I. Moving Away from the Traditional Method
Because of internet and digitization exposure, most companies opted out of traditional methods, prompting numerous Hong Kong bank to do virtual banking.
II. What are Virtual Bank & FinTech Accounts?
Virtual Banking is a digitized banking system. It’s an innovative and advanced banking system that offers users the ability to access, save, spend, and borrow money online. Virtual Banking digitalizes banking services and delivers them through the internet to cater to their client’s local and international needs. Their products and services are all performed online, making them accessible to all users anytime, anywhere.
FinTech is a banking alternative that provides business accounts for entrepreneurs getting a multi-currency transaction platform quickly after their companies are set up. This service allows business owners to open an account remotely and initiate global money transfers at any moment. But it is important to note that these service providers also don’t have any physical branches.
The former is a bank that offers banking services electronically or online, while the latter offers a wide range of financial services through an app or an online platform. While both platforms cater to every banking transaction and don’t have any physical branches present, note that the two are still distinctly different from one another. While FinTechs are popular these days, it is not a bank per se, although all of their accounts are powered by custodian partner banks such as DBS or Standard Chartered in HK. On the other hand, virtual banks are banks regulated by the Hong Kong Monetary Authority (HKMA) like traditional banks.
And since the outbreak of COVID-19, which hinders foreign business owners from traveling, they find virtual banking or FinTech money transfer beneficial. They can open a Hong Kong Company without being physically present and have round-the-clock access to their finances from anywhere in the world.
III. What is an Offshore Bank Account?
An offshore bank account is a way to go when you need to move your money worldwide. Businesses that open an offshore or international bank account can operate through multiple currencies without high fees, obtain credit and debit cards linked to various banknotes, and enjoy particular investment opportunities and discounted international payments.
