More than a year after Hong Kong's banking regulator issued licenses to eight virtual banks, only three have opened for business. The COVID-19 pandemic is a factor, but the new ventures face other headwinds in a particularly competitive and highly regulated market.
ZA Bank, a subsidiary of Chinese online insurer ZhongAn Online P&C Insurance Co. and one of the first batch of licensees; Airstar Bank Ltd., a joint venture backed by smartphone maker Xiaomi Corp.; and WeLab Bank, the only stand-alone homegrown virtual bank, are the three front-runners. All three provide deposit, borrowing and transfer services through a mobile app.
