Investment in Hong Kong’s Fintech Sector

Investment in Hong Kong’s fintech firms is blooming at the moment. A recent report published by the South China Morning Post reveals that Hong Kong’s fintech investment stood at US$ 550 million in 2017.

The investment in Hong Kong’s fintech sector exceeded that of Singapore. This includes raising capital for different startups in order to provide smart banking solutions to local consumers.

Investment in Hong Kong Fintech Sector Will Drive Change

Increased investment in the coming years will drive the momentum for a strong fintech sector growth in Hong Kong. Yet, Hong Kong continues to maintain a cautious stand after guidelines by the Securities and Futures Commission (SFC) proposed regulation of digital assets.

The financial regulator released these guidelines last year, which outlined important initiatives to support a seamless transition towards a smart banking era. The aim is to enable Hong Kong to compete on an equal footing with top global financial centers, including New York, London, Beijing, and Shanghai.

Through increased investment in Fintech companies, it’s hoped that the domestic banks will be able to compete with the larger players such as Citibank and HSBC.

This year the Hong Kong Monetary Authority (HKMA) operationalized key initiatives mentioned in the guideline to rev up the sector. These initiative include Faster Payment System (FPS) — a real-time fund transfer service that went live on September 2018. The system allows users to receive and make payments in renminbi and Hong Kong dollars in real-time basis. Users can register with their email address or mobile number and the system will act as a proxy for obtaining funds.

Experts say that the government needs to play the role of both the gatekeeper and observer in promoting fintech in Hong Kong.