It didn’t take long for WeLab Bank to make its mark on Hong Kong’s digital banking landscape. Already by early 2025, within five years of its launch, it managed to outshine its peers by achieving its first breakeven – something that typically takes industry players five to seven years.
This followed a milestone 2024 for the bank. Its net revenue reached around HK$750 million (US$95 million) based on year-on-year (YoY) growth of over 30%. During the same time, its unsecured retail loan portfolio hit HK$5.5 billion (US$700 million), and its net interest margin reached 9.4%, expanding by 0.6% compared with the previous year. The bank also carved out a 11% market share in new unsecured personal loans, a leading position in Hong Kong.
Lee believes a combination of resilience, disciplined execution, strong risk management and innovation in the business model are the success factors setting WeLab Bank apart.
“Our robust loan portfolio, distinct product structures and credit risk technology have enabled us to weather economic uncertainties while building a sustainable path to profitability,” he explained, while also pointing to quality customers, optimised deposit pricing using dynamic models and an expanding lending book among key drivers.
As a result, the bank’s financial foundations remain robust. Its total deposits grew 120% YoY and it maintained a loan-to-deposit ratio of about 80%.
Diversified revenue streams have also played a big role in the recent growth story. Notably, Lee highlights demand for wealth management products as customers shift away from time deposits in today’s environment of falling interest rates.
Making credit decisions count
Central to WeLab Bank’s accelerated journey has been advanced technology, precision pricing and disciplined balance sheet management – foundations of a sustained capital generation model that stem from a proprietary AI-driven credit decision engine.
This reflects the importance of sophisticated risk technology within digital banking. “This is the cornerstone of our performance and differentiation,” said Lee. “By integrating both traditional and alternative data, the engine assesses not only a customer’s repayment ability but also their willingness to repay. This enables us to approve the ‘right customers’ while maintaining credit quality, even in a challenging market environment.”
The results speak for themselves. Despite market delinquency worsening 13% YoY, WeLab Bank achieved a 37% improvement in credit performance in 2024.
“This data-driven, technology-first approach ensures we remain agile, profitable and customer-focused, solidifying our position as the leader in Hong Kong’s digital banking landscape,” Lee added.
Diversifying beyond lending
Data-led insights into customers have also proved to be a competitive advantage for WeLab Bank by enabling it to identify – and then penetrate – a significant segment of individuals in Hong Kong that remain underserved due to high entry barriers for financial advisory or overly complex banking requirements.
In line with this strategic shift beyond initial core lending products, wealth management was a key growth driver in 2024, with total assets under management boosting nearly 300% YoY.
Driven by its commitment to accessibility and innovation, WeLab Bank’s GoWealth Digital Wealth Advisory platform helped to democratise investments by offering investment advisory services starting from just HK$100 (US$10), based on customers' goals rather than traditional risk-based factors.
It has been popular. Fee income for the bank from wealth management grew by over 70% YoY, fueled by strong demand for ‘first-in-market’ monthly fee Featured Fund Services, offering zero transaction fees and no investment caps.
Leveraging AI for sustainable growth
In showcasing its ability to diversify and pursue innovative routes to growth, WeLab Bank’s ambition is to become an ‘AI first’ digital bank.
This will involve the exploration of integrating AI across its operations and customer journey – starting with building on its position as one of the first banks in Asia to deploy DeepSeek locally to enhance operational efficiency and upskill talents.
To achieve its AI vision, WeLab Bank plans to harness the transformative potential of AI Agents. “These AI Agents are designed to deliver hyper-personalised financial solutions, such as tailored investment products and loan offerings, transforming the bank from a reactive service provider to a proactive partner in its customers’ financial journeys,” explained Lee.
Fostering this type of culture and delivering high-impact AI applications will further reinforce the focus on customer experience, operational efficiency and risk management. “At the core of our approach are scalability, adaptability and ethical compliance, ensuring AI solutions deliver sustainable value while maintaining trust and accountability,” Lee added.
Yet WeLab Bank’s philosophy emphasises synergy between AI and human expertise. Instead, leveraging AI will set new industry benchmarks for innovation, efficiency and financial inclusion.
“By reinvesting resources in AI innovation, WeLab Bank will foster a sustainable cycle of innovation that will keep us at the forefront of the industry, generating greater value for customers and shareholders,” said Lee.
