While the Hong Kong market is mature in terms of traditional banking products, Forrester has found that digital banking’s pre-sale and post-sale journeys there lag those in other advanced economies. In the past three years, eight virtual banks have launched operations in Hong Kong and have been set to rekindle the digital banking experience in the market. Forrester has recently published a series of case studies covering the strategy and vision, technology and operations, and customer experience (CX) of five of these virtual banks, and Mox is a very interesting one to watch.
Mox Bank aims at bringing a new generation of digital experiences and digital services to Hong Kong customers. It has set up differentiated strategies and approaches to achieve this goal, and here are some examples:
- Mox has a high-performance operating model. A highly efficient and effective operating model is essential for digital-only banks to compete. Mox’s product owners are like mini-CEOs: responsible for every aspect of the product, such as cost, budget, competition, and benchmarks. The distributed responsibility has boosted efficiency at the product level, as the product owner is not just another employee but an owner of the firm. Setting clear microlevel responsibilities has enabled Mox to achieve a high operating efficiency: One bank employee can serve more than 1,000 customers.
- Mox is delivering customer-led experiences. Banks need to continuously create new sources of value to satisfy customers’ rapidly changing needs and expectations. Mox’s in-depth customer research uncovered real but mostly overlooked pain points, such as disjointed banking experiences. For instance, some customers had to use different bank cards in different scenarios and needed to switch between multiple cards throughout the day. Mox not only improved on the status quo by making these cards digital, but it also designed a new banking experience that unifies different services — such as an all-in-one card that customers can use in all banking scenarios.
- Mox is looking to expand into new geography and offer new services. Mox currently focuses on the Hong Kong market but plans to explore opportunities in China’s Greater Bay Area (GBA) and other markets. By embracing cloud and a modern tech stack, Mox is 70% portable — so it can enter other markets more easily and cost-effectively. It plans to add wealth management services such as stock trading and brokerage services given the high interest from customers in Hong Kong and the GBA region. The wealth management services will help the bank increase its revenue and profit and deliver additional new experiences to customers.
Forrester clients can read the full Mox Bank report, Q&A: Decoding Hong Kong’s Digital-Only Banks — Mox Bank.
You can also schedule an inquiry to discuss with us.