Report on Fintech Adoption and Innovation in the Hong Kong Banking Industry

20 May 2020

 

The Hong Kong Institute for Monetary and Financial Research (HKIMR), the research arm and subsidiary of the Hong Kong Academy of Finance (AoF), today (20 May 2020) released a report, titled “Fintech Adoption and Innovation in the Hong Kong Banking Industry” as the first in a series of Applied Research reports on topics that are highly relevant to the financial industry and regulators in Hong Kong, and they provide insights on the long-term development strategy and direction of Hong Kong’s financial industry.

The report is based on an industry-wide survey carried out by the HKMA Market Research Division, which aims to assess the current status of Fintech adoption in the Hong Kong banking industry and understand banks’ views on the prospect of Fintech development in the next ten years.

“It is encouraging to note from the survey results that banks see Fintech development more as an opportunity than a threat to their business operations, now and in the next five years, with risk management services having the greatest potential. Meanwhile, 86% of banks have adopted or plan to adopt Fintech solutions across all types of financial services. Preliminary results also show that increased cost efficiency and improved profitability are associated with more extensive Fintech adoption by banks. Looking to the next ten years, banks are confident that they will continue to play a key role through adaptation and innovation. Banks would not be displaced by new competitors as technological changes would help enhance business models and maintain core banking services,” said Mr Edmond Lau, Senior Executive Director of the HKMA.

The report is available here.

Hong Kong Academy of Finance
Hong Kong Institute for Monetary and Financial Research (HKIMR)
20 May 2020

About The Hong Kong Institute for Monetary and Financial Research (HKIMR)

The HKIMR is the research arm and subsidiary of the Hong Kong Academy of Finance (AoF) that has been established in June 2019 by the Hong Kong Monetary Authority (HKMA) in full collaboration with the Securities and Futures Commission, the Insurance Authority, and the Mandatory Provident Fund Schemes Authority. The HKIMR’s Applied Research activity is carried out under the guidance of the Council of Advisers for Applied Research that comprises representatives from the HKMA, other local financial regulatory bodies, the financial industry and established local and overseas academics with relevant expertise.

The Hong Kong Institute for Monetary and Financial Research (HKIMR), the research arm and subsidiary of the Hong Kong Academy of Finance (AoF), publishes the first in a series of Applied Research reports, titled “Fintech Adoption and Innovation in the Hong Kong Banking Industry”. Mr Edmond Lau, Senior Executive Director of the HKMA (centre), Ms Lillian Cheung, Executive Director (Research) (left) and Mr Colin Pou, Executive Director (Financial Infrastructure) (right), host a press conference to share the key findings of the report and the latest development of Fintech adoption in the Hong Kong banking industry.The Hong Kong Institute for Monetary and Financial Research (HKIMR), the research arm and subsidiary of the Hong Kong Academy of Finance (AoF), publishes the first in a series of Applied Research reports, titled “Fintech Adoption and Innovation in the Hong Kong Banking Industry”. Mr Edmond Lau, Senior Executive Director of the HKMA (centre), Ms Lillian Cheung, Executive Director (Research) (left) and Mr Colin Pou, Executive Director (Financial Infrastructure) (right), host a press conference to share the key findings of the report and the latest development of Fintech adoption in the Hong Kong banking industry.
Last revision date: 20 May 2020