It didn’t take lengthy for WeLab Financial institution to make its mark on Hong Kong’s digital banking panorama. Already by early 2025, inside 5 years of its launch, it managed to outshine its friends by attaining its first breakeven – one thing that sometimes takes business gamers 5 to seven years.
This adopted a milestone 2024 for the financial institution. Its internet income reached round HK$750 million (US$95 million) primarily based on year-on-year (YoY) progress of over 30%. Throughout the identical time, its unsecured retail mortgage portfolio hit HK$5.5 billion (US$700 million), and its internet curiosity margin reached 9.4%, increasing by 0.6% in contrast with the earlier yr. The financial institution additionally carved out a 11% market share in new unsecured private loans, a number one place in Hong Kong.
Lee believes a mixture of resilience, disciplined execution, sturdy danger administration and innovation within the enterprise mannequin are the success elements setting WeLab Financial institution aside.
“Our strong mortgage portfolio, distinct product buildings and credit score danger expertise have enabled us to climate financial uncertainties whereas constructing 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.
Because of this, the financial institution’s monetary foundations stay strong. Its whole deposits grew 120% YoY and it maintained a loan-to-deposit ratio of about 80%.
Diversified income streams have additionally performed an enormous function within the current progress story. Notably, Lee highlights demand for wealth administration merchandise as clients shift away from time deposits in at this time’s setting of falling rates of interest.
Making credit score selections rely
Central to WeLab Financial institution’s accelerated journey has been superior expertise, precision pricing and disciplined stability sheet administration – foundations of a sustained capital era mannequin that stem from a proprietary AI-driven credit score resolution engine.
This displays the significance of refined danger expertise inside digital banking. “That is the cornerstone of our efficiency and differentiation,” stated Lee. “By integrating each conventional and different information, the engine assesses not solely a buyer’s reimbursement potential but in addition their willingness to repay. This allows us to approve the ‘proper clients’ whereas sustaining credit score high quality, even in a difficult market setting.”
The outcomes converse for themselves. Regardless of market delinquency worsening 13% YoY, WeLab Financial institution achieved a 37% enchancment in credit score efficiency in 2024.
“This data-driven, technology-first method ensures we stay agile, worthwhile and customer-focused, solidifying our place because the chief in Hong Kong’s digital banking panorama,” Lee added.
Diversifying past lending
Knowledge-led insights into clients have additionally proved to be a aggressive benefit for WeLab Financial institution by enabling it to determine – after which penetrate – a major section of people in Hong Kong that stay underserved resulting from excessive entry boundaries for monetary advisory or overly advanced banking necessities.
In step with this strategic shift past preliminary core lending merchandise, wealth administration was a key progress driver in 2024, with whole property beneath administration boosting almost 300% YoY.
Pushed by its dedication to accessibility and innovation, WeLab Financial institution’s GoWealth Digital Wealth Advisory platform helped to democratise investments by providing funding advisory companies ranging from simply HK$100 (US$10), primarily based on clients’ targets relatively than conventional risk-based elements.
It has been standard. Charge revenue for the financial institution from wealth administration grew by over 70% YoY, fueled by sturdy demand for ‘first-in-market’ month-to-month payment Featured Fund Companies, providing zero transaction charges and no funding caps.
Leveraging AI for sustainable progress
In showcasing its potential to diversify and pursue modern routes to progress, WeLab Financial institution’s ambition is to develop into an ‘AI first’ digital financial institution.
It will contain the exploration of integrating AI throughout its operations and buyer journey – beginning with constructing on its place as one of many first banks in Asia to deploy DeepSeek domestically to reinforce operational effectivity and upskill skills.
To realize its AI imaginative and prescient, WeLab Financial institution plans to harness the transformative potential of AI Brokers. “These AI Brokers are designed to ship hyper-personalised monetary options, similar to tailor-made funding merchandise and mortgage choices, remodeling the financial institution from a reactive service supplier to a proactive companion in its clients’ monetary journeys,” defined Lee.
Fostering the sort of tradition and delivering high-impact AI purposes will additional reinforce the deal with buyer expertise, operational effectivity and danger administration. “On the core of our method are scalability, adaptability and moral compliance, guaranteeing AI options ship sustainable worth whereas sustaining belief and accountability,” Lee added.
But WeLab Financial institution’s philosophy emphasises synergy between AI and human experience. As a substitute, leveraging AI will set new business benchmarks for innovation, effectivity and monetary inclusion.
“By reinvesting assets in AI innovation, WeLab Financial institution will foster a sustainable cycle of innovation that may maintain us on the forefront of the business, producing larger worth for purchasers and shareholders,” stated Lee.
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