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Beyond Financial Inclusion: Reshaping the Regulatory Landscape for Virtual Banks Cover

Beyond Financial Inclusion: Reshaping the Regulatory Landscape for Virtual Banks

By: Sau Wai Law  
Open Access
|Jun 2025

Abstract

The digitalisation of banking services, driven by smartphone access and limited physical presence, has transformed bank-customer interactions but introduced challenges, such as a reliance on third-party devices and external software contracts. Based on findings from focus groups held in Hong Kong (2021–2022), this paper identifies three critical gaps: (i) the absence of a personal touch, (ii) inadequate digital dispute resolution channels, and (iii) insufficient regulatory intervention. These gaps hinder digital adoption and undermine the role of banks as public utilities. The study calls for a global alignment of regulatory frameworks, advocating for a technology-centric approach to ensure effective governance and safeguard the integrity of virtual-only banking platforms.

DOI: https://doi.org/10.2478/irfc-2025-0001 | Journal eISSN: 2508-464X | Journal ISSN: 2508-3155
Language: English
Page range: 1 - 18
Submitted on: Nov 23, 2024
Accepted on: Mar 28, 2025
Published on: Jun 30, 2025
Published by: International Academy of Financial Consumers
In partnership with: Paradigm Publishing Services

© 2025 Sau Wai Law, published by International Academy of Financial Consumers
This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 3.0 License.