HSBC Holdings Plc. is betting on no-frills Internet banking with higher deposit rates to attract customers in Taiwan as it pioneers a no-branch bank model in Asia.

HSBC Direct, which launched in Taiwan on Sept. 20, has no branch cost overheads, enabling it to offer customers three times the deposit rate of a typical bank as account holders do all their business through the Internet or phone. HSBC Direct offers a savings rate of 1.5 percent, compared with 0.5 percent for a traditional bank account in Taiwan. There are also no minimum balances or saving periods and 24-hour call center access.

ING Direct, the Internet banking arm of Dutch financial services group ING , is the top direct banking provider in the eight markets it operates in, which include Spain, Australia and the United States, but it is not in Asia yet. ( Yahoo News )

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