Catenaa, Tuesday, January 21, 2025 – ZA Bank, the city’s largest digital neobank, is reportedly considering opening physical branches in Hong Kong, taking advantage of new regulations by the Hong Kong Monetary Authority (HKMA).
Under the updated rules, digital banks in Hong Kong are now permitted to operate a limited number of physical locations, a move aimed at bridging the gap between virtual services and traditional banking. ZA Bank, known for its crypto-friendly approach, supports the initiative, with a spokesperson emphasizing that face-to-face interactions could improve customer service and address complex issues more effectively.
Other digital banks, including WeLab Bank and Mox Bank, are also evaluating similar steps, according to the South China Morning Post.
The move aligns with growing calls for better financial support for crypto businesses in Hong Kong. Lawmaker Johnny Ng Kit-chong has urged enhanced assistance for the web3 sector, which has faced significant challenges accessing banking services.
A 2022 HKMA report revealed that 95% of over 120 Web3 firms in the city struggled to open accounts, citing rigid banking regulations. Many firms reported lengthy delays, with some taking up to six months to secure services.
ZA Bank’s potential expansion into physical branches could mark a pivotal shift for digital banks and crypto enterprises navigating Hong Kong’s evolving financial landscape.
