A woman walks past the entrance to the Hong Kong Monetary Authority in Central, Hong Kong, on April 11, 2023. (CALVIN NG / CHINA DAILY)
Hong Kong Monetary Authority (HKMA) published a new fintech promotion roadmap on Friday, pledging to drive fintech adoption by building an information-sharing platform and holding more fintech events and training sessions in the coming 12 months.
"As we continue to promote the adoption of fintech under the ‘All Banks Go Fintech’ initiative, this new fintech promotion roadmap marks a significant step not only for the banking sector but for the financial services industry as a whole,” said Arthur Yuen, deputy chief executive of HKMA.
The HKMA said it worked closely with the Securities and Futures Commission and the Insurance Authority as well as key stakeholders across different financial sectors during the formulation of the new roadmap
As outlined in the roadmap, the HKMA will establish a fintech knowledge hub which includes a new cross-sectoral directory of fintech service providers and financial institutions to enhance accessibility of resources for various stakeholders in the fintech ecosystem.
More regular fintech showcase events and roundtables will be hosted to establish more in-depth communication among financial institutions and fintech service providers, according to the city’s de-facto central bank.
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Other measures include organizing seminars and training sessions to encourage the exchange of knowledge across different financial sectors, and publishing videos and research reports to provide insights into a broader range of practical considerations across the entire fintech adoption lifecycle.
The new roadmap focuses on the fintech business areas of wealthtech, insurtech and greentech as well as the technology types of artificial intelligence and distributed ledger technology.
“It demonstrates financial regulators' dedication to innovate as we accelerate our drive to become a leading fintech hub. The overarching approach of the roadmap revolves around cultivating collaboration. It extends beyond banking, encompassing areas such as insurance, wealth management, and capital markets activities,” Yuen said.
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This photo taken on April 11, 2023 shows the gate to the Hong Kong Monetary Authority in Central, Hong Kong. (CALVIN NG / CHINA DAILY)
The formulation of the new fintech roadmap was guided by a fintech adoption study completed recently, which identified notable interest in wealthtech, insurtech, greentech and the need for stronger connections within the fintech ecosystem to foster deeper collaboration.
The HKMA said it worked closely with the Securities and Futures Commission and the Insurance Authority as well as key stakeholders across different financial sectors during the formulation of the new roadmap.
“Through close collaboration with the other financial regulators and engagement with stakeholders, we are committed to building a sustainable and inclusive fintech ecosystem in Hong Kong,” Yuen said.
Fintech has been seen as a key sub-sector by the Hong Kong Special Administrative Region government to consolidate the city’s financial strengths. According to Invest Hong Kong – the official body responsible for attracting foreign direct investment – there are over 800 fintech companies and 3,900 startups operating in the city.
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In June 2021, the HKMA launched the “Fintech 2025” strategy to encourage the financial sector to adopt advanced technology by 2025 and to promote the provision of fair and efficient financial services for the benefit of Hong Kong citizens and the economy.
As one of the key initiatives under its “Fintech 2025” strategy, Commercial Data Interchange was officially launched last October, enabling financial institutions to embrace more innovative applications to digitalize and streamline a wide range of financial processes from credit assessment to risk management.
The trend is gaining pace as the virtual asset industry is geared to take off following a vast array of morale-boosting measures, such as rolling out tokenized green bonds and allowing retail trading of cryptocurrencies.
