We use cookies on this website to provide a user experience that’s more tailored to you. By continuing to use the website, you are giving your consent to receive cookies on this site. Read more about our Cookie Policy and Privacy Policy.

 I accept

Our Company

Our motto at CITIC Telecom CPC is "Innovation Never Stops"

Your Trusted ICT Solution Partner > About Us > Virtual banking – How we embrace it whilst managing the security risks behind?
More

2019-08-02

Virtual banking – How we embrace it whilst managing the security risks behind?

Media Coverage @ The Standard

Virtual banking – how we embrace it whilst managing the security risks behind?

Experts in the Banking & Finance and Information Security sector converged at the Communications Association of Hong Kong’s Fintech Forum luncheon, sponsored by CITIC Telecom CPC, to explore the hot topic.

Technology and banking experts attended CITIC Telecom CPC’s exclusive luncheon and panel discussion for the hot topic of virtual banking. (From left) Gary Ng, Ken Lo, Savio Hui, Michael Leung, Marco Cheng, Daniel Kwong.

Experts in the Banking & Finance and Information Security sector converged at the Communications Association of Hong Kong’s Fintech Forum luncheon, sponsored by CITIC Telecom CPC, to explore the hot topic.


In today’s digital age, more and more people are shifting their banking habits and accessing financial services online. In the meantime, with the granting of virtual banking licenses by the Hong Kong Monetary Authority (HKMA) early this year, it marked a new era of banking with new customer experience and financial inclusion. Yet, how does the benefits and challenges weigh with each other, and is it really feasible?


Kick starting the luncheon, Gary Ng, Financial Service Partner, PwC, explores the massive potential of virtual banking. “A ‘virtual bank’ primarily delivers its services online without the presence of physical branches. This requires virtual banks to engage their customers in an entirely different way,” says Ng. “A successful virtual bank often excel at customer centricity, and have an agile and creative operating model. This allows it to give customers great efficiency and convenience in their virtual banking experience which they value the most.”


Next, Michael Leung, MH, Group Chief Executive Officer, BOA International Financial Group, looks at the opportunities versus the challenges which virtual banking presents. “Hong Kong has an extremely congested banking industry, in such a small city, there are already over 150 banks,” says Leung. “The key to the future success of the virtual banking is to make the pie bigger. While virtual banking provides a more fit-for-purpose and cost efficient model, there are also great risks which need to overcome including a lack of confidence and trust due to no physical branches presence and personal contact as well as talent shortage when it comes to acquiring IT banking and compliance expertise.”

In the panel discussion during the luncheon, more IT and financial experts joined to debate the viability of virtual banking in Hong Kong. “Virtual banking is not completely new. Banks from all around the world are trying to provide their services digitally today,” says Ken Lo, Head of Strategic Partnership, ZhongAn International. “The key is to provide a seamless customer journey. For this to happen, cooperation between banks and fin-tech companies is crucial in the future.”


For Marco Cheng, Head of Technology Risk Management, Livi VB Ltd., integration with ecosystem is crucial for virtual banking. “In today’s digital world, customers, especially new generation or digital savvy, are looking for much more than the fulfillment of basic needs. There has to be a dedicated business model that is tailored for them like smart and simple UX/UI design, to enhance customer experience as much as possible.”


Being such a new digital based platform, virtual banking has many potential technical hurdles to overcome. “As a new model in Hong Kong, virtual banking has many security issues which need to be aware of” says Savio Hui, Head of Technology Risk & Cyber Resilience, ZA Bank Ltd. “Aside from being beneficial to customers, virtual banking must also be respectful of customer data. How it is stored and used must be paid great diligence.”


An expert in the Information Security Services & Data Science field, Daniel Kwong, Chief Information & Innovation Officer, CITIC Telecom CPC, concurs deeply.“In launching virtual banking, cyber attacks may occur during onboarding and authentication. Incidents that occur in Faster Payment System (FPS) and Electronic Direct Debit Authorization (eDDA) were due to a lack of proper authentication and onboarding. Problems arise when new technologies meet old processes,” says Kwong.


“Apart from considering to adopt super-authority and real name authentication, the banking & finance industry should also urge for a better validation flow with the government authority. I think Hong Kong should try to adopt the ways of virtual authentication that China is practicing, such as the China RFID-based NCIIC China-ID and facial similarity comparison service by the Ministry of Public Safety which greatly decreased incident rate after implementation,” concludes Kwong.



Products & Services
Private Network Information Security Cloud Solutions Cloud Data Center Internet Services Managed Portal Europe & CIS Solutions
Solutions
Architecture, Engineering & Construction Automobile Banking & Finance e-Commerce Logistics and Transportation Manufacturing Professional Services Retail Trading Others
Customer Service
Customer Login Services Hotline Service Center
Resources Center
Product Leaflets New Offering Videos White Paper Success Stories
About Us
Our Company Our Partners News Center Accreditation & Awards Success Stories Videos Contact Us Careers Blog
Contact Us

General Enquiry 65 6220 6606

Sales Hotline 65 6220 6606

Contact Us

Sitemap | Disclaimer | Net Abuse Policy | Privacy Policy | Cookie Policy

Copyright © 中信國際電訊(信息技術)有限公司 CITIC Telecom International CPC Limited

Follow Us
Asia Pacific

Hong Kong

English 中文(繁) 中文(简)

Japan

English

Malaysia

English 中文(简)

Singapore

English 中文(简)

Taiwan

English 中文(繁)

Europe & CIS

The Netherlands

English (The Netherlands)

Estonia

English (Estonia) Eesti

Russia

English (Russia) Русский

Mainland China

English 中文(简)

Welcome to CITIC Telecom CPC

You are about to visit our website

Please choose a location:

South Africa

South America

US & Canada

China Entercom

Asia Pacific
Europe & CIS
South Africa
South America
US & Canada
Need help? Chat with CPC Chatbot
Supported browsers: Latest versions of IE11, Firefox, Chrome and Safari.
Terms & Conditions
Welcome to CITIC Telecom International CPC Limited. Your conversation with CPC Chatbot may be recorded for training, quality control and dispute handling purposes. By clicking “Continue” and using CPC Chatbot, you accept and agree to be bound by our Privacy Policy and give your consent to receive cookies on this site. Read more about our Cookie Policy and Privacy Policy.
Continue