HKMA plans to guide local banks towards full adoption of fintech technologies

13 Jun, 2021 01:48
source: Singularity Financial

Singularity Financial Hong Kong June 13, 2021 – The Hong Kong Monetary Authority (HKMA) plans to guide local banks towards full adoption of fintech technologies, a new strategy reveals. The region’s central banking institution also stressed that it’s going to “walk the talk” by digitalizing its own supervision of financial institutions.

Speaking at a seminar organized by the Hong Kong Association of Banks, HKMA’s chief executive Eddie Yue outlined five focus areas of “Fintech 2025.” The regulator wants to encourage all banks to go fintech, future-proof Hong Kong for CBDCs, create next-gen data infrastructure, expand the fintech-savvy workforce, and nurture the ecosystem with funding and policies.

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. The program launches in September.

The HKMA said it will engage industry players in the establishment of a new Fintech Cross-Agency Coordination Group which will be tasked to formulate supportive policies for the fintech ecosystem. The monetary authority will enhance its Fintech Supervisory Sandbox and provide funding for qualified fintech projects in partnership with the region’s Innovation and Technology Commission. HKMA CEO Eddie Yue emphasized:

Fintech is, without doubt, a key growth engine for the financial industry in the post-pandemic era, and now is the right time to double down on our efforts to grasp the opportunities. “Fintech 2025” sets out our vision in this regard. I urge all stakeholders to join forces with the HKMA.

The financial regulator intends to devote some of its efforts to increase Hong Kong’s readiness to issue central bank digital currencies. HKMA is referring not only to the development of wholesale CBDCs but also the research of retail digital currencies. The financial institution will continue to support the People’s Bank of China in testing the digital yuan (e-CNY) for cross-border payments while launching a separate study on a digital Hong Kong dollar (e-HKD).