Best virtual bank in Hong Kong: An overview of virtual banks in Hong Kong

Virtual banks offer their products and services to customers without relying on a branch network. Depending on which of the virtual banks in Hong Kong you choose, you’ll be able to open an account, transfer money, make payments, and even get a loan, all via your phone or laptop. No inconvenient opening hours - and no more need to stand in line at a bank branch.

Although virtual banks may be new to the Fintech Hong Kong scene, there are still quite a few to choose from - with more on the way. This guide runs through the virtual banks open right now, and gives some pointers on how to choose one. As virtual banks tend not to facilitate cross border payments, we’ll also highlight Wise as a smart option for expats and people sending and receiving international payments. Let’s get started.

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Table of contents

What is a virtual bank? Virtual bank vs traditional bank: what's the difference? How to open a virtual bank account in Hong Kong? Things to consider when selecting your virtual bank in Hong Kong ZA Bank account: fees and rates Mox Bank account: fees and rates Airstar Bank account: fees and rates Ant Bank account: fees and rates Fusion Bank account: fees and rates Livi Bank account: fees and rates PAObank account: fees and rates WeLab Bank account: fees and rates

What is a virtual bank?

Imagine these scenarios:

You currently have some savings that you want to send to your loved ones, or you need to double-check your salary through the bank statement, or you need to exchange some HKD for USD for your next holiday trip.

Typically, you would have to wait in long queues at a physical bank to perform these financial transactions. So, it can sometimes be time-consuming and frustrating.

Well, the good news is you don't have to worry about any of that with virtual banks. You can perform all these transactions -and more- without ever having to leave the house. You only need a computer or a smartphone, and you will be able to access all these banking services anytime and anywhere, with just a few clicks away.

Virtual bank vs traditional bank: what's the difference?

Both types of bank offer similar key services, like checking and savings accounts, loans, credit cards, and investment banking. The biggest difference between these two is the location. Traditional banks have a physical location where they carry out most of their daily operations. Virtual banks, on the other hand, operate entirely online. You can access their services with just your phone and don't need to visit the physical branches.

It's important to note that although traditional banks also have online banking systems, they should not be referred to as virtual banks.

How to open a virtual bank account in Hong Kong?

If you’re eligible to open an account with a virtual bank, the process can usually be done online or using the bank’s app in just a few minutes.

However, the specific requirements and eligibility criteria - as well as the process you need to follow - might vary between one bank and another. For ZA Bank, as an example, you must have a locally issued adult HKID card, and a Hong Kong residential address and mobile phone number to open an account¹.

Things to consider when selecting your virtual bank in Hong Kong

Which virtual bank and account product is right for you will depend on your personal needs and preferences. However, there are a few things to keep in mind when you’re choosing:

• How easy and intuitive is the virtual bank’s app and website?
• Can you access your bank online or only using an app?
• What are the fees for local transfers?
• Are international payments available - and at what cost?
• Can you get a debit or credit card card for easy spending?
• What are the local and international ATM fees?
• Are there minimum balance requirements or fall below fees to pay?
• Is there a multi-currency account for sending money overseas or travelling?
• What interest rates are on offer for savings and time deposits?

You may need a bank code when making money transfer to a Hong Kong bank. Check your bank code here.

ZA Bank account: fees and rates

ZA Bank is one of the first batches of virtual banks in Hong Kong and is licensed by the Hong Kong Monetary Authority (HKMA). This means your money is insured up to 500,000 HKD per depositor.

The bank offers various financial products, including banking, insurance, and investment services. Additionally, ZA Bank has partnered with Wise to launch ZA Remit. With this partnership, customers can make a quick, convenient, low-cost international money transfer without hidden fees. This feature is available directly from the ZA Bank app.

Here are some related fees using services from ZA Bank:¹⁺²

Service	ZA Bank Fees (HKD)
ATM withdrawals	Local: Free Overseas: $50 + 1.95% foreign exchange rate mark-up fee
Foreign transaction fee (Currency other than HKD)	1.95% per transaction
Cross-border Transaction Fee (Foreign currency transaction in HKD)	1.95% per transaction
Outward remittance	Wise Fee: from 0.43% depending on the currency route Convenience Fee: convenience fee of up tp 2%
Paper statements	$50 per statement cycle
Bank reference letter	$250 per statement

Mox Bank account: fees and rates

Introduced in 2020, Mox Bank is a fully digital bank backed by Standard Chartered in collaboration with HKT, PCCW and Trip.com. This powerful collaboration brings together a top bank, a telecom and lifestyle leader, and Asia’s largest online travel agent.

With Mox Bank, you can manage your money online from your mobile anytime. Thanks to the bank’s smart lifestyle partnerships, Mox customers can also benefit from cash back, rewards, exclusive offers/discounts, and more. In addition, with a Mox credit card, you can enjoy a 2% Unlimited CashBack on all your eligible spending, from dining, shopping, and travel to transportation.

Mox has some great perks but not the comprehensive suite of services available from some accounts. You can’t make international payments with Mox, for example.

If you want to manage money online with Mox, here are some of the service fees:³

Service	Mox Bank Fees (HKD)
ATM withdrawals	Local: $0 - $20, depending on the ATM network Overseas: JETCO: $30 - JETCO exchange rate applies Mastercard: $30 + 1.95% - Mastercard exchange rate applies
Foreign transaction fee with Mastercard	1.95% - Mastercard Currency Converter FX applies
Cross-border Transaction Fee (Foreign currency transaction in HKD)	1.95 %
Paper Statement Request	$50 per copy of paper statement

Airstar Bank account: fees and rates

Airstar Bank is also licensed by the HKMA and is a member of the Deposit Protection Scheme. Airstar Bank Limited is established through a collaboration between Xiaomi Corporation and AMTD Group, Asia's top comprehensive financial services group.

The bank's core value is promoting financial inclusion and aiming to be a "Bank for Everyone". Airstar Bank is the first virtual bank in Hong Kong to offer a 24-hour foreign exchange trading service, allowing you to trade instantly for HKD, USD, and CNY.

The bank currently waives all banking fees for its personal services except for late payment interest & early settlement fees for Personal Instalment Loan.⁴ However, it's worth noting that these fees may only be waived for a while, so you'll need to monitor the charges over time whenever you open an account.

At the time of this research, Airstar Bank only supports local money transfers in HKD, USD, and RMB.

Ant Bank account: fees and rates

Ant Bank (Hong Kong) Limited is a subsidiary of Ant Group, which also owns Alipay. The bank offers 24/7 virtual banking services to Hong Kong citizens. The bank’s most outstanding product is its “Savings” accounts with annual interest rates of up to 1% on deposits as of December 2023.

It is also important to note that the bank currently doesn’t support remittance to accounts held with banks outside of Hong Kong. Ant Bank currently only supports local transfer in and out of accounts in HKD, RMB and USD.

At the time of this research, Ant Bank doesn’t charge any services fees.⁵ However, again, these fees may only be waived for now, so you'll need to watch out for the charges as they change over time if you open an account.

Fusion Bank account: fees and rates

Fusion Bank is another licensed virtual bank in Hong Kong. The bank is backed by a powerful group of shareholders, including Tencent Holdings Limited, Industrial and Commercial Bank of China (Asia) Limited, Hong Kong Exchanges and Clearing Limited, Hillhouse Capital and renowned Hong Kong entrepreneur Mr Adrian Cheng Chi-Kong.

Like other banks mentioned above, Fusion Bank is also regulated by the Hong Kong Monetary Authority and is a member of the Hong Kong Deposit Protection Scheme.

Fusion Bank currently provides savings, time deposits, local transfers and foreign exchange trading services in Hong Kong dollars, RMB and US dollars, and also cooperates with the mobile payment platform WeChat Pay HK. Fusion Bank is also the first virtual bank to support cross-border remittance services to countries and regions globally. Fusion Bank, though, will reject any inward cross-border remittance other than HKD, USD, and CNY.

Fusion Bank waives most of the fees that are applicable to traditional banks. However, the bank still requires customers to pay some fees when they make Outward Remittance:⁶

Service	Fusion Bank Fees (HKD)
Outward Remittance	Fusion Bank handling fees: $50 Intermediary bank charges: $200 If the debit account currency is not HKD, there will be foreign exchange rate as well.

Livi Bank account: fees and rates

Livi Bank is a joint venture backed by BOC Hong Kong (Holdings), JD Digits and Jardines. Livi Bank, therefore, enjoys the unique strengths of each shareholder. BOCHK provides secure and convenient financial services, while JD Digits has strong capabilities in digital technology, online operations, and technology innovation. Jardines, on the other hand, has an extensive consumer footprint throughout its local and regional business network.

Livi Bank has a simple, seamless, secure digital ecosystem with state-of-the-art technologies. Customers enjoy flexible solutions anytime and anywhere to complement the everyday lives. Whether for clothing, food, accommodation, transport, shopping or leisure, Livi Bank has got you covered! However, Livi Bank currently only supports the transfer of money to and from other local banks, and inward and outward remittance of HKD and CNY from the Mainland of China.

Here are some service fees for a Livi Bank account:⁷

Service	Livi Bank Fees (HKD)
Outward remittance	$50 or CNY 45 per transaction (depending on the currency of the outward remittance)
Foreign currency transaction handling fee	1.9%
Paper statements	$50 per cycle

PAObank account: fees and rates

Like other banks, Ping An OneConnect Bank (Hong Kong) is granted a licence by the Hong Kong Monetary Authority (HKMA). The virtual bank PAObank is a subsidiary of OneConnect Financial Technology and a Ping An Insurance Group member. The virtual bank’s core value is optimising customer-centric services through its innovation and sophisticated technology. PAObank also has diverse digital banking services, including personal banking, savings accounts, and SME banking. However, PAObank currently doesn’t support international money remittance.

While PAObank waives most of its fees, the customers might also need to pay for a paper statement when they request to have one:⁸

Service	PAObank Fees (HKD)
Paper Statement	$100 per item

WeLab Bank account: fees and rates

WeLab Bank is another virtual bank that the HKMA authorised. WeLab Bank is a virtual bank launched by Hong Kong fintech company WeLaB Limited. The bank is backed by some of the world's top investors, including CK Hutchison's TOM Group, International Finance Corporation and Sequoia Capital10. WeLab is also often regarded as No.1 as the most innovative company11.

The team at WeLab Bank leverages behavioural science and technology to create different digital banking services, such as physical and virtual debit cards, personal loan services, foreign exchange, Digital Wealth Advisory, and more. However, WeLab currently does not support inbound remittances in foreign currencies.

Here are some services fees from WeLab Bank:⁹

Service	WeLab Bank Fees (HKD)
ATM withdrawals	via “JETCO” network: Free via MasterCard / Cirrus network in Hong Kong: $30
Foreign currency transaction fee with debit card	1.8% of transaction value
Faster Payment System transfer fee	Waived
HKD Real Time Gross Settlement (RTGS) system	$50 + corresponding bank and handling charges.
Paper statements	$20 per statement cycle
Bank reference letter	$200 per letter

Making international transfers from Hong Kong? You could save more with Wise

Your options for sending money abroad using a Hong Kong Virtual bank are limited. If getting a good deal on international payments matters to you, check out Wise.

With Wise, you can make and receive convenient international payments all over the world, without worrying about hidden fees that crop up thanks to the SWIFT network or dodgy exchange rates.

You can open your account online, and hold dozens of different currencies all in the same place. You’ll then be able to hold, spend or send your balance - or switch your funds to alternative currencies using the mid-market rate, all within the Wise app.

There’s no charge to open an account, no minimum balance and no service fee. If you need a smart way to send money overseas, try out Wise.

Sources:

1 ZA Bank: Fees and Charges Guide for Individual Customers
2 ZA Bank: International Money Transfer | Send Money Wisely With ZA Remit
3 Mox by Standard Chartered: Fees and Charges
4 Airstar Bank: Account opening | Open Hong Kong mobile banking account as fast as 5 minutes
5 AntBank(HK)
6 Fusion Bank: Service charges
7 livi bank Hong Kong: Fee and Charges
8 Ping An OneConnect Bank (Hong Kong) Limited: Service charges
9 WeLab Bank: General Service Charges

Sources last checked on 22 Dec 2023