Hong Kong’s banking sector is worth an estimated HKD 370 billion (~US$50 billion), according to a strategic market assessment by Quinlan & Associates. In years to come, virtual banks are touted to grab a sizeable share of this market from incumbents.
Quinlan & Associates was commissioned by the FinTech association of Hong Kong to draft an overview of the banking scene in Hong Kong – at a time of unprecedented disruption for the sector. The goal was to identify current and future growth drivers.
As it stands, combined revenues from retail, commercial and corporate banking amount to HKD 373 billion for authorised financial institutions in Hong Kong. More than two-thirds of this stems from interest income – building on over HKD 10.5 trillion currently out in loans and advances – and deposits stand north of HKD 14 trillion.
The market is huge, and currently dominated by four major players – HSBC, Bank of China (Hong Kong), Standard Chartered and Hang Seng. These four banks account for 62% of total deposits and more than half the credit market – drawing combined revenues of HKD 226 billion.
HSBC towers over the rest, with over HKD 95 billion of this pool. Hang Seng and Standard Chartered account for more than HKD 45 billion each, while Bank of China trails with revenues of around HKD 36 billion. More than 170 other licensed banks and over 2,000 lenders in Hong Kong make up the remainder of revenues – roughly HKD 150 billion.
Dominant as they are, the…