Hong Kong, a significant global financial hub, has been at the forefront of adopting and integrating technology within its banking sector. A notable development in this regard has been the establishment of virtual banks, which offer comprehensive banking services entirely online. This article provides an overview of the eight virtual banks currently operating in Hong Kong: ZA Bank, Airstar Bank, WeLab Bank, Livi Bank, Mox Bank, Ant Bank, PingAn OneConnect Bank, and Fusion Bank.
An Introduction to Virtual Banks
Virtual banks, also known as neobanks, online banks, or branchless banks, operate entirely online, eliminating the need for physical branches. These banks offer comprehensive banking services, such as personal and business accounts, credit and debit cards, loans, and more, all through digital platforms. They are regulated by the same authorities as traditional banks and are required to adhere to the same stringent security standards. The convenience, ease of access, and often lower fees associated with these banks have made them increasingly popular, particularly among younger generations.
ZA Bank
ZA Bank, the first virtual bank to launch in Hong Kong, commenced operations in March 2020. As a pioneer in the industry, ZA Bank has been instrumental in setting the pace for digital banking in the region, delivering a variety of innovative services to its customers.
- Launched in March 2020
- Offers personal and business accounts, giving customers the ability to manage their finances entirely online
- Provides a range of loan services with competitive rates and flexible terms
- Offers insurance services in partnership with renowned insurance providers
Airstar Bank
Airstar Bank is a joint venture between AMTD Group and Xiaomi Corporation. Launched in June 2020, Airstar Bank combines Xiaomi’s technological prowess with AMTD Group’s financial expertise to provide a unique and comprehensive digital banking experience.
- Started operations in June 2020
- Offers personal accounts with attractive interest rates and seamless money management features
- Provides personal loan services with real-time approval
- Offers foreign exchange services with competitive rates, allowing customers to trade in multiple currencies
WeLab Bank
WeLab Bank is a subsidiary of the Hong Kong fintech company WeLab Limited. Since its launch in July 2020, WeLab Bank has been committed to delivering a seamless and personalized digital banking experience to its customers.
- Began offering services in July 2020
- Provides personal accounts, equipped with features such as real-time balance updates, spending categorization, and personalized budgeting tools
- Offers an array of debit cards, each tailored to different customer needs
- Provides loan services, enabling customers to apply for and manage loans entirely online
- Offers foreign exchange services, giving customers the ability to trade in a variety of currencies
- Provides insurance services, with a range of policies to suit different customer needs
Livi Bank
Launched in August 2020, Livi Bank is a joint venture between Jingdon Digits Technology, Bank of China (BOC) Hong Kong, and Jardine Matheson Group. With the strength of these three entities, Livi Bank provides a robust and innovative digital banking platform.
- Launched in August 2020
- Offers personal accounts with a variety of innovative features, such as goal-based savings and real-time transaction notifications
- Provides loan services, with a streamlined application process and competitive rates
- Offers foreign exchange services, enabling customers to trade in a multitude of currencies
- Provides a range of debit cards, each designed with different customer needs in mind
The remaining banks, Mox Bank, Ant Bank, PingAn OneConnect Bank, and Fusion Bank, also provide an array of services to meet the diverse needs of their customers
Mox Bank
Mox Bank, a joint venture between Standard Chartered, PCCW, and Trip.com, launched in September 2020. The bank was designed to create a new kind of banking experience, one that is fully digital and built around customer needs.
- Launched in September 2020
- Offers personal and business accounts, providing easy and instant access to banking services
- Provides loan services, allowing customers to apply for and manage loans online
- Offers a range of debit cards, each with unique benefits and features
- Provides foreign exchange services, offering competitive rates for a variety of currencies
Ant Bank
Ant Bank, a subsidiary of Ant Group, started operations in October 2020. Leveraging Ant Group’s extensive experience in fintech, Ant Bank offers a digital banking experience that is user-friendly and seamless.
- Launched in October 2020
- Offers personal accounts, providing customers with a simple and efficient way to manage their finances
- Provides loan services, offering flexible terms and competitive rates
- Offers a range of debit cards, each designed to suit different spending habits
- Provides foreign exchange services, giving customers the ability to trade in a multitude of currencies
PingAn OneConnect Bank
PingAn OneConnect Bank, a member of the PingAn Group, commenced operations in December 2020. The bank leverages PingAn Group’s extensive experience in the financial sector to provide a comprehensive digital banking platform.
- Launched in December 2020
- Offers personal and business accounts, providing customers with easy access to their finances anytime, anywhere
- Provides loan services, offering a variety of loans with flexible terms and competitive rates
- Offers a range of debit cards, each designed with unique features and benefits
- Provides foreign exchange services, allowing customers to trade in a multitude of currencies
Fusion Bank
Fusion Bank, a joint venture between Tencent, Industrial and Commercial Bank of China (ICBC) Asia, Hillhouse Capital, and Perfect Ridge, launched in December 2020. The bank offers a holistic digital banking platform, drawing on the combined strengths of its founding entities.
- Launched in December 2020
- Offers personal and business accounts, providing customers with instant access to their finances
- Provides loan services, offering a variety of loans with real-time approval
- Offers a range of debit cards, each with unique benefits tailored to different customer needs
- Provides foreign exchange services, offering competitive rates for a variety of currencies
The above overview provides a snapshot of the state of virtual banking in Hong Kong. As this sector continues to evolve, it will be interesting to see how these banks further innovate to meet the needs and expectations of their customers.