Banks are closing branches all over the world, but why not in Hong Kong?
Slow move to digital banking in the city is one factor contributing to more branches staying open
Retail banking in Hong Kong seems resilient if you look at the number of outlets. Elsewhere in the world, bank branches have been closing; in Hong Kong, by and large, they have stayed open.
HSBC will have halved its UK presence compared to 2011 by the end of this year, but a spokesman for the bank said in January that there was no programme of branch closures in Hong Kong.
Meanwhile, earlier this month, Citi announced that it would close 80 per cent of its branches in Korea, a move that has not been replicated in Hong Kong to anywhere near the same extent. In both cases the move towards digitisation was given as a reason.
The slower take up of digital services by Hong Kong residents is at least part of the reason why there have not been similar closures in Hong Kong.
“While we see that a growing number of basic transactions like payments are shifting to online and mobile channels, our customers continue to use branches for wealth management and mortgage services which need more personalised support,” said Greg Hingston, HSBC’s head of retail banking and wealth management Hong Kong.