Adoption of Virtual Banks and Insurers

Adoption of Virtual Banks and Insurers 69 Survey Findings Product offerings of virtual banks To enlarge the user base of virtual banks, it is important to understand the customers’ demands and expectations of the services offered. We asked respondents to choose at most three types of services on which virtual banks should focus. As shown in Exhibit 37, the top three popular services are electronic payments, investment products, and savings and time deposits. Unlike traditional banks, all virtual banks operating in August 2020 (i.e., ZA Bank, PAOB, Airstar, WeLab Bank and Livi) do not provide investment products (e.g., stocks, ETFs, and investment funds). An interesting finding is that respondents favored cryptocurrency as an investment asset. Virtual banks might gain a larger customer base if they can provide investment products sooner, as well as cryptocurrency investment services which have not been provided by traditional banks for the time being. Exhibit 37 Product offerings of virtual banks