11 August 2020
The Hong Kong Institute for Monetary and Financial Research (HKIMR) conducted a survey in July 2019 to study the impact of Fintech innovations in Hong Kong’s banking industry. The report, published in May 2020, summarises the status of Fintech adoption by incumbent banks and recently licensed virtual banks (collectively “Banks”), as well as their outlook for the future prospects of Fintech development.
A key finding was that, on average, 86% of Banks reported wide adoption of Fintech in their businesses, with the most common motivations being customer retention, increasing customer base and improving efficiency. Banks appear to view Fintech more as an opportunity than a threat and are confident that it will continue to play a key role over the next 10 years.
To help the banking industry understand the challenges and potential of Fintech, the report provides an overview of the initiatives introduced by the HKMA to address Fintech-related issues. It also offers insights into how Banks have engaged in Fintech innovations, pointing out that most Banks see themselves as proactive or reactive adopters rather than passive followers in applying Fintech.
The report is the first in a series of research reports published under the Applied Research Programme of the HKIMR. The full report can be accessed here.
For further information, please contact:
Simon Deane, Partner, Deacons
simon.deane@deacons.com
