HK Monetary Authority | Jun 8, 2021
The Hong Kong Monetary Authority (HKMA) today (8 June 2021) unveiled “Fintech 2025”, its new strategy for driving fintech development of Hong Kong.
In his opening remarks for a fintech seminar organised by the Hong Kong Association of Banks, Mr Eddie Yue, Chief Executive of the HKMA, outlined the new fintech strategy, which aims to encourage the financial sector to adopt technology comprehensively by 2025, as well as to promote the provision of fair and efficient financial services for the benefit of Hong Kong citizens and the economy. The five focus areas put forward by the strategy are:
1. All banks go fintech
Leveraging the solid foundation for fintech adoption established by the Smart Banking Era Strategy announced in 2017, the HKMA will continue to promote the all-round adoption of fintech by Hong Kong banks and encourage them to fully digitalise their operations, from front-end to back-end. To take this forward, the HKMA will roll-out a Tech Baseline Assessment to take stock of banks’ current and planned adoption of fintech in the coming years, to identify fintech business areas or specific technology types which may be underdeveloped, and would benefit from HKMA support. The HKMA will issue further supervisory guidance to facilitate the uptake of novel technologies and continue to “walk the talk” by digitalising its supervision of banks through the use of advanced technologies.
2. Future-proofing Hong Kong for Central Bank Digital Currencies (CBDCs)
The HKMA will strengthen its research work to increase Hong Kong’s readiness in issuing CBDCs at both wholesale and retail levels. In addition to the continued effort on wholesale CBDCs, the HKMA has been working with the Bank for International Settlements (BIS) Innovation Hub Hong Kong Centre to research retail CBDCs and will begin a study on e-HKD to understand its use cases, benefits, and related risks. The HKMA will also continue to collaborate with the People’s Bank of China in supporting the technical testing of e-CNY in Hong Kong with a view to providing a convenient means of cross-boundary payments for both domestic and mainland residents.
3. Creating the next-generation data infrastructure
To unleash Hong Kong’s potential for the next generation of banking, the HKMA will take the lead in enhancing the city’s existing data infrastructure and building new ones, including Commercial Data Interchange, digital corporate identity, and DLT-based credit data sharing platform, to facilitate consent-based data sharing.
4. Nurturing the ecosystem with funding and policies
A new Fintech Cross-Agency Co-ordination Group will be established by the HKMA and various industry key players to formulate supportive policies for the Hong Kong fintech ecosystem. In addition, the HKMA will continue the preparatory work for the Hong Kong Growth Portfolio, which seeks to reinforce Hong Kong’s status as a financial, commercial and innovation centre. It will also enhance its Fintech Supervisory Sandbox and is exploring with the Innovation and Technology Commission the possibility of providing funding support to qualified fintech projects.
Mr Eddie Yue said, “Fintech is, without doubt, a key growth engine for the financial industry in the post-pandemic era, and now is the right time to double down on our efforts to grasp the opportunities. “Fintech 2025” sets out our vision in this regard. I urge all stakeholders to join forces with the HKMA. Together, we can take our city’s fintech ecosystem to new heights.”