Plenty of chatter, and even some action, as Hong Kong makes progress on fintech

Ten fintech pilot apps under HKMA’s regulatory ‘sandbox’ have launched, with eight more in the process of completing regulatory trials

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Hong Kong’s fintech start-up scene has gained serious momentum since the HKMA unveiled its regulatory ‘sandbox’. Photo: David Wong

Alun John

Published: 9:37am, 28 Jun 2017Updated: 10:52pm, 28 Jun 2017

Hong Kong has now, albeit belatedly, crashed the fintech party.

Globally, it’s a party where there is plenty of chatter, and in Hong Kong there are a plethora of organisations, working groups, commissions, and thought leaders offering their views on how the city’s regulators, start-ups and financial institutions can adapt to a new environment where technology is at the heart of financial services.

To offer just one example, the Hong Kong Fintech Association was launched on Tuesday.

This is progress from a few years ago, when the conversation around fintech (financial technology) in Hong Kong was primarily a variant on the theme of how Hong Kong is falling behind Singapore and mainland China.

All the talking is a sign of progress, but whether these conversations form an institutional framework that will enable Hong Kong to maintain its role as a financial services centre is still an open question, say analysts.

“The speed of development in Shenzhen has been a factor in pushing conversations in Hong Kong, and now there is a lot going on,” said James Lloyd, fintech leader for EY.