ZA Bank and Mox are believed to be the market leaders in Hong Kong’s digital banks, accounting for around 70% of all virtual bank customer deposits (at the end of last year). This, according to a Reuters report which referred to the annual reports of the city’s banks.
Hong Kong’s eight virtual banks had managed to accumulate total customer deposits of HKD 15.8 billion (approximately $ 2.03 billion) by the end of 2020. ZA Bank, which is operated by a division of online insurance company only ZhongAn, said deposits of HKD 6.04 billion (about $ 780 million).
This figure represents a market share of 39%, while Standard Chartered Mox Bank received a total of HKD 5.2 billion (about $ 670 million) in deposits, or about 33% of the total market.
Consulting firm Quinlan and Associates noted that over the next 4 years, up to HKD 76 billion in revenue could be an achievable goal for digital banks in Hong Kong. They could potentially hold an overall revenue market share in the broader banking sector of nearly 20%, and could also serve around 1.9 million customers, or nearly 25% of the city’s residents, Quinlan projected.
As the first reported According to Fintech News HK (which referenced regulatory data in a report shared by the SCMP), Hong Kong’s eight virtual banks serve around 580,000 customers. ZA Bank, Mox Bank and WeLab Bank, which are the city’s local digital banking operations, now account for around 85% of the total deposits held by virtual banks.
ZA Bank, which has acquired an insurance agency license, offers a wide range of products, according to research by Quinlan and Associates. The bank also offers personal and business loans as well as a debit card. ZA Bank reported in March 2021 that it had acquired around 300,000 customers in its first year of operation.
Mox Bank managed to exceed 100,000 customers in April 2021. It has only been operational for about 8 months. The digital bank intends to double its customer base by the end of this year. It will offer typical personal loans, installment payments, foreign exchange services, and wealth management services within one year.
WeLab Bank now claims around 10,000 new accounts, which arrived just 10 days after they started offering services. The bank now plans to acquire around 100,000 customers by next month, the SCMP reported.