Hong Kong’s Ripe for the Virtual Banking Wave
Customers in the city are both digitally savvy and frustrated with the established operators.
Almost two-thirds of Hong Kong people use their phones to bank online.
Photographer: Philippe Lopez/AFP/Getty Images
The world is littered with startups that have struggled to become genuine challengers to traditional banks despite chalking up plenty of customers. Hong Kong may be different.
The city kicked off its virtual banking revolution by issuing three licenses on Thursday, two of which went to ventures led by note-issuing banks. The Hong Kong Monetary Authority is processing five more permits. This second batch is likely to include Tencent Holdings Ltd., Alibaba Group Holding Ltd. affiliate Ant Financial, or even Xiaomi Corp., Chinese behemoths with the heft and technology expertise to disrupt the established order.