HK SMEs more likely to switch to digital banks, fintech: EY

This signaled the growth in the digital transformation of SMEs in the city.

Small and medium-sized enterprises (SMEs) in Hong Kong are more likely to switch their main financial services business, compared to other markets across the globe, a survey found.

In a survey of SMEs, EY found that 48% of SMEs in Hong Kong are inclined to switch offerings, compared to the global rate of 36%.

The survey also found that there is a growing trend amongst businesses in Hong Kong to use financial technology and digital-only banks.

Top organisations SMEs in Hong Kong consider switching to include large corporation that traditionally provides non-financial products (45%), fintech company (39%), bank with branches (33%).

SMEs in Hong Kong hold an average of 4.1 business banking products against 3.5 global average and 4 in the Asia Pacific.

Some 45% of which receive services from a fintech or an Internet/telephone-only bank, with 26% saying their main financial institution is a fintech or an Internet-only bank.

EY also noted a significant gap between SMEs’ expectations and bank offerings when it comes to time-to-credit and other financial products

“These huge changes impacting SMEs since the onset of the global pandemic mean most companies are laser-focused now on accelerating their digital transformation to gain efficiency, cut costs, and pivot their business models, so banks also have to adjust to meet those needs, or they’ll be met by a fintech, big tech firm, or other competitors,” Andrew Gilder, EY Asia-Pacific Banking and Capital Markets Leader,” said.

“Competition is fierce, but there are many things banks can do to remain relevant to a fast-changing and increasingly demanding SME world. By focusing on areas like data analytics, for example, they can create new avenues for income, mitigate risks, and truly tap into the SME business banking opportunity.”

Follow the links for more news on

Join Hong Kong Business community
Since you're here...

...there are many ways you can work with us to advertise your company and connect to your customers. Our team can help you dight and create an advertising campaign, in print and digital, on this website and in print magazine.

We can also organize a real life or digital event for you and find thought leader speakers as well as industry leaders, who could be your potential partners, to join the event. We also run some awards programmes which give you an opportunity to be recognized for your achievements during the year and you can join this as a participant or a sponsor.

Let us help you drive your business forward with a good partnership!


‘Wall-less’ office tears down barriers to collaboration amongst AnyMind’s creatives
The office opens up for employees to collaborate, relax, feed off one another’s energy, and enjoy ‘happy hour’ and ‘mental space.’
Auction houses thrive on Asian millennials’ art-buying power
Millennials are seen to be particularly drawn to contemporary art as growth for Christie’s, Sotheby’s, and Phillips are highly anticipated in art hubs Hong Kong and Singapore.
Hong Kong’s livi bank launches game-changing app for SMEs
Going fully digital on opening accounts and approving quick loans to SMEs raises ‘livi Business’ disbursements to over HK$70m (US$8.9m) as of end-April.