161027 hkconnect 2016_fintech_development
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The document discusses fintech development in Hong Kong and compares it to other jurisdictions. It notes that Hong Kong faces challenges like outdated legislation, a talent crunch, and lack of investment in fintech. It outlines measures taken by Singapore, the UK, and Australia to support fintech. For Hong Kong, the 2016 budget announced new measures to promote fintech through events and a one-stop office for startups. It will also improve regulations, funding resources, and attracting fintech talent. However, it remains to be seen if Hong Kong can compete with Singapore and leverage the China market, and if regulations can evolve quickly enough to provide competitive advantages for fintech.
161027 hkconnect 2016_fintech_development
- 1. Fintech development and the corresponding Government support in Hong Kong Charles Mok, Legislative Councillor(IT) HKCONNECT 2016, 27 October
- 2. Challenges faced - Fintech development in HK ▸Outdated legislation and compliance requirements ▸Talent crunch ▸Lack of investment 2
- 3. 3 Source: EY UK FinTech: On the cutting edge: An evaluation of the international FinTech sector, 2015 Source: South China Morning Post, May 2016
- 4. Fintech development in other jurisdictions Singapore Monetary Authority of Singapore (MAS) formed new FinTech & Innovation Group responsible for regulatory policies and development strategies (July 2015) UK Financial Conduct Authority (FAC) - Regulatory Sandbox: a ‘safe space’ in which businesses can test innovative products, services, business models and delivery mechanisms in a live environment (2015) Australia Australian Securities Exchange (ASX) works with a developer of blockchain technology to upgrade its share registry system (2016) 4
- 5. 5 Hong Kong 2016 - Year of Fintech ? New measures announced in Budget 2016-17
- 6. What’s New? Promotion ▸ Formulating a Vision for Fintech Development ▸ An Annual Premier Fintech Event Facilitation ▸ A “One‐stop Office” for Fintech Startups ▸ Flagship Fintech‐themed Programme Regulations ▸ To establish dedicated contact points to help the Fintech community better understand the regulatory landscape Funding ▸ To improve dissemination of information on funding sources Talents ▸ To encourage young talents to consider entering the Fintech sector ▸ To enhance dissemination of information on immigration policy for talents outside Hong Kong 6
- 7. Fintech regulation • Mobile Payment License • Review legislation - Equity crowdfunding & P2P lending • Sandbox or trial schemes A balance between facilitating innovation and consumer protection 7
- 8. Observation: Hong Kong - catching up ▸ Innovative technologies – Blockchain, robotics and AR etc. are being implemented or explored by the banking industry ▸ More e-payment options emerging ▸ The Hong Kong Monetary Authority (HKMA) unveiled (2016) - HKMA-ASTRI Fintech Innovation Hub to support research and adoption of Fintech by the industry - Fintech Supervisory Sandbox (FSS) to facilitate the pilot trials of Fintech and other technology initiatives - Cybersecurity Fortification Initiative (CFI) to raise the level of cybersecurity of the banks in Hong Kong 8
- 9. Remains to be seen: Can we compete with Singapore and leverage China market advantage? Can our regulatory approach evolve fast enough to bring competitive advantage?
- 10. Innovate or Perish 10 • Legislation – review and update • Boost investment • Local adoption • Tax incentives • Nurture Fintech talents
- 11. 11 THANKS! charlesmok@charlesmok.hk Facebook: Charles Mok 莫乃光 www.charlesmok.hk