Best Banks in Hong Kong

Financial institutions in Hong Kong are also quite developed. It is advantageous for both local and foreign clients to open accounts. Hong Kong private banks are popular not only in their own region but all over the world. Statistically, the growth of the financial sector in this country is stable and steady. In recent years, this sector has shown growth of 5 percent and more.

HSBC and Standard Chartered are under pressure by the Hong Kong regulator to take on crypto clients

There is also recent news that the Hong Kong regulator is putting pressure on major market players HSBC and Standard Chartered HK. The reason for this is that financial institutions in the country refuse to serve crypto companies. In turn, this affects the country's attractiveness as a crypto hub and is inconsistent with the country's new cryptocurrency regulation. This was revealed by the Financial Times.

To choose the best bank in Hong Kong to open a personal or corporate account, you need to pay attention to some criteria:

1. Reputation. Perhaps in the age of digital institutions, this criterion may seem insignificant. However, as with other businesses, the more institutions can connect with clients and provide a high level of service, the more credibility they will gain. If you need a proven solution, options like Bank of China, Hang Seng, and Bank of East Asia are worth a look.
2. Security. In general, all Hong Kong banks are subject to state registration and licensing procedures. This ensures a high level of protection for clients' funds. But if you need additional special services, you should pay attention to the traditional ones.
3. Possibility of remote account opening. This feature will be of great interest to those who are not ready to travel to another country for a few days in person to open an account. In this case, you can turn to digital institutions and some traditional institutions that open accounts remotely.
4. Costs and account maintenance prices. This is a major hurdle for businesses. The benefit of using a bank will probably be the most important selection criterion for most potential clients. Based on competition, Hong Kong offers much more attractive terms and conditions than its competitors in the market. In terms of transfer fees, traditional institutions with flat-rate transfer fees will be a more interesting solution.
5. Ability to work with cryptocurrencies. This is also an important criterion for "new generation" businesses. Some traditional and most digital banks offer crypto-related transactions (e.g., deposits and withdrawals from cryptocurrency platforms). Pay attention to this criterion during the selection phase, as many institutions are not crypto-friendly.
6. Minimum Requirements. Also, an important criterion as the provider will require it. The minimum balance starts from 100 USD. Digital ones mostly do not require a minimum balance.
7. Additional features. You can get advice if you or your business needs additional features such as credit or debit cards, the ability to make bulk payments, accounts in specific currencies, etc.

Overview of Hong Kong Banks

Banks in Hong Kong have various advantages:

A well-developed money transfer system. Mostly, Hong Kong financial institutions have a well-developed payment transfer system through SWIFT. Since Hong Kong is the major financial center of the Asian region, all business opportunities operating in Asia and other regions, as well as Europe, are gathered here.

Possibility of remote account opening. In Hong Kong, it is also possible to open an account remotely on behalf of a natural or legal person. This is convenient for those who cannot or are unwilling to visit the country in person.

Variety of services. The jurisdiction has many areas of financial services, including opening individual and corporate accounts, internet banking, credit, asset management systems, etc.

Jurisdictional strength. Although Hong Kong is seen as a semi-offshore jurisdiction, its banks are very reputable and provide access to the Asian market. Also, most of the institutions in Hong Kong have a long history.

Affordable pricing. Hong Kong financial institutions are also characterized by relatively low maintenance costs and lower minimum balances.

However, it is worth noting that most financial institutions in Hong Kong require you to be there in person when opening an account. This restriction does not apply to some countries like the UK. If remote account opening is important to you, digital banks are worth considering.

Therefore, for many people, Hong Kong can be a good choice for opening personal and corporate accounts.

Structure in Hong Kong Banks

Banking activities in Hong Kong are licensed, so all institutions conducting related activities are required to obtain a license from the HK Monetary Authority (HKMA).

The Hong Kong government has initiated a 3-tier banking system policy. It is built on the following criteria:

• The term and amount of the deposit accepted
• The nature of the business

Therefore, three types of financial institutions can be identified in the country:

1. Licensed banks

These are the institutions that customers are used to calling "banks". In other words, they are fully licensed providers of such services in the country. They can operate current (demand) and savings accounts, receive deposits, and accept paychecks. Examples include HSBC, BoC, BoEA, etc.

2. Restricted licence

Financial institutions that receive this license can operate as investment banks in the capital markets and accept deposits of more than HKD 500,000. This type of license is not popular in Hong Kong, nor is it of much interest to the general consumer. The holder of this license in Hong Kong is, for example, Goldman Sachs.

3. Deposit-taking companies

These financial institutions are linked to the first type (licensed banks) and provide consumer finance, commercial lending, and securities services. They can receive deposits of more than HKD 100,000. The holder of such a license in Hong Kong is, for example, BPI Int. Finance.

Top Banks in Hong Kong

HSBC

HSBC is one of the largest banks in the country and was founded over 150 years ago. It ranks 2nd among the most powerful financial institutions in its region. Also, according to its latest activity report, it has capital of over 3 billion USD. Among the pros of HSBC is its presence not only in its own region but all over the world. It has 220 local representative offices. For example, HSBC (UK). It is also developing in the field of 'new' services, i.e., everything related to simplification. At the same time, it is considered one of the most reputable and secure.

Bank of China

It is a traditional financial institution considered the most powerful in the Asian region. The total assets of BoC are approximately 3 billion USD. It provides a full list of financial services under license and communication between Hong Kong and Mainland China. This may be important for some types of businesses or private clients. Among its advantages is the banking infrastructure that forms the basis for the entire region.

Hang Seng Bank

It is one of the largest banks in Hong Kong. According to statistics, HSB serves more than half of the population of Hong Kong. Therefore, it may be of particular interest to residents of the country. This bank is very popular among the residents of the country, both individuals and companies. It has a very good reputation among its clients. At the same time, HSB does not have as strong a global presence as the previous options. Therefore, it is worth considering whether you are interested in the local one.

Citibank Hong Kong

It is one of the most recognized institutions in the world and has a wide network of offices worldwide. It was founded in Hong Kong in 1902, making it a reputable bank in the region. It has a well-developed correspondent system and offers a standard range of services for individuals and businesses. It is also quite popular in terms of credit. At the same time, its internet services are not very developed. Also, Citibank does not offer as advantageous terms of use as its competitors.

Standard Chartered HK

SC HK is one of the largest banks in Hong Kong. This traditional bank was founded much later than the others, in 2004. However, it maintains a presence in 60 countries worldwide. It offers a standard range of services. On the other hand, its internet banking is undeveloped, and it has higher commissions.

Bank of East Asia

BoEA, along with HSBC, is one of the largest banks in Hong Kong. Among its distinguishing features is a wide range of currencies in which clients can hold accounts. It is very well known in its region, but at the same time, it is not globally present.

Public Bank Hong Kong

It is also one of the local institutions. It was founded in the 1930s but is not very popular now compared to its competitors. Public Bank Hong Kong was originally named Asia Commercial Bank.

There are also alternative institutions for those interested in a Hong Kong account. We are talking about digital banks. Their advantages include fully remote opening, affordable account opening and maintenance, and no direct connection to the country.

Such options in Hong Kong include:

1. Airwallex is one of the most recognized digital institutions in the region. Notably, it has Australian roots. The institution's presence in Europe also makes the Asia-Europe connection stronger and easier for clients to use. The service allows for multi-currency accounts, fund transfers, and other financial services. But at the same time, it does not offer the lending services that traditional banks offer. The service is popular among small businesses, freelancers, and startups because it is not very costly. At the same time, it gives the client the right financial tools.
2. Startrys is also one of the representatives of digital institutions in the country. Startrys mainly serves fintech companies, but it may also be of interest to other companies.
   The service also provides financial services for multi-currency accounts as well as bank transfers.
   It is important to note that digital options can also significantly reduce the account opening time through faster compliance.

Comparison of the best banks in Hong Kong

Tips for choosing the best bank in Hong Kong

There are a few important principles to follow to choose the best bank in Hong Kong. This will help you choose the institution for the best price that will protect your funds.

Among them:

1. Consult with a lawyer for more information on bank selection. This will reduce your costs and save you time. Choosing and opening an account at a financial institution may not be the easiest procedure. This is because it requires significant documentation preparation as well as comparing offers to open an account.
2. Pay attention to news and ratings. This advice is directly related to the bank's reliability. If it is visible, popular, and reliable, it is a good sign. Of course, it does not guarantee that your requirements will be met, but it is still worth paying attention to.
3. Compare offers. As the market is competitive, many banks in Hong Kong encourage their potential clients with different opportunities and discounts.
4. Pay attention to your needs. Some institutions may not offer special opportunities for you or your business. For example, cryptocurrency capabilities or issuing a credit card (for the client's specific place of residence).
5. Check the capabilities. If certain features are important to you (e.g., an account in an unpopular currency or the ability to send to countries with weak banking infrastructure), it is important to check the financial institution's ability to send these payments. This is related to the presence or absence of open correspondent accounts.

Best private banks in Hong Kong?

Hong Kong private banks are quite popular in the country among both individuals and businesses. For example:

1. HSBC
2. Bank of East Asia
3. Hang Seng Bank
4. Standard Chartered HK
5. Citibank Hong Kong

Best investment banks in Hong Kong?

1. HSBC
2. Goldman Sachs (Asia Bank)
3. Bank of East Asia
4. DBS
5. Citibank Hong Kong

Which is the best bank in Hong Kong for savings?

1. HSBC
2. Bank of East Asia
3. Hang Seng Bank
4. Standard Chartered HK
5. Citibank Hong Kong

How to open a bank account in Hong Kong for non-residents?

The procedure for opening an account for non-residents is not very different from the normal one. The difference is that residents can open an account remotely at some institutions. Also, non-residents need to provide additional documents about the source of funds.

What is the swift code for POSB Bank Hong Kong?

The bank now has other payment details – SWIFT Address/Code: DBSSSGSG. Also, this bank is now part of another bank, DBS. It is worth paying attention to this when making a transfer.

How to open a bank account in Hong Kong?

Opening an account in Hong Kong differs by the type of account opening. The first type is opening a personal account. The client must come to one of the branches in person and open an account in the presence of a bank manager. The other is remote account opening. With remote opening, the client needs to do online verification either with bank staff or through an automated system. This can speed up and simplify the process (if the client does not reside in Hong Kong).

How to open a Hong Kong bank account from the UK?

There are quite a few options for UK residents to open a bank account in Hong Kong. First, it is of course possible to travel to Hong Kong in person and open an account for yourself or a company. But this is usually costly in terms of both resources and time. Therefore, residents of the United Kingdom and some other countries can open an account in Hong Kong remotely from digital banks as well as traditional banks. For example, HSBC offers such an option.