With only 51% of its institutions adopting a “disruptive” technology, Hong Kong’s financial sector may be a little behind the curve when it comes to fintech. However, it plans to make up for it – in a big way.
Citing PwC’s 2nd Global FinTech Survey, CFO Innovation says that a vast majority – 82%, to be specific – of Hong Kong’s financial institutions plan to partner up with fintech companies within the next 3 to 5 years.
“The survey respondents in Hong Kong are showing a very pragmatic response to the challenge thrown down by FinTech start-ups,” says Matthew Phillips, Financial Services leader for PwC China and Hong Kong.
“The incumbents are looking for a win-win. They can import culture change through partnership, and the start-ups can more easily gain penetration. We are excited about the momentum that is building in the Fintech space and see significant potential for Hong Kong to play a regional role.”
Interestingly enough, Robotic Process Automation and RegTech were among the most popular fintech subsets with Hong Kong-based respondents. This, according to PWC China and Hong Kong’s FinTech & RegTech lead Henri Arslanian, presents “a unique opportunity for Hong Kong to position itself as a relevant hub for such services that can then be successfully exported regionally, or even globally.”
That said, things aren’t all blue skies and chirping birds for Hong Kong fintech; the survey also found that 60% of respondents were concerned by the potential regulatory uncertainties these partnerships could bring, that and the fact that nearly three-quarters of them believe that fintech companies could rev up the threat to information security and privacy.
Still though, PWC remains optimistic about fintech’s future in Hong Kong:
“While there are challenges, the survey highlights a number of exciting opportunities in the FinTech sector in Hong Kong.”
Fintech startups! Have your product adopted by a global financial player!
Citi HK FinTech Challenge 2017 is a competition to encourage developers and FinTech companies from aorund the world to develop innovative solutions with Citi’s APIs to enhance the banking experience and solve business pain points. Through the Challenge, Citibank aims to arouse public interest on FinTech development while accelerating its use in the financial services industry and at the same time benefiting the general public by bringing more innovative solutions to the market.
Find out more here!
Photo: Romain Pontida