Hong Kong Digital Bank considers opening physical branches in response to regulatory regulations

According to the South China Morning Post, the Hong Kong Monetary Authority (HKMA) recently relaxed regulations allowing digital banks to establish limited physical branches to promote their development. WeLab Bank, ZA Bank, and Mox Bank have stated that they are considering opening physical branches, while Livi Bank currently has no relevant plans. HKMA issued 8 virtual banking licenses in 2019, and these banks went online one after another in 2020. In October last year, HKMA issued new regulations allowing digital banks to conduct limited business through non electronic channels and renamed "virtual banks" as "licensed digital banks", aiming to enhance public confidence in these institutions.