Hong Kong’s first virtual bank offers juicy 6.8 per cent interest rate in gimmick. Here’s how one SCMP reporter did in race
- ZA Bank offers a competition to create buzz needed to woo customers to try out online-only services
- Eight virtual banks have gotten approval in the city
Hong Kong’s first virtual bank – ZA Bank – has been offering up to a very juicy 6.8 per cent interest rate on deposits. But there’s a hitch – the 50 winners had to sign up a lot of friends.
Virtual banks like ZA Bank are restricted solely to the online world and are just firing up in Hong Kong. They will offer fewer services such as credit cards, at least initially, and more gimmicks – like ZA Bank’s race to win high deposit rates based on signing up friends. The gimmicks are intended to create buzz to get more customers.
ZA Bank, a joint venture between a unit of ZhongAn Online P&C Insurance and Sinolink Group, is one of eight virtual banks licensed by the Hong Kong Monetary Authority last year to boost financial technology (fintech) and smart banking in the city.
After ZA Bank received approval on December 18 to start a trial run – making it the first virtual bank to get up and running – it has opened 1,700 accounts. As a virtual bank, it can only use mobile phone apps and other online tools to offer banking services.
Just like its overseas peers, ZA Bank is offering high deposit interest rates and low lending rates to attract clients. The author of this article, a reporter from the South China Morning Post, tried its services. Here is her first-hand experience.
Who can open an account?