Convenience boosts high virtual bank adoption in Singapore, Hong Kong

Competitive rates and streamlined services drive digital banking popularity

Virtual banks are rapidly gaining traction in Singapore and Hong Kong, with nearly one-third of consumers in these regions now using digital banking services. Nigel Fox, Managing Director, Banking and Payment Solutions, Asia Pacific Middle East Africa, FIS, attributes this rise to the convenience and accessibility digital banking provides.

“You can access it anywhere, anytime, at any place, in a digital format. So that's certainly driving it,” Fox explained during Sibos 2024 in Beijing.

Virtual banks are also winning over users by offering more competitive rates and simplified, streamlined services. “They’re better and they’re cheaper,” Fox noted, highlighting the appeal of efficient transactions and enhanced user experience.

Digital banking adoption spans various demographics, with Gen Z and millennials showing strong engagement. However, the trend is not limited to younger users. “It’s right across the demographic, so it’s not just any one particular demographic,” Fox said.

The demand for easy-to-use portals is high, especially in Hong Kong, where 77% of consumers seek simplified digital interfaces. Meanwhile, traditional banks are increasingly adopting FinTech practices to keep pace, with Fox adding that collaboration is a key strategy for offering competitive services.