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On 25 August 2023, a new Fintech Promotion Roadmap (the “Roadmap”) was published by the Hong Kong Monetary Authority (“HKMA”). The Roadmap contains a series of initiatives to be undertaken by the HKMA over the next 12 months to further drive the adoption of Fintech in the financial services industry.
Background
The HKMA unveiled the “Fintech 2025” Strategy (the “Strategy”) on 8 June 2021, aiming to encourage the financial sector to adopt technology comprehensively by 2025, as well as to promote the provision of fair and efficient financial services for the benefit of Hong Kong citizens and the economy. One of the five key directives suggested under the Strategy was “All banks go Fintech”, which targeted at fostering the adoption of Fintech solutions in Hong Kong’s banking sector. A core component of the “All banks go Fintech” initiative was a Tech Baseline Assessment that evaluated banks’ current and planned adoption of Fintech.
Building upon the results of the Tech Baseline Assessment published in June 2022, the HKMA identified five key Fintech focus areas including (1) Wealthtech / Investech; (2) Insurtech; (3) Greentech; (4) Artificial Intelligence (“AI”); and (5) Distributed Ledger Technology (“DLT”), recognising the potential for further growth in these areas.
The Roadmap
With the assistance from external consultants, the HKMA formulated the Roadmap by undertaking extensive research and consultation with financial institutions, industry associations and Fintech solution providers.
To implement the Roadmap, the HKMA will launch a series of activities in the coming 12 months, including:
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Initiatives |
Objectives |
Key points |
| (1) Establishing a Fintech Knowledge Hub | To address the difficulties encountered by Fintech solution providers and users in the sourcing and activation stages | The new Fintech Knowledge Hub will:
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| (2) Releasing a video series (Fintech Spotlight: The Fintech Adoption Journey) | To help financial institutions better understand the underlying business cases for Fintech deployment
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The video series will:
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| (3) Launching quarterly Fintech Showcase & Roundtable | To facilitate long-term connections and dialogue between Fintech service providers and financial institutions | The Fintech Showcase & Roundtable consists of:
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| (4) Introducing a Best Practice Guidance | To foster greater clarity, transparency and efficiency for industry participants during the negotiation and onboarding stages | The Best Practice Guide will:
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| (5) Undertaking Research Projects | To provide the financial industry with valuable insights into the latest developments,
opportunities and risks pertaining to emerging technology areas, such as AI and/or DLT
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The research projects will:
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| (6) Organising Webinars / Seminars | To provide an interactive platform for stakeholders to share their insights and experiences on the latest Fintech development trends and the adoption of various Fintech solutions
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The webinars / seminars will:
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| (7) Holding Training Sessions | To address the need for educational efforts to enhance the activation of Fintech solutions | The training sessions involves:
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Analysis and takeaways
The Roadmap proposed a wide range of tactical initiatives to tackle the challenges and concerns in relation to Fintech adoption in Hong Kong. As acknowledged by the HKMA in the Roadmap, these initiatives require “extensive planning, dedicated resources and cross-sectoral collaboration”. It is anticipated that as these initiatives mature, more details will be released to further guide Fintech adoption in Hong Kong.
Please contact our Partner Mr. Rodney Teoh for any enquiries or further information.
This news update is for information purposes only. Its content does not constitute legal advice and should not be treated as such. Stevenson, Wong & Co. will not be liable to you in respect of any special, indirect or consequential loss or damage arising from or in connection with any decision made, action or inaction taken in reliance on the information set out herein.