Renminbi rise to fuel Bank of China HK’s growth

The lender expects the currency to be used more often in cross-border deals.

Bank of China (BoC) Hong Kong Ltd is banking on the increased adoption of China’s renminbi by global financial institutions to drive growth in its personal banking business in 2025.

Hong Kong’s second-biggest bank in terms of assets plans to further expand renminbi-related services next year as the currency gains popularity amongst Hong Kong investors and people involved in cross-border deals, Arnold Chow, general manager of Personal Digital Banking Product Department at BoC Hong Kong, told Hong Kong Business on the sidelines of Hong Kong FinTech Week in October.

“This year presents a good opportunity to further demand and penetration of renminbi, not just on the investment side,” Chow said.

“We see a lot more customers in Hong Kong going to mainland China for different kinds of purposes, like living, tourism, study, or investment,” he added.

BoC HK, a unit of state-owned Bank of China, is also fast-tracking efforts to strengthen its presence in Hong Kong’s personal banking sector by capitalising on cross-border banking opportunities.

As more mainland customers go to Hong Kong, the bank sees significant potential for growth, not just in the opening of deposit accounts but also in the adoption of retail products.

Chow also identified the expansion of cross-border banking as one of the major trends in Hong Kong's personal banking segment.

He added that Hong Kong continues to solidify its role as a financial gateway to Mainland China, driven by initiatives such as Stock Connect, Bond Connect, which both allow investors on the mainland  and Hong Kong to trade and settle listed shares and bonds in each other’s market via the stock and bond exchangesin their home markets.

There’s also the upcoming pilot of the Mainland China Instant Payment System in June 2025, which will further facilitate cross-border transactions.

Chow likewise cited  the Hong Kong Monetary Authority’s announcement of an instant cross-border payment system between Hong Kong and Mainland China that will be pilot-funded in June next year.

This trend is reflected in the increased uptake of services such as remote account opening for mainland customers, who can now set up accounts in Hong Kong without visiting a branch, he added.

The bank said it is also embracing technology to enhance personal banking services. “There is a lot more technology plus banking partnerships. Going forward, this will better shape our personal banking.”

He noted that whilst many banks are focusing on enhancing their mobile apps, application programming interface integration with various platforms, such as shops, property developers, and stock trading apps would continue.

Chow said artificial intelligence (AI) and blockchain are transforming personal banking. AI is being used to refine wealth management tools, letting customers make informed decisions about investment and asset allocation.

He added that blockchain technology, particularly distributed ledger technology, is improving the security and efficiency of financial transactions.

BoC has launched initiatives in the past years to leverage this technology, and its adoption is expected to continue accelerating, Chow said.

The bank has partnered with tech companies to launch tools such as an ESG (environmental, social, and governance) carbon neutrality calculator to help customers understand their carbon footprint and make more sustainable choices.

BoC has also adopted digital solutions to streamline account management, with remote services becoming a key part of the strategy.

“We are also the first to launch remote account service opening such that the customers do not need to basically miss a branch to open an account easily,” Chow added.