Changing customer expectations for convenience, speed, and lower fees, means that traditional banking models faced pressure to move with the times. Digital banks, previously called virtual banks, emerged as a result, leveraging technology to offer streamlined services through online platforms, allowing for quicker account setups, 24/7 access, and at reduced costs to the user, including no maintenance fees.
There are currently eight digital banks that are licensed and approved by the Hong Kong Monetary Authority and operating in Hong Kong, and of those eight, six allow companies to create business accounts. They are ZA, Livi, Airstar, Fusion, PAO, and Ant Bank.
In this article, we will compare factors businesses consider when choosing a digital bank, such as the eligibility requirements, the costs to open an account, how quickly an account can be set up, and features involving foreign currency.
The information provided in this article is for reference only and can change at any given time, so make sure to check the respective banks for the most up-to-date information on their features, fees and rates, or have a chat with us to discuss your goals and needs.
Eligibility
Eligibility requirements among digital banks target local firms, and especially, try to be as open as possible to new businesses. All digital banks in Hong Kong require all applicants to be incorporated in Hong Kong, where the ultimate controller, owner, or director holds a HKID or Mainland Residency. Some banks have additional requirements, such as limits to the number of members in the applicant party, or that all applicants must have personal accounts with the bank.
| ZA Bank | Livi Bank | Airstar | Fusion Bank | PAO Bank | Ant Bank | |
| Additional Eligibility Requirements | All partners, shareholders and directors of the applying party must hold a valid HKID and can have a maximum of 4 members. | The owner, director or ultimate controller must hold HKID or Mainland Residency | Applicants must hold a personal banking account at airstar | All partners, shareholders and directors of the applying party must hold a valid HKID and can have a maximum of 8 members, and all members must have a personal account with Fusion Bank. | No additional requirements | Company has been registered for at least 1 year |
Account Opening Times and Fees
Opening a bank account with traditional banks is a tedious process that can take days to weeks to complete, requiring the applicant to be physically present to hand in the application and verify their identity and that of their company. Digital banks tackle this pain point by offering fast time for account creation at affordable fees, with certain banks like PAO and Airstar going as far as to waive the fees entirely, and allowing applicants to courier in the required documents.
| ZA Bank | Livi Bank | Airstar | Fusion Bank | PAO Bank | Ant Bank | |
| Time to Open Account | At least 24 business hours | At least 24 business hours | At least 48 business hours | At least 24 business hours | Not Specified | At least 72 business hours |
| Account Opening Fees |
|
|
Waived |
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Waived | Promotional offer for fee waiver |
Remittance
Businesses that often make deals outside of Hong Kong have to be able to send and receive sums, called remittances. With digital banking still being a young niche, the list of locations digital banks can currently send to is limited to Mainland China and the US.
Livi Bank currently has the most options for remittance, able to send and receive remittance to and from both Mainland China and the US, while ZA, Airstar, and Fusion Bank only allow cross-border remittances.
| ZA Bank | Livi Bank | Airstar | Fusion Bank | PAO Bank | Ant Bank | |
| Remittance Locations | China | China and US | China | China | None | None |
Loan Services
Loans provide essential capital for expanding and managing cash flow fluctuations, ensuring any sudden short-term obligations are met. At the moment, only ZA, Fusion, and Ant Bank offer loans in HKD for businesses to leverage.
| ZA Bank | Livi Bank | Airstar | Fusion Bank | PAO Bank | Ant Bank | |
| Loan Services | Small Businesses | None | None | Small & Medium Businesses | None | Small & Medium Businesses |
Suggestions for Businesses
HK-focused startups
Local startups looking to open their first bank account can consider Airstar for their free account opening offer and low opening requirements, allowing even newly incorporated businesses without much history to open a business account.
Mainland-focused businesses
Startups focused on the Mainland’s market are best suited to use digital banks like Airstar, Fusion and ZA that allow cross-border remittances.
US-focused businesses
Businesses focused on the US market are best suited to use Livi Bank, which allows them to remit funds to the US.
Conclusion
Digital banks have started to elevate the banking experience for businesses in Hong Kong by offering greater convenience, faster account setups, and competitive rates tailored to meet current expectations. With a variety of options available, businesses can choose the digital bank that best aligns with their specific needs, whether facilitating cross-border remittances, or accessing essential loans. Now that businesses have had a taste of what digital banks can offer, the demand will only continue to grow with the bars for excellence set higher and higher.
