Why Hong Kong banks have shut down 40% of branches in recent years
New York may be known as the city that never sleeps, but many Hongkongers like to take care of banking transactions at 2am – a truth that helps explain why 40 per cent of physical branches have disappeared in recent years, according to local bank executives. While the number of Hong Kong licensed banks had remained stable around 150 for many years, the number of bank branches had dropped 40 per…
Many Hong Kongers like to conduct banking transactions late at night, contributing to the closure of 40% of physical bank branches over recent years, according to local bank executives. Sunny Cheung, CEO of Shanghai Commercial Bank, noted that the shift in banking models has been permanent, with the number of branches dropping significantly.
Simon Chung, CEO of Fubon Bank (Hong Kong), revealed that customers frequently use the Faster Payment System (FPS) for transfers during early morning hours. HSBC Hong Kong CEO Maggie Ng explained that despite having 7 million retail customers, hiring enough relationship managers to serve all of them would be impractical and costly.
Therefore, HSBC has been leveraging AI to better serve its clients and prevent fraud. AI can screen over 1.2 billion transactions monthly for signs of financial crime, reducing fraud significantly. Tokenisation of assets, such as bonds, deposits, gold, and other investments, is another development in the banking sector, as customers increasingly prefer digital representations of real-world assets.
Written by urgent.news from SCMP Business's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
This story
This is one outlet's version. Read the fullest account.
- Morgan Stanley deal leak triggers rival poaching, security warnings for Hong Kong banks scmp.com
- Centurion to acquire Yan Woo building in Hong Kong for US$46.4 million businesstimes.com.sg
- Hong Kong stocks fall as tech shares slide, Trump-Xi summit in focus brecorder.com
- HSBC scraps $32,000 members club perk for Hong Kong bankers straitstimes.com
