New Virtual Banks Could End HSBC’s Hong Kong Dominance

HSBC has enjoyed a healthy business in Hong Kong as the bank has built a 35 percent share of the retail loan market; the Chairman of HSBC is seen as the second most powerful figure in the territory behind the Governor of Hong Kong; that dominance could be changing with the onset of 8 new virtual banks that will begin operating in Hong Kong over the next 6 to 9 months; these new banks could force HSBC to cut fees and spend more on technology, leading to lower profits for the business; Goldman Sachs estimates that 17 percent of HSBC’s revenue could be at risk due to these new digital entrants; with 7.4 million people in Hong Kong the competition will be fierce, though talk of creating a Greater Bay Area which would include Macau and some mainland China cities could change the equation. Source.

Todd is the Chief Product Officer of LendIt Fintech.

He is the host of PitchIt: the fintech startups podcast, a weekly interview show featuring emerging fintech founders and leading venture capitalists.

He is responsible for leading the content team which covers fintech through daily & weekly email newsletters, editorial, virtual events, and in-person conferences.

He has been covering fintech, banking, and venture capital for more than 15 years, including speaking regularly at industry events.

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