addressed the difficulties startups face when opening accounts with traditional banks, which are often hesitant due to unproven business models.

“If you’re a global startup making an impact, ORO Bank is the right fit,” he said, adding that ORO Bank bridges the gap between traditional banking and the future of banking.

The ORO Bank plans to introduce yield-generating investment products, followed by card services and other offerings typically provided by traditional banks. The CEO also mentioned the potential for adopting digital currencies, stablecoins, and other emerging financial products.

ORO Bank’s onboarding process is designed to cater to startups and innovators with unconventional or disruptive business models. It leverages AI technology to implement dynamic Know Your Customer and Anti-Money Laundering protocols, ensuring compliance with global regulatory standards.

The name ‘ORO’ is rooted in Bhutanese culture, derived from the Dzongkha word for ‘raven,’ while also meaning ‘gold’ in Spanish, symbolising both strength and value.

Currently, ORO Bank offers full-reserve accounts in USD, EUR, GBP, SGD, and HKD, with JPY and AUD to be added soon. It also provides cross-border transfers to the USA, Eurozone countries, Singapore, the UK, and Hong Kong, with plans to further expand its reach.