All about virtual banks
The term “virtual bank” may sound difficult to fathom. Simply put, it refers to “a bank that is purely online”, i.e. a bank with no bricks-and-mortar branches, which operates primarily through fintech and the internet.
Fintech is a prevailing development trend in the financial sector. Following the launch of stored value facilities (more commonly known as electronic wallets) and Faster Payment System (FPS), the HKMA issued banking licenses to eight virtual banks during March to May 2019 to promote financial inclusion and facilitate fintech development and innovation in Hong Kong, thus providing consumers with more choices in terms of banking services and a new kind of customer experience.
9 December 2019