According to Hong Kong Monetary Authority, Virtual bank is defined as " a bank which primarily delivers retail banking services through the internet or other forms of electronic channels instead of physical branches. The introduction of virtual banks in Hong Kong is a key pillar supporting the city's entry into the Smart Banking Era. The HKMA believes that the development of virtual banks will promote fintech and innovation in Hong Kong and offer a new kind of customer experience. In addition, virtual banks can help promote financial inclusion as they normally target the retail segment, including the small and medium-sized enterprises (SMEs)."