Hong Kong’s first virtual bank ZA Bank launched its services on Tuesday, offering a 1 percent annual interest rate for current deposits to lure customers.
The lender’s ZA Savings Go product offers customers an annual savings deposit rate of 1 percent for up to HK$500,000, while local retail banks offer about 0.01 percent for its Hong Kong-dollar savings deposits.
As traditional bank customers are often discouraged by the minimum deposit requirements and the time commitment of banking products with higher returns,the product (ZA Savings Go) aims to fill the market gap, benefiting more users with greater flexibility
Rockson Hsu, chief executive of ZA Bank
As traditional bank customers are often discouraged by the minimum deposit requirements and the time commitment of banking products with higher returns, Rockson Hsu, chief executive of ZA Bank, said the product aims to fill the market gap, benefiting more users with greater flexibility.
With ZA Bank’s one-stop mobile app, users can enjoy round-the-clock services. Other innovative features include “7x24 time deposits”, “5-second transfer recall” and “facial authentication”.
ZA bank was among the first batch of eight virtual banks licensed by the Hong Kong Monetary Authority last year to propel the city’s financial technology and innovation. The lender is a joint venture between the mainland online-only insurance company, ZhongAn Online P&C Insurance, and Sinolink Group.
In December last year, ZA Bank conducted a pilot trial under the HKMA’s Fintech Supervisory Sandbox, providing services for some 2,000 Hong Kong retail users to gather feedback and optimize services.
The other seven licensed virtual banks are expected to start operating in the second quarter of this year.
Some of them, such as Mox Bank — an online bank backed by Standard Chartered in partnership with HKT, PCCW and Trip.com and Hong Kong fintech company WeLab — have begun internal trials before launching services.
