The Hong Kong Monetary Authority (HKMA) is aiming to make Hong Kong a leading FinTech hub through a 12-month road map.
This strategic initiative is designed to inspire investment in technology across a spectrum of financial services including wealth management, insurance, and green finance.
In partnership with the Securities and Futures Commission and the Insurance Authority, the road map aims to convince all financial institutions in Hong Kong to integrate emerging technologies such as artificial intelligence (AI) and distributed ledgers. By doing so, the initiative seeks to augment services, slash operational costs, and solidify Hong Kong’s position as an international financial centre.
Deputy CEO of HKMA, Arthur Yuen Kwok-hang, highlighted the importance of this development in a media briefing. “This new fintech promotion road map announced today marks a significant step not only for the banking sector but for the financial-services industry as a whole,” he said. “It demonstrates the financial regulators’ dedication to innovate as we accelerate our drive to become a leading fintech hub.”
The new road map is part of the wider Fintech 2025 strategy, initiated by the HKMA in June 2021. The multi-faceted strategy aims to motivate the city’s over 160 banks to embrace technology to upgrade their services. On the agenda are pioneering projects such as the development of e-HKD, a digital incarnation of the Hong Kong dollar, and infrastructure initiatives aimed at facilitating bank loans for small and medium-sized enterprises (SMEs).
According to Yuen, the impact of the Fintech 2025 strategy has been positive. He revealed that 84% of banks have already integrated RegTech solutions to manage regulatory, credit, and operational risks while bolstering cybersecurity. “This is in line with our expectation, and we are confident that in the next step forward banks will use technology in the area of their wealth management, insurance and green-finance businesses over the next 12 months,” Yuen added.
As a part of this extensive FinTech push, HKMA will also roll out an online fintech knowledge hub over the next year, supplemented by research, seminars, and promotional activities. “It extends beyond banking, encompassing areas such as insurance, wealth management and capital markets activities,” Yuen concluded. “Through close collaboration with the other financial regulators and ongoing engagement with stakeholders, we are committed to building a sustainable and inclusive fintech ecosystem in Hong Kong.”
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