Over 97% of Hong Kongers trust digital banks’ security measures

Digital bank account holders are willing to open more accounts with other digital banks.

Hong Kong residents have grown to trust and understand their digital banks, according to a survey by the Hong Kong Association of Banks (HKAB).

Of 1,005 individuals and 202 small and medium enterprises (SMEs) surveyed, 97% of individuals said that they are satisfied with digital banks’ security measures. Almost all or 99% of SMEs indicated the same.

Over 90% of individual and SME respondents also indicated that they are satisfied with the security measures in place to protect personal data and prevent fraud.

Over 80% of individual respondents, and 92% of SME respondents also believe that they have a good understanding of digital banks’ services.

This indicates that users are utilising a wider array of services beyond deposits, the HKAB said.

The survey was conducted from 31 July to 8 August 2024, with Web3.0-related enterprises accounting for 67.3% of the SME respondents. HKAB’s Digital Banking Education Taskforce commissioned the School of Communication at Hong Kong Baptist University to do the survey.

In a statement, the taskforce said that the digital banking industry’s efforts  to enhance the financial technology and service standards of Hong Kong’s digital banks will further strengthen public confidence.

Amongst recent initiatives were the Hong Kong Monetary Authority’s (HKMA) decision to rename virtual banks to digital banks; and the increased deposit protection limit of HK$800,000 for all banks.

There are 2.2 million digital bank account holders in Hong Kong as of end-2023, according to data from the HKMA. This figure is expected to expand more, based on HKAB’s survey, with over three-quarters of individual respondents saying they are willing to open new bank accounts with other digital banks.

For SME respondents, 99% of those with digital bank accounts indicated strong willingness to open new bank accounts with other digital banks.

HKAB also noted that the proportion of customers are now coming from a wider age range rather than just the younger generation.

Amongst individual respondents, those aged 26-35 years old still dominate with 65.7% of those in the age range having digital bank accounts. This is the highest proportion across all age groups.

However, the proportion amongst those aged 55 and above are rising, at 44.6% of them having a digital bank account.

Amongst SMEs, 81.3% of respondents aged 36-45 and 66.3% of those aged 55 or above hold digital bank accounts, HKAB found.