Adoption of Virtual Banks and Insurers

Adoption of Virtual Banks and Insurers 39 Survey Findings Intention to open a virtual bank account in the next 12 months At the time of this survey, only ZA Bank was offering deposit, electronic fund transfer, and lending services to individuals and SMEs. Other virtual banks in Hong Kong had not yet begun offering their full services, partly due to the COVID-19 outbreak in the first half of 2020. With only a small customer base of virtual banks, the public is generally unaware of these new entries. To understand the willingness to adopt virtual banks, respondents were asked how likely they were to open a virtual bank account in the next 12 months. In response, 44.4% indicated they are very unlikely to open a virtual bank account in the next 12 months, followed by 24.6% who are unlikely, and 21.2% who are indifferent. Less than 10% are very likely/likely to do so. The majority of the respondents do not plan to adopt virtual banks in the near future. The COVID-19 and the uncertain economic outlook have had an adverse impact on the debut of virtual banks in Hong Kong. It is plausible that the customer base of virtual banks is unlikely to expand significantly in the short run. Exhibit 16 Intention to open a virtual bank account in the next 12 months [1 - Very Unlikely ...... 5- Very Likely]