It might be more common than you think to hear the word “virtual bank” these days. What’s virtual banking exactly? You should consider the advantages and risks if you are interested in using a Hong Kong virtual bank.
Conceptually, a Hong Kong virtual bank has no actual branches. It makes daily banking services (like keeping your savings or lending money accessible through mobile apps) available on your smartphone.
Since these banks do not have to compensate for several outlets, virtual offices, in principle, they can save overhead and lower costs for the consumer. In other words, the interest rate is 1000 times more in the virtual bank than other traditional banks. (e.g., 1 percent per year compared to 0.001 percent).
In addition to a phone number and password, submit a photo of your HKID card and your picture to open a virtual account with an app. After you receive your Hong Kong virtual account, you can deposit money through a bank transfer.
You may withdraw money from any bank using an automated teller machine’s (ATM). You may make a typical deposit after linking the accounts.
As a result, automated banks would not be able to sell services that are very common in traditional banks such as insurance or special operation L/C, etc. as well as, they do not have checks and do not take deposits. There are no additional features for short-term lockboxes.
In short, yes, Virtual banks must obey the same rules set out by the Hong Kong Monetary Authority (HKMA) as conventional banks and made specifically for their service.
Due to the government’s Deposit Protection Scheme, virtual banks are covered up to an amount of HK$500,000 in the event of insolvency.
Only launched in September of this year, Mox is a virtual bank backed by Standard Chartered, alongside HKT, PCCW, and Trip.com. Mox helps in everything from retail banking to operation and shopping in one location.
To get it, download the Mox Bank application, open an account, and you’ll get fresh and exciting banking features.
The British banking and financial services giant ZA promises to be the fastest way to open an account in Hong Kong. Committed to simplifying banking for all, it uses a state-of-the-art app to provide easy access for all.
How to join:
Download the ZA application. Enter your telephone number and log in using your HKID, residential address, and tax details.
Put in your username and password.
Set up by AMTD Corporation and Asian tech leader Xiaomi. Asia’s top e-banking business, the Airstar, obtained a banking license from the Hong Kong Monetary Authority (HK) in May 2019. Keeping their financial inclusion philosophy, Airstar also participates in the Deposit Insurance Scheme. Recently, Airstar launched its virtual banking facilities, including savings accounts, time deposits, and personal loans.
How to join: Download the Arister Bank application and open your bank account. Only Hong Kong residents between the age of 18 and 70 can set up Airstar Bank accounts.
Founded by its mother business, Ant Financial, and embedded in Alibaba, one of the world’s leading Fintechs, Ant Financial, was worth £60 billion in 2017. One year later, the organization introduced a cash settlement program using blockchain.
Find the Ant Bank application in the App Store or Google Play and fill in personal details to build an account for free. An HKID is needed.
People over the age of 18 who possess a Hong Kong ID are qualified for opening an account with Livi Bank. It is co-founded by the Bank of China (Hong Kong), Jingdon Digits Technology, and Jardine Matheson Group. The bank places excellent emphasis on people-oriented design, which is reflected in its digital banking platform. There are various transfer choices, including real-time HKD, scheduled HKD, transfers from other accounts, and quick-withdraw via cell phone.
To get started, download the Livi app and open your account. Insert primary data, including email and password, to create an account. You will be contacted by their customer care office, later.
Finally, in September 2019, Fusion Bank began their virtual banking license service with the HKMA in Hong Kong. This is being done to enable the general population to get comfortable with personal banking services before a wider roll-out. It is jointly owned by the Bank of China (Hong Kong), Jingdon Digits Technology, and Jardine Matheson Group, an investment entity backed by Adrian Cheng. Headquartered in Hong Kong, it is a part of the Deposit Protection Scheme. Depositors are covered by the deposit insurance provided by the bank.
A fast and simple registration process takes just five minutes. Search for the Fusion Bank mobile application in the Apple or Android app store. Then log in to your account and use facial recognition to check your identification.
A newly-formed team of challengers recognized the need for better online banking services; WeLab was established in 2013. WeLab provides small loans and round-the-clock service, and market-leading online loan options. 40 million people are said to be clients of the bank
Enter into the WeLab application and open your account. Verify your identity with your HKID, and you are all set.
Ping An OneConnect Bank
Last June, Ping An Insurance unveiled a Fintech Supervisory Sandbox pilot program backed by Ping An. Retail and small business finance are now as well as wealth management is available in virtual form. Promises to accept loans of up to $2 million in total within five business days (valid until December 31, 2020). If it fails to do so, it promises to pay up to 1000 USD to the borrower.
Log into the PAO Bank online application. Go through the phone number setup phase. Create your username and password. Use three pictures of your HKID to identify your identity. After getting verified with your details, download the PAO Bank’s mobile banking application. Now you are all set!