Hong Kong Retail Banking - Competitor Benchmarking 2021

Hong Kong Retail Banking - Competitor Benchmarking 2021


Despite the impact of COVID-19, banks in Hong Kong remain well capitalized and ready to support recovery going forward. All incumbents increased their total divisional assets (TDA) in 2020. Although the threat of a long-term low-rate environment persists, profitability is unlikely to be affected as banks focus on controlling costs and non-interest income. As net interest margins across the banking sector compress due to the need for ultra-low interest rates, the importance of non-price factors has become significantly more important in the banking space.

This report - which is part of a series of Hong Kong content including market analysis and consumer profiles - looks at market performance, retention risk, and current account market share. It ranks Hong Kong’s top banks across a range of criteria, from digital adoption and user experience to rewards and money management tools.


  • Use of digital channels peaked in 2020. However, reversion to pre-pandemic habits appears to be underway. Standard Chartered, HSBC, Hang Seng Bank, and Bank of China are all experiencing greater branch usage in 2021 than in 2020.
  • 38% of Citibank customers have joined within the last five years, suggesting its customer acquisition efforts have been successful.
  • HSBC leads the way in terms of cross-selling, with 20% of its customers holding three products with the bank. Challengers ZA Bank and Mox Bank struggle in this regard due to a lack of services.
Reasons to Buy
  • Discover which banks in Hong Kong are performing best.
  • Learn which banks are under threat and are perceived as behind the curve by customers.
  • Understand the Hong Kong retail banking landscape and how it may develop based on key performance indicators.

  • Executive summary
  • Financial Performance, Market Share, and Cross-Selling
    • Hong Kong's incumbents were prepared for the impact of the COVID-19 pandemic following the implementation of new stress tests post-2008
    • Incumbents perform strongly in the residential mortgage market, but results for retail deposits and consumer credit suggest digital challengers are making gains
    • HSBC accounts for 32% of the current account market in Hong Kong, while Citibank is under threat from ZA Bank and Mox Bank despite their lack of track record
    • ZA Bank and Mox Bank struggle with cross-selling, in part due to a lack of services As margins across the banking
  • Channel Visitation Trends and Digital Adoption
    • Digital channel usage was accelerated by COVID-19, but consumer behavior is showing signs of reversion
    • Customers show a strong preference for alternative providers in Hong Kong
    • In Hong Kong, an average of 86% of customers have used mobile wallets in the last 12 months
  • Customer Satisfaction
    • Citibank and ZA Bank customers are promoters, while all other providers have negative NPS results
    • Customers in Hong Kong care most about efficient problem resolution, followed by easy digital banking
    • Standard Chartered and Citibank have the highest customer satisfaction in terms of their ability to help customers resolve problems Given the investment in digital
    • Despite being digital-only banks, ZA Bank and Mox Bank score poorly in terms of digital banking satisfaction
    • Due to the high levels of competition in Hong Kong, the need to compete via non-price factors such as easy-to-understand products has become critical
    • An emphasis on branch closures and shifting to digital forms of customer interaction have impacted perceptions around helpful staff
    • Satisfaction with money management tools is broadly high among Hong Kong consumers
    • Hong Kong's banks are struggling in terms of satisfaction with loyalty rewards
    • Satisfaction regarding customization is low across the majority of providers, suggesting improvements are needed in this area
    • Despite cost-cutting efficiencies and a reduced cost to serve, net satisfaction is low in terms of competitive prices
    • Incumbents in Hong Kong have a strong omnichannel presence that the majority of customers appear to find accessible and useful
  • Appendix
    • Methodology
    • Sample size
    • Further reading

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