Beyond Financial Inclusion: Reshaping the Regulatory Landscape for Virtual Banks

Law Sau Wai
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Law Sau Wai: Lecturer in Corporate and Commercial Law, University of Reading, UK

International Review of Financial Consumers, 2025, vol. 10, issue 1, 1-18

Abstract: The digitalisation of banking services, driven by smartphone access and limited physical presence, has transformed bank-customer interactions but introduced challenges, such as a reliance on third-party devices and external software contracts. Based on findings from focus groups held in Hong Kong (2021–2022), this paper identifies three critical gaps: (i) the absence of a personal touch, (ii) inadequate digital dispute resolution channels, and (iii) insufficient regulatory intervention. These gaps hinder digital adoption and undermine the role of banks as public utilities. The study calls for a global alignment of regulatory frameworks, advocating for a technology-centric approach to ensure effective governance and safeguard the integrity of virtual-only banking platforms.

Keywords: Financial Inclusion; Bank Regulation; Virtual Bank; Digital Bank; Cyber Law (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:vrs:irfinc:v:10:y:2025:i:1:p:1-18:n:1001

DOI: 10.2478/irfc-2025-0001

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