HSBC Offers Remote Account Opening to Hong Kong SMEs

Source: Regulation Asia Editors, Regulation Asia 2020-06-24

Recent initiatives by HSBC to shift to lower-cost, digital-first services are largely seen as a response to new competition from virtual banks in Hong Kong.

HSBC has announced the launch of Hong Kong’s first remote business account opening solution for SMEs.

“Business owners can now open an account anytime and anywhere, without having to schedule face-to-face or video meetings with the Bank, or submitting physical documents and signature,” HSBC said in a statement. “The application process is completely digitised and paperless.”

SME customers can apply by creating a profile and completing an online account opening form, uploading digital copies of required documents, inputting a one-time SMS password, and authenticating their identity using selfie verification technology.

Customers will receive their account numbers immediately, however their accounts will not be activated until 2-5 days later – after a KYC assessment is completed by HSBC staff

The remote account opening service is initially open to Hong Kong SMEs with a simple company structure, established for not more than three years. Over time, the bank will extend the service to businesses with more complex structures and overseas operations.

In December, HSBC also debuted a mobile account opening service for retail customers. Mid last year, the bank also scrapped a number of fees associated with small depositor accounts, soon after making its digital wallet service ‘PayMe’ available to startups and small business customers for the first time.

The sequence of measures to shift to lower-cost, digital-first services for SME and retail customers is largely seen as a response to last year’s approval of eight new virtual banks to operate in Hong Kong.

So far, two of the new virtual banks have launched – ZA Bank (by ZhongAn/Sinolink) in March and Airstar Bank (by Xiaomi/AMTD) earlier this month. A third virtual bank – Mox Bank (by StanChart/PCCW/HKT/Ctrip) – launched pilot services in April.

HSBC

Hong Kong SMEs

HSBC Offers Remote Account Opening to Hong Kong SMEs

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