The Hong Kong Monetary Authority (HKMA) released its conclusions regarding the proposal to rename “virtual bank” to “digital bank.”

This decision follows a public consultation that received 26 submissions from stakeholders, including industry associations, virtual banks, and members of the public.

The majority of respondents supported the renaming, agreeing that “digital bank” better reflects the current nature of these institutions and aligns with global trends.

Some concerns were raised about potential confusion, as the term “virtual bank” is already familiar, and some traditional banks use “digital banking” to refer to their online services.

However, the HKMA believes that the new name provides a clearer distinction between virtual banks and other digital services.

The renaming will involve amending the Guideline on Authorisation of Virtual Banks, and the HKMA will implement the change shortly.

Public education efforts, led by both the HKMA and industry associations, are expected to help ease the transition and ensure clarity for the public.