INTERVIEW
Hong Kong’s only homegrown virtual bank uses data to win big WeLab Bank achieved 10,000 customers just 10 days after launch.
W
eLab Bank believes that it’s parent company’s seven-year head start in the online financial services space—and in leveraging data analytics—puts it at an advantage in meeting Hong Kong banking customers’ needs. Just 10 days after it publicly launched in July, it has immediately amassed 10,000 customers. Two months later they already count 20,000 uses in their debit card. Though impressive, the statistics came as no surprise to WeLab: they consider themselves masters at moving quickly and efficiently, according to Adrian Tse, Chief Executive of WeLab Bank. More than that, they immediately respond to their customers’ needs. “We conducted multiple user research studies long before we have launched,” Tse told Asian Banking & Finance in an exclusive interview. “For example, we came up with GoSave because users have expressed their difficulties from participating in the incumbents banks’ deposit offers. They are not able to withdraw their money before the maturity date, and if they choose to do so, they will be penalized for their actions.” One of the two unique products that WeLab Bank introduced upon launch, GoSave is a time-deposit product that “harnesses the power of the community,” Tse said. “More people joining GoSave means a higher interest rate. We added the “minibus” element, which has personal connections with our users, to make the experience more memorable.” What makes it better is that you can enter the GoSave service for as little as HK$10 (US$1.30). Customers can also pull out their money at any given period without any penalties whatsoever. Not only that, the bank is quick to embark on partnerships that meet their customers needs. Recently, they partnered with online food ordering service OpenRice upon noticing that 70% of the transactions in their debit card are online orders for food. “This is exactly what makes us different from the others: that is, our ability to leverage technology. In all these, technology helps us collect the data and also allows us to build and promote other offerings to our customers,” said Tse. What was the idea behind the name “WeLab”? How does the name of your bank represent how you want to position yourself amongst customers and the industry? Lab basically stands for “laboratory” where scientists conduct their experiments and projects. It represents 18 ASIAN BANKING AND FINANCE | DECEMBER 2020
WeLab Bank amassed 10,000 customers within 10 days of its public launch in July, 2020.
Adrian Tse, Chief Executive, WeLab Bank
our goal to do different “experiments” to help customers take control of their financial journey, so that they can have fun while growing their money. What we are doing is leveraging technology to redesign a solution that is suitable for the customers during their financial journey. Whilst we started our journey in consumer lending in Hong Kong, and eventually expanded to China and Indonesia, our ambitions did not stop here. WeLab wants to open up additional channels to extend a broader range of financial services. When the Hong Kong Monetary Authority (HKMA), the regulator, decided to give out eight virtual bank licenses last year, we think this would be a good time to move into the banking territory because [what virtual banking represents] is exactly our objective when we leverage technology in our financial services: that is, to bring a very different banking experience to customers in Hong Kong. In the end we were fortunate to get one of the licenses, and we continue to bring joy to our customers through innovative products. Can you tell us more about the founders of the bank? What inspired them to launch WeLab? The founder is Mr. Simon Loong, who is also our Group CEO. He’s been in banking for over 15 years and is very experienced in the field. I worked with Simon back in