Hong Kong’s leading fintech start-ups, including virtual banks and insurers, are leveraging their early market positions to extend their services across Southeast Asia, with expectations that stronger governmental support could unlock further opportunities.
WeLab, a virtual bank, is actively pursuing a banking license in Thailand, expanding on its existing operations in Indonesia. Meanwhile, virtual insurer OneDegree Group aims to introduce its expertise in pet and cybersecurity insurance, as well as other tech-driven solutions, to regional partners.
To back these expansion efforts, Hong Kong’s Financial Services Development Council (FSDC) has established advisory groups focused on Southeast Asia and the Middle East. These groups, composed of top financial experts and corporate leaders, aim to promote Hong Kong’s business interests in these regions.
“The advisory group is expected to bolster engagement between Hong Kong and key ASEAN nations,” said Damien Green, chairman of Manulife International and a member of the group. He emphasized that their goal is to identify economic opportunities and strengthen relationships that underpin these opportunities.
The FSDC’s Southeast Asia advisory group, chaired by Daryl Ng Win-kong of Sino Group, held its inaugural meeting on October 4.
Hong Kong’s Chief Executive, John Lee Ka-chiu, has made efforts to establish regional collaborations to address the city’s post-pandemic economic challenges. He has led multiple delegations, particularly to the Middle East, as Hong Kong seeks new opportunities amid the ongoing US-China trade tensions.
WeLab, a fintech unicorn supported by billionaire Li Ka-shing, recently partnered with Bangkok-based Lighthub Asset to bid for a virtual banking license in Thailand, competing with four other consortiums. The Bank of Thailand is expected to announce the winning bids by June next year.
WeLab’s digital bank in Indonesia, Bank Saqu, has already amassed 1.6 million users since its launch in November, according to founder Simon Loong.
“Securing the license in Thailand would be a significant milestone in our Asian expansion, particularly as we tap into a growing economy of 72 million people,” Loong noted. “Our experience in building digital banks in Hong Kong and Indonesia has provided us with key insights.”
Hong Kong remains a leader in fintech, having issued its first virtual banking licenses in 2019. In contrast, over 60 percent of Thailand’s population lacks access to proper banking services, according to the Bank of Thailand.
OneDegree Global’s CEO, Michelle Ip, stated that the company plans to further expand in Southeast Asia following partnerships with Malaysian digital insurer Ouch! and Thai start-up EazyDigital. These partnerships aim to provide tech support for insurance agents managing their businesses.
“Southeast Asia is critical for businesses, particularly for insurers and insurance-related firms,” Ip said. “As digital insurance grows in the region, demand for fintech services has risen, with many regulators in Southeast Asia closely watching developments in Hong Kong.”
Additionally, in August, Standard Chartered signed agreements with Kingboard Holdings, Computime Group, and Stavian Group to explore business ventures between Hong Kong and Vietnam.
“Vietnam is one of the fastest-growing economies in ASEAN,” said Mary Huen, CEO of Standard Chartered’s Hong Kong operations. “I look forward to working with my colleagues to support business growth in this vital trade corridor and beyond.”
