Lessons from running a digital bank in Hong Kong

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Hello there,

Being a first mover often has its perks. But depending on how you see it, it could also be a curse.

Southeast Asia’s digital banks have watched every step of their Hong Kong-based predecessors keenly – since their launch in 2020, when many dangled attractive deposit rates to entice customers, until now, two years on, as they remain in the red.

One of these Hong Kong-based players is WeLab Bank. That said, while it lags behind rivals like ZA Bank and Mox Bank in users and deposits, WeLab Bank seems to have figured out the most important piece of the puzzle: its path to profitability.

In this week’s Big Story, WeLab founder and CEO Simon Loong shares his experiences operating one of the region’s first digital banks. Indonesia now offers a second shot of doing things right – together with Astra International, WeLab plans to transform Bank Jasa Jakarta into a digital bank by the second half of this year.

This time, though, WeLab will be armed with the benefit of hindsight and experience of operating a digital bank for several years – something few of its competitors in the region have.

Elsewhere in Southeast Asia, our Hot Take this week examines an emerging trend of hyper-specialized insurtech firms offering protection plans down to individual items – from a luxury watch to a tablet – as well as in the emerging space of electric vehicles.

– Melissa

THE BIG STORY

WeLab eyes a ‘pan-Asia franchise’ as digital banking footprint grows

Image credit: Timmy Loen

WeLab Bank may not be a frontrunner in its home market of Hong Kong, but its CEO has its eyes on the prize – profitability.

THE HOT TAKE

Insurtechs get creative with specialized coverage

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