Trading Bricks for Clicks - Hong Kong poised to launch its virtual banks

Isabel Feliciano-Wendleken ()
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Isabel Feliciano-Wendleken: Capco Digital Hong Kong

Journal of Financial Transformation, 2018, vol. 48, 120-131

Abstract: Hong Kong’s banking regulator, Hong Kong Monetary Authority (HKMA), published a Guideline on authorization of virtual banks, which grants banking status to financial institutions without the need for physical branches. This move is geared to usher Hong Kong into the “new era of smart banking” and capitalize on the significant opportunities brought about by the convergence of banking and technology. The banking sector is set to play a more active role in the semi-autonomous Chinese territory’s grand ambitions to transform itself into a “smart city,” amidst the backdrop of intensifying regional and global digitization. This article outlines the critical areas for consideration for virtual banks aspiring to succeed in the Hong Kong market: 1) customer focus, 2) continuous product innovation, 3) partnerships and cooperation, 4) the role of the regulators, and 5) new and existing infrastructure. Taking stock of these areas will enable new entrants to stand out amongst the long-established banking giants in the city’s hyper-competitive banking industry.

Keywords: Innovation and Invention: Processes and Incentives; Government Policy; Financial Institutions and Services (search for similar items in EconPapers)
JEL-codes: G21 (search for similar items in EconPapers)
Date: 2018
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Persistent link: https://EconPapers.repec.org/RePEc:ris:jofitr:1618

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