Chinese fintech giant Ant’s virtual banking arm launches to become Hong Kong’s sixth licensed player.
Following a three-month trial, Ant Bank (Hong Kong) is officially open for business, seeking to lure new clients through an acquisition strategy similar to that of its competitors: high-interest rates for deposits.
Ant Bank will be offering 2.5 percent interest rate for deposits of up to HK$20,000 ($2,580) will and 1 percent for deposits between HK#20,001 and HK$500,000.
E-Wallet Tie-Up
In addition to attractive rates, Ant Bank will also leverage a partnership with the «AlipayHK» platform – an e-wallet joint venture between Ant Group and Li Ka-Shing's CK Hutchinson – for easy account opening and access to savings products for shopping and dining at numerous merchants in Hong Kong.
«We set up Ant Bank with the intention of providing increasingly mature fintech products and services to the Hong Kong market and to provide a new choice to people locally,» said Ant Bank’s chief executive, Michael Wang, in a statement.
«We are excited to be contributing to the promotion of inclusive financial development in the city.»
6 Out of 8
Hong Kong’s virtual banks were slow to start after the first launch by ZA Bank in March this year was followed by a few months of calm in the midst of political uncertainty and a coronavirus outbreak.
But after Xiaomi-backed Airstar Bank’s launch in June, the market saw at least one new entrant per month. Earlier this month, Hong Kong saw its fifth entrant, Mox, which is backed by Li’s younger son, Richard Li Tzar-kai, via telecom firms PCCW and Hong Kong Telecom, alongside online travel agency trip.com and Standard Chartered.
Ping An OneConnect Bank and Fusion Bank are the two remaining licensed virtual banks that have yet to launch as they are still undergoing trials.
