HK virtual banks' record 2.2 million depositors by end-2023

Hong Kong's eight licensed virtual banks experienced modest growth over the past three years.

Virtual Banks (VBs) hgave gained wide market acceptance in Hong Kong, with 2.2 million depositors recorded as of 2023, according to central bank data.

In its 2024 review of the VBs, the Hong Kong Monetary Authority (HKMA) noted that despite challenges of launching during the COVID-19 pandemic, the products and services offered by the eight VBs have received positive responses.

The VBs reportedly recorded "moderate growth" over the past three years, with operating income increasing seven-fold and net losses narrowing by 15% from FY2021 to FY2023.

The HKMA said that VBs in Hong Kong have fulfilled the three policy objectives set for their development: promoting fintech and innovation, offering a new customer experience, and promoting financial inclusion.