Summary Hong Kong's retail financial services landscape is very concentrated, with the top four banks accounting for the bulk of the market. HSBC in particular holds a dominant position in all four product sectors we examined. Consumers have traditional attitudes and tend to favor banks with established reputations and branch networks. Most products are still purchased in-branch, and this poses challenges for newer, digital-only providers.
Key Findings - HSBC commands a 37% share of the current account market, making it the leading provider by a significant margin. Consumers tend to be cautious in their choice of provider, with reputation and branch location being the two most important drivers. The branch is still the only significant channel for current account acquisition, with 70% of consumers using this as their main channel in 2013-16.
- When deciding where to place their savings, consumers focus first and foremost upon branch location and reputation. Personal treats and protection against unexpected events are by far the two biggest reasons for saving, each cited by well over half of savers. Overall, 22% of savers claim to be very or quite willing to entrust their savings with a peer-to-peer lender, although only 4% state that they are very willing to do so.
- Of mortgages taken out in 2013-16, around one in four were arranged online, a far higher proportion than previously. Overall, around two thirds of mortgages are arranged via direct channels, and just under a fifth through an independent financial advisor (IFA), although IFAs account for a greater proportion of mortgages arranged more recently.
Synopsis Verdict Financial's “Retail Banking Country Snapshot: Hong Kong 2016” reviews the retail banking sector in Hong Kong, with a particular focus on the current account, savings, mortgage, and personal loans markets. It includes both market-level data and insight from our Retail Banking Insight Survey.
The report offers insight into:
- How consumers in Hong Kong take out and use their financial products, and how this has changed in recent years.
- Which providers dominate the current account, savings, mortgage, and loan markets, and what factors persuaded their customers to choose them.
- The extent to which consumers are using online and mobile channels to research, take out, and use their financial products.
Reasons To Buy - Future proof your strategy with market sizing, forecasts, and analysis of key developments currently affecting Hong Kong's retail banking sector.
- Target consumers with inside knowledge of their true behaviors and attitudes, with detailed analysis from our proprietary insight.
- Learn about the impact new entrants and distribution channels will have on the market.
Our reports have been used by over 10K customers, including:
Summary "Hong Kong’s Retail Banking - Competitive Dynamics" report is the result of Verdict Financial’s extensive market research covering the Retail Banking sector of Hong Kong. It provides detailed Retail Banking statistics split by banking institution on parameters like Total deposits, Savings and Current account deposits, Loan...
Summary "China’s Retail Banking - Competitive Dynamics" report is the result of Verdict Financial’s extensive market research covering the Retail Banking sector of China. It provides detailed Retail Banking statistics split by banking institution on parameters like Total deposits, Savings and Current account deposits, Loan and Mortgage...
Summary The Chinese banking market is opening up to new entrants in order to encourage greater competition within the sector, and investment in banking infrastructure is likely to speed up digital expansion. The market for financial services in China is concentrated, with an oligopoly of five banks that service 72% of the market....
Summary The size of the mass affluent market in Hong Kong is estimated to be around 3.2 million individuals. Considering its size, the segment is more lucrative than even the HNW segment. It can easily be categorized as the most important segment for providers in Hong Kong. Given that Hong Kong is a financial hub in Asia Pacific,...
Summary Mass affluent populations around the world are growing in size, making them an increasingly important segment for financial providers. These consumers possess more financial products than average, maintain higher levels of savings and investments, and are more likely to use added-value services. This makes them an attractive...