Nearly a Quarter of Respondents Have a Poor Impression of Digital Banks
Only 30% of Users Prefer Digital Banks for Financial Management
HONG KONG, July 7, 2025 /PRNewswire/ -- ECHO ASIA, in collaboration with students from Global Business Studies, CUHK Business School, is pleased to announce the release of the Hong Kong's Digital Banking User Experience Survey 2025. The survey gathered insights from 508 Hong Kong residents through an online questionnaire*, with findings revealing that 24.1% of respondents have a negative impression of digital banks, and only 31.7% consider digital banks their primary account. This study aims to explore public perceptions and opinions of digital banking in Hong Kong, identify reasons behind the low adoption rate, and propose strategies for improvement.
*Results were analyzed based on 361 complete responses.
This research project is led by ECHO ASIA, with students from Global Business Studies, CUHK Business School, serving as the "Knowledge and Research Partner." The team members include Ms. Audrey Chan, Ms. Cheri Cheng, Ms. Hannah Chu, Ms. Kayla Yu, and Ms. Yoyo Chan. The research methodology and questionnaire design also benefited from the advice of Dr. Fred Ku, Associate Dean of the Faculty of Business of The Chinese University of Hong Kong and Co-Director of Global Business Studies, who serves as Honorary Advisor to this study. The study was conducted through an online questionnaire, with over 80% of respondents aged between 18 and 49, mainly covering Generation Z and Millennial consumers.
The digital banking market in Hong Kong is experiencing rapid growth, with the number of users continuously rising and account holders now exceeding 2.2 million. The city's fintech environment continues to improve, supported by a regulatory framework and innovation strategies that are driving industry transformation. Our team aims to leverage this survey to provide concrete data from the users' perspective, offering valuable insights for regulators and financial institutions. This initiative seeks to support informed decision-making and further promote the healthy development of Hong Kong's digital banking ecosystem.
Highlights of ECHO ASIA's "Hong Kong's Digital Banking User Experience Survey 2025":
Digital Bank Adoption Steadily Rising, Yet Users Still Prefer Traditional Banks
Over 62.9% of respondents currently hold a digital banking account, indicating strong coverage and adoption of digital banking services in Hong Kong. Among respondents aged 18 to 49, about two-thirds (66.3%) have digital bank accounts, while half of those aged 50 and above also maintain digital banking accounts. This demonstrates that digital banking primarily serves Generation Z and Millennials, while its reach is gradually expanding to a broader age demographic.
The research data reveals key trends and challenges in the usage of digital banks in Hong Kong, highlighting that traditional banks continue to dominate the market. Although over half of the respondents (54.2%) have held digital bank accounts for more than two years, only 31.7% consider digital banking their primary account. This suggests that while digital banks have established a foothold in the market, their frequency of use remains relatively low.
User Needs Unmet and Security Concerns Pose Major Challenges
Among respondents who do not use digital banks as their primary channel, 68.3% cite unmet needs, security concerns, or unfamiliarity with digital banking services as reasons. Some also prefer physical or traditional banks. These findings underscore the need for digital banks to enhance user experience, diversify services, and strengthen security measures to build greater trust and awareness, thereby increasing usage and market share.
Account Opening Promotions Define Digital Banks' Market Position
The most valued service identified by respondents (33.5%) is digital banks' account opening promotions. Over half (52.6%) believe these promotions outperform those of traditional banks, demonstrating the effectiveness of digital banks' marketing strategies in attracting new users. Conversely, about 23% regard savings services as most valuable, but more than half (53.2%) feel traditional banks better meet their savings needs, revealing room for digital banks to improve long-term trust and core financial offerings.
Public Expectations for Higher Deposit Rates and Cashback Rewards
Regarding marketing strategies, over half of respondents (52.4%) recommend competitive deposit rates and lower minimum deposit thresholds to boost confidence. Additionally, 43.5% suggest offering higher cashback on credit or debit cards (e.g., 1-2% local spending, 3-5% overseas). This indicates digital banks must balance short-term incentives with long-term product competitiveness, especially in savings and interest rate design, to compete effectively with traditional banks and enhance user retention.
Establishing Physical Branches Key to Building Trust in Digital Banks
70.1% of respondents are unclear or unaware of the Hong Kong Monetary Authority's current and upcoming digital banking policies, such as renaming digital banks, removal of retail banking services, and allowing physical branches. This points to limited public understanding of policy, operational models, and development of digital banks. Nearly a quarter (24.1%) hold negative views of digital banks.
More than half of respondents identify the lack of physical branches (56.2%) and reliance solely on mobile apps (54.9%) as defining features of digital banks. Notably, 57.6% believe permitting digital banks to establish physical branches would significantly boost their confidence. Although physical branches differ from the original digital banking model, this policy could effectively address Hong Kong residents' security concerns and enhance trust.
Conclusion
Founder of ECHO ASIA, Samson Tong further elaborates: "ECHO ASIA is honored to partner with the student team from Global Business Studies, CUHK Business School to announce the latest "Hong Kong's Digital Banking User Experience Survey 2025." This survey offers insights into the latest developments in Hong Kong's digital banking landscape, as well as the experiences and needs of Hong Kong users, providing the industry with a multi-faceted market analysis.
Since the official launch of 8 digital banks in 2020, market acceptance has been steadily increasing. By the end of 2023, digital banks collectively accumulated 2.2 million deposit customers in Hong Kong. However, their overall market share among all retail banks in Hong Kong remained relatively low, at approximately 0.3% by the end of 2023. Our survey concludes that digital banks have a clear path to success by boosting customer engagement and driving more active use of their products and services."
Dr. Fred Ku, Associate Dean of the CUHK Business School and Co-Director of Global Business Studies, stated: "Our research reveals a critical turning point in the development of digital banking in Hong Kong. While previous studies have primarily focused on the breadth of adoption—measuring account growth—our study is the first to delve deeply into the depth of usage, uncovering that only 31.7% of users consider digital banks their primary account. This significant gap highlights the fundamental challenge digital banks face in transitioning users from trial to trust.
Particularly noteworthy is our focus on the 18-49 age group—the younger generation who not only represent the future backbone of the banking industry but also define the standards for digital financial services. Our findings show that nearly half of users feel digital banks do not fully meet their comprehensive financial needs, while 70% of respondents lack awareness of relevant regulatory policies. These insights provide clear directions for both industry players and regulators to improve.
We hope this research will serve as an empirical foundation to help Hong Kong's digital banking sector overcome development bottlenecks and achieve true fintech adoption."
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About Hong Kong's Digital Banking User Experience Survey 2025
The Hong Kong's Digital Banking User Experience Survey 2025 seeks to address the knowledge gap regarding digital banking trends in Hong Kong. It provides valuable insights into user experiences and expectations, enabling industry stakeholders to develop targeted strategies to enhance the competitiveness of digital banking products and services. The survey evaluates public awareness, usage frequency, purposes, and user experiences with digital banks, while offering analysis on barriers, challenges, and opportunities for growth in Hong Kong's digital banking sector.
About ECHO ASIA
We are Asia-Pacific's newest social enterprise - ECHO ASIA is a digital communications agency focused on promoting and supporting sustainability and B Corp values, by offering meaningful digital, social, branding, ESG communications solutions to corporates and various organizations across Asia-Pacific. ECHO ASIA's mission is to help businesses and non-profit organisations achieve sustainable growth through strategic and professional campaigns and events. The ultimate end result is to achieve and help others achieve sustainable growth until it becomes immeasurable. Last year, the ECHO ASIA team released the "Sustainable Consumer Choice Survey 2024," which garnered significant attention from the public, businesses, and local media.
ECHO ASIA website: https://www.echoasiacomm.com
ECHO ASIA Instagram: https://www.instagram.com/echoasia
About Global Business Studies (GBS) Programme at the CUHK Business School
Launched in 2005, the Global Business Studies (GBS) programme at the CUHK Business School has gained wide recognition in the international education arena and is regarded as one of the most competitive programmes in Hong Kong. GBS attracts outstanding students from both Hong Kong and around the world. The programme is committed to cultivating students' business acumen, global vision, and leadership capabilities, nurturing future leaders who will make a global impact.
Students not only participate in exchange programmes at top universities in Europe and North America, but also further develop their professional expertise through a diverse array of international exposures, case competitions, and career development initiatives. These opportunities strengthen their professional skills and global competitiveness.
GBS graduates have made their mark across various fields, including finance, consulting, multinational corporations, and non-profit organizations. Many have also ventured into entrepreneurship and social enterprises, actively driving social progress with innovative thinking.
Global Business Studies (GBS) Programme website: https://admission.cuhk.edu.hk/programme/ibbac-gbs/
Special Thanks
We would like to extend our sincere gratitude to the prize sponsors of this Digital Banking User Experience Survey and Research: GreenPrice, Beetales and In Lieu.
** The press release content is from PR Newswire. Bastille Post is not involved in its creation. **
Hong Kong's Digital Banking User Experience Survey 2025
