The city’s newly licensed banks are making gradual progress with deposits totaling more than $1 billion and expanded offerings just around the corner.
Hong Kong’s virtual banks have attracted over $1 billion in deposits from nearly 300,000 customers, according to a «Reuters» report citing unnamed sources.
This marks around one year since the first player, ZA Bank, made its official debut. Just this week, the eighth and final entrant, Fusion Bank, also entered the market.
By the report’s figure, ZA Bank is Hong Kong’s likely industry leader by customers (180,000) and also possibly by assets ($310 million).
Expanded Offering Required
Thus far, asset acquisition has largely been driven by higher interest rates and other benefits that depend on financial clout rather than digital advantages.
But moving forward, Hong Kong’s virtual banks are expected to focus more on offerings rather than benefits. ZA is planning to expand to SME lending alongside retail insurance and investment services. Standard Chartered-backed Mox Bank plans to add credit card, personal loans and wealth management services by mid-2022.
«[A] year into Hong Kong’s digital bank license issuance, banks have realized it requires more than competitive interest rates and promotions to carve out strategic differences for themselves in a saturated market,» said Frederic Ho, APAC vice president at identity verification and eKYC platform Jumio. «Other factors such as ensuring a secure, yet frictionless user experience, will be a top priority for banks and their customers.»
