The Hong Kong Association of Banks (HKAB) Digital Banking Education Taskforce (the Taskforce) hosted a panel discussion titled “Banking in the Digital Age: Innovation and Opportunities” yesterday (29 October) at Hong Kong Baptist University as a satellite event of Hong Kong FinTech Week 2024. The event explored how the industry, including traditional banks, are driving the development of Hong Kong’s fintech sector and contributing to the advancement towards Web3.0.
As part of the HKAB’s digital banking public education initiative, Gigi Wong, Chairperson of the Taskforce; Hon. Duncan Chiu, Legislative Council Member Technology & Innovation Constituency; Alvin Li, Head (Supervisory Technology) of the Banking Supervision Department of the Hong Kong Monetary Authority (HKMA); Rocky Mui, Partner of Clifford Chance; and Dr. Vincent Huang, Research Assistant Professor of School of Communication of the Hong Kong Baptist University – the supporting partner of the event – engaged in a lively discussion with nearly 100 students on the development of the digital financial ecosystem.
Hon. Duncan Chiu, Legislative Council Member Technology & Innovation Constituency, said, “The convergence of finance and technology is an inevitable trend. For Hong Kong to remain a global financial centre, we must lead but not follow in the new financial era.” He believes digital banks are crucial to developing Hong Kong’s fintech ecosystem, particularly in exploring and implementing innovative use cases for technologies, such as Web3.0 solutions and related financial products, for customers. This approach both drives public adoption of fintech innovations and ensures tangible benefits for users.
Alvin Li, Head (Supervisory Technology) of the Banking Supervision Department of the Hong Kong Monetary Authority, stated, “the rapid development of Web3.0 and the proliferation of Generative Artificial Intelligence are providing digital banks access to an expanded spectrum of alternative data and more novel means of customer interaction. With these technologies, digital banks can demonstrate their ethos of responsible innovation and technological agility to enhance and redefine banking experience in the digital age.” He added that HKMA has been committed to promoting fintech development, including researching the adoption of Distributed Ledger Technology, launching the Generative Artificial Intelligence Sandbox, and strengthening cross[1]border fintech collaboration.
Rocky Mui, Partner of Clifford Chance believes that Hong Kong has maintained a proactive stance in developing fintech infrastructure and establishing relevant regulatory frameworks, including the introduction of the licensing regime and regulatory requirements for Virtual Asset Service Providers, the planned implementation of a regulatory regime for Stablecoin Issuers, and the announcement of the first policy statement on the application of artificial intelligence in the financial sector during “Hong Kong FinTech Week 2024”. He said, “In promoting the development of fintech, in addition to the efforts of the industry, the government’s stance is equally important. A clear and up-to-date regulatory framework will encourage more market participants to enter the market, making the industry ecosystem more vibrant.” He believes that striking a balance between policy stability and keeping pace with market trends is crucial.
Gigi Wong, Chairperson of the Taskforce stated that public acceptance of digital banks is continuously increasing, creating greater development opportunities for fintech development and innovation in digital banking. A survey conducted by the Taskforce shows that users are increasingly understanding and adapting to mobile or online banking services, with nearly 95% of individual and 98% of SME respondents believing that mobile or online banking meets at least 50% of their daily banking needs. Nearly half of individual respondents even indicated that digital banks meet at least 90% of their daily banking needs. The Taskforce believes that, in collaboration with the government and various sectors, digital banks will actively pursue continuous innovation in various areas of fintech, further enhance products and services to benefit more users, and promote the long-term development of Web3.0 in Hong Kong.
