This upward trend is expected to continue, as financial institutions maintain strong investment in technology and increasingly embrace innovations such as artificial intelligence (AI) and distributed ledger technology (DLT).

Regtech adoption in Hong Kong reached 97% in 2025, making it one of the most mature fintech verticals in Hong Kong. This near-universal adoption reflects the strategic importance institutions are placing on leveraging technology to enhance risk management while reducing operational costs, amid a shifting regulatory landscape.

Within regtech, the strongest growth 2022 to 2025 was seen in governance and accountability, conduct and customer protection, and risk management, where adoption grew by 116%, 42% and 37%, respectively.

Insurtech also saw significant gains, with adoption rising from 28% to 57% between 2022 and 2025. This represents the largest increase among fintech categories. In Hong Kong, at least one-third of retail banks have already implemented insurtech, according to HKMA. It is expected that all retail banks will have adopted insurtech to support their bancassurance services by the end of 2025.

Greentech also made significant progress, with adoption growing from 26% to 45% between 2022 and 2025. This reflects growing institutional focus on sustainable finance and climate risk management.

Finally, wealthtech adoption rose from 43% to 52% during the same period, underscoring the sector’s ongoing investment in enhancing investment services through digital platforms and automated advisory solutions. This growth is being driven by rising customer expectations for more sophisticated digital wealth management offerings.

AI and DLT drive innovation

Booming adoption of fintech in the financial services industry is accompanied by increased implementation of AI and DLT. In 2025, AI usage climbed to 75%, up from 59% in 2022, while DLT adoption rose from 30% to 45%.

Many institutions are moving from experimentation to operational implementation. In May 2025, Citigroup introduced Citi AI, a suite of AI tools for its employees in Hong Kong. The tools support internal operations including information retrieval from Citi’s policy library, document summarization and creation of electronic communications drafts among others.

That same month, HSBC launched its Tokenised Deposit Service for corporate clients in Hong Kong, claiming the first bank-led blockchain-based settlement service in the city. In its initial phase, the service supports treasury management with real-time HKD and USD payments between corporate wallets, as well as tokenization use cases settlements.

Future growth outlook

Looking ahead, AI and DLT are expected to continue driving innovation across all fintech domains. For example, in wealthtech and regtech, approximately 80% of anticipated use cases that will reach advanced maturity levels or higher are expected to be supported by AI and DLT. For greentech, this proportion is estimated to reach about 70% of advanced use cases, while in insurtech, around 60% of advanced implementations are expected to incorporate AI and DLT.

This momentum is backed by strong financial commitment. 95% of financial institutions plan to maintain or increase their fintech investments over the next three years, with half anticipating budget growth of 10% to 20%.

Financial institutions are also adoption a more strategic approach to technology spending. On average, 43% of technology budgets are allocated to in-house solution development, 30% to vendor partnerships, and 21% to critical support activities. This suggests a more balanced approach, underscoring growing recognition that successful digital transformation requires both new capabilities and robust operational foundations.

Persistent challenges

Despite progress, institutions face increasingly complex challenges. High implementation costs was cited by 75% of respondents as a primary concern, particularly for technologies requiring significant infrastructure investments or specialized expertise. Other major concerns include risks tied to new technologies (73%), such as cybersecurity, operational disruptions, and regulatory compliance issues, as well as challenges relating to integrating new technologies with existing systems (71%), as institutions must navigate complex technical environments while maintaining operational continuity.

HKMA’s Tech Maturity Stock-take study, conducted in January 2025, covers 56 submissions from authorized institutions. It examines both the quantitative progress in technology progress and the qualitative aspects of implementation maturity, aiming to provide insights into the evolution of fintech in the banking sector over the past few years and the challenges that lie ahead.

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ESG compliance dominates

The Hong Kong Green Fintech Map 2025, released last month, gives a comprehensive view of the green fintech sector in Hong Kong. The map reveals that within the sector, the category of environmental, social, and governance (ESG) data disclosure, compliance and regulatory reporting, is the most crowded and advanced, totaling 19 ventures.

This category encompasses companies that provide digital tools to help corporates and financial institutions meet ESG, climate-related, and nature-related disclosure requirements. These tools also support compliance with evolving regulatory standards.

The prominence of this segment reflects the increasingly complex regulatory environment and the strong demand for technology that can help financial institutions manage mounting sustainability-related obligations and improve transparency.

Notable players in this category include Miotech, a sustainability data and technology provider which uses artificial intelligence (AI) to solve sustainability, climate change, carbon emissions reduction, and social responsibility challenges; Diginex, an award-winning sustainability regtech company that develops an end-to-end cloud platform for ESG and climate data management, materiality assessments, stakeholder engagement, report generation, and more; and Wizpresso, which provides AI tools for ESG analytics and transformation, supporting disclosure workflows.

ESG data and analytics grows in prominence

The second most prominent category is ESG data, intelligence and analytics, which features 18 companies. This category encompasses digital solutions that offer ESG data and analytics, ESG ratings, and ESG indexing. These tools enable companies and investors to extract actionable insights that support sustainable investing, risk management, and corporate decision-making.

Noteworthy players in this segment include CRIF, BlueOnion, and Planto. CRIF offers ESG assessments, scoring and action-planning across dimensions like business, ESG, and sector-specific criteria. These solutions are widely used to support credit policies, supply chain decisions, risk management and sustainable finance decisions.

BlueOnion is a platform delivering ESG data analytics to banks and assets managers. It collaborates with organizations like Morningstar Sustainalytics to give decision-ready ESG coverage for mutual funds, bond funds, and exchange traded funds (ETFs).

Planto is a firm specializing in AI‑powered open banking and personal finance solutions. It partners with major financial institutions including Citibank HK.

Other green fintech categories

Several other green fintech segments are also gaining traction in Hong Kong. The carbon credit trading, analytics and technology category includes 12 companies that support the development and trading of carbon products, and which assist other businesses and financial institutions with collecting and analyzing carbon emissions data.

The green and digital finance and investment category features 11 companies which enable financial institutions to provide digital green and sustainable finance products, including payments, loans, deposits, financial instruments, investments, and insurances.

Finally, the ESG/climate risk modeling and assessment category features four companies that help investors and corporations assess and manage ESG and climate related risks, often using geospatial data, AI, and regulatory-aligned frameworks to evaluate exposure to climate change.

Hong Kong’s green finance steering group

The Hong Kong Green Fintech Map 2025 was produced by Hong Kong’s Green and Sustainable Finance Cross-Agency Steering Group. Established in 2020 by the Securities and Futures Commission (SFC) and the Hong Kong Monetary Authority (HKMA), the group’s mission is to coordinate efforts to manage climate and environmental risks within the financial sector, accelerate the growth of green and sustainable finance in Hong Kong, and support the government’s climate strategies.

The steering group’s responsibilities include examining policy and regulatory issues in green and sustainable finance, facilitating policy direction and coordination, addressing technical cross-sectoral issues, and tracking international and regional trends, issues and developments in green and sustainable finance.

Its key priorities for 2025 include the development of a comprehensive sustainability disclosure ecosystem, supporting the local implementation of the International Financial Reporting Standards Sustainability Disclosure Standards (ISSB Standards), expanding the Hong Kong Taxonomy for Sustainable Finance, and promoting sustainable financing activities.

Green fintech is a rapidly growing sector, driven by increasing consumer demand for sustainable finance, regulatory pressure for climate-related disclosures, and technological innovation enabling eco-conscious financial solutions.

In 2024, green fintech companies secured a total of US$2.7 billion in venture capital (VC) funding globally, marking a 17% increase from the previous year. Europe led the market, attracting US$1.95 billion across 111 financing rounds, more than 2.5 times the funding received by their North American counterparts (US$765 million).

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The competition is supported by the Institute of Sustainability and Technology, the Hong Kong Cyberport Management Company Limited, the Hong Kong Science and Technology Parks Corporation, and Invest Hong Kong.

Following the success of the first event in 2023 and considering recent market changes, the HKMA green fintech competition in 2025 focuses on five key themes. These themes outline how the banking and financial sectors can harness the potential of green fintech.

The themes are sustainable supply chain and SME enterprises, accelerating climate risk modelling and analytics, carbon market analytics and technology, sustainable investing, and sustainable banking and financing products.

The competition is a key part of the HKMA’s efforts to encourage collaboration between the financial and technology sectors, develop green fintech capabilities, and attract green fintech companies to grow their presence in Hong Kong.

Firms from Hong Kong and around the world are invited to submit innovative green fintech solutions addressing at least one of the listed themes. Submissions can be made through the competition website by 6 June 2025.

A panel of industry leaders, including experts from banking, investment, technology, professional associations, and academia, will evaluate the solutions.

The competition winners will have the opportunity to present and showcase their innovative solutions at the 2025 Green Fintech Symposium, which will take place on 12 September 2025.

An event of the 2025 Hong Kong Green Week, the symposium offers winners a platform to connect with key stakeholders, build partnerships, and explore business opportunities, all while spotlighting advancements in green fintech.

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Formed in May 2020, the Steering Group is jointly led by the Hong Kong Monetary Authority and the Securities and Futures Commission. The Steering Group will enhance sustainability reporting in Hong Kong by implementing the International Financial Reporting Standards Sustainability Disclosure Standards (ISSB Standards).

In line with the Roadmap on Sustainability Disclosure in Hong Kong published by the Hong Kong Special Administrative Region (HKSAR) Government, efforts will include providing technical assistance, developing a sustainability assurance framework, and offering capacity-building programs.

These initiatives aim to create a comprehensive sustainability disclosure system for the region.

To strengthen Hong Kong’s position as a sustainable finance hub, the Steering Group will work with the industry to expand the Hong Kong Taxonomy for Sustainable Finance. Transition elements and additional sustainable activities will be incorporated into the framework.

Operational guidance for sector-specific transition finance practices will also be developed. A Transition Finance Knowledge Hub will be established on the Steering Group’s website to further support these efforts.

Additionally, the Steering Group remains committed to establishing Hong Kong as a carbon trading hub in the Asia-Pacific region, following developments at COP29. For context, COP29 refers to the 29th Conference of the Parties to the United Nations Framework Convention on Climate Change.

A major focus will be on leveraging data and technology to promote sustainable finance. The Steering Group plans to launch the official Hong Kong Green Fintech Map in the first half of 2025, in collaboration with the industry. This initiative seeks to facilitate sustainable capital flows and enhance transparency and accessibility of information.

The Steering Group will also enhance its free-for-all public utility data tools, including greenhouse gas emissions toolss and the Climate and Environmental Risk Questionnaire for SMEs and non-listed companies, to support sustainability reporting and improve data availability.

The initiatives build on prior developments, including the HKSAR Government’s launch of the Roadmap on Sustainability Disclosure in December 2024, which provides a timeline for large entities in Hong Kong to adopt ISSB Standards by 2028.

The first phase of the Hong Kong Taxonomy for Sustainable Finance, covering 12 economic activities across four sectors, was published by the Hong Kong Monetary Authority (HKMA) in May 2024. The Prototype Hong Kong Green Fintech Map was introduced in March 2024 in partnership with Cyberport and Invest Hong Kong.

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Under the theme “Powering the Next Growth Engine,” the Asian Financial Forum 2025 saw participation from prominent policymakers, scholars, financial officials, and business leaders from regions, including Mainland China, ASEAN, the Middle East, Europe, and the United States. Discussions delved into topics such as sustainability and green, reflecting the increasing importance of these areas in the global financial landscape.

In addition to keynote speeches and panel discussions, the forum also addressed sustainable development.

During various sessions of the Asian Financial Forum 2025, Sue Lloyd, Vice Chair of the International Sustainability Standards Board (ISSB), Martin Neubert, Partner and Group Chief Investment Officer at Copenhagen Infrastructure Partners, and Jiadi Yu, Chief Investment Officer at the International Finance Corporation (IFC), discussed how adopting the ISSB standards can enhance market confidence in Hong Kong’s capital markets, post-COP29 implementation and strategies for sustainable investing.

By 2025, Hong Kong will fully adopt the International Sustainability Standards Board (ISSB) sustainability disclosure framework, aligning its regulatory standards with global best practices.

These were some of the exhibitors of AFF 2025.

Qantev

Qantev is a cutting-edge AI-powered claims platform designed to transform health and life insurance operations. By automating claims processes, it minimises leakage, optimises loss ratios, improves data accuracy, and enhances the overall customer experience.

Olea Global (Hong Kong) Limited

Olea is a digital infrastructure platform designed to channel global liquidity and support trade and supply chain finance. Incubated by SC Ventures, Olea combines advanced technology with robust risk management and governance aligned with international financial standards. By reimagining trade finance as an asset class, Olea provides access to diverse and alternative liquidity pools while eliminating friction in trade finance processes.

With a vision to empower sustainable trade, Olea supports suppliers and buyers across 35 countries, fostering global connections and economic growth. Olea Global (Hong Kong) Limited focuses on driving sales activities within the Greater China market, ensuring localised expertise and tailored solutions.

Hong Kong Virtual Asset Exchange Limited

Hong Kong Virtual Asset Exchange (HKVAX) is a licensed virtual asset trading platform regulated by Hong Kong’s Securities and Futures Commission under Type 1 (Dealing in Securities) and Type 7 (Providing Automated Trading Services) licenses. It also holds an Anti-Money Laundering and Counter-Terrorist Financing Ordinance (AMLO) license. Headquartered in Hong Kong, HKVAX is aiming to become a leading global player in virtual finance.

HKVAX offers a suite of services, including OTC trading, exchange, and custody solutions, with a strong focus on Security Token Offerings (STO) and Real-World Asset (RWA) tokenization. HKVAX caters specifically to institutional and professional investors by combining traditional finance with blockchain technology.

Xeptagon HK Limited

Xeptagon, proudly incubated at Cyberport, is a team of skilled professionals specialising in climate finance, carbon trading, and fintech software development. Xeptagon tackles complex challenges within the climate technology space, delivering cutting-edge solutions that drive meaningful impact.

Its innovative climate finance software is trusted by leading organisations, including Fortune 500 companies, intergovernmental organisations, governments, and renowned universities worldwide. These institutions rely on Xeptagon’s advanced climate finance and carbon technology to gain a competitive edge and excel in their respective industries.

Propcap Technologies Limited

PropCap Technologies Limited, founded in 2020, is proud to be part of the Cyberport Incubation Programme supported by InvestHK. Known as Asia’s pioneering “Green Mortgage Financing Match-Lending Platform,” PropCap is dedicated to advancing financial inclusion and sustainable finance by offering innovative mortgage solutions tailored for overseas property buyers.

Its platform redefines traditional mortgage practices by incorporating energy efficiency assessments of properties as a key consideration alongside borrower evaluations. This approach not only simplifies the mortgage application process but also accelerates approval times and improves funding accessibility for overseas property mortgages.

For professional investors worldwide, PropCap provides unique access to transparent, low-risk, and steady returns through fixed-income sustainable investment opportunities. By seamlessly connecting investors and borrowers, its platform empowers property buyers to achieve their dream of homeownership abroad while fostering sustainability and creating financial growth.

Biptap

Biptap is a leading innovator in banking infrastructure, empowering businesses to transform financial services through offshore banking and scalable, cutting-edge solutions. Specialising in Banking as a Service (BaaS) and Card as a Service (CaaS), it provides seamless virtual and physical card solutions designed to meet a business’s unique needs.

Biptap’s advanced platform bridges the gap between traditional banking and blockchain technology, delivering secure payment processing, online banking capabilities, and global accessibility. With a strong focus on white-label solutions, it enables businesses to customise financial tools and deliver enhanced services under their own brand.

By combining the benefits of offshore banking with modern fintech innovations, Biptap ensures privacy, reliability, and flexibility for managing cross-border transactions. Regardless of whether working with a fintech startup or an established enterprise, Biptap aims to be its trusted partner in building scalable, global financial ecosystems.

The Asian Financial Forum (AFF) concluded on 15th January 2025, however, interested participants may still watch their videos on-demand until 17 February 2025. Get your passes here.

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The Hong Kong government launched its sustainability disclosure roadmap on 10 December 2024, marking a significant step forward for ESG reporting in Hong Kong. It outlines a phased approach to implementing new ESG reporting standards.

From 1 January 2025, all Main Board issuers must disclose under the New Climate Requirements, based on IFRS S2 Climate-related Disclosures. This will initially follow a “comply or explain” approach.

The plan targets to align Hong Kong’s ESG reporting standards with the International Financial Reporting Standards – Sustainability Disclosure Standards (ISSB Standards) by 2028. Large-cap issuers, specifically those in the Hang Seng Composite LargeCap Index, will face mandatory disclosure requirements from 1 January 2026.

The HKEX plans to consult the market in 2027 to finalise mandatory sustainability reporting against the Hong Kong Standards for listed PAEs, with implementation set for 1 January 2028.

The Hong Kong Institute of Certified Public Accountants (HKICPA) is creating local standards that align with the ISSB Standards. The Hong Kong Sustainability Disclosure Standards are set to be finalised by year-end. It will take effect on 1 August 2025.

The ESG reporting Hong Kong roadmap extends beyond reporting requirements to develop a robust ecosystem for sustainability disclosures. At the same time, efforts will also focus on improving data quality and accessibility through green fintech initiatives, the rollout of free data tools, and the expansion of the Hong Kong Taxonomy for Sustainable Finance.

Capacity-building initiatives will enhance skills and competencies locally and regionally to ensure alignment with ISSB Standards.

Secretary for Financial Services and the Treasury, Christopher Hui, highlighted that this roadmap strengthens Hong Kong’s role as a leading international financial centre. It also positions the city as a hub for green and sustainable finance.

By adopting these international standards, Hong Kong intends to lead in facilitating green financing and investment.

This strategic move aligns Hong Kong with global sustainability trends and positions the city at the forefront of sustainable finance.

As the HKEX sustainability disclosure requirements unfold, it could drive greater accountability and sustainability in the region.

Featured image credit: Edited from Freepik

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This collaboration aims to significantly ramp up sustainable finance initiatives across Asia, focusing on investments that drive down greenhouse gas emissions and support the transition to net-zero.

Partners in this initiative include the Asian Development Bank (ADB), Asian Infrastructure Investment Bank (AIIB), and International Finance Corporation (IFC).

Together, they will prioritise investments in crucial sectors like renewable energy infrastructure, energy solutions, and sustainable transportation.

Actis GP LLP, a key supporter of the partnership, plans to deploy at least US$500 million towards these efforts in Asia.

This partnership underscores the urgent need for collective action to combat climate change in Asia, a region particularly vulnerable to its impacts.

Howard Lee, Chief Executive Officer of the Exchange Fund Investment Office of the HKMA, said,

“As a leading green finance hub in Asia, Hong Kong has been facilitating a significant portion of the region’s international green and sustainable bonds in recent years.

Through strategic partnerships, we aim to demonstrate that achieving both financial return and sustainable development in Asia is not only feasible but essential for our vision of progress and environmental stewardship.”

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The investment grants Mizuho Bank a minority equity stake in Pollination, enhancing the firm’s investment strategies and decarbonisation projects while expanding its influence in key markets such as Japan, Southeast Asia, EMEA, and Australia.

Meanwhile, it will also enhance Mizuho Bank’s ability to assist clients in developing and implementing decarbonisation and nature-focused strategies.

The collaboration will prioritise assisting clients in hard-to-abate sectors with their climate and nature transition strategies.

This includes offering strategic guidance, facilitating access to investment opportunities, and developing innovative approaches to sustainable finance.

A key focus will be on supporting clients in expanding their work on nature, including natural capital and biodiversity strategies, and participating in carbon markets.

Strategic partnerships have been an integral part of Pollination’s approach since it began five years ago.

These include an investment by ANZ Bank in 2022 and the establishment of Climate Asset Management, a joint venture with HSBC Asset Management in 2020, which recently reported raising over US$1 billion for natural capital projects.

To support its growth ambitions, Pollination has recently appointed Kalika Jayasekera as COO and Audrey Zibelman to its board.

Martijn Wilder, Founder and CEO of Pollination said,

“Mizuho Bank is a highly sophisticated partner in sustainable finance.

This investment is a significant vote of confidence in our business, marking the beginning of a powerful strategic partnership that will accelerate our reach and impact.”

Yasuhiko Ushikubo, Mizuho Financial Group’s Group Chief Sustainability Officer said,

“Clients face a wide range of issues and needs related to sustainability, and the pace of change is increasing. In order to support them, specialised knowledge on sustainability on a global basis is essential.

Through this alliance with Pollination, a strong partner, we will support our clients in developing and implementing strategies to deal with these sophisticated problems, and contribute to resolving climate change issues and realising a nature-positive future not only in Asia but the rest of the world as well.”

Featured image credit: Edited from Freepik

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This outlines the regulator’s plan to promote sustainable development in Hong Kong and the region.

The agenda emphasizes net-zero targets, transparency, sustainable investing, and inclusivity.

Banks are expected to strive for net-zero emissions in their operations by 2030 and in financed emissions by 2050.

From 2030, banks will also be required to submit robust, actionable, and up-to-date Paris-aligned transition plans on a “comply or explain” basis.

To support this, the HKMA plans to issue guidance, including a new Supervisory Policy Manual by the end of 2024, focusing on transition planning.

The agenda outlines eight goals across four areas. In banking for net zero, all banks are encouraged to achieve net-zero emissions and enhance transparency on climate-related risks.

For sustainable investing, the HKMA aims for net-zero emissions in the Exchange Fund’s Investment Portfolio by 2050 and seeks to support sustainability transitions through investments.

Financing net zero focuses on positioning Hong Kong as the go-to platform for sustainable finance and driving innovation in the sector.

Lastly, in making sustainability inclusive, the HKMA emphasizes high-quality disclosures and addressing talent gaps, including launching a Professional Level module on Green and Sustainable Finance under the Enhanced Competency Framework within 2024.

To boost transparency, the HKMA plans to introduce measures aligned with international standards, including the Pillar 3 disclosure framework and IFRS Sustainability Disclosure Standards.

The HKMA will work with the industry to implement these goals and refine the agenda based on market feedback.

Eddie Yue, Chief Executive of the HKMA, said,

“Climate change is the defining challenge of our time. Hong Kong, as an International Financial Centre and Asia’s sustainable finance hub, has the duty and capability to up our game in facilitating sustainable fund flows and ensuring that banks manage the risks associated with the net zero transition properly.

The Action Agenda sets out the HKMA’s vision in this regard, including where we are heading, when we endeavour to reach various milestones, and how we expect the industry to join hands with us in the sustainable journey.”

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The two authorities held a meeting in Doha to discuss ways to strengthen their financial cooperation.

The meeting also covered areas such as capital markets connectivity, bond market development, financial infrastructure, and talent development.

Both authorities expressed their commitment to working closely together to foster stronger links and increased interaction between the Hong Kong and Qatari financial markets.

Featured image: The Chief Executive of the Hong Kong Monetary Authority, Eddie Yue (left), meets with the Governor of the Qatar Central Bank, H.E. Sheikh Bandar bin Mohammed bin Saoud Al-Thani (right)

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