HSBC insists it does not need a virtual bank licence in Hong Kong, invests US$2.2 billion in raising digital banking game
- Hong Kong’s largest lender has spent 17 per cent more in the first half this year to improve its digital capabilities, says the bank’s global head of innovation Andrew Connell
- Bank’s investment in robotics and AI has helped to speed up and improve its customer services
Hong Kong’s largest bank has spent US$2.2 billion globally on growth and digital enhancements in the first half of this year, 17 per cent more than a year earlier, according to Andrew Connell, global head of partnership development and innovation, retail banking and wealth management at HSBC.
“HSBC is very keen on investment in our digital platform and talent. We have launched our PayMe app in Hong Kong, which has been very popular. At present, 90 per cent of our transactions in Hong Kong are conducted through a digital platform,” Connell told the South China Morning Post in a telephone interview.
HSBC is the only note-issuing bank in the city which has not applied for a virtual bank licence. The other two – Standard Chartered Bank and Bank of China (Hong Kong) – have both set up joint ventures to launch virtual banks.
“HSBC has invested significantly in its digital banking platforms. There is nothing a virtual bank can do which we cannot offer. We do not believe we must have a virtual bank licence to operate digital banking services,” said Andrew Eldon, head of digital banking for Hong Kong office at HSBC.
While the bank is cutting headcount globally, it has hired 1,000 staff for its Asia-Pacific and Hong Kong digital teams since Connell joined the bank five years ago.