Survey: A majority of SMEs consider virtual banks as convenient and efficient

A majority of the surveyed small and medium enterprises (SMEs) believe that virtual banks are convenient and over half of them possess virtual bank accounts, according to a survey by The Virtual Banking Education Taskforce, an initiative set up by the Hong Kong Association of Banks.  

In an effort to gauge public perception and better understand their impression towards virtual banks, the VBE Taskforce recently commissioned a survey in the form of an online questionnaire, targeting both the public and SMEs.  

The survey results revealed a predominantly positive impression of virtual banks, with over 90% SMEs considering virtual banks as convenient and efficient, as they offer technology-enabled advanced services. This reflected the sentiment that many SMEs have begun integrating virtual banking services into their business operations.  

Meanwhile, a significant 76% possessed virtual bank accounts, while 79% also had accounts with traditional banks. This underscored that SMEs, even with existing traditional bank accounts, are inclined to open new accounts with virtual banks. 

In particular, SMEs are relatively concerned about service efficiency and convenience, brand and reputation, and interest rates of savings. For SMEs, the main service used was deposit/savings (38%), followed by investment funds (28%) and money transfer (28%). 

On the public front, the survey found that over 70% of the 1,000 individual respondents consider virtual banks innovative and convenient. 

When asked about their perceptions of virtual banks, 52% of individual respondents believed the advantage of virtual banks lay in reduced document requirements, 50% of individual respondents believed virtual banks are innovative, and 48% of individual respondents believed virtual banks have lower fees.  

The utilisation of virtual banks has been steadily rising, with 45% of surveyed individuals opening virtual bank accounts. Meanwhile, 30% of respondents expressed an intention to sign up for a virtual bank account in the next three months.  

High deposit interest rates, rewards for opening an account and convenience of use were also key factors that motivated individual respondents to open virtual bank accounts. 

The spokesperson for the Virtual Banking Education Taskforce of The Hong Kong Association of Banks said, "The survey results demonstrated that over the past four years, the public has developed a more accurate and in-depth understanding of virtual banks. They recognised that virtual banks are no different from traditional banks in terms of regulation and deposit protection for account holders. 

“With this in mind, virtual banks can offer customers convenient experiences through fintech, for example, virtual banks provide 24/7 banking services and reduce the time required for account opening and loan approval. Overall, we are pleased to see the improvement in public and business perception of virtual banks.” 

On the other hand, Calvin Ng, alternate chief executive of ZA Bank, said ZA Bank is pleased to see the public’s increased acceptance of virtual banking, which is the result of the industry’s concerted effort over the past four years.  

“As a tech-driven bank, we have always exerted our strong tech DNA to provide a convenient and seamless banking experience while leveraging cutting-edge technologies to enhance the security level of our services to protect users’ assets,” he added. 

“As a leading virtual bank, ZA Bank is determined to set new industry standards with innovative products and services, especially in terms of security and privacy protection. We look forward to working with the HKAB and the industry to further enhance user confidence through public education and jointly promote the fintech development in Hong Kong,” he said.

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