Hong Kong virtual banks struggle to turn profits after four years

City's 'smart banking era' lenders face interest rate headwinds

20241004 HK image

The Hong Kong Monetary Authority introduced virtual banking under the city's 'smart banking era' initiatives in 2017. (Nikkei montage/Source photos by Reuters)

ECHO WONG, Nikkei staff writer

HONG KONG -- In the four years since they began operating, Hong Kong's eight virtual banks have yet to become consistently profitable as they struggle with a low volume of transactions.

While one says it is recording "monthly net profits," two others say the break-even point is in sight.

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