New Hope Group said in a statement on Tuesday shareholders and regulators had approved the name Sichuan XW Bank for the lender.
It is the latest in a string of new online banks backed by Chinese tech companies, who are hoping to tap the country's underserved market of small enterprises and consumers.
WeBank, backed by Tencent Holdings, became China's first operational online-only bank in 2015, followed by MYBank, a venture controlled by Alibaba Group Holding affiliate of Ant Financial Services Group.
The new venture comes as Xiaomi has seen its smartphone sales shrink, raising doubts about the worth of the company, which was valued at USD 46 billion in its last fund-raising in 2014.
On Tuesday, Xiaomi CEO and Chairman Lei Jun revealed the rebranding with a picture of the new bank's logo posted on Twitter-like social media site Weibo.
A Xiaomi spokeswoman confirmed the company's official English name but declined to comment on a potential launch date, reports Reuters.
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