HSBC Scraps Minimum-balance Fees For Most Accounts

HSBC announced on Wednesday that fees and charges on most of its bank accounts would be waived from August 1. The bank says more than 3 million individual customers will benefit.

These include the HSBC Advance Integrated Account and Personal Integrated Account, which currently charge holders for having a three-month average balance of less than HK$200,000 and HK$5,000 respectively.

Other accounts that will have their fees and charges abolished are the HKD Statement Savings Account, HKD Passbook Savings Account, Cash Card Account, SuperEase Account and University Student Account.

HSBC says it's the first bank in Hong Kong to provide free basic banking services.

But charges for top-end accounts, where customers have access to a relationship manager, will remain.

"This is a key step in reinforcing HSBC's commitment, as Hong Kong's leading bank, to promoting financial inclusion and making banking easy for customers from all backgrounds," said Greg Hingston, the head of retail banking and wealth management of the bank's Hong Kong unit.

The move by HSBC comes as online banking continues to gain popularity, and banks scramble to hold onto its existing customers and attract new ones.

Finance sector lawmaker Ronick Chan says he expects other banks to follow suit.

"I think traditional banks waive this kind of account fees, will be a reaction to competition from the new virtual banks that will come into operation very soon," Chan said.

The Hong Kong Monetary Authority has issued eight virtual bank licences.

HSBC also said its customers can now access leading digital payment services to pay for goods and services and complete money transfers.