Some of the eight digital banks in Hong Kong are exploring setting up physical branches locally, including WeLab Bank, ZA Bank and Mox Bank, while Livi Bank has no plans to open physical branches.
The Hong Kong Monetary Authority issued a new rule in October last year to allow these banks to open physical branches to a limited extent and replaced the term virtual bank with licensed digital banks to enhance public confidence in these companies.
“Taking into account feedback from the industry, the Hong Kong Monetary Authority believes that giving digital banks the flexibility to conduct business through non-electronic channels in a limited manner will help improve their transaction processes and enhance customer experience,” said a spokesperson for the Hong Kong Monetary Authority. “The Hong Kong Monetary Authority will carefully evaluate the reasons and basis for digital banks’ applications to open physical branches.” (South China Morning Post)