Hong Kong based mostly InvestHK’s Fintech Government Says Metropolis-State ought to Recuperate from COVID-19, as New Digital Banks are Launched

Hong Kong’s future financial system is about to be supported by the newest Fintech platforms and companies, because the city-state will likely be residence to at the very least eight digital banks.

Hong Kong serves as the first gateway for (mainland) Chinese language companies to increase their operations, globally. It additionally acts as a hub for corporations trying to set up their operations in China and all through Southeast Asia

China is notably the one main world financial system that’s nonetheless on observe to expertise development this 12 months. The nation could present much more strategic alternatives for Hong Kong-based Fintechs.

As reported, there’s a scarcity of expertise within the Fintech/AI sector in Hong Kong (together with different challenges), nevertheless, the city-state is leveraging rising applied sciences reminiscent of AI to remodel its banking sector.

King Leung, the Head of Fintech at InvestHK, notes in an Op-Ed printed by the SCMP:

“Once we consider this 12 months in Hong Kong’s historical past, we must always not interpret the coronavirus-induced recession because the catalyst for this digital transformation. It was already effectively beneath method.” 

Apparently Leung shares the identical views as different Fintech executives who’ve additionally famous that COVID-19 has led to a a lot sooner than anticipated adoption of all-digital platforms and companies.

Leung provides:

“The recalibration of Hong Kong in direction of this market alternative is going on very quick.” 

For example, the Fintech Anti-Epidemic Scheme for Expertise Improvement (FAST), which is a subsidy plan of $15.5 million, was launched to assist Hong Kong’s skilled expertise pool.

Leung claims:

“[Hong Kong is] at the start of a protracted restoration course of, however companies are assured they may emerge with the flexibility to scale up, and can entry sturdy expertise, capital and the infrastructure they should stay related and aggressive sooner or later.”

He factors out that for the reason that pandemic started, particular person shoppers, banks and insurance coverage suppliers have been exploring new methods to diversify their companies, in an effort to preserve operations and maybe provide merchandise which can be extra related to the present scenario.

Cell service suppliers reminiscent of PayMe from HSBC and Sooner Cost System have been launched in an effort to facilitate digital funds at a time when folks all over the place on this planet have been requested to watch protected distancing measures to stop the additional unfold of the virus..

Leung writes:

“This constructive angle to experimentation is within the DNA of Hong Kong, and it’s this that may place Hong Kong to benefit from Asia’s demographic dividend.”

Hong Kong based mostly digital financial institution Neat just lately revealed that it has secured $four million in extra capital as a part of its $11 million Collection A funding spherical. Digital financial institution WeLab, which can also be headquartered in Hong Kong, has opened over 10,000 new buyer accounts in simply 10 days after launch.

Make investments Hong Kong (InvestHK) just lately introduced its new International Quick Monitor Program, which is a business-driven program inside Hong Kong Fintech Week (HKFW).