Digital banking Hong Kong: What it is and how it works

What are digital banks

Digital banks, known as virtual banks in Hong Kong, are fully licensed banks that operate entirely online without any physical branches. They deliver all their services through digital platforms, primarily mobile applications and websites. Think of it as having a full-service bank right in your pocket, accessible 24/7 from anywhere with an internet connection. You can easily open and manage your account online, without ever needing to visit a branch¹.

Unlike traditional banks that rely on a network of branches and in-person services, virtual banks leverage technology to streamline their operations. This digital-first model allows them to cut down on overhead costs associated with rent, utilities, and staffing physical locations. These savings are often passed directly to customers in the form of:

• Lower or no fees for account maintenance.
• Higher interest rates on savings and time deposits.
• More competitive rates on loans and other credit products.
• Rewarding loyalty programs and cashback offers.

By focusing on a seamless user experience, virtual banks make everyday banking tasks—like opening an account, transferring money, paying bills, and even applying for loans—faster, simpler, and more efficient than ever before. Digital banking apps are available for download on both the Apple App Store and Google Play, making it convenient for users to access their accounts anytime.

How digital banking works in Hong Kong

If you’re wondering whether these branchless banks are safe, the answer is a resounding yes. Digital banking in Hong Kong operates under a stringent regulatory framework established and overseen by the Hong Kong Monetary Authority (HKMA), the city’s central banking institution. All digital banks are licensed banks regulated by the HKMA, ensuring legal compliance and security for customers ¹.

The HKMA ensures that all virtual banks adhere to the same high standards of security, risk management, and consumer protection as traditional banks. These regulatory standards are consistent with those applied to other banks and commercial banks in Hong Kong, providing customers with a comparable level of safety and reliability. Here are the key pillars that make digital banking in Hong Kong a secure and reliable choice ¹:

HKMA regulation

Every virtual bank operating in Hong Kong must hold a license granted by the HKMA. This licensing process is rigorous, requiring applicants to demonstrate strong financial standing, robust technological infrastructure, and a solid business plan focused on customer security and data privacy. This regulation ensures that only well-capitalised and reputable institutions can enter the market ¹.

Deposit Protection Scheme (DPS)

One of the most crucial protections for consumers is the Deposit Protection Scheme (DPS). All eight licensed virtual banks in Hong Kong are members of this scheme. The DPS protects your eligible deposits by guaranteeing compensation of up to HK$800,000 per depositor per bank in the unlikely event of a bank failure. This provides an essential safety net and gives customers peace of mind, knowing their hard-earned money is protected ⁴.

Advanced technology and security

Virtual banks are built on cutting-edge technology. They employ state-of-the-art security measures to protect customer data and funds, including ⁵:

• Biometric Authentication: Using your fingerprint or face ID for secure logins.
• Two-Factor Authentication (2FA): Adding an extra layer of security for sensitive transactions.
• End-to-End Encryption: Scrambling your data to prevent unauthorised access.
• Federated Learning Technology: Some banks use advanced AI techniques like federated learning to detect and prevent fraud without compromising user privacy. This technology allows multiple devices to collaboratively train a fraud-detection model without sharing raw personal data.

Overview of digital banking services offered by digital banks

Digital banks in Hong Kong offer a comprehensive suite of financial products and services that rival, and in many cases surpass, those of their traditional counterparts. Their offerings are designed for modern life, emphasising convenience, accessibility, and personalisation.

Here’s a look at the core services you can expect ⁶:

• Account Management: Instantly open savings, current, and multi-currency accounts from your smartphone. Manage your finances, track spending with built-in analytics, and set savings goals—all within a user-friendly app. You can use your mobile phone number for transfers and account management.
• Payments and Transfers: Enjoy seamless local and international payments, including cross-border payments, as key features. Most virtual banks are connected to the Faster Payment System (FPS), allowing for instant, free transfers using just a mobile number or email address. They also offer competitive foreign exchange rates and low-cost cross-border remittances.
• Debit and Credit Cards: Many virtual banks issue debit cards (and some offer credit cards) that are often packed with features like customizable spending limits, customizable credit limit, real-time transaction notifications, and attractive cashback rewards ⁷.
• Time Deposits: Lock in your savings for a fixed period to earn higher interest rates. Virtual banks frequently offer promotional rates that are among the best in the market. Both time deposit accounts and time deposit accounts are available in multiple currencies, including HKD, CNY, and USD, allowing you to benefit from USD savings ⁸.
• Personal Loans: Apply for personal instalment loans directly through the app with a simplified application process and fast approval times. The efficient digital model often results in more competitive interest rates.
• Digital Wealth Advisory and Investments: A growing number of virtual banks are venturing into wealth management. Services like WeLab Bank’s “GoWealth” and ZA Bank’s fund investment platform provide access to a range of investment products, including bond funds and dividend funds. Using robo-advisors and other digital tools, they make investing more accessible and affordable for everyone. These platforms also offer investment services, but please note that investment involves risks ^9,10.

While statements are digital by default, customers can request a paper statement for a fee.

Benefits of digital banks vs Traditional Banks

While traditional banks have been a cornerstone of finance for centuries, digital banks offer a compelling set of advantages tailored for the digital age. The disruption they bring is forcing the entire industry to innovate and become more customer-centric ⁶.

The core benefit boils down to convenience and cost. Digital banks remove the friction from everyday banking, saving you time and money.

Examples of digital banks in Hong Kong

As of mid-2025, Hong Kong has 8 licensed virtual banks, each with its own unique strengths and target audience. Many of these banks have received prestigious Triple A Digital Awards for their digital innovation, and some have been recognised for SME digital innovation, highlighting their leadership in supporting Small and Medium Enterprises.

These banks are at the forefront of Hong Kong's digital banking sector, often forming partnerships or connections with Hong Kong Exchanges to enhance their credibility and integration within the local financial ecosystem. Adopting the asset triple approach, they offer a diverse range of assets, including stocks and crypto, broadening their financial offerings and enhancing customer engagement. Here’s a closer look at some of the top players ^11,12,13.

1. ZA Bank

As the first virtual bank in Hong Kong, ZA Bank has established itself as a market leader and is often recognised for its pioneering role in the industry. The ZA Bank app serves as the main platform for accessing a comprehensive suite of digital banking services, including account management, international transfers, and investment options.

Backed by ZhongAn Technologies International, ZA Bank offers multi-currency savings accounts, competitive time deposit rates, personal loans, and insurance products. The bank is also expanding its asset triple approach, providing a range of assets such as stocks and crypto trading to broaden its financial offerings and enhance customer engagement. Users can trade in various funds directly through the ZA Bank app.

For more information about its services and features, users can visit the ZA Bank website. ZA Bank has received industry recognition, including Triple A Digital Awards, highlighting its achievements in digital innovation. Its “ZA Card” is a customizable debit card with no annual fees and attractive cashback offers ⁷.

2. WeLab Bank

WeLab Bank is a leading Hong Kong fintech company and a homegrown fintech success story, evolving from a leading online lending platform to a fully licensed virtual bank. It's known for its innovative technology and customer-centric approach. WeLab Bank offers a core savings account, time deposits with attractive interest rates, and a popular personal instalment loan service.

Its standout feature is “GoWealth,” a digital wealth advisory service that provides access to professionally managed investment funds with a low entry threshold, making it easier for everyday customers to start building wealth ⁹.

3. Mox Bank

Powered by Standard Chartered in partnership with HKT, PCCW, and Trip.com, Mox Bank combines the reliability of a major international bank with the agility of a fintech startup. Mox offers an all-in-one numberless bank card for enhanced security, seamless account opening, and smart savings tools like “Goals” to help users save for specific targets.

Mox Credit is also available, offering features such as cashback, customizable spending limits, and seamless integration with other Mox banking services, making it a smart and convenient credit solution. It also provides services like “Split Purchase” (a merchant-funded instalment plan) and competitive foreign exchange rates, making it a strong choice for daily transactions and money management ¹⁰.

4. Ant Bank (Hong Kong)

A part of the globally recognised Ant Group, Ant Bank is focused on promoting financial inclusion through technology. It leverages its connection with AlipayHK to offer highly integrated services.

Opening an Ant Bank account provides Hong Kong customers with multi-currency support, flexible transfer limits, convenient local payment options, and a range of digital banking services, making it easy to manage finances and access banking features.

For individuals, Ant Bank provides a high-interest “e-Savings” account and easy cross-border remittance to mainland China and other regions via AlipayHK. It also has a strong focus on serving small and medium-sized enterprises (SMEs) with digital business banking solutions and loans designed to support their growth ¹⁴.

5. Livi Bank

Backed by a powerful consortium including the Bank of China (Hong Kong), JD Digits, and Jardines, Livi Bank aims to provide a simple, secure, and personalised banking experience. Its offerings include a savings account with tiered interest rates, a virtual debit card that supports QR code payments, and "Livi PayLater," a flexible instalment loan product. Livi emphasises a rewarding user experience with regular promotions and an easy-to-navigate mobile app ^13,15.

6. Airstar Bank

A joint venture between Chinese electronics giant Xiaomi and the financial services company AMTD Group, Airstar Bank positions itself as a bank for everyone. It attracts customers with exceptionally competitive interest rates on its savings accounts and time deposits. Airstar also offers personal loans with a streamlined application process and quick approval. Its focus on providing straightforward, high-value products makes it a popular choice for savers looking to maximise their returns ^16,17.

Key considerations before using a digital bank

Switching to a digital bank can be a fantastic move, but it’s important to choose one that aligns with your financial habits and needs. Note that opening a digital bank account typically requires a Hong Kong residential address and a valid mobile phone number.

Here are a few key points to consider before making the leap:

Your banking needs

Do you need basic services like savings and transfers, or more complex products like mortgages, cheque services, or complex investments? While virtual banks are expanding their offerings, some specialised services may still be better handled by traditional banks.

Cash handling

Since virtual banks have no physical branches, depositing or withdrawing large amounts of cash can be less convenient. Most users rely on ATMs for cash withdrawals, but cash deposit options are limited.

Customer service preference

Are you comfortable with digital-only customer support (e.g., in-app chat, email, phone)? If you value face-to-face interaction with a bank teller, a virtual bank may not be the right fit.

Tech savviness

Using a virtual bank requires a smartphone and a degree of comfort with mobile applications. While the apps are designed to be user-friendly, ensure you're comfortable managing your finances entirely through a digital interface.

Look at the whole package

Don't just be swayed by a high promotional interest rate. Compare the full range of features, fees, card benefits, and app usability to find the bank that offers the best overall value for your specific needs.

Introducing Aspire Business Account: A smart alternative to traditional and digital business accounts

While the virtual banks discussed above are excellent for personal banking, businesses—especially modern, global ones—have a unique set of financial needs that demand more specialised solutions. This is where a platform like Aspire comes in.

Aspire is not a commercial bank, but a leading financial solution that offers a unified, smart business account designed for today’s entrepreneurs, startups, and SMEs. It provides a powerful alternative to both traditional business bank accounts, other banks, and the retail-focused offerings of most virtual banks.

Here’s what makes the Aspire Business Account a compelling choice:

• Multi-Currency Accounts: Hold, receive, and send money in multiple currencies like USD, EUR, GBP, and SGD with transparent and competitive foreign exchange rates. This is essential for businesses that operate internationally.
• Low-Cost International Transfers: Make global payments at a fraction of the cost of traditional banks, with no hidden fees. Aspire supports both cross-border payments and international payments, making it easy to send and receive funds worldwide.
• Transfers to Local Banks: Aspire enables seamless transfers to local banks in Hong Kong, ensuring smooth domestic transactions and integration with the local banking network.
• Corporate Cards: Issue unlimited virtual corporate cards for your team with customizable spending limits. This streamlines expense management and empowers employees to make necessary purchases securely.
• Software Integrations: Seamlessly connect your Aspire account with accounting software like Xero and QuickBooks, automating reconciliation and saving countless hours on administrative work.
• All-in-One Finance OS: Beyond just banking, Aspire integrates payables, receivables, and expense management into a single, easy-to-use platform, giving you a complete real-time overview of your company’s finances.

Compared to a commercial bank and other banks, Aspire offers lower fees for international payments and cross-border payments, and provides more flexible transfer options, including to local banks.

If you're looking to optimise your financial operations, reduce costs, and gain greater control over your cash flow, the Aspire Business Account is a smart, modern, and efficient solution built for growth.