StanChart: Success of Virtual Banking in H.K. Depends on Partnerships

The transcript discusses the process of building a virtual bank, highlighting the unique challenges and innovations involved. It emphasizes the importance of partnerships, particularly with Fintechs, and the need to address unmet market needs. The discussion also covers the regulatory support from Hong Kong authorities, which facilitates the digital onboarding of customers and the use of public cloud infrastructure. The transcript concludes by addressing the technological and regulatory challenges faced by virtual banks.

What is a key focus in the process of building a virtual bank?

• Creating a new operating model

• Developing a mobile app

• Hiring more staff

• Expanding physical branches

How do virtual banks plan to address unmet needs in the market?

• By offering higher interest rates

• Through aggressive marketing campaigns

• Through innovative products and services

• By reducing service fees

What advantage do established banks have when entering the virtual banking space?

• Faster transaction processing

• More diverse product offerings

• Established trust and brand value

• Lower operational costs

What is one of the biggest challenges in setting up a virtual bank?

• Recruiting experienced staff

• Setting up the technology infrastructure

• Finding office space

• Marketing the new bank

How have Hong Kong regulators supported the virtual banking agenda?

• By providing financial incentives

• By allowing banks to operate without a license

• By enabling digital onboarding without address proof

• By reducing taxes for virtual banks