The Hong Kong Monetary Authority released a summary of the public consultation on the proposal to change the name of "Virtual Bank" on the 14th. It stated that the respondents generally supported the proposal of renaming, and most of them agreed to use the proposed new name of "Digital Bank". ". The Hong Kong Monetary Authority will revise the "Recognition of Virtual Banks" guidelines and implement the use of the new name "digital bank" as soon as possible.
The HKMA received a total of 26 submissions during the consultation period, including from industry or professional organizations, virtual banks and the public. Respondents generally supported the renaming proposal and pointed out that the name "virtual bank" is outdated and fails to reflect the evolving nature of banks' application of financial technology and banking operations. Some respondents also believed that the word "virtual" gave people the impression that they were not engaged in real financial activities or involved high-risk business activities.
After considering the opinions received, the HKMA believes that the name "digital banking" is appropriate, is in line with current industry trends and government policies on digitalization, and can also be differentiated from the existing "digital banking services" of traditional banks.
"Virtual banks" refer to banks that provide retail banking services mainly through the Internet or other forms of electronic transmission channels rather than physical branches. They generally serve retail customers, including small and medium-sized enterprises, and help promote financial inclusion. According to data from the Hong Kong Monetary Authority, as of September 30, 2024, there are currently 8 registered "virtual banks" in Hong Kong.
