WeLab Bank: taking digital banking to the next | Asian Markets

It didn’t take long for WeLab Bank to make its mark on Hong Kong’s digital banking panorama. Already by early 2025, within 5 years of its launch, it managed to outshine its friends by attaining its first breakeven – one thing that sometimes takes industry gamers 5 to seven years.

This adopted a milestone 2024 for the bank. Its web income reached round HK$750 million (US$95 million) primarily based on year-on-year (YoY) growth of over 30%. During the similar time, its unsecured retail loan portfolio hit HK$5.5 billion (US$700 million), and its web curiosity margin reached 9.4%, increasing by 0.6% in contrast with the earlier 12 months. The bank additionally carved out a 11% market share in new unsecured personal loans, a main place in Hong Kong.

Lee believes a mixture of resilience, disciplined execution, sturdy risk management and innovation in the business model are the success components setting WeLab Bank aside.

“Our robust loan portfolio, distinct product structures and credit risk technology have enabled us to weather economic uncertainties while building a sustainable path to profitability,” he defined, whereas additionally pointing to high quality clients, optimised deposit pricing utilizing dynamic fashions and an increasing lending e book amongst key drivers.

As a outcome, the bank’s financial foundations stay sturdy. Its whole deposits grew 120% YoY and it maintained a loan-to-deposit ratio of about 80%.

Diversified income streams have additionally performed a large position in the current growth story. Notably, Lee highlights demand for wealth management merchandise as clients shift away from time deposits in at this time’s setting of falling rates of interest.

Making credit choices rely

Central to WeLab Bank’s accelerated journey has been superior technology, precision pricing and disciplined stability sheet management – foundations of a sustained capital technology model that stem from a proprietary AI-driven credit choice engine.

This displays the significance of subtle risk technology within digital banking. “This is the cornerstone of our performance and differentiation,” stated Lee. “By integrating both traditional and alternative data, the engine assesses not only a customer’s repayment ability but also their willingness to repay. This enables us to approve the ‘right customers’ while maintaining credit quality, even in a challenging market environment.”

The outcomes converse for themselves. Despite market delinquency worsening 13% YoY, WeLab Bank achieved a 37% enchancment in credit efficiency in 2024.

“This data-driven, technology-first approach ensures we remain agile, profitable and customer-focused, solidifying our position as the leader in Hong Kong’s digital banking landscape,” Lee added.

Diversifying past lending

Data-led insights into clients have additionally proved to be a aggressive benefit for WeLab Bank by enabling it to establish – after which penetrate – a important section of people in Hong Kong that stay underserved due to high entry obstacles for financial advisory or overly complicated banking necessities.

In line with this strategic shift past initial core lending merchandise, wealth management was a key growth driver in 2024, with whole belongings below management boosting almost 300% YoY.

Driven by its dedication to accessibility and innovation, WeLab Bank’s GoWealth Digital Wealth Advisory platform helped to democratise investments by offering investment advisory companies ranging from simply HK$100 (US$10), primarily based on clients’ objectives fairly than conventional risk-based components.

It has been common. Fee income for the bank from wealth management grew by over 70% YoY, fueled by sturdy demand for ‘first-in-market’ month-to-month price Featured Fund Services, offering zero transaction charges and no investment caps.

Leveraging AI for sustainable growth

In showcasing its means to diversify and pursue revolutionary routes to growth, WeLab Bank’s ambition is to turn out to be an ‘AI first’ digital bank.

This will contain the exploration of integrating AI throughout its operations and buyer journey – beginning with building on its place as one of the first banks in Asia to deploy DeepSeek regionally to improve operational effectivity and upskill skills.

To obtain its AI imaginative and prescient, WeLab Bank plans to harness the transformative potential of AI Agents. “These AI Agents are designed to deliver hyper-personalised financial solutions, such as tailored investment products and loan offerings, transforming the bank from a reactive service provider to a proactive partner in its customers’ financial journeys,” defined Lee.

Fostering this kind of tradition and delivering high-impact AI functions will additional reinforce the give attention to buyer expertise, operational effectivity and risk management. “At the core of our approach are scalability, adaptability and ethical compliance, ensuring AI solutions deliver sustainable value while maintaining trust and accountability,” Lee added.

Yet WeLab Bank’s philosophy emphasises synergy between AI and human experience. Instead, leveraging AI will set new industry benchmarks for innovation, effectivity and financial inclusion.

“By reinvesting resources in AI innovation, WeLab Bank will foster a sustainable cycle of innovation that will keep us at the forefront of the industry, generating greater value for customers and shareholders,” stated Lee.

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