Vox: James Lloyd, EY, on virtual banks

James Lloyd, partner at EY, has been involved in helping clients obtain a virtual-banking license in Hong Kong. From that perch, he speaks with DigFin about what a VBL actually means, and how it might impact financial services in Hong Kong and beyond.

The conversation is timely, given that the first three licenses were just awarded by Hong Kong Monetary Authority. It did so on the basis of applicants that demonstrated resilience (the HKMA doesn’t want to see a bank failure), a strategy for financial inclusion, and a ready business plan.

But what does ‘resilience’ imply for business models? How are these banks different from challenger banks in other markets? What does financial inclusion mean in the context of a wealthy city? And how concrete are the designs of these newly licensed companies, which are at this stage just amalgamations of partners? Click to listen and find out.