Hong Kong Central Bank to Support Fintech Development

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Hong Kong’s monetary policy regulator has presented its new strategy to stimulate the fintech development of China’s special administrative region. The Hong Kong Monetary Authority (HKMA) plans to guide local banks towards full adoption of fintech technologies. With the strategy, HKMA aims for a comprehensive adoption of new financial technologies in 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.”

One of the key directions in which the monetary authority intends to intensify its efforts is the full digitalization of bank operations. Expanding on the accomplishments of its Smart Banking Era Strategy announced in 2017, the HKMA will continue to “promote the all-round adoption of fintech by Hong Kong banks.” The regulator is going to identify specific fintech areas where the sector is lagging behind and needs support. That applies to its own regulatory framework as well.

The new strategy envisages enhancing and expanding the city’s existing data infrastructure. The Hong Kong Monetary Authority is planning to establish a credit data sharing platform based on distributed ledger technologies (DLT) and set up a Commercial Data Interchange.

The central bank will work to increase the availability of fintech talent through new training programs and cooperation between the industry and academia. One such initiative is the Industry Project Masters Network, a scheme offering internships for postgraduate students to join fintech projects at participating banks.