【ZA Bank】HK crypto users prefer digital banks🚀
As Asia’s first1 licensed bank to offer cryptocurrency trading services to retail users, ZA Bank has released its latest findings in the Hongkongers’ Cryptocurrency Trading Behaviour Survey2. The survey reveals a growing trend among Hongkongers opting to invest in cryptocurrencies through digital banks. This shift indicates that digital banks are becoming a new entry point for many investors into the crypto space, and start competing directly with traditional crypto exchanges to address the next-gen investors’ demand for "ease of use" and "regulatory compliance".
Digital banks are the new favourite for crypto investors
The survey highlights that nearly 70% of respondents cited “one-account convenience” 📱 and “trade directly with bank savings balance” 💸 as the key reasons for choosing digital banks. This suggests that investors are seeking a seamless crypto investment experience, preferring to manage everything through a single platform and avoid the hassle of switching between apps. Another 60% of respondents also pointed to regulated platforms and the perceived security and stability of banks as decisive factors.
“Trust” and “Convenience” — the main drivers of digital banking shift
The survey results further highlight investors’ trust in banks and the demand for a convenient user experience as compelling factors for them to turn to digital banks for crypto trading.
Here are the top five reasons cited by respondents for trading cryptocurrencies through digital banks:
1️⃣ Over 75% trust banks for their strengths in fund security, risk control, and fraud prevention
2️⃣ 69% believe the convenience of trading directly with bank deposits without the need for additional fiat transfers is a key attraction
3️⃣ 68% value the ability to trade directly using an existing digital bank app, which helps eliminate any hassle
4️⃣ 63% appreciate the regulatory compliance digital banks offer, making transactions more secure and reliable
5️⃣ 50% find the simple, user-friendly interface suitable for general public participation in investment
Regulatory clarity boosts market confidence
The survey finds that nearly 70% of respondents believed the increasing regulatory clarity in the crypto market will help attract more participants and expand the overall investor base and liquidity pool. Furthermore, 60% agreed that regulation can enhance market transparency, reduce illicit activities, and lower trading risks, effectively safeguarding investors' interest.
Looking ahead: A call for more coin types and features
While digital banks are gradually gaining favour among crypto investors, respondents clearly have higher expectations regarding functionality and coverage:
💡 81% want support for crypto-in-crypto-out transactions to enhance asset flexibility
💡 76% hope to see a wider range of mainstream cryptocurrencies with high liquidity introduced to the Hong Kong market
💡 70% expect platforms to support stablecoins (e.g. USDT, USDC) for more effective fund allocation and risk management
💡 Nearly 80% are concerned about trading fees and hope digital banks will optimise fee structures to enhance the overall trading experience
Digital banks — the answer to new market needs of diversified asset allocation choices
A recent survey by the HKUST Business School3 indicates that about 1 in 4 Hongkongers express a desire to hold virtual assets in the future, reflecting the ongoing mainstreaming of virtual assets. As a forerunner in promoting fintech development in Hong Kong, digital banks are poised to leverage their technological advantages to lead the innovative integration of traditional finance and Web3 technologies. This will inject new momentum into the local crypto market while providing investors with diversified asset allocation options.
Notes:
1. “Asia's First” refers to licensed banks in Asia (excluding West Asia) that, as of 21 November 2024, have a comprehensive regulatory framework for virtual assets and are members of FATF. This designation specifically applies to licensed banks that provide services for retail investors to trade cryptocurrencies directly using fiat currency through their main applications.
2. ZA Bank conducted a survey of 300 retail customers between late March and early April to explore their behaviours and views on trading cryptocurrencies through banks.
3. Source: HKUST Business School survey on public perception of virtual assets and tokenized money.
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