HONG KONG, April 29 (Xinhua) -- Mr. Lo, a Hong Kong resident, has recently made a big decision to transfer his current deposit to a virtual bank.
Opening his account in less than five minutes and making the deal on his smartphone, Mr. Lo, in his 80s, became one of the first batch of users of ZA Bank, which is the first virtual bank in the Asian financial hub and has started operation for a month.
No need to wait in long queues inside banks, users of the virtual bank enjoy unimaginable convenience: round-the-clock services every day, only 30 minutes to be granted a loan, opening an account in five minutes, and remote face recognition, among others.
A smartphone can be the carrier of virtual banks, CEO of ZA Bank Rockson Hsu said. "With the help of new technology, virtual banks are designed to make financial services available to the public anytime and anywhere, offering an innovative option in addition to traditional banks."
The record of opening an account in ZA Bank is merely two minutes and 14 seconds.
The convenience for users was built on cutting-edge technologies, including artificial intelligence (AI), big data and cloud computing, which have made virtual banks a win-win combination of finance and technology.
In fact, virtual banks are not something just for tech-savvy young people. Since officially starting business on March 24, ZA Bank has attracted users aged from 18 to 87. Hsu said the bank aims to serve a wider range of people with lower threshold, citing no requirement in balance amount and no management fees.
For Mr. Lo, what attracted him the most is the higher returns than traditional banks. The current deposit rate stands at 1 percent in ZA bank, well above the market average.
As the first virtual bank in Hong Kong, ZA bank's success has prompted many others to follow suit.
The Hong Kong Monetary Authority (HKMA) said another three banks are under test operation and are providing services to a limited range of clients, a necessary procedure ahead of official operation. A total of eight virtual banks have been granted licenses by the HKMA.
The HKMA said it has received many other inquiries about virtual bank licenses and will consider approving more banks based on the operation of the first batch of virtual banks.
Burgeoning virtual banks in Hong Kong not only mean that users can experience more innovative and inclusive services but also mark a new milestone for the banking industry in the financial hub, experts said.
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