There’s plenty happening in Hong Kong’s fintech sector, but what’s it all for?
Some observers believe progress in the field is being made in the absence of an overarching blueprint
There is no shortage of initiatives taking place in Hong Kong when it comes to financial technology, or fintech. But despite the talk, and some pockets of activity, a sense of an overarching vision for the sector remains vague at best, according to analysts and market participants.
Less clear still is whether that actually matters. Some observers point to the fact that progress is being made in the absence of such an all-encompassing blueprint. Banks are beginning to open up their systems to allow technology companies to provide services to consumers, and even Hong Kong’s much-criticised digital payments space may see progress.
“I think it is still an open question as to whether the attempts to drive the fintech agenda in Hong Kong, and also Singapore, come with a clear view of what success would look like,” said James Lloyd, fintech lead at EY. “Is it more competition in the financial services sector? Is it more people employed? Is it something else?”
It is an open question whether the attempts to drive the fintech agenda in Hong Kong come with a clear view of what success would look like
A spokeswoman for the Hong Kong Monetary Authority (HKMA), the city’s de facto central bank and banking regulator, said it’s committed to developing a healthy and sustainable fintech ecosystem with industry players.
“ Our vision has been further strengthened by the recently launched seven initiatives preparing Hong Kong to enter into a new smart banking Era,” a spokeswoman said. “These will help the banking sector and payment industry offer full interconnectivity among retail and corporate customers and allow financial services and transactions to be undertaken with great mobility, speed, ease and safety, thereby bringing a whole new customer experience.”
Some overseas jurisdictions have a more succinct outline of fintech’s role.
“The [UK] Financial Conduct Authority’s objective is to promote competition in the interest of consumers, and an essential part of that is encouraging innovation,” said Anne Wallace, head of the FCA’s innovate programme. She was speaking on a panel of regulators at the HKMA’s fintech day on Wednesday, part of Hong Kong Fintech Week 2017.
