The 6 Best Banks To Use in Hong Kong in 2023

Hong Kong is one of the financial centres of the world with a strong banking system offering a doorway to China. 

According to the Hong Kong government's official website, there are 163 licensed banks, 17 restricted license banks and 13 deposit-taking companies in Hong Kong. These include 78 of the top 100 international banks in the world that have some form of operation in Hong Kong. Furthermore. one of the world’s largest banking institutions, the Hong Kong and Shanghai Banking Corporation Limited, or HSBC, was founded in Hong Kong.

It is understandable why Hong Kong is often described as the financial centre of Asia for commercial banking and personal banking. 

But which of the players in the Hong Kong banking sector is best for small businesses? In this article, we'll take a look at the 6 best banks to use as well as the pros and cons of each bank.

An overview of the banking system in Hong Kong

In order for any corporation to be considered a bank in Hong Kong, it first has to be granted a license by the Hong Kong Monetary Authority (HKMA).

Hong Kong implements a three-tier system of institutions that are classified based on specific factors namely: the amount and term of deposits accepted and the nature of business. The three types of institutions are explained below. You can view the full list of these institutions here.

1. Licensed banks: These are the most common types of banks in Hong Kong. They can operate current (checking) and savings accounts, take deposits, and accept paychecks. These institutions can freely use the word 'bank' in their name. Examples of these banks include Dah Sing Bank, Bank of China, and ZA Bank (which is a virtual bank).
2. Restricted license banks: These banks can do business like an investment bank in capital markets, and can take deposits greater than HKD500,000. There are only a few Restricted Licensed Banks in Hong Kong such as Goldman Sachs Asia Bank Limited and Orix Asia Limited.
3. Deposit-taking companies: These companies are associated with licensed banks and are involved in consumer finance, commercial lending, and securities. They can take deposits of greater than HKD100,000 with a maturity of three months or greater. Some examples of these companies are BPI International Finance Limited and Public Finance Limited.

Every international bank in Hong Kong is regulated and supervised to ensure stability for the financial sector and the country’s economy.

The banks listed in this article are all licensed banks, with each of them having their specialities and differences which will be discussed below.

1. HSBC

HSBC is ranked 2nd on The Asian Banker list for strongest Asia Pacific bank, which evaluates banks based on their balance sheet strength.

In HSBC's latest annual report, they reportedly have assets equivalent to almost USD3 billion, and they employ over 68,000 people. They serve over 60 nations worldwide with their global banking services, making them a top choice among both local and international customers. In Hong Kong alone, HSBC employs approximately 1,981 employees.

HSBC offers a range of consumer and commercial services and is a leader in business accounts in Asia.

According to AsiaMoney, HSBC was listed as Hong Kong’s best domestic bank in 2022, and they often rank highly in global private bank awards lists.

Generally, they are the preferred bank for high-net-worth clients, however, their minimum deposit to open a personal account is only HKD1.

Pros of HSBC

• Global Presence: Renowned global presence and reputation around the world
• Ease of Access: HSBC's mobile app is well-developed for easier access to your account
• Business Services: A wide array of financial products and services available for business customers

Cons of HSBC

• High Fees: Considerably higher fees and charges for some HSBC services like foreign exchange transactions
• Customer support: Some customers complain about the difficulty of resolving issues with HSBC

HSBC Fees

*TRB: Total Relationship Balance (TRB) is calculated based on the balances in the accounts maintained with HSBC in Hong Kong.

The rates we've listed are as of March 2023. We encourage you to refer to HSBC's commercial tariffs for the latest information.

If you're interested, we have a guide discussing How to Open an HSBC Business Account.

2. Hang Seng Bank

Hang Seng Bank is ranked 4th on The Asian Banker list of strong Asia Pacific banks. They currently serve over half of the population of Hong Kong.

Their most recent annual report available states that the bank has total assets of approximately HKD1.89 billion, and they employ over 8,000 people. According to Zoom Info's latest reports, Hang Seng Bank currently employs 3,367 employees in Hong Kong.

Hang Seng Bank has a comprehensive range of services, both domestically and globally. Customers can open accounts in a range of foreign currencies.

Asiamoney rated Hang Seng Bank as the best Hong Kong bank for SMEs in 2021. Hang Seng lists other awards on their website.

Pros of Hang Seng Bank

• Strong Local Presence: Well-known local presence with a very solid reputation in Hong Kong
• Focus on Innovation: Strong focus on the improvement of e-services such as Mobile Cash Withdrawal
• Rewards Scheme: Encouraging rewards programs for bank customers such as credit card holders and Hang Seng Preferred Banking Club

Cons of Hang Seng Bank

• Limited Global Presence: Limited international presence and bank account access from other countries
• Limited Services: Considerably narrower range of financial products and services compared to other competitors

Hang Seng Bank Fees

**The Total Relationship Balance (TRB) is the sum of all your deposits, investments, credit card cash advances, and outstanding loans (except mortgages) plus the total premiums paid for your designated general insurance plans distributed by Hang Seng Bank.

Please note that the rates we've listed are as of March 2023. We encourage you to check their fees and charges page for the most up-to-date information.

3. Bank of China (Hong Kong)

Bank of China (Hong Kong) is ranked 1st on The Asian Banker list of strong Asia Pacific banks.

Their total assets are over HKD3 trillion according to released bank financial highlights.

They employ approximately 14,500 people and are the 2nd largest commercial banking group in Hong Kong with over 190 branches.

It will be no surprise that BOC has a full range of commercial and consumer banking services.

They were named the best bank in Hong Kong for corporate social responsibility in 2022 by Asiamoney

Pros of Bank of China

• Hong Kong-China Network: Bank of China boasts strong ties and networks between Hong Kong and Mainland China
• Solid Reputation: Strong reputation and reliability as displayed by being 1st on The Asian Banker list of strong Asia Pacific banks.
• Developed Product Offerings: Wide range of financial products and services available to customers

Cons of Bank of China

• Language Barrier: Limited support in English-language available to customers
• Account Opening Process: A more complicated process of applying for an account as complained by some customers

Bank of China HK Fees

Note that the rates we've listed are as of March 2023. Please refer to the fees on their website for the latest information.

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

4. Citibank Hong Kong

Citibank Hong Kong is ranked 43rd on The Asian Banker list for strong Asia Pacific banks.

According to their financial disclosure statements, total assets are approximately HKD312 billion.

Citibank Hong Kong was the first foreign bank to offer services in Hong Kong in 1902, so they have a long history in the region. They also have a strong global brand, which is one of the reasons they were chosen for our list.

Citibank offers a full range of services for consumers and businesses and has a large presence in corporate banking in Hong Kong.

Citibank Hong Kong is often the chosen bank for ex-pats and non-residents of Hong Kong, and they are one of the largest credit card issuers in the country. They also offer fee-free account packages and private banking services.

They perform strongly in global private banking and wealth management awards, making their case to be placed among the top picks for best international banks.

Pros of Citibank Hong Kong

• Strong Global Presence: Citibank has a presence around the world and is well-recognized internationally
• Credit Giant: One of the largest credit card providers with a variety of available cards with rewards
• Ease of Access: Easy access to your account with Citibank's online and mobile banking services

Cons of Citibank Hong Kong

• Higher Fees: Considerably higher fees and interest rates compared to competitors
• Customer Support: Inconsistent customer support standards as reported by some customers

Citibank Hong Kong Fees

Note that the fees listed are as of March 2023. We encourage you to visit their service fees page for up-to-date information.

We have a guide on How To Open A Citibank Account available if you're considering a Citibank business account.

5. Standard Chartered Hong Kong

Standard Chartered Hong Kong is ranked 9th on The Asian Banker list of strong Asia Pacific banks.

Their total assets are approximately HKD2.5 trillion as stated in their latest financial report.

Standard Chartered Hong Kong was founded in 2004 and they do business in over 60 countries. It is one of only three banks in the country licensed to issue banknotes. Currently, they have approximately 5,500 to 5,800 employees in Hong Kong and have plans to hire 300 to 500 more as the city reopens its border with mainland China.

They offer a comprehensive array of services and are a leader in the digital banking world. They have lower fees for some services to accommodate all consumers. And they offer remote account openings, which is unusual in the region.

Standard Chartered Bank Hong Kong awards include:

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

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

Pros of Standard Chartered Hong Kong

• Global Presence: Standard Chartered is internationally recognized with a presence in multiple countries
• Market Insights and Support: Standard Chartered offers comprehensive investment insights and in-depth market information to businesses
• Relationship Manager: Customers holding an account with Standard Chartered are provided with a dedicated Relationship Manager

Cons of Standard Chartered Hong Kong

• Higher Fees: Relatively higher fees and interest rates compared to competitors
• Slower Development in New Technologies: Standard Chartered has been slower in investing in new technologies compared to competitors resulting in weakening their competitive edge

Standard Chartered Fees

The rates we've listed are as of March 2023. You can refer to the Standard Chartered fees page for more information.

We also have a guide on how to open a business account with Standard Chartered. Learn how to apply here.

6. Bank of East Asia (BEA)

Bank of East Asia is the biggest independent Hong Kong bank, and one of two family-run banks in Hong Kong. Similar to the banks mentioned above, they provide an array of banking services.

According to the latest reports, their total assets are approximately HKD908 billion.

In their multi-currency accounts, the available currencies include the Australian Dollar, Canadian Dollar, Euro, Japanese Yen, New Zealand Dollar, British Pound, Renminbi, Swiss Franc, South African Rand, Thai Baht, Singapore Dollar, and US Dollar.

This service is similar to what you can find with a corporate bank account at a large global bank.

Pros of Bank of East Asia

• Hong Kong Reputation: Well-known reputation and long history in Hong Kong
• Development for Asia Market: Bank of East Asia has a reputation for industry-leading improvements for customers in Mainland China with recognition for being the first foreign bank to provide RMB cards in mainland China
• Diverse Customer Base: Bank of East Asia is well known for its range of services that cater to a diverse customer base

Cons of Bank of East Asia

• Limited Global Presence: Bank of East Asia is not so well-known internationally, which may make it difficult to access your account and seek support when outside of Asia.
• Customer Support: Some customers have complained about the service quality and long waiting times at bank branches

Bank of East Asia Fees

Note that the rates we've listed are as of March 2023. We encourage you to check Bank of East Asia's website to get the latest information on fees.

Alternative Business Account Solution: Statrys

All the banks listed are among the best choice in Hong Kong, but that depends on the needs of your business. Nowadays, many businesses are considering virtual banks that provide business accounts instead. Fintechs have been rising up against traditional banks to provide a viable banking solution for businesses. All with a package that includes more affordable fees and a simpler process.

At Statrys, we offer payment services and a business account just as banks do. We also have a multi-currency account, and you can handle making local and international payments at more affordable rates with reliable customer support.

In the end, choosing the right banking solution is a crucial business decision, so we encourage you to take your time in signing up with the best partner for you.