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In the past ten years, Hong Kong has made great strides in the financial technology industry. However, if you want to win in fierce competition, you must have a strong foundation.
As the Covid-19 pandemic changes consumer behavior, startups are forced to move beyond innovation and digital transformation. For financial institutions, the rise of financial technology is now more noticeable than ever. With advanced information and communication technology, although Hong Kong is small, it has stepped up its efforts to become an international financial technology hub.
Here are four reasons why Hong Kong has developed into a top financial technology center with its financial technology.
1. Cultivate the ecosystem with friendly rules
In the past few years, Hong Kong’s regulators have promoted the development of the FinTech ecosystem by issuing some landmark regulations. The recent virtual banking license issued by Hong Kong has set a good example for neighboring countries such as Taiwan and encouraged them to join the trend of financial technology.
The implementation of more and more payment methods (such as faster payment systems and QR code payments) provides a cashless alternative to a large consumer base. They adopt different fintech strategies to develop their banking business. It can be said with certainty that it is this diversity that makes Hong Kong’s fintech market so vibrant.
2. Abundant government funds
In addition to progressive regulatory policies, Hong Kong government provides multiple funding Help start-up companies to establish, grow and expand. From R&D support, Preferential tax relief, Free fees and financial recruitment assistance to provide supporting funds for development, fundraising and even overseas expansion. Hong Kong provides unparalleled opportunities for financial technology innovation.
The Hong Kong government actively promotes the development of financial technology and has launched an active plan to allocate 500 million Hong Kong dollars to enhance competitiveness and support the financial services industry, including financial technology. The Hong Kong government has also set aside 10 million Hong Kong dollars for launching the financial technology proof-of-concept funding program to provide “through-train” review and funding. A large amount of financial assistance allows fintech companies to expand in a capital box.
3. Diversified and mature talent pool
As one of the leading international financial centers, Hong Kong has a wealth of financial technology and professionals, including nearly 200,000 experienced accounting, banking and asset management professionals. The Hong Kong government has a supportive and positive attitude towards financial technology and continues to focus on cultivating talents in this industry. In order to expand the local Fintech talent pool, the Hong Kong Monetary Authority has launched the Fintech Career Accelerator Program to attract fresh blood for the Fintech industry and talents outside Hong Kong.
4. Positioning as the gateway to China
In addition to the rising power of regional financial technology, Hong Kong has the geographical advantage of convenient access to the Chinese market and the ASEAN region as it enters the new era of finance.
The Greater Bay Area has become a magnet for attracting global talent and innovation. The launch of Global Fast Track 2021 is not only in Hong Kong, but also in China and other parts of the world to provide more financial technology expansion opportunities.
The future of financial technology is bright. Hong Kong can maximize its benefits by better building a regulatory framework and strengthening consumer data protection. With the spirit of daring to try, I believe that Hong Kong’s financial technology has a bright future.