Guide to opening virtual bank account: requirements, fees and business account services
- •What are virtual banks?
- •List of virtual banks in Hong Kong
- •Comparing account opening requirements of different virtual banks
- •Differences between virtual banks and traditional banks
- •Products and services offered by virtual banks in Hong Kong
- •Virtual bank accounts for corporates
- •Limitations of overseas remittances via virtual banks
- •Airwallex vs. virtual bank corporate accounts
- •Frequently asked questions
Virtual banks have become increasingly popular in Hong Kong in recent years. What are the benefits of virtual banks? What virtual bank options are available in Hong Kong? This article will answer your questions, including services offered by virtual banks and the requirements and fees for opening an account.
What are virtual banks?
A virtual bank is a bank that provides banking services through digital channels. It doesn’t have a physical branch as all services can be completed online. Customers can open an account, make deposits and apply for loans through the bank’s mobile application or website.
The Hong Kong Monetary Authority requires virtual banks to primarily engage in retail business and prohibits virtual banks from establishing minimum account balance requirements. Although virtual banks don’t have a physical branch, they must have a physical office in Hong Kong for handling customer inquiries and complaints.
List of virtual banks in Hong Kong
There are 8 virtual banks in Hong Kong currently:
| Bank Code | Name |
|---|---|
| 389 | Mox Bank |
| 387 | ZA Bank |
| 388 | livi Bank |
| 390 | WeLab Bank |
| 395 | Airstar Bank |
| 391 | Fusion Bank |
| 392 | PAO Bank |
| 393 | Ant Bank |
Comparing account opening requirements of different virtual banks
| Virtual bank | Account opening fee | Minimum deposit requirement | Features | Processing time |
|---|---|---|---|---|
| Mox Bank | No business account | |||
| ZA Bank | - Online account opening: HK$1,200 (Extra HK$300 for company search fee) - Opening an account with a customer manager: HK$10,000 (Extra HK$ 1,000 for company search fee） - Additional fees apply for special company types |
N/A | Can open an account even if the business is less than 1 year old | As fast as 1 business day |
| livi bank | - HK$1,200 for application (including HK$300 for company search fee), regardless of successful account opening - Additional fees may apply for special company types |
Not specified | No restriction on company establishment date | As fast as 1 day |
| WeLab Bank | No business account | |||
| Airstar Bank | Streamlined corporate account: HK$850 Standard corporate account: HK$1,500 Company search fee: HK$300 No charge if account opening is unsuccessful |
No minimum balance requirement | No need for face-to-face meetings or physical document submission for opening a “Streamlined corporate account” |
As fast as within 48 hours |
| Fusion Bank | Online account opening: HK$1,200 Offline account opening: HK$2,000 Additional fees apply for special company types Company search fee: Hong Kong companies: HK$200, cost-based for overseas companies |
No minimum balance requirement | Business account opened online will be subject to a daily transfer limit to third-party payees of HK$1,000,000 |
As fast as 1 day |
| PAO Bank | Not specified | No minimum balance requirement | Not specified | |
| Ant Bank | Promotional offer for fee waiver | No minimum balance requirement | As fast as 3 days | |
Differences between virtual banks and traditional banks
1. Account opening methods and charges
The account opening process for virtual banks is relatively simple and fast compared to traditional banks. It can be completed within 5 to 10 minutes via the virtual bank’s mobile application. Corporate account applicants only have to provide their personal and corporate information, take a photo of identification documents and verify through SMS. The bank will then conduct a company search.
Besides, opening a virtual bank account is generally cheaper than opening a traditional bank account. Most virtual banks don’t impose minimum deposit requirements or monthly service charges.
2. Service hours and access
Traditional banks have fixed operating hours while virtual banks are not limited by space or time. As virtual banks don’t have physical branches, customers do not have to queue at the bank. They can conveniently access bank services through the banks’ mobile applications or websites anytime, anywhere.
3. Risks and security
Although virtual banks don’t have physical branches, they are required by local authorities to have a physical office. They are also regulated by the Hong Kong Monetary Authority, the same as traditional banks, and participate in the Deposit Protection Scheme, which offers a total deposit protection amount per depositor of HK$500,000.
4. Types of services and products
Currently, traditional banks offer a wide range of online services, including foreign currency exchange, time deposits, loans and mortgages. Services provided by virtual banks are not as varied as traditional banks as they are still in the early stages of development. They mainly provide time deposits, demand deposits, remittance services, etc. Some also provide loans.
Products and services offered by virtual banks in Hong Kong
| Virtual bank | Products and services |
|---|---|
| ZA Bank | - HKD, RMB and USD time deposits - Local transfers (FPS/CHATS) - Cross-border remittances - Foreign exchange services - Small business loans |
| livi bank | - HKD time deposits - HKD, RMB, USD demand deposits - “FPS” (Faster Payment System) for instant HKD, RMB transfers - “Real-time Gross Settlement System” for USD transfers |
| Airstar Bank | - HKD/USD/RMB accounts - Various deposit terms for time deposits - Transfers through Airstar bank account and FPS - Transfers through the “Real-time Gross Settlement System” |
| Fusion Bank | - Local transfers (FPS/CHATS) - Cross-border remittances - Multi-currency accounts combining HKD, RMB, USD savings and time deposits |
| PAO Bank | - HKD saving accounts - Transfers and payments through the “Faster Payment System” (FPS) - Loans for small and medium-sized enterprises |
| Ant Bank | - Dual currency accounts in HKD and USD - HKD and USD demand deposits - Local transfers through the “Faster Payment System” (FPS) - Loans for small and medium-sized enterprises |
Virtual bank accounts for corporates
Currently, there are 8 virtual banks in Hong Kong. Six of them offer corporate accounts (ZA Bank, livi bank, Airstar Bank, Fusion Bank, PAO Bank and Ant Bank). Most virtual banks provide basic services such as time deposits and local transfers. However, not all of them provide cross-border remittances. This may make them unsuitable for businesses operating in different countries and regions.
Limitations of overseas remittances via virtual banks
Although some virtual banks provide cross-border remittance services, most of them conduct the remittance through telegraphic transfer, which is relatively inconvenient compared to other methods.
First, as virtual banks don’t have physical branches, if there are any issues with the telegraphic transfer, customers can only inquire about it via the banks’ official website or mobile applications. Besides, virtual banks also charge handling fees for each remittance. These expenses can gradually eat into your profits.
Furthermore, virtual banks offer limited currency options for telegraphic transfer. They mostly provide HKD, RMB and HKD, which unfavor businesses aspiring to expand to different countries and regions.
Airwallex vs. virtual bank corporate accounts
Aside from virtual banks, financial and remittance platforms on the market, such as Airwallex, can also provide financial solutions for e-commerce and various types of small and medium-sized enterprises. With Airwallex, you can remit funds to over 150 countries and regions within 24 hours, with local payment channels available for remittances to 120 countries and regions, eliminating costs incurred from cross-border telegraphic transfers. 85% of remittances can even be credited on the same day. Open an Airwallex Business Account online for free today.
| Airwallex | Virtual banks | |
|---|---|---|
| Account opening process | Can be opened instantly online No account opening fees or monthly fees |
Simple online form filling and uploading business proof documents Completion within a few minutes |
| Currencies for remittance | Offers multi-currency accounts Allows direct remittances in 60+ currencies without the need for forced currency exchange |
Mostly only provide HKD, RMB and USD |
| Foreign exchange rates | Offers market-leading rates | Some virtual banks provide foreign exchange services |
| Cross-border remittances | Over 90% of transactions go through local rails instead of SWIFT | Cost-based HK$50-HK$250 for each telegraphic transfer Extra fees for intermediary bank charges may apply |
| Other services | - Batch transfers - Seamless integration with an accounting software - Visa cards for corporates and employees |
Some provide: - Time deposits - Demand deposits - Loans - Financing |
| Security measures | Regulated by Hong Kong Customs and holds a Money Service Operator License Adopts top-notch security technologies, including tokenisation and 3DS 2 for transaction security |
Participates in the Deposit Protection Scheme, with a total deposit protection amount of HK$500,000 per depositor |
*The above information was sourced from the official websites of virtual banks in June 2024. For the latest information, please refer to the announcements from each bank.
Frequently asked questions
1. Do virtual banks have deposit protection?
All licensed banks in Hong Kong, including virtual banks, must participate in the Deposit Protection Scheme, which offers a total deposit protection amount per depositor of HK$500,000.
2. How can customers of virtual banks withdraw and deposit funds?
Some virtual banks provide physical bank cards, such as ZA Bank, which offers physical withdrawals at ATMs accepting Visa. MOX also allows cash withdrawals at ATMs within the applicable Jetco network.
Meanwhile, customers of virtual banks without physical bank cards will have to transfer funds to their traditional bank accounts with ATMs in order to withdraw cash. It is important to note that not all virtual banks support FPS transfers.
3. Do virtual banks offer account opening promotions?
Many virtual banks offer account opening promotions, such as cash allowance and attractive interest rates for time deposits and demand deposits, to attract customers.
4. How to cancel a virtual bank account?
Most virtual banks don’t specify the account cancellation method on their websites. Customers can directly contact customer service representatives for inquiries.
Share
Related Posts
•6 minutes
•6 minutes
