Hong Kong’s financial services sector could see a boost from new revenue and balance sheet strength with the soft launch of digital banking services as soon as the fourth quarter, the deputy chief executive of its central bank shared.
«The latest indications from some of those licensees is you will begin to see some services launched, perhaps in a soft-launch way, in the fourth quarter of this year,» said the Hong Kong Monetary Authority (HKMA) deputy chief executive Arthur Yuen. «I do expect this process to be gradual.»
Yuen likened the gradual roll-out of digital banks to that of «apps or new gadgets», local media quoted from the Hong Kong Institute of Bankers conference yesterday. The initial roll-out is expected to only include a basic product shelf.
No Predictions
Whilst Yuen made predictions about the soft launch, he did not replicate for formal launches adding that the HKMA did not impose a six to nine-month timeline for digital banking launches. Concurrently, industry sources claim that launch delays are being considered due to key target markets being inaccessible.
«We are still working hard with those [virtual bank] licensees before they can launch the business formally,» he said. «I’m not making predictions.»
