China Asset Management: There is a great opportunity for Hong Kong 8 digital banks to further expand their market share locally.

The Hong Kong-based FundRich Fund stated in a publication that a survey found that 55% of surveyed consumers may try digital banking services in the next year, while 29% of respondents are already using them. The survey agency believes that the 8 digital banks in Hong Kong have a great opportunity to further expand their market share. For those surveyed who have not yet registered but are willing to try digital banking services, the top three reasons are related to finance and platform aspects: higher interest rates (28%), more advanced technology (26%), and the convenience of accessing services anytime, anywhere (26%). For those surveyed consumers who have already registered to use digital banking services, higher interest rates, the convenience of accessing services anytime, anywhere, and rewards are the main reasons that attract them. Technology solutions provider FIS conducted a survey of over 1000 retail banking customers in Hong Kong and found that all age groups surveyed (including the older generation) are very open to digital banking because they are able to easily manage their finances through a comprehensive and seamless digital banking experience; 30% of the baby boomer generation surveyed (59 years and older) have already registered to use digital banking services. Digital banking is most popular among the millennial generation aged 28-42, with 37% using digital banking for financial matters. Traditional bank customer loyalty remains high, higher interest rates attract customers to try digital banking Although the survey results show that digital banking is becoming increasingly popular, customer loyalty to existing banks in Hong Kong remains very high. In fact, over 70% of surveyed Hong Kong bank customers are very or extremely satisfied with their main bank, and the average tenure of customers using the same main bank is close to 15 years, reflecting their strong trust in the traditional banking industry in Hong Kong. The survey results show that this does indeed have a ripple effect on digital banking. A few respondents indicated that they are unlikely to try virtual banking services, with the main reasons being satisfaction with the current bank they use (37%), inability to personally meet bank staff (34%), and lack of confidence in security (33%). 77% of respondents hope that financial applications can simplify the experience, and are most afraid of technical failures and service interruptions When asked about their experience using online banking platforms and financial applications, surveyed Hong Kong consumers clearly stated the need for an easy-to-use customer experience, with the majority of respondents (77%) hoping that financial applications can simplify the user experience. In fact, over half of the respondents stated that the proliferation of financial applications and websites makes them feel overwhelmed. Additionally, 72% of respondents consider easy-to-use websites to be very or extremely important. Respondents indicated that among the problems encountered when using online banking and financial applications, technical failures and service interruptions are the top concerns, followed by transaction processing times being too long, and too many functions making the application usage too complex. Kanv Pandit, International Banking Business Director at FIS, stated that with the increasing demand for digital banking, traditional banks in Hong Kong have accelerated their digitization processes and are striving to attract and retain customers. The new digital banks are rapidly popular among all age groups and are not only favored by young customers who are digital natives. As the survey shows, many customers still choose to use the services of traditional banks, but the banking industry has no room for complacency.