7 Best Banks in Hong Kong - Which One To Use?

Hong Kong is undoubtedly a major hub when we talk about banking and finance. If we look at the numbers, Hong Kong is home to 163 licensed banks, 17 restricted license banks, and 13 deposit-taking companies.?

This is further solidified by the fact that 78 of the world's top 100 banks have set up some form of operation in Hong Kong. This includes banking giants, such as HSBC, which actually started in Hong Kong.??

Now, with so many banking options, you might be wondering: Which one really understands the needs of SMEs? This article will explore the 7 best banks in Hong Kong for SMEs and weigh the pros and cons of each so you can make a decision on which bank is suitable for your business.?

About The Banking System in Hong Kong

To operate as a bank in Hong Kong, an institution first needs permission from the Hong Kong Monetary Authority (HKMA). Now, this might seem straightforward, but the city has a unique three-tier system, classifying institutions based on factors like the kind of deposits they accept and their primary business focus. Let's break this down so you can see where your business might fit best:

Licensed banks: Only licensed banks may operate current and savings accounts, accept deposits of any size and maturity from the public, and pay or collect cheques drawn by or paid in by customers. Crucially, they're the only institutions allowed to have 'bank' in their title. Familiar names? Think Dah Sing Bank, Bank of China, and even ZA Bank, which operates virtually. Lastly, each depositor of licensed banks in Hong Kong is protected by the Deposit Protection Scheme, which protects up to HKD500,000.

Restricted license banks: Specialised entities, these banks function more like investment banks in the capital markets. If you’re considering deposits greater than HKD500,000, these are the ones to look at. There are not many around, but you might recognise Goldman Sachs Asia Bank Limited and Orix Asia Limited.

Deposit-taking companies: Often tied to licensed banks, these companies deal in consumer finance, commercial lending, and securities. If you’re thinking about deposits over HKD100,000 with a three-month term or more, they're an option. Examples include BPI International Finance Limited and Public Finance Limited.

Rest assured, every international bank here is under the vigilant eye of regulators, ensuring a stable financial sector and a robust economy.

For this article, we're diving into licensed banks.?

1. DBS

DBS , with its deep roots in Asia, has marked its presence in 18 key markets, including Hong Kong. Initially founded in 1968 as 'The Development Bank of Singapore Limited,' it's come a long way since then.

When we talk about credibility, DBS is full of accolades. Recognised as the “World’s Best Bank” by publications like Global Finance and Euromoney and even as the “Global Bank of the Year” by The Banker. They are also the “Safest Bank in Asia, “ according to Global Finance, for 13 straight years from 2009 to 2021.

On the global scale, DBS is a giant – employing around 36,000 individuals and boasting assets of $539.314B in 2022 if we go by Macrotrends.

Here are the pros of DBS:

• Easy Integration: DBS offers a seamless connection with accounting tools like Xero and API integration for customised solutions.?
• Account Setup: DBS offers account opening as fast as two business days.
• Global Reputation: They were recognised as the world's best bank five times in a row by world-renowned publications.
• Tailored Accounts: DBS offers a variety of accounts, such as Corporate Accounts, Social Enterprise Bundles, and RMB Business Accounts.

Here are the cons of DBS:

• Complex Eligibility: Depending on the account you are planning to open, their criteria can be a tad confusing.
• Customer Support: There are limited ways to get in touch with their support team.
• Limited Currencies: They support a decent range of currencies, but it is limited to 14, which might not cover every international business needs.?

DBS: Fee Structure Breakdown

Account Opening Charges:

• Local Company Account: Starting at HKD1,200
• Overseas Company Account: Beginning from HKD10,000
• Special Company Account: Also from HKD10,000. (examples of “Special Company Accounts” are businesses in niche sectors, like Money Services or Jewellery.)

For a comprehensive overview of currency accounts and their related fees, it's worth checking their detailed list .

2. HSBC?

HSBC , a name synonymous with global banking prowess, is a major force in the Asia Pacific. In fact, it clinched the 2nd spot on The Asian Banker's list, a testament to its remarkable balance sheet strength.

Looking into their annual report, the numbers are staggering: they manage assets nearing USD3 billion and have a dedicated workforce of over 68,000 across the globe. Here in Hong Kong, almost 2,000 employees drive the bank's operations. With their presence in over 60 countries, it's clear why both local and international businesses trust them.

It's not just about size; HSBC's quality is also lauded. They bagged the title of Hong Kong’s best domestic bank in 2022 from AsiaMoney and are regulars on the global private banking awards podium. Though known to be a favourite among the affluent, setting up a personal account with them is surprisingly accessible, with just an HKD1 deposit.

Here are the pros of HSBC:

• Worldwide Footprint: HSBC's esteemed reputation and presence are truly global.
• Tech-Savvy: Their mobile app is top-notch, providing seamless banking experiences.
• Diverse Business Offerings: HSBC is known for its vast suite of business-focused financial solutions.

Here are the cons of HSBC:

• Fee Structure: Some services, especially foreign exchange transactions, can be on the pricier side.
• Customer Service: There have been mentions of the support process being a bit cumbersome.

HSBC: Fee Structure Breakdown

Account Opening Charges

Online Applications:

• Via HSBC's Account Application Center: HKD1,300
• Facilitated through an overseas HSBC branch: HKD2,250
• Special Company Account: HKD11,000

Note: An extra fee of HKD300 applies to applications submitted as paper forms or through other methods.

Initial Deposit: HKD10,000

Inactivity Fees:

• Accounts with a Total Relationship Balance (TRB) under HKD50,000 in the past 3 months and inactive for over a year: HKD350 (charged semi-annually).
• Those inactive for more than 2 years under the same conditions: HKD450 (charged semi-annually).

Note: The rates mentioned are accurate as of October 2023. For the most recent details, it's recommended to consult HSBC's commercial tariffs .

Looking to open an account with HSBC? Check out our guide on 'How to Open an HSBC Business Account .'

3. Hang Seng Bank?

A notable name in the banking sector, Hang Seng Bank clinched the 4th spot on The Asian Banker’s list of top Asia Pacific banks. It's a testament to their reach that they serve more than half of Hong Kong's population.

Diving into their annual report, Hang Seng Bank's stature becomes apparent: managing assets worth around HKD1.89 billion and a team strength of over 8,000 individuals. To bring it closer to home, their Hong Kong operations alone are powered by 3,367 employees, as per the recent data from Zoom Info.

With a suite of domestic and global services, they offer the flexibility of accounts in various foreign currencies. Their focus on SMEs doesn't go unnoticed either, bagging the title of the best Hong Kong bank for SMEs in 2021 by Asiamoney. For a deeper dive into their recognitions, their website showcases an array of awards.

Here are the pros of Hang Seng Bank:

• Notable Local Presence: Their reputation and presence in Hong Kong are deep-rooted and commendable.
• Forward-Thinking: They're at the forefront of e-service advancements, like the Mobile Cash Withdrawal feature.
• Rewards? Programs: The rewards programs for Hang Seng Bank customers, such as credit card holders and Hang Seng's preferred Banking Club, are quite comprehensive.?

Here are the cons of Hang Seng Bank:

• Global Outreach: Their international presence and accessibility can be a tad limiting.
• Service Spectrum: Compared to some rivals, they offer a slightly narrower range of financial products and services.

Hang Seng Bank: Fee Structure Breakdown

Account Opening Charges:

• Biz Virtual+ Account:Remote Application: HKD600Application via Business Banking Center: HKD1,200
• Integrated Business Solutions Account:
• Both Remote Application and Business Banking Center: HKD1,200
• Company Account Opening via Video Conference: HKD2,000

Initial Deposit: HKD20,000

Inactivity Fees:

• Accounts with a Total Relationship Balance (TRB)* under HKD50,000 in the past 3 months and inactive for more than a year: HKD250 (semi-annually).
• Accounts inactive for over 2 years under the same conditions: HKD350 (semi-annually).

*TRB is an aggregate of deposits, investments, credit card cash advances, outstanding loans (excluding mortgages), and premiums from specific insurance plans distributed by Hang Seng Bank.

Note: The rates mentioned are updated from October 2023. For the latest details, it's best to review Hang Seng Bank's fees and charges page .

If you're looking to open a business account with the Hang Seng Bank in Hong Kong, refer to our step-by-step guide to opening a bank account.

4. Bank of China (Hong Kong)

?Sitting at the pinnacle, the Bank of China (Hong Kong) holds the 1st position on The Asian Banker's ranking of formidable Asia Pacific banks.

Their financial highlights reveal a behemoth presence, with assets soaring over HKD3 trillion. Powering this massive operation is a dedicated workforce of around 14,500 individuals. In Hong Kong, their presence is especially dominant, with over 190 branches, making them the 2nd largest commercial banking group in the region.

Their service suite is comprehensive, spanning both commercial and consumer banking spectrums. Their commitment to the community and the environment earned them the title of the best bank in Hong Kong for corporate social responsibility in 2022, as per Asiamoney.

Here are the pros of the Bank of China:

• Bridge to Mainland: With deep-rooted ties between Hong Kong and Mainland China, they offer unparalleled networking opportunities.
• High Standing: Their top position on The Asian Banker list speaks volumes about their reliability and reputation.
• Extensive Offerings: Customers are spoilt for choice with their wide array of financial products and services.

Here are the cons of the Bank of China:

• Limited English Support: English support can sometimes be limited, which can be challenging for some customers.
• Difficult Onboarding Process: The process of opening an account has been pointed out as more difficult than necessary by a few users.

Bank of China (Hong Kong) - Fee Overview

Account Opening Charges:

• Basic Application Fee: HKD1,200
• Additional Special Fees:For companies incorporated in Mainland China: HKD2,000. Additional company search fees for such companies are charged based on actual costs.For companies incorporated overseas: HKD5,000. Additional company search fees for overseas companies are applied based on actual bank costs.Special company types (Companies with 4 or more layers in their ownership/controlling structures or Trust accounts): HKD5,000

Initial Deposit Fee: Not applicable.

Account Inactivity Fees:

• Dormant Accounts (No deposit/withdrawal for 2 years with a balance below HKD2,000.00): HKD100 bi-annually.
• Zero balance accounts will be closed without prior notification.

Note: The rates specified are applicable as of October 2023. For real-time rates, it's advisable to check the bank’s official fee page .

To open a business account with this bank, we recommend following Statrys’ detailed guide on “How to Open a Bank of China Business Account. ”

5. Citibank Hong Kong

Citibank Hong Kong holds the distinction of being the first foreign bank to plant its flag in Hong Kong, dating way back to 1902.

Delving into their disclosed financial statements, they boast assets rounding up to HKD312 billion. Couple that with their influential global brand, and it’s clear why they made this list.

From consumer to corporate solutions, Citibank offers a holistic range of services. They're especially influential in corporate banking within Hong Kong. Their appeal isn’t restricted to locals; ex-pats and non-residents often prefer Citibank. Also noteworthy is their stature as one of Hong Kong's premier credit card issuers, and their fee-free account packages and exclusive private banking services aren't to be overlooked. Globally, their private banking and wealth management accolades further enhance their prestige.

Here are the pros of Citibank Hong Kong:

• Worldwide Footprint: Their global reach and recognition are unmistakable.
• Credit Card Powerhouse: They offer a plethora of credit card options packed with attractive rewards.
• Digital Accessibility: Their online and mobile banking platforms ensure banking is just a click away.

Here are the cons of Citibank Hong Kong:

• Cost Structure: Their services come with higher fees and interest rates when juxtaposed with some competitors.
• Support Inconsistencies: While many have smooth experiences, some customers have raised concerns over support standards.

Citibank Hong Kong - Fee Structure

Account Opening Charges:

• Local Company Account: HKD2,000
• Overseas Company Account (Companies not registered in HK): HKD8,000

Initial Deposit: No minimum deposit requirement.

Account Inactivity: While there are no inactivity fees, accounts without any transaction for 12 months or longer will be designated as 'inactive' and subsequently set to 'dormant' status.

Important: The rates provided are reflective of October 2023. Always check Citibank's official service fees webpage for the most recent figures.

Considering Citibank for your business needs? Read our comprehensive guide on "How To Open A Citibank Account. "

6. Standard Chartered Hong Kong

Occupying the 9th spot on The Asian Banker's list, Standard Chartered Hong Kong is undeniably a force to reckon with in the Asia Pacific banking landscape.

Their financial report reveals an impressive asset pool, hovering around HKD2.5 trillion. Established in 2004, Standard Chartered Hong Kong has grown by leaps and bounds, extending its services to over 60 countries. One of its unique distinctions is being one of the three banks in Hong Kong licensed to issue banknotes. The bank boasts a robust team of between 5,500 to 5,800 in Hong Kong alone. And with the city's anticipated border reopening with mainland China, they're eyeing an addition of 300 to 500 more to their ranks.

Catering to a wide clientele, they've strategically priced some services lower. Their offer of remote account openings also sets them apart in the region.

Their dedication to excellence has been recognised, acquiring awards such as

? International Retail Bank of the Year by Asian Bank and Financing?

? Digital Banking Initiative of the Year by Asian Bank and Financing

Here are the pros of Standard Chartered Hong Kong:

• International Reach: Their global footprint is vast, spanning numerous countries.
• Invaluable Insights: They provide in-depth market data and investment perspectives, aiding businesses in informed decision-making.
• Personal Touch: A dedicated Relationship Manager is at your disposal when you open an account with them.

Here are the cons of Standard Chartered Hong Kong:

• Pricing Concerns: Certain services come with a higher price tag when compared to rivals.
• Slow Adoption To New Tech: Their pace in adopting newer technologies has been a tad slower than some competitors, potentially affecting their market edge.

Standard Chartered Hong Kong - Fee Breakdown

Account Opening Charges:

• Overseas Company Account Setup: HKD5,000

Initial Deposit: HKD1,000

Account Inactivity Fee: No charges.

Important: The rates mentioned are accurate as of October 2023. It's recommended to check the official Standard Chartered Fees webpage for the most updated details.

Interested in partnering with Standard Chartered? Explore our guide on how to open a business account with them successfully. Learn how to apply here .

7. Bank of East Asia (BEA)?

Standing as the largest independent bank in Hong Kong, the Bank of East Asia holds the unique distinction of being one of the two family-run banks in the region. Their service portfolio aligns with the comprehensive offerings you'd expect from prominent banks.

Diving into their financial metrics, they manage a significant pool of assets, estimated around HKD908 billion. An appealing feature they offer is their multi-currency accounts, accommodating an array of currencies from the Australian Dollar and Euro to the Renminbi and US Dollar, providing a service suite reminiscent of top-tier global banks.

Here are the pros of the Bank of East Asia:

• Strong Local Reputation: Their name resonates with a strong reputation and rich heritage in Hong Kong.
• Strong Developments in Asia Market: Recognised as pioneers, especially in Mainland China, they were the first foreign banks to roll out RMB cards in the region.
• Diverse Offerings: Their services cater to a broad spectrum of clients, ensuring all needs are met.

Here are the cons of the Bank of East Asia:

• Limited Global Reputation: Their brand may not ring as familiar bells internationally, which could pose challenges in account access and support when beyond Asia's borders.
• Customer Support Quality: Feedback indicates that service quality can be inconsistent, with some users reporting prolonged waiting times at branches.

Bank of East Asia (BEA) - Fee Breakdown

Account Opening Charges:

• For Local & Foreign Companies: HKD10,000

Initial Deposit Requirement: HKD10,000

Account Inactivity Fee: Not applicable.

Looking For An Alternative Solution? Consider Statrys?

Statrys offers business accounts tailored for companies registered in Hong Kong, Singapore, and the BVI. With our multi-currency business accounts, clients can effortlessly conduct international transactions through SWIFT while also having the flexibility for local transactions in 17 distinct currencies.

Why Choose Statrys?

• Personalised Account Management: Reach out via multiple platforms such as the Website, Email, Phone, WhatsApp, or WeChat.
• Diverse Currency Support: Manage finances in 11 key currencies, including USD, EUR, GBP, HKD, SGD, CNY, CHF, CAD, AUD, NZD, and JPY.
• Versatile Local Transactions: Facilitate local transfers in 17 currencies, counting HKD, AUD, EUR, GBP, IDR, INR, KRW, PHP, SGD, THB, TRY, USD, and VND among them.
• Currency Exchange Solutions: Access Spot and Forward services complemented by attractive FX rates.
• Payment Card Options: Enjoy the convenience of Mastercard? with choices of either physical or digital cards.

Important Note: Statrys is not a bank. We are a financial institution holding a Money Service Operator license in Hong Kong (19-02-02726).