"All Banks Go Fintech": Hong Kong Unveils "Fintech 2025" Strategy

"All Banks Go Fintech": Hong Kong unveils "Fintech 2025" strategy - fintech 1 1024x683The Hong Kong Monetary Authority plans to guide local banks towards full adoption of fintech technologies. The region's central institution also stressed that it will "go ahead" by digitizing its oversight of financial institutions.

The Central Bank of Hong Kong will support fintech development

The Hong Kong monetary policy regulator unveiled its new strategy to stimulate fintech development of the China Special Administrative Region. With the strategy, HKMA aims for full adoption of new financial technologies over the next four years. The central bank also wants to "promote the provision of fair and efficient financial services for the benefit of Hong Kong citizens and the economy".

Speaking at a seminar organized by the Hong Kong Bank Association, HKMA CEO Eddie Yue outlined five focus areas of “Fintech 2025”. The regulator wants to encourage all banks to go fintech. Future-proof Hong Kong for CBDC, build next-generation data infrastructures, expand fintech-savvy workforce, and feed the ecosystem with funding and policies.

One of the key directions in which the monetary authority intends to step up its efforts is the full digitalization of banking operations. By expanding the results of its Smart Banking Era strategy announced in 2017, HKMA will continue to "invest in the all-round adoption of fintech by Hong Kong banks ”. The regulator will identify specific fintech areas where the industry is lagging behind and in need of support. This also applies to your own regulatory framework:

"The HKMA will issue additional supervisory guidelines to facilitate the adoption of new technologies and continue to walk by digitizing its supervision of banks through the use of advanced technologies."

HKMA will collaborate with stakeholders in the implementation of the "Fintech 2025" strategy

The new strategy involves the enhancement and expansion of the city's existing data infrastructure. The Hong Kong Monetary Authority is planning to establish a credit data sharing platform based on distributed ledger (DLT) technologies and establish a trade data exchange.

The central bank will work to increase the availability of fintech talent through new training and cooperation programs between industry and academia. One such initiative is the Industry Project Masters Network. This is a scheme that offers internships for postgraduate students to participate in fintech projects at participating banks. The program starts in September.

The HKMA said it will engage industry players in setting up a new coordination group between fintech agencies. This will have the task of formulating support policies for the fintech ecosystem. The monetary authority will enhance its Fintech Supervisory Sandbox and provide funding for qualified fintech projects in partnership with the region's Innovation and Technology Commission. HKMA CEO Eddie Yue pointed out:

“Fintech is, without doubt, a key growth engine for the financial sector in the post-pandemic era, and now is the right time to redouble our efforts to seize the opportunities. “Fintech 2025 ″ defines our vision in this sense. I urge all interested parties to join forces with the HKMA. "