Adoption of Virtual Banks and Insurers

Adoption of Virtual Banks and Insurers 9 Executive Summary In this Summary, we highlight the key findings from the survey. The survey methods used in this Study are illustrated in the Survey Methodology section of this Report. Key findings from the survey Brand awareness of virtual banks and insurers In relation to brand awareness, 75% of respondents correctly identified the names and logos of virtual banks, but only 46% of respondents accurately recognized the two virtual insurers. Many of the respondents could not differentiate between the new entries and the digital or online platforms operated by traditional banks and insurers. Knowledge and adoption of virtual banks and insurers Most respondents demonstrated a low level of knowledge about virtual banks and insurers, with most having little or some knowledge (33%) or no knowledge (35%). Approximately two-thirds of the respondents were not aware that the Deposit Protection Scheme 1 operated by the Hong Kong Deposit Protection Board is also applicable to virtual banks. This Scheme provides the same maximum of HKD500,000 in protection for each qualified deposit account with virtual banks as it does for deposits with traditional banks. The adoption rate of virtual banking remains very low, as only ZA Bank had rolled out any services at the time of this Study. Similarly, only two virtual insurers had launched their services. A large majority of respondents had not purchased from virtual insurers. Intention to adopt virtual banking and insurance services Regarding the low adoption rate of virtual banks, it is understandable that the user base remained small during the economic downturn induced by the COVID-19 pandemic in the first half of 2020. However, most respondents indicated they were very unlikely (44%) or unlikely (25%) to open a bank account with a virtual bank over the following 12 months. 1 https://www.dps.org.hk/