Over HKD 2 Trillion of Lazy Cash sitting in Hong Kong Banks!

27 May, 2016

Yes, that’s Trillion with a capital ‘T’.

Hong Kong is a financial hub and its residents are meant to be financially savvy when it comes to investments and making their money work. Yet, in Hong Kong nearly 50% of household assets are as cash in banks earning interest rates of as little as 0.01%. Taking into account the inflation rate (2.9% as of March 2016), the real return for bank deposits is MINUS 2.8%.

So, HKD 2 Trillion is losing 2.8% or HKD 56 Billion every year for the hard working people of Hong Kong. Whether the regulators or the activist public should do something about this is a question for another post. Hong Kong isn’t alone is this negative real interest rate environment. Banks in the US, Singapore, Malaysia and Thailand are also providing their depositors a negative real interest rate.

piggy-bank-chart
BANK Saving Account Interest Rate per annum
HSBC 0.010%
Bank of China 0.010%
ICBC 0.010%


For smart savers and investors who are willing to diversify their assets into new avenues to earn additional income, peer to peer lending offers a new way to make cash work. This alternative investment channel has become very popular in the developed markets of US, UK, Europe, not to mention China.

Monexo has brought the concept of peer to peer lending to Hong Kong, offering the HK public an investment avenue which can provide returns of 7% to 12% to individual lenders. With our robust credit checking technology and proprietary risk based pricing methodology, Monexo can pass the lower costs of operations to its borrowers in the form of lower interest rates compared to Money Lenders, and yet provide lenders with an attractive return compared to their lazy money in the bank. You can read more about Peer to Peer Lending and Monexo in our guide HERE.

Hong Kongers, what are you waiting for? Make your money grow!