Hong Kong Virtual Banks Talk Linkage with ATM Giant Jetco

Hong Kong’s upcoming virtual banks are considering cash withdrawal capabilities for its customers through automatic teller machine giant Jetco.

Under the terms of the newly issued virtual banking licenses, no physical branches are allowed to be made and a partnership would allow the digital lenders to sidestep the rule while still providing access to physical cash.

The virtual banks may opt to issue cards to customers to use the Jetco ATMs owned by other banks, or they can allow access through a mobile application on smartphones,» said Jetco CEO, Angus Choi Ping-chung, in an SCMP report.

Jetco was founded by the entity preceding Bank of China (Hong Kong) which is amongst its now 30-strong list of lenders that are shareholders, including Standard Chartered Bank.

With 44 ATMs per 100,000 residents, Hong Kong has the second-highest ATM density per capita, behind Singapore, according to the World Bank. And in Hong Kong, Jetco operates 60 percent of the 3,000 ATMs with the remaining 1,200 owned by HSBC and its majority-owned lender Hang Seng.

But recent unrest in the city has led to the damage of about 10 percent of all ATMs, according to Choi, who noted that transactions were nonetheless unaffected as customers would just seek other undamaged machines.