CEO INTERVIEW
How Livi Bank aims to make banking more rewarding They are amongst the first banks in the city to roll out buy now, pay later services.
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hake your phone after paying via QR code, and receive some cash rewards in return. This is just one of the many ways that Livi Bank, one of Hong Kong’s newest virtual lenders, is making banking more enjoyable and simpler for its clients. Backed by BOC Hong Kong (Holdings), JD Technology and Jardines, Livi Bank—whose name comes from the concept of “living side by side with our customers”—operates with a philosophy of empowering customers to achieve their life goals and lead more rewarding lives with the help of financial technology, according to CEO David Sun. “Core to our offering are ease of use and reduced costs. Livi’s customers don’t have to maintain any ‘relationship balances’, nor charge any fees to keep their account open,” Sun told Asian Banking & Finance in an interview. This meant breaking ground in simple yet new ways, such as becoming the first bank to introduce the ‘buy now pay later’ concept in the city when they launched Livi PayLater last May. It offers an instant flexible installment payment facility through a virtual Mastercard debit card, and features automatic instalments and flexible repayment periods between three to 36 months, with transparent costs and a promise of no hidden charges—granting users the freedom to choose how and when to pay. The BNPL service gives customers the benefit of simplicity, flexibility, and transparency—the three key elements that Hong Kong people today expect from their virtual bank, according to Sun. And it seems that Livi Bank is on the right track. As of August, just a little over a year after launching, the bank has surpassed 150,000 users, with liviPayLater alone attracting over 42,000 applications up to early November 2021. Asian Banking & Finance caught up with CEO Sun of Livi Bank to learn more about what the virtual bank’s been up to since launching, their thoughts on Hong Kong’s digital banking potential, as well as their future plans. What pain points does Livi Bank aim to address? Livi represents a differentiated development strategy. We aim to fulfil unmet banking needs in the market, and the promotion of financial inclusion using innovative technology, whilst offering the additional benefits of an ecosystem platform. We want to offer smart, simple, trusted, and flexible digital financial solutions tailored to customers’ everyday needs, anytime, anywhere in Hong Kong. The Livi app offers a range of mobile payment solutions—through UnionPay QR Payment, Livi Debit MasterCard, the innovative ‘buy now pay later’ product we call ‘Livi PayLater’, Faster Payment System (FPS) for making and receiving real-time transfers, 12 ASIAN BANKING & FINANCE | Q1 2022
David Sun, CEO of Livi Bank (Source: LiviBank.com)
Livi has introduced digital products that are wellreceived by customers such as LiviSave, virtual Livi Debit Mastercard, and Livi PayLater
as well as Electronic Direct Debit Authorisation (eDDA) so customers can pull funds from their existing bank accounts. We also have three-in-one ‘LiviScan’ facility that offers ATM QR Cash, FPS Scan, and UnionPay Scan features powered by QR scan technology. All these products and services aim to provide a simple, delightful, and convenient banking experience for customers. With our ecosystem partners, Livi is more than a banking app. We have focused on offering a series of ecosystem benefits and promotions, which include joining Yuu from Dairy Farm, Hong Kong’s largest rewards club, as Yuu’s exclusive virtual banking partner. Upon linking their Yuu account with Livi, Yuu Points earned via Livi will be credited automatically. Tell us more about your products and services. Could you share with us some of your most notable services? We have introduced a number of digital products and ecosystem offers that have been well received by customers. These include LiviSave, UnionPay QR code payment, the virtual Livi Debit Mastercard, Livi PayLater, and our partnership with Yuu. We offer convenience, simplicity, and flexibility to customers with a unique digital first banking experience tailored to the customers’ everyday needs. We take a measured approach in assessing Livi Paylater
