WeLab Bank officially launched for business yesterday, marking the third virtual lender to enter the market in Hong Kong.
WeLab Bank kicks off after a three-month trial where it attempted to lure new customers and money with a 4.5 percent annual deposit rate, according to a statement, alongside a limited offering of 8 percent spending rebate.
«The Covid-19 pandemic offers opportunities and challenges,» said WeLab chief executive Adrian Tse said during an online briefing, according to an «SCMP» report. «It has forced many people to work and shop from home. Many people are more comfortable using their mobile phones to open an account and conduct banking transactions.»
WeLab becomes the third of eight licensed virtual banks to launch in Hong Kong after ZA Bank, backed by Chinese insurer ZhongAn, and Airstar Bank, backed by Xiaomi and AMTD.
Virtual Loosening
According to WeLab chairman and former Hong Kong’s ex-secretary for financial Services and treasury Chan Ka-keung, the firm will look to extend the competitive 4.5 percent rate to both big and small depositors not only as part of a broader aim to expand financial inclusion but also to combat the ongoing pandemic.
«We want to offer a high deposit rate and cash rebate to help customers better cope with the Covid-19 outbreak,» Chan said. «Hong Kong residents can earn more by saving their cash handouts with WeLab or by spending with our debit card.»
WeLab's cash rebate will be capped at around $387 until the end of August. The virtual bank's debit card will also have access to cash withdrawal at over 2,000 Jetco ATM machines.
