Chinese ride-hailing giant Didi has dismissed rumors is was seeking a banking license, but added the company had been doing due diligence on the possibility of setting up a private bank.

According to reports, Didi had been planning to apply for a private banking license which would be a joint concern involving eight enterprises, spearheaded by Dirun Technology, a wholly-owned subsidiary of Didi Chuxing, and Tianjin Datong Investment, the Paper reported.

Reports said the bank would be registered in the Tianjin Zhongxin eco-city with registered capital of 3 billion yuan (about US$425 million), with Didi-subsidiary Dirun Technology holding 30%, Tianjin Datong Investment 21% and transferor parties 8%.

Many internet companies have established private banks, such as WeBank, the digital bank initiated by Tencent, Ant Financial Services Group, a company affiliated with the Alibaba Group, and Zhejiang E-Commerce Bank Co, Ltd.

Didi Chuxing has been actively expanding into financial services in recent years.

At the end of 2018, Didi established the Didi Financial Services Branch. In January 2019, Didi launched the Financial Services channel, with an independent mobile application named Didi Financial hitting the market.

To maintain robust growth and diversified services, the company also promised to equip Didi Financial Services with various financial licenses in the near future.