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 on the AoF/HKIMR website.