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Top Hong Kong virtual banks seek new frontier in second year of operations, eye marriage with wealth management services
- Wealth management is our next priority, say CEOs of ZA Bank, WeLab Bank, while Mox Bank wants to expand its credit card services
- Virtual lenders have revolutionised banking over the past year, says Chan Ka-keung, WeLab Bank chairman and former Secretary for Financial Services and the Treasury
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Three of Hong Kong’s top virtual banks are eyeing wealth management and credit products as they step into their second year of operations.
The banks, of which there are eight in total, cannot have physical branches and must offer their services only through mobile phones or the internet. These lenders started operating last year as part of a major fintech push by the Hong Kong Monetary Authority (HKMA), the city’s de facto central bank.
“The next product offering [that we are aiming for] is wealth management. We are applying to the Securities and Futures Commission [SFC] for the relevant licences,” said Rockson Hsu, the CEO of ZA Bank, the city’s first and largest virtual bank.
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The rapid growth enjoyed by Hong Kong’s virtual lenders suggests that fintech-driven banking can compete with 155 traditional banks and their 1,200 branches in a city of 7.2 million people. The city has emerged as a leader in digital banking as a result, Eddie Yue Wai-man, the monetary authority’s CEO, said in March.
At the same time, wealth management presents the other new frontier for Hong Kong’s banking sector. The marriage of such services with virtual banking is viewed as expanding both beyond what is currently available in the market.
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