Livi, Hong Kong’s latest virtual bank, chooses to compete on ease of service, cash rewards on debut

Livi, the virtual bank co-owned by Bank of China (Hong Kong), hopes to attract customers with cash rewards and the convenience of easy payments at shops through quick-response (QR) codes.

The fourth virtual lender to start operations in Hong Kong this year, Livi launches on Wednesday. Online e-commerce company JD Digits and Hong Kong conglomerate Jardines are its other owners.

“We do not compete on pricing. But we believe our mobile apps can offer a good customer experience to attract clients to use our services,” said David Sun, Livi’s chief executive.

Virtual banks are a core part of the Hong Kong Monetary Authority’s efforts to encourage the use of financial technology to cut costs and enhance services. These banks cannot have any physical branches and must operate online only. Hong Kong’s is a competitive market – the virtual lenders must compete with 155 traditional banks serving a city of 7.5 million people.

Livi is teaming up with payments company UnionPay for its QR code services, which will allow customers to settle payments at hundreds of shops, including 7-Eleven stores and Maxim’s cake shops, as well as dining establishments with a quick scan of codes on its app.

Moreover, all customers using its app to make payments will be able to play a game and earn cash rewards. The bank will not reveal the reward amounts, which will be a surprise for its customers, said Anthony Wong, Livi’s marketing director.