Perfect match: Hong Kong virtual banks WeLab, Mox, ZA Bank partner with digital insurers amid government fintech push

WeLab and Mox are planning to team up with partners to sell insurance, while ZA Bank already works with ZA Insure and Generali

The moves come as the city’s regulators promote cross-sector fintech development and the eight virtual banks quest to become profitable

Reading Time:3 minutes

WeLab Bank CEO Tat Lee Ka-tat, pictured at his offices in Quarry Bay on October 12, 2023. Photo: Jonathan Wong

Published: 12:00pm, 23 Oct 2023

Hong Kong’s virtual banks are increasingly teaming up with the city’s digital insurers to promote and sell insurance products as the city’s regulators nurture cross-sector fintech development.

WeLab Bank, Mox Bank and ZA Bank are among the virtual banks forming or exploring alliances with digital insurers that include Bowtie Insurance and OneDegree, as the trend promises to encourage more people the convenience of buying insurance online, according to analysts.

The Hong Kong Monetary Authority (HKMA), Hong Kong’s de facto central bank, said in August that it would team up with the Insurance Authority and the Securities and Futures Commission to encourage financial firms to invest in technology to enhance their wealth management, insurance and green finance services.

The increase in partnerships also comes as the city’s eight branchless banks quest for profitability, which none has yet achieved.

The ZA Bank logo is seen at the bank’s offices in Hong Kong on April 11, 2023. Photo: Bloomberg

Virtual bank WeLab Bank is planning to join its peer ZA Bank, which started selling insurance in 2021, in the insurance sales game by teaming up with insurance partners it cannot name at the moment, said CEO Tat Lee.