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Fintech

Topic Introduction

Hong Kong is an international financial centre with a highly digitized economy. With world-class financial and technical infrastructures, robust regulatory environment, as well as rich business opportunities and funding support, we are the forerunner in embracing the emergence of Fintech. We are now home to over 600 Fintech companies and start-ups, including a few unicorns, globally respected research centres and innovation laboratories, etc. Virtual banks, virtual insurers and virtual asset trading platform are also up and running in Hong Kong, offering a wide spectrum of innovative financial services to the community.

Our growing strength in financial services and close ties with markets in the Mainland and overseas will continue to make Hong Kong the ideal hub for Fintech development.


Our Ongoing Work

As an international financial centre, Hong Kong is an ideal place for Fintech business to grow. The Financial Services and the Treasury Bureau (FSTB) attaches great importance to the development of Fintech, and works closely with relevant Government departments, financial regulators and the industry to advance the development of Fintech sector through a variety of measures. Our work include:

Promoting Hong Kong’s advantages in Fintech – We continue to promote Hong Kong’s advantages in Fintech to attract Fintech companies and talents from other places to come to Hong Kong. For instance, the annual flagship event Hong Kong Fintech Week was held virtually in November 2020 which had drawn over 1.2 million viewers from over 130 economies, and seen over 18 000 business contacts made. Fintech companies operating in Hong Kong currently have reached over 600, including various Fintech-related laboratories established by international organisations, academic institutions and private entities such as banks and commercial organisations

Refining the regulatory regime to facilitate the sector’s development – Financial regulators have established their Fintech regulatory sandbox to allow financial institutions and Fintech companies to test new Fintech products and solutions in a secured regulatory environment with well-defined parameters, as well as to gather data and users’ feedbacks, thereby expediting the development process, lowering cost and enhancing product quality. Currently, 8 virtual banks, 4 virtual insurers and 1 virtual asset trading platform have been granted with relevant licences and authorization to provide innovative financial services in Hong Kong.

Improving Fintech infrastructure – The usage of the Faster Payment System (FPS) has been growing rapidly since its launch. We will continue to take forward our work in e-Government to provide convenience to the public, including broadening the application of the FPS for payments of Government fees and charges so that e payment options will be available for making payments in respect of most government bills and licences starting from mid-2022.

Furthermore, the Hong Kong Monetary Authority will continue to promote and implement more Fintech initiatives to drive wider Fintech adoption by banks and merchants alike.

Providing funding to nurture Fintech talent – To enrich Hong Kong’s Fintech talent pool, we launched the Fintech Anti-epidemic Scheme for Talent Development (“FAST”) in July 2020, providing salary subsidy to eligible Fintech companies for 12 months for up to 1 000 full-time positions.

We also launched the Fintech Proof-of-Concept Subsidy Scheme, which has been opened for application since February 2021, to encourage financial institutions to partner with Fintech companies to conduct proof-of-concept projects on innovative financial services products, and have earmarked $10 million for the scheme.

We entrusted Cyberport to implement the Financial Practitioners FinTech Training Programme last year. The training programme attracted the attendance of over 1 200 financial practitioners from the banking, insurance and securities sectors, which deepened their Fintech understanding, as well as promoted the adoption of Fintech in financial services. We will announce the details of another round of the training programme soon.

We will continue with our concerted efforts to promote and support Fintech development on all fronts and take it to the next stage.


For More Information

For more information, please visit the following websites/linked documents:

Fintech HK - https://www.hongkong-fintech.hk/en/why-hong-kong/index.html

Hong Kong Monetary Authority -
https://www.hkma.gov.hk/eng/key-functions/international-financial-centre/fintech/

Insurance Authority -
https://www.ia.org.hk/en/aboutus/insurtech_corner.html