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Banking & finance
BusinessBanking & Finance

Hong Kong virtual lender ZA Bank and UK’s Wise in online money transfer tie-up

  • The tie-up will allow users to make competitively priced international money transfers, the companies say
  • Online remittances from Hong Kong to grow 9.2 per cent annually between 2022 and 2027 to US$1.15 billion, according to Statista

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Hongkongers named hidden costs and delays in processing payments as their two major complaints when making online money transfers, according to a survey. Photo: Shutterstock
Mia Castagnone
Hong Kong virtual lender ZA Bank has tied up with UK-listed technology company Wise, giving users a platform to make international money transfers, and allowing it to grab a bigger share of the growing digital remittances segment in the city.

ZA Bank is the first virtual bank partner of the UK firm in East Asia.

“We believe that the combined strengths of ZA Bank and Wise will bring users unrivalled service and convenience,” Calvin Ng, alternate chief executive and co-head of retail banking at ZA Bank, said on Wednesday.

The value of digital remittances from Hong Kong is expected to see an annual growth rate of 9.2 per cent in the next five years, reaching US$1.15 billion in 2027, according to data from Statista. The number of users is expected to reach 100,000 in the same timespan.

Calvin Ng (from left), alternate chief executive and co-head of retail banking at ZA Bank, Vinay Palathinkal, regional head of Wise and James Chan, director of retail banking at ZA Bank. Photo: Handout
Calvin Ng (from left), alternate chief executive and co-head of retail banking at ZA Bank, Vinay Palathinkal, regional head of Wise and James Chan, director of retail banking at ZA Bank. Photo: Handout

An independent survey of 1,000 Hongkongers conducted by Coleman Parkes Research and commissioned by Wise found 46 per cent experience hidden costs and 40 per cent encounter slow payments, classified as more than two days.

High fees and low transparency were the key reasons ZA Bank wanted to create this service, according to Ng.

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