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E-Banking

1. The State of Internet Banking in Hong Kong
1.1 Marketing Environment

1.1.1 Micro Environment

Refer to the annual report 2008 of Hong Kong Monetary Authority, there are over a hundred fully licensed foreign banks while 23 domestic banks offering services in Hong Kong. In Hong Kong’s three-tier system of banking, there are also dozens of restricted licensed banks and deposit-taking company, which are limited in terms of offering retail banking to the public.

Refer to the figure stated in http://www.mindbranch.com published in July 2008 that the Hong Kong market is mature with around 3.5 million internet banking customers. And Hong Kong’s close ties with mainland China provides the market an excellent competitive advantage for financial institutions looking to expand into the mainland.

1.1.2 Macro Environment

1.1.2.1 Political Force

In the past decades, no matter what Hong Kong people process patriotic sentiment or the prospect of profit opportunity with the mainland, some of them in the form of capitalists liked to make investments on the mainland, especially in Gong Dong Province resulting in the formation of a crowd of manufacturing industry which may be one of the main causes catalyze the rise of a new great nation either directly or indirectly. Nowadays, China Mainland becomes one of the most giant industrial countries in the world and could arrange its mega financial resources to invest in other countries or economic regions. The Hong Kong Special Administrative Region also returned to the Mainland since 1997 and is an inalienable part of the People's Republic of China as stated in the constitutional document. Basically, the capitalist system of Hong Kong and way of life shall remain unchanged before 2047. And therefore the political environment of Hong Kong is one of the most stable regions in the global market.
Furthermore, through the integration of economic activities, the expectation of unification of Greater China among Hong Kong,...