After initially focusing on payments, deposits, loans and cards, virtual banks could eye insurance and investment next, according to licensed players at a recent virtual conference.
«Payment is a key thing. That is something we are all striving [for],» said ZA Bank chief executive Rockson Hsu at a recent virtual banking panel hosted by «SCMP».
«The next phase we are offering will be I&I – insurance and investing. Those are key needs from the community-driven approach where we hear our users say: on top of the minimum viable products, what’s next?»
Seven out of the eight licensed virtual banks have officially opened for business with the final entrant, Tencent-backed Fusion Bank, having made a soft launch yesterday for 1,000 customers.
UX
Expanding offerings aside, the panelist underlined the need to maintain focus on a key competitive advantage that virtual banks have over many traditional rivals: user experience.
«The purpose of the virtual bank is to provide something simple, instant and an intuitive bank experience to the customers of Hong Kong,» said Adrian Tse, CEO of WeLab Bank «On top of that, WeLab Bank tries to provide some social elements and also fun into the offering.»
«We are trying to get the best customer experience, the right heart share instead of only focusing on market share,» added Deniz Guven, Mox Bank CEO. «We will be here for the next decades. It’s not a game where we’ll be here for a couple of years, gain customers and do some other things.»
Cash is King
Despite links between virtual banking and contactless payments, physical cash continues to highly preferred medium in Hong Kong and players such as WeLab Bank and Mox Bank have introduced cash withdrawal services at local ATM machines.
ZA Bank will also look to launch a similar capability to cater to local needs.
«I’m catching up, I’ll be there too,» Hsu said. «The Hong Kong community still likes cash.»
