HK has 3rd highest adoption rate of neobanks: EY survey

The city ranked behind Germany and Mainland China.

Hong Kong has the third-highest neobank adoption rate globally, with 14% of consumers saying they have a primary financial relationship (PFR) with neobanks, EY’s NextWave Global Consumer Banking Survey revealed.

The city was just behind Mainland China (17%) and Germany (20%).

The survey said the finding reflects how “non-traditional tech startups are gaining ground” in Hong Kong.

From those surveyed, 47% also have products or services with a neobank, saying they perceive these technology brands to be more innovative and can offer better products and services.

Meanwhile, 61% of those whose PFR is a traditional bank, said they have three or more relationships with other firms which offer financial services.

The study also found that Hong Kong consumers are “looking for seamless integration across multiple providers,”  with 50% expressing interest in super apps that combine multiple financial services.

David Scott, EY Banking and Capital Markets sector leader for Hong Kong, said the study’s findings show that “ incumbent banks need to transform their business models to meet the rising expectations of consumers and address the dynamic market landscape.”

“The results of our survey confirm that seamless integration of activities, ecosystem business models and stronger personalization capabilities are essential for Hong Kong banks to maintain their customer relationships and chart a viable path to growth,” Scott added.