It's been four years since the launch of Hong Kong’s eight virtual banks. Thus far, none of them have managed to turn an annual profit, according to a review by the Hong Kong Monetary Authority.
Launched in 2020, none of Hong Kong’s eight virtual banks have achieved profitability as of end-2023, according to a review by the Hong Kong Monetary Authority.
Nonetheless, they continue to record «moderate business growth» over the past three years. This includes a seven-fold increase in aggregate operating income and a 15 percent decrease in net losses from 2021 to 2023. The total number of depositors also reached 2.2 million at the end of last year.
Maintain Market Size, Change Name
According to HKMA chief executive Eddie Yue, there is «no strong justification» to introduce more virtual banks into the market given the diversity of the existing players. The regulator also commenced a one-month public consultation on a proposal to rename virtual banks to «digital banks», in a move aimed at boosting confidence.
The eight virtual banks currently operating in Hong Kong include Airstar Bank, Ant Bank, Fusion Bank, Livi Bank, Mox Bank, PAO Bank (formerly known as Ping An OneConnect Bank), Welab Bank and ZA Bank.
