Online banks need to stay relevant with virtual financial services

LOCATION, location, location. At least that is how the old adage goes when it comes to the success (or failure) of a business. However, between the crushing rental cost and the limited market size, many companies, especially those with a physical presence, are moving their operations partially, or even entirely, onto the Internet - and the same can be said about banks, too.

Since March 2018, the Hong Kong Monetary Authority (HKMA) has granted eight licences for virtual banks - or banks that exist solely online with no physical presence anywhere on the map. Singapore, too, is following suit, with the Monetary Authority of Singapore (MAS) announcing in June 2019 that it will issue up to five new digital bank licences.

While virtual banking is not new in Europe and China, it is most certainly an up-and-coming trend in other parts of Asia. As a member of the industry, how do you keep up with the innovation and remain relevant?