Adoption of Virtual Banks and Insurers

Adoption of Virtual Banks and Insurers 33 Survey Findings For virtual banks, this is an opportunity to penetrate into the retail banking market as customers in Hong Kong are open to joining multiple banks. Customers can directly compare the service variety, quality, and fees of banks; the switching cost is also low, which creates a very competitive market for new virtual banks. Of how many banks are you a customer? Hong Kong ranks third after New York and London in the GFCI 25 Index published in July 2020. 7 With around 160 licensed international and local financial institutions, bank customers in this city are given a wide range of services and products to select from. Many Hong Kong residents are customers of more than one bank and hold multiple accounts within one bank (e.g., savings, checking, credit card, investment, etc.). In selecting banks, customers look into factors such as bank’s reputation, variety and pricing of products, the number of ATM cash machines or branches available, bank fees, efficiency of online/digital banking, among others. We asked the respondents how many banks they currently use. As indicated in Exhibit 12, the majority of respondents (68.2%) had two to four bank accounts. The highest number of respondents had three bank accounts at 28.7%, while 22.8% had two bank accounts. It is interesting to note that 15.2% had more than five bank accounts. 7 GFCI 25 Rank, https://www.longfinance.net/programmes/financial-centre-futures/global-financial-centres-index/ gfci-25-explore-data/gfci-25-rank/ Exhibit 12 Of how many banks are you a customer?