Trend favours virtual banks, says lawmaker Johnny Ng

Lawmaker Johnny Ng says Hong Kong's virtual banks still probably need a couple more years to turn a profit, if similar banks in the UK and Germany are an indicator, although the trend is in their favour. Virtual banks have been operating here since 2020 and a recent report released by the Monetary Authority shows the SAR's eight virtual banks are still in the red. About 2.2 million people use these banks, which account for only 0.3 percent of total savings among all Hong Kong banks. But speaking on RTHK's Hong Kong Today programme, Ng says they are gaining ground, especially among the young, as they can offer attractive 1-year fixed rate deposits and other offers. He said people are often unaware that they have the same deposit protection as traditional banks. "Actually, the protection is the same for HK$500,000 deposit in the bank which is protected by insurance of all banks, including traditional banks and also the virtual banks," he said. "So you can see the trend... people moving, especially young people, moving from the traditional bank to use the virtual banks. Also they provide a lot of attractions and promotion offers." Ng also said that, unlike traditional banks, virtual banks don't require a minimum deposit. The SAR's virtual banks are ZA Bank, WeLab Bank, Mox Bank, Ant Bank, Livi Bank, Ping An One Connect Bank, Airstar Bank, and Fusion Bank.