Tag: Report

Singapore – Multi-category classifieds and recommerce marketplace Carousell Group has launched its ‘Circular Economy Impact Report’ that showed how secondhand transactions have made a positive climate impact in greater Southeast Asia.

The data from the report revealed that the user community of the platform has avoided a total of 116,577 metric tonnes of carbon emissions in four goods categories in 2022, including fashion and luxury, electronics, furniture and home living, and hobbies and toys. The staggering number is equivalent to 5.3 million trees absorbing CO2 per year.

Furthermore, it also showed that more than half, or 56%, of purchases made in the Carousell marketplace displaced the purchase of a new item. On average, 55% of surveyed users across Carousell’s six key markets have reported an increase in buying and selling of second-hand items in 2022 as compared to 2021.

Carousell has also partnered with European climate tech company Vaayu in quantifying their impact, leveraging its proprietary AI and machine learning (ML) technology, and utilising its Life Cycle Assessment (LCA) database of over 600,00 product data points to come up with the report.

Quantifying the avoided carbon emissions, the report reinforces the fact that the act of buying and selling pre-owned or used items is a better choice for the planet as compared to traditional retail, which involves purchasing new items. It also underscores the significance of every individual transaction in contributing to the overall impact of the circular economy.

Gaurav Bhasin, chief strategy officer at Carousell Group, said, “By facilitating secondhand transactions, Carousell Group holds a central role in advancing the circular economy alongside our users in the Greater Southeast Asia region. As a key enabler of the circular economy in our region, we have a responsibility to lead by example and measure the potential positive impact of choosing secondhand products over new ones in a trustworthy and transparent way.”

He added, “In addition to the avoided emissions calculations, we have also taken the opportunity to calculate our group’s carbon footprint. The robustness of our chosen methodology underscores our strong commitment to sustainability, and it forms the bedrock of our sustainability endeavours.”

Also commenting on the result, Quek Siu Rui, co-founder and chief executive officer at Carousell Group, said, “Our mission is to make secondhand the first choice for everyone. We have stayed true to this mission over the past 11 years, and we remain committed to making selling and buying secondhand even simpler, more trusted, and convenient. With the release of the report, we hope more people realise how easy it is to embrace secondhand as a lifestyle and contribute to a greener world without compromising on the things they enjoy.”

Meanwhile, Namrata Sandhu, co-founder and CEO at Vaayu, shared, “Retail is responsible for 25% of global carbon emissions, and with research continuing to show we’re not on track to keep global warming below 1.5C, we’re at a critical inflection point. Circular business models, like recommerce, offer a clear path to reducing retail’s impact on our planet, which is why we are so proud to partner with Carousell Group to quantify its climate impact and empower communications with its users.”

Singapore – Online advertising has continued to grow despite the challenging economic conditions, reaching $3.732b for the Q3 2023, according to data which was drawn from the IAB Australia Online Advertising Expenditure Report (OAER) prepared by PwC, showing how online advertising increased by 7.8% year-on-year and 2.1% over the preceding quarter.

Specifically, the data suggests that total expenditure by category in Q3 2023 quarter was $1.630b for search and directories, $1.451b for general display and $649.2m for classifieds. 

Furthermore, general display advertising increased 2.7% over the June 2023 quarter and 8% year-on-year from the September 2022 quarter. Search and directories also softened by 1.6% from June 2023 but increased 10.6% year-on-year from September 2022.

Within general display advertising, audio advertising expenditure recorded no growth quarter over the June quarter reaching $68m for the September quarter, but it increased 16.2% year-on-year from September 2022. Video advertising recorded a 5% growth quarter-on-quarter to reach $968.1m for the September quarter and 15% growth year-on-year from September 2022.

Additionally, the retail, automotive, and health & beauty sectors all reported strong growth in Q3 2023, with retail reaching 17.1% share of general display advertising, automotive increasing to 15.4% and health and beauty reaching 7.9%. Finance (8.7%) and FMCG (5.7%) remain in the top five industry categories for expenditure.

Lastly, connected TV continues to yield the greatest share of content publisher’s video inventory investment, increasing from 45% in Q2 2023 to 54% in Q3 2023 buoyed in part by Women’s Football World Cup activity. Desktop reduced from 38% to 25% in the same period, while mobile investment increased from 17% to 21%.

Talking about these results, Gai Le Roy, CEO of IAB Australia, commented, “It is encouraging to see marketers continue to invest in advertising to drive growth. However, investment in different media environments was not universal and the market was tough for many organisations.” 

“Retail continues to be the number one advertiser category with investment from local and global retailers. It is also pleasing to see the uplift in automotive advertising with the share of spend in the general display category above 15% for the first time since September 2020,” she added.

Singapore – When it comes to customer experience(CX), customer data serves as a significant source of insights that can be used to predict behaviours and needs, while informing an organisation on how it resonates with its customers. 

However, brands within the Asia-Pacific(APAC) region still face significant challenges in the way data is collected and analysed, according to a report from unified customer experience management platform Sprinklr and global customer experience platform CX Network. 

Specifically, the report found that 46% of brands in APAC said they do not have a central data storage required to deliver a competitive customer experience, with only 58% indicating that they had an annual budget of US$100,000 or less for contact centre solutions.

On the other hand, 79% of brands in APAC are using multiple tools to understand customer data, impacting operational efficiency as well as overall customer experience, with 54% of brands storing their contact centre data in a way that can be easily analysed.

With these findings in mind, the report underscores that modern CX demands unified systems that enable digital communication channels handled by the contact centre to deliver the most comprehensive understanding of customers, their experiences, and the likelihood that they will return.

The ability to do this depends on where customer data is stored, whether it is received by CX teams in real-time, how it is actioned, and the tools available for the job.

Talking about the findings, Melanie Mingas, editor in chief at CX Network, said, “When it comes to advancing the quality of CX and the efficiency of operations, these organisations must take the opportunity to embrace AI-powered tools that support workflows and analyse customer interactions across all channels. This report outlines the benefits of upgrading the tech stack and provides practical advice on how to initiate such a project.”

Meanwhile, Arun Pattabhiraman, chief marketing officer at Sprinklr, said, “The use of multiple disconnected tools for CX management can lead businesses to underutilise their consumer data and miss key business insights. Our latest report spotlights some of the industry-wide gaps in data collection and analysis for the Asia-Pacific region, to encourage a shift to the more optimal approach of unified CX management.”

“Sprinklr’s unprecedented AI-powered CXM platform is a global leader in this space, helping some of the world’s leading businesses extract the maximum value from their data, while improving their overall customer experience,” he added.

Manila, Philippines – Following the significant digital participation of AI, Google’s latest e-Conomy report for Southeast Asia revealed the accelerated growth for Philippines is expected to reach double digital growth from 2023 to 2025, positioning itself as one of the region’s fastest-growing economies.

Amongst the findings, it was reported that e-commerce continues to be the primary driver of the country’s digital economy, accounting for its 70% overall online activities. Benefiting from the shift of informal, unorganised commerce to organised digital platforms, it is also expected to reach $24B GMV by 2025 at 21% CAGR. 

By 2025, the local digital economy is set to continue its double-digit climb towards $35B GMV, growing at 20% CAGR making the Philippines a fastest-growing digital economy.

Meanwhile, online travel demonstrated the largest growth from 2022 to 2023 at 88% due to the ongoing momentum of tourism. 

Specifically, both domestic and regional transport providers are growing into outer cities. Businesses have also embarked on expanding their two-wheeler products as a more cost-effective alternative form of transportation in an effort to attract these markets. 

Speaking about the report, Nikki Del Gallego, head of data and insights at Google Philippines, said, “With continued double-digit climb towards $35B by 2025, the country’s digital economy continues to exhibit resilience and generate opportunities for Filipinos despite macroeconomic headwinds. This momentum is poised to continue, fueled by the immense potential of AI and the digital participation of internet users outside Metro Manila which could drive medium to long term growth.”

Bennett Aquino, partner at Bain and Company also commented, “It really is quite a feat that both Southeast Asia’s digital economy GMV and revenue continued their double-digit growth momentum despite this challenging macroeconomic environment, with revenue breaking the $100B mark in 2023.”

“More than anything, this shows the resilience of the Southeast Asia digital economy and that the key players are figuring out the monetization puzzle and making headway towards healthier unit economics. Despite external headwinds, we are optimistic that the digital economy – both for SEA and the Philippines – will continue to grow substantially in the longer run,” he added.

Meanwhile, Fred Pascual, secretary at the Department of Trade and Industry, said, “It is truly remarkable that the Philippine digital economy is on track to achieve sustained double-digit growth. Through a whole-of-government approach, the Department of Trade and Industry (DTI) remains committed to collaborating closely with partners from various sectors, including Google, to empower Filipinos in realising the benefits of the growing digital economy through upskilling opportunities.”

This year’s SEA digital economy revenue also is projected to reach $100 billion, expanding at a rate 1.7 times faster than the GMV of the area. This further delves into the opportunities of increasing digital participation to unlock the potential of raising digital engagement.

Singapore – Almost half, or 44%, of Thai consumers are more trusting of GenAI’s content, and 42% believe it is safe for use, a report from Publicis Sapient revealed.

According to the report, Thai consumers are among the leading in the global market in terms of generative AI use, with more than one in three, or 35%, answering that they have personally or professionally used generative AI tools before. This places Thailand alongside Australia, which scored 38%.

With GenAI’s capabilities, customers are also expecting a lot from it, including enhanced experiences in activities like shopping. In fact, almost half (43%) of GenAI users want brands to utilise the technology to advance their overall customer experience.

In Thailand, especially, more than half, or 55%, of consumers are expecting genAI to improve their overall customer experiences when interacting with brands and their products and services.

The global survey revealed that a huge majority of Thai consumers (97%) are excited about what genAI will bring to their shopping experience. Additionally, 86% of all genAI users in Thailand also reported that its impact on shopping experiences excites them. This is higher than the 63% global average recorded by the survey. 

Among the genAI tools, nearly half of users globally (45%) are very likely to use a conversational application of the technology for travel and hospitality shopping. Meanwhile, in Thailand, the numbers show a whopping contrast, with 63% of users responding that they are very likely to use the technology.

However, despite the global use of GenAI technology, many remain apprehensive of its implications and safety of usage. The report showed that only 21% of consumers globally trust the outputs produced by a GenAI tool. 

On the other hand, the report also revealed that Thai consumers are more trusting of GenAI’s content and outputs (44%), and they consider them safe to use (42%).

According to the results of the report, organisations must continue to develop strategies and ways to harness the power of generative AI while ensuring that the implementation of the technology remains ethical to establish deeper trust with customers.

The report further suggested organisations develop strategies that will help harness GenAI for customers. Firstly, focus on product research and discovery to enable faster and more accurate search results. Next, focus on helping consumers find the best deals amidst rising costs of living and inflation. And lastly, invest in GenAI-powered customer services to enable seamless, automated interactions like product returns and exchanges.

Andrew Male, client partner at ASEAN, said, “We are extremely excited at the potential that generative AI brings when it comes to transforming the customer experience. Thailand has shown itself to be a leader in embracing the use of generative AI tools, and we look forward to collaborating with our partners and customers to harness these innovative technologies and continually develop innovative solutions that transform how we live, work, and play.”

Sydney, Australia – With the impact of the cost-of-living crisis creeping up into the lives of Australians amidst sustainability issues, market research firm Kantar states that brands must show initiative and leadership to inspire behavioural change. In Kantar’s report titled the Kantar Sustainability Sector Index 2023, the firm explores the issues that Australians face, as well as their opinions around it. 

Data from the report mainly suggests that 7 out of 10 Australians cite cost as being prohibitive to actioning real sustainable behaviour change, saying that things better for the society and the environment are more expensive.

Moreover, the study also explored the sustainability issues that Australians are most concerned with, citing mental health, poverty, and climate change as the most prominent issues that they want to see addressed.

To be specific, the cost-of-living crisis is biting hard on Australia’s mental health, which is the sustainability issue that Australians want addressed for the second year in a row. Additionally, 76% of respondents want to live a sustainable lifestyle but only 22% are doing so because they struggle to translate their values into action due to this crisis.

With this in mind however, 6 in10 Australians say that it is hard to tell which products are good or bad ethically or for the environment and over one-third don’t know where to find sustainable or ethical products. Plus, more than half of them want clear certification explaining the environmental or ethical benefits that would influence their purchase.

Notably, climate change also continues to rank highly as both an issue of concern and one that people want addressed as 60% of Australians say they expect to personally feel climate change effects in their lifetime and want real action. They believe it is a responsibility of companies and brands to help solve or tackle climate change and environmental issues, with only 27% thinking that those companies and brands are already taking those actions.

Talking about these findings, Carolyn Reid, head of qualitative at Kantar Australia, said, “A new consumption culture is emerging, and brands must think or rethink how they create value and innovate. Successful brands make people feel empowered to make truly better choices. Brands can enable behaviour change by using the Sustainability Sector Index to identify levers that will prevent or enable change to both design and execute for success.”

“It is imperative to prioritise both the social and environmental issues impacting your brands, products or services – and the lives of the people you seek to meaningfully connect with. It ensures the insights, territories or innovations that you address are ownable and distinctive to your brand, while understanding your brand’s sustainability table stakes. Further, it provides actionable guidelines on how to express your ambitions and actions in the most authentic, impactful, and differentiated way,” she added. 

Meanwhile, Madeleine Andrews and Mathilde Pernot, sustainability leads at Kantar Australia, also commented, “Sustainability isn’t an option for brands anymore but delivers a business imperative and a commercial opportunity. Getting this right is crucial. However, many people feel let down when it comes to sustainability. Acting with bravery and boldness to lead the way in sustainability is a critical imperative for any sector.”

Kuala Lumpur, Malaysia – The 8th edition of the e-Conomy SEA report by Google, Temasek and Bain & Company has noted that domestic demand will drive economic growth in Malaysia with household spending, employment and wages on the rise. It also noted that online travel is growing 49% YoY – fastest of all the digital economy sectors – reaching $4b in gross merchandise value (GMV).

According to the report, Malaysia has the fastest-growing transport and food delivery sector in SEA. The sector grew 16%, boosted by Malaysian commuters’ return to offline activities and the continued preference for food delivery. 

It also added that even though foot traffic in malls has recovered to pre-pandemic levels and the food and beverage industry is experiencing an uptick, Malaysian consumers have held onto the digital habits that make their lives easier, such as food delivery and e-commerce. 

Meanwhile, e-commerce growth is flattening after growing 4% between 2021 and 2022 from pandemic-driven growth, but it remains Malaysia’s biggest digital economy sector at $13b, accounting for 57% of the total GMV. E-commerce is seeing high adoption in Kuala Lumpur and Selangor. 

However, there is a persistent gap between demand and supply in other areas of Peninsular Malaysia and East Malaysia, which presents an opportunity for e-commerce players to expand in those areas.

In terms of digital financial services (DFS) adoption, the irreversible offline-to-online behavior shift continues to drive growth in DFS adoption, and cash is no longer king with QR codes and other forms of digital payments becoming ubiquitous. Digital payments are the biggest value driver within the DFS categories in Malaysia – $165b GTV in 2023 – boosted by the government’s support for digital payments adoption and distributing benefits to lower-income communities through e-wallets. This has placed Malaysia as the 2nd biggest digital payment market in SEA in 2023.

It also noted that digital wealth grew 61% YoY – fastest of all the DFS categories – and is expected to be the second largest DFS sector in Malaysia by 2030. The increasing interest towards digital wealth presents a lucrative opportunity for established financial services institutions to retain high-net-worth customers. 

As the competition between DFS players intensifies, pure-play fintechs have extended their lending services to the underbanked segment, while established financial services institutions have been quick to shift their large existing customer bases to digitalised services. 

Lastly, Malaysia has seen good progress on digital inclusion, making inroads into rural areas to bridge connectivity gaps. The percentage of households with internet access saw an increase from 76% to 97% for urban and 49% to 89% for rural, within the time frame of 2015 – 2022. However, consumers outside of metro areas are at risk of facing a widening digital economic divide when it comes to digital participation – active involvement in the digital economy through consumption of products or services across sectors. 

Samuele Saini, country director at Google Malaysia, said, “Malaysia’s GMV is projected to reach between $45b and $70b by 2030 and we’ve seen how the resurgence of tourism along with Malaysian consumers’ sticky digital behaviours in e-commerce and food delivery can contribute to this economic growth. With Malaysia making good progress in bridging connectivity gaps, addressing the digital participation beyond metro areas can prove to be a key in unlocking the next wave of growth.”

Meanwhile, Willy Chang, partner at Bain & Company, commented, “t is remarkable that both Southeast Asia’s digital economy GMV and revenue continued their double-digit growth momentum, with revenue breaking the $100B mark in 2023. This shows the resilience of the Southeast Asian digital economy and that the key players are making progress towards more healthy unit economics and sustainable business models. Despite external headwinds and some return to in-person dining and shopping, we are optimistic that the overall digital economy will continue to grow in the longer run.”

London – A new report by We Are Social notes how there is an uptick of ;social reckoning’ for brands in value-driven online spaces. 

The new report explored how individuals on social media are reevaluating and reshaping their sense of self-worth in the context of increased commercialization and commodification. They are questioning the value of their participation and involvement, their communities, and their creative contributions.

It also showed how the changing perception of value in social media is reflected in trends like creators emphasising knowledge over possessions and the debate over users purchasing verification on X (formerly Twitter). 

According to the argument made, cultural phenomena such as ‘Barbiemania’ in 2023 demonstrate people’s willingness to embrace manufactured hype as long as it creates opportunities for play, creativity, and community. 

The report has identified five trends under the umbrella of “The Social Reckoning,” analysing their possible influence on social media in the upcoming year and providing examples of how brands can use these trends into their marketing plans. 

Speaking about the report, Mobbie Nazir, global chief strategy officer at We Are Social, said,  “Our Think Forward report this year, as the name suggests, shows that a reckoning has come in social spaces. The commercialisation of digital worlds is forcing people to try new ways of creating, absorbing and sharing content. First it was the trend of de-influencing, now users are looking for new forms of self-expression even within a more commoditised landscape.” 

She added, “This new coalition government of capitalism and creativity has an inbuilt space for brands – but also a new and nuanced set of demands. Every brand will be judged: are you making a sponsored ad or are you a patron of the arts? It will be fascinating to see if – and how – brands are able to respond to these deeper measures of relevance and authenticity.” 

Singapore – More than four in five, or 84%, of Singaporeans said banks and financial institutions are liable to scam losses to a great extent, data from YouGov showed.

The data from YouGov’s survey revealed that nearly half of Singaporeans claim they receive scam texts, calls, or messages on a weekly basis (48%). Meanwhile, one in seven receives such communication daily (14%), and the rest receive it monthly (19%), every few months (10%), or longer than that (3%).

Interestingly enough, men (52%) are more likely to receive scam texts, calls, or messages than women (44%) on a weekly basis. And among generations, GenX feels the most targeted, with more than half of them (52%) saying they receive such communication on a weekly basis.

The data also revealed that among the different types of scams, online shopping or classified scams have been the most common at 15%. This type of scam is where people receive fake items or do not receive items at all. This is closely followed by job scams at 14%.

Not far from the previous numbers, 13%, or at least one in ten Singaporeans, have also been victims of investment scams, which is the same percentage as the victims of bank or card phishing scams. Aside from these, 9% have been victims of loan scams and social media phishing scams, and 53%, or more than half, have never been victims of any scams.

Among these various types of scams, a worrying number half of Gen Z have already been victims of a scam, with bank or card phishing scams being the most common type (15%). This is followed by investment scams and social media phishing scams (14% and 13%, respectively).

Meanwhile, job and employment scams top the list for millennials (16%), followed by online shopping scams (15%) and investment scams (14%). And for GenX, online shopping scams have been the most common (19%), followed by job scams (15%) and investment scams (14%).

Looking at the victims, one in seven (14%) admitted to losing money, and three in ten (30%) haven’t experienced it but personally know someone who lost money due to a scam. On the other hand, half (50%) have neither been victims themselves nor know anyone who has been scammed for money.

With the concerning issue of scamming and loss of money due to a certain scam, the data from YouGov revealed that Singaporeans hold banks and financial institutions most accountable for bearing scam losses, with 84%, or more than four in five respondents, saying they are liable to some or to a great extent.

After banks, 77%, or three-quarters, believe that bearing losses lies with the consumer, while 76% each for telcos and the government.

To protect themselves from scams, three-quarters of Singapore residents ignore or block unknown emails and phone numbers (75%). Other than this, 69% do not share personal details or financial information with anyone, 64% avoid downloading software and mobile apps from unknown sources, 61% won’t transfer money to anyone they haven’t met, and 61% verify numbers and emails before taking any action to prevent any financial fraud.

It is also worth noting that older generations, such as Gen X and Baby Boomers, are more likely to take countermeasures against scams than Gen Z and millennials.

YouGov’s survey comes after the Monetary Authority of Singapore (MAS) and Infocomm Media Development Authority (IMDA) proposed a Shared Responsibility Framework (SRF) for phishing scams in Singapore. This newly proposed framework requires financial institutions and telecommunication companies to share the responsibility for scam losses should they fail to discharge prescribed duties.

The survey data showed that most Singaporeans view the framework positively and believe it will be effective in strengthening the accountability of all the parties involved in mitigating scams, especially banks and financial institutions (78%). Meanwhile, seven in ten expect telcos to become more responsible due to this development (70%), and nearly two-thirds think it will make consumers more accountable (64%).

Hong Kong – Over 90% of SMEs consider virtual banks with advanced technology services as convenient and efficient, a survey from the Hong Kong Association of Banks (HKAB) revealed. 

The results of the survey showed a predominantly positive impression of virtual banks, with over 70% of the 1,000 individual respondents saying that virtual banks are innovative and convenient.

Interestingly, SMEs are found to have an even better perception of virtual banks. The majority, or over 90% of respondents, considered virtual banks with technology-enabled advanced services as convenient and efficient.

Virtual banks have various usage offerings and are typically used for general banking services. The most frequently used banking services for individual respondents were deposit or savings (63%), followed by credit card and debit card services (49%), and rewards such as cash rebates and free gifts (45%).

Deposits or savings (38%) also topped the list for SMEs’ most-used banking services, followed by investment funds (28%) and money transfers (28%).

With these offerings, the use of virtual banks has also been steadily rising, with 45% of the surveyed individuals opening virtual bank accounts. Additionally, 30% of respondents expressed an intention to sign up for a virtual bank account in the next three months.

High deposit interest rates, rewards for opening an account, and convenience were among the key factors that motivated individual respondents to open virtual bank accounts.

And with the increasing number of individuals and businesses utilising virtual banks for transactions, the survey also delved into how the public perceives and understands virtual banks.

The results from the survey revealed that more than half, or 52%, of individual respondents believed the advantage of virtual banks lay in reduced document requirements. Meanwhile, 50% believed virtual banks were innovative, and 48% believed virtual banks had lower fees.

Furthermore, more than 50% of individual respondents also considered themselves knowledgeable about and favourable towards virtual banks, as they perceived virtual banks’ services as essential to their financial needs.

On the corporate front, a staggering 90% of the surveyed SMEs expressed that virtual banks were convenient, as they provided fast and efficient service and contributed to enhanced operational efficiency. The results are reflected in the number of SMEs that have integrated virtual banking services into their business operations.

A significant 76% of the surveyed SMEs also possessed virtual bank accounts, while 79% also had accounts with traditional banks. This shows that there is an open interest in opening new accounts with virtual banks despite the existing traditional bank accounts, as SMEs are also found to be relatively concerned about service efficiency and convenience, brand and reputation, and the interest rate of savings.

HKAB’s survey also showed that there is a clear understanding of virtual bank regulations, with 75% of individual respondents stating they are aware that virtual banks are also licenced and regulated by the Hong Kong Monetary Authority (“HKMA”). This awareness rate is much higher among SMEs, at 79%.

Additionally, 65% of individual respondents and 62% of SMEs were also aware that deposit accounts in virtual banks are currently entitled to up to HKD 500,000 in protection.

According to the report, the deepening public understanding and interest in virtual banks can be attributed to their features, which offer convenient and secure services to customers.

One of these features is the robust security infrastructure and stable systems that effectively detect and prevent fraud, ensuring the utmost security for user accounts. Virtual banks now have high-value user security and mobile-binding authentication functions on top of their other identification features. Some mobile apps also feature a “report lost card” function to protect lost cards from unauthorised transactions.

Virtual banks now also prioritise transparent privacy management, placing a high value on the non-disclosure of customer information to third parties without the customer’s consent. Additionally, virtual banks, being part of the Hong Kong Deposit Protection Scheme, ensure that their depositors enjoy the protection of deposits up to HKD500,000.

And lastly, virtual banks also deliver innovative banking services that empower individuals and businesses to accomplish their financial objectives, all by harnessing the power of fintech.

A spokesperson for the Virtual Banking Education Taskforce of the Hong Kong Association of Banks stated, “The survey results demonstrated that over the past four years, the public has developed a more accurate and in-depth understanding of virtual banks. They recognised that virtual banks are no different from traditional banks in terms of regulation and deposit protection for account holders.”

They also added, “With this in mind, virtual banks can offer customers convenient experiences through fintech; for example, virtual banks provide 24/7 banking services and reduce the time required for account opening and loan approval. Overall, we are pleased to see the improvement in public and business perceptions of virtual banks. Going forward, the VBE Taskforce hopes to deepen public understanding of the features of virtual banks through intensified promotional efforts. As the public’s understanding of virtual banks deepens, it is widely believed that the popularity of virtual banks will continue to increase, further promoting fintech development in Hong Kong.”