Hong Kong is committed to the growth of their fintech sector. With a national GDP of $341.4bn, the city is fast becoming a hub for digital transformation. The rapid advancements in technology has led to the rise in fintech innovation and online banking methods which has supported consumer needs amid the pandemic.
The latest report from the Fintech Association of Hong Kong (FTAHK), documents that Financial Services contain the largest component of the total amount of blockchain companies – accounting for 35% of the total number. With a rapid increase in corporate adoption of blockchain comes the need for raising greater public awareness of cryptocurrency, blockchain technology and the services that can make daily transactions easier and more secure.
Hong Kong issued banking licenses in 2019 according to reports. The first online bank, ZA Bank, a unit of China’s ZhongAn Online P&C Insurance Co. Ltd, opened in March 2020. The digital banking licenses were presented last year in the hope of launching the platforms soon after, however, domestic challenges (prolonged protests) stalled plans. The new wave of online banking licenses being issued across Asia marks a profound new phase in the competition of virtual banking – with many companies aiming to provide better services to attract and retain customers.
In an effort to promote widespread adoption of fintech, Fintech News Singapore has announced that Hong Kong FinTech Week will introduce an innovative Global Fast Track Programme to support new tech companies in connecting with the region’s leading financial institutions and regulations in Hong Kong.
The programme aims to encourage entrepreneurs and innovators and will facilitate meetings with industry leaders (one-on-one), to discuss perspective collaboration and partnerships. Candidates who are highly commended will be sent to Hong Kong FinTech week to pitch their ideas to a panel of judges, with a chance to win USD 1 million of investment.
Hong Kong government provides funding support to allow the FinTech industry to stay resilient amid the pandemic and to thrive thereafter. Because virtual banking was adopted relatively slowly by traditional banking institutions worldwide, FinTech innovators have challenged conventional banking methods by creating powerful, user-friendly applications that offer a diverse range of services to customers.