For years, this 40-branch bank has traditionally relied on lending to cab drivers to purchase vehicles. That's only the first step. More significantly, Dah Sing announced in January that it wouldn't raise charges on small accounts, a move that has attracted 10,000 new depositors, adding to the bank's existing 310,000-depositor base. We don't mind having small depositors. Another bank that has been bracing for a changing business environment is Wing Hang Bank.
Analysts say they can.
They can offer more tailored products and personal services better than big banks can. They should see themselves as a complement to, not a competitor against, the big banks. A survey by auditors KPMG released in March on the operational performance of banks in Hong Kong last year shows smaller banks recorded much higher earnings growth than their larger counterparts, due partly to lower provisions for bad debt and partly to an increase in fees and commissions. She says local banks can offer flexibility that international banks, with a global strategy, can't match. For example, some international banks' minimum investment balance is so high that it's simply out of reach for many people in Hong Kong, she says.