Although Hong Kong is one of the top three financial hubs in the world, it was initially slow in its fintech innovation. Its regulators have been ramping up efforts in recent years in attempts to attract fintech investments into the region.
Investments into Hong Kong startups slowed in 2018, with only $188M USD compared to $546M USD in 2017. In 2019, the Hong Kong Government launched a $64 million USD fund to develop financial services over the next five years, in addition to a $640M USD Innovation and Technology Fund (ITF) to boost the ecosystem.
Moreover, Hong Kong offers something that other countries can’t offer – access to China, the largest fintech marketplace in the world. There are approximately 550 fintech companies based in the region.