Virtual banks in Hong Kong have gained significant popularity in recent years, with over 45% of individuals and 76% of SMEs surveyed by the Hong Kong Association of Banks (HKAB) having an account.
The survey also found that 30% of individual respondents expressed an intention to sign up for a virtual bank account in the next three months.
Among the key factors that motivated individual respondents to open virtual bank accounts included high deposit interest rates, rewards for opening an account, and convenience to use.
SMEs are also embracing virtual banks as even ones with existing traditional bank accounts are inclined to open new accounts with virtual banks.
For SMEs, the main service used was deposit/savings (38%), followed by investment funds (28%) and money transfer (28%). Many SMEs have also begun integrating virtual banking services into their business operations.
The HKAB survey also found that the public is aware of the regulations governing virtual banks. 75% of individual respondents and 79% of SMEs were aware that virtual banks are licensed and regulated by the Hong Kong Monetary Authority (HKMA).
Additionally, 65% of individual respondents and 62% of SMEs were aware that deposit accounts in virtual banks are currently entitled up to HKD 500,000 in protection.
The survey was conducted via an online questionnaire from 27 February to 8 March 2023, with approximately 1,000 individual respondents and 200 SMEs.
The Virtual Banking Education (VBE) Taskforce of HKAB said in a statement,
“Overall, we are pleased to see the improvement in public and business perception of virtual banks. Going forward, the VBE Taskforce hopes to deepen public understanding of the features of virtual banks through intensified promotional efforts.
As the public’s understanding of virtual banks deepens, it is widely believed that the popularity of virtual banks will continue to increase, further promoting fintech development in Hong Kong.”
One of Hong Kong’s eight virtual banks ZA welcomed the latest survey findings and shared its own security measures to help users reduce the risk of fraud or potential money loss.
This includes a “5 seconds recall” function in the event funds are transferred to the wrong recipient, virus or malware detection upon each app opening, “ZA Verify” for to validate card transactions, and one-tap card lock/unlock function.
Calvin Ng, Alternate Chief Executive of ZA Bank said,
“ZA Bank is pleased to see the public’s increased acceptance of virtual banking. As a tech-driven bank, we have always exerted our strong tech DNA to provide a convenient and seamless banking experience while leveraging cutting-edge technologies to enhance the security level of our services to protect users’ assets.
Recently, we have also been recognised by the Office of the Privacy Commissioner for Personal Data for our satisfactory performance in managing customers’ personal data. As a leading virtual bank, ZA Bank is determined to set new industry standards with innovative products and services, especially in terms of security and privacy protection.”
