The plan aims to strengthen Hong Kong’s position as a resilient and future-ready fintech hub.

Marking the tenth anniversary of Hong Kong’s flagship fintech event, co-organised by the HKMA and InvestHK, the launch brought together global participants to share insights, explore partnerships, and discuss the next phase of digital finance.

In his keynote address, HKMA Chief Executive Eddie Yue outlined four pillars under the “DART” framework: data and payment infrastructure, artificial intelligence, resilience, and tokenisation.

The strategy includes more than 40 initiatives to advance these areas.

Key measures include developing secure, scalable systems for data sharing and cross-border payments to unlock credit, boost trade finance for businesses, and enable more personalised services and seamless remittances for individuals.

The AI² Strategy for authorised institutions will promote responsible AI adoption and foster shared, finance-specific models in collaboration with industry partners.

The HKMA will also enhance resilience through a fintech-specific cybersecurity certification framework, real-time threat detection, and readiness for post-quantum cryptography.

The plan further accelerates tokenisation by expanding the use of digital money such as the e-HKD, tokenised deposits, and regulated stablecoins.

It also covers the tokenisation of real-world assets, including government bonds and Exchange Fund papers.

To support these efforts, the HKMA will launch the Project Ensemble pilot to enable real-value transactions on blockchain infrastructure.

Yue said,

“The power of collaboration, across public and private sectors, and across borders, has set the stage for even greater success on our journey towards Fintech 2030.

With a clear focus under the “DART” strategy, let us join hands in reimagining the future of finance, opening a new chapter, and pushing the boundaries towards a more sustainable and inclusive fintech ecosystem.”

Featured image: Edited by Fintech News Hong Kong, based on image by lifeforstock via Freepik

The post HKMA Launches ‘Fintech 2030’ Strategy for Hong Kong’s AI, Tokenisation Ambitions appeared first on Fintech Hong Kong.

The initiative aims to provide later-stage Hong Kong startups with a pathway into Abu Dhabi’s technology ecosystem, supporting their efforts to expand regionally and access international markets.

Investopia, organised by the UAE Ministry of Economy, served as the platform for the announcement.

The launch highlighted the UAE’s commitment to fostering global economic partnerships through innovation, while positioning Abu Dhabi as a hub for international scaling opportunities.

In the presence of Mohammed Alhawi, Undersecretary of the UAE Ministry of Investment, Hub71 signed MoUs with three Hong Kong innovation hubs: HSITPL, Hong Kong Cyberport, and MTR Lab.

The agreements aim to build a pipeline of startups for the programme and encourage reciprocal ecosystem access, knowledge sharing and joint initiatives across government, infrastructure, and venture capital networks.

HSITPL is responsible for the development of the Hong Kong-Shenzhen Innovation and Technology Park (HSITP), which is part of the Hetao Shenzhen-Hong Kong Science and Technology Innovation Co-operation Zone.

The park is guided by the “one river, two banks” and “one zone, two parks” principles, with the aim of becoming a world-class hub for innovation and technology.

Hong Kong Cyberport is recognised as a digital technology hub and an accelerator for artificial intelligence companies.

It supports more than 2,200 firms, including 11 listed companies and 10 unicorns. Founders from 26 countries and regions are represented, and Cyberport-based companies have expanded into over 35 international markets.

MTR Lab, a subsidiary of MTR Corporation, focuses on investment and the co-development of technologies related to mobility, smart cities and sustainability, with the goal of supporting the development of carbon-neutral urban communities.

The two-week immersion programme will combine virtual onboarding to prepare startups for market entry with an in-person component in Abu Dhabi. Founders will be introduced to regulators, investors and corporate partners, and provided with mentorship and networking opportunities.

Participants will also be able to connect with investors based in Abu Dhabi, explore pilot projects in the region, and engage with government and corporate entities contributing to the emirate’s digital economy.

The programme will conclude with a Demo Day during Hub71’s Impact Event in Abu Dhabi.

Ahmad Ali Alwan, Chief Executive of Hub71, said:

“Through the Hub71 Immersion Programme launched here, we connect ambitious ecosystems and create pathways for scaling startups beyond their home markets. We are enabling startups from Hong Kong to access new opportunities, leveraging Abu Dhabi’s global access to expand internationally and deliver innovative solutions that address global challenges.”

HSITPL has indicated its intention to collaborate with Hub71 in supporting startups from Mainland China and Hong Kong that are seeking to expand into Abu Dhabi and other markets.

Cyberport also plans to work with Hub71 on facilitating international growth for Hong Kong startups in the Middle East, while encouraging Middle Eastern enterprises to establish operations in Hong Kong to access markets in Mainland China, the Greater Bay Area and Southeast Asia.

MTR Lab expressed its goal of linking its portfolio companies with Hub71 to explore opportunities for expansion into the Middle East and beyond.

This initiative is Hub71’s fourth cross-border engagement in 2025, following earlier collaborations in New Jersey, Japan and Ireland.

It forms part of a wider effort to link Abu Dhabi with other global innovation hubs and strengthen its role as a base for startups with international growth ambitions.

Applications are open for Hong Kong-based startups interested in exploring Abu Dhabi as their next centre of operations.

Featured image credit: Hub71

The post Hub71 Launches Startup Immersion Programme in Hong Kong appeared first on Fintech Hong Kong.

The delegation engaged with over 1,000 global tech talents, fostering new partnerships and talent connections.

At the Mobile World Congress (MWC) 2025 in Barcelona, HKSTP and the Hong Kong Trade Development Council (HKTDC) led 24 I&T companies as part of the Hong Kong Pavilion. The pavilion attracted over 7,500 visitors, including representatives from AT&T, Deutsche Telekom, Orange, and Vodafone.

More than 1,000 business collaboration opportunities were secured during the event. Additionally, HKSTP signed a cooperation agreement with 22@Network Barcelona to promote cross-regional innovation and sustainable technology development.

The delegation expanded its outreach to leading UK universities for innovation partnerships, including Imperial College London, the University of Oxford, the University of Cambridge, and University College London. Meetings were held with academic departments, research institutes, and innovation centres to explore collaboration in talent development programmes and startup incubation.

More than 300 students participated in campus sharing sessions to learn about career, internship, and entrepreneurship opportunities available at the Hong Kong Science Park.

The effort also targeted Hong Kong students abroad, encouraging them to return to contribute to the city’s I&T ecosystem via work or entrepreneurship.

In London, HKSTP co-hosted a seminar with the Hong Kong Economic and Trade Office (HKETO-London), Invest Hong Kong (InvestHK), and the Office for Attracting Strategic Enterprises (OASES) to promote Hong Kong’s I&T landscape.

Close to 100 business leaders, academics, and I&T professionals attended, and keynote speakers highlighted Hong Kong’s strengths as a global innovation hub.

HKSTP announced plans to launch a talent development programme to attract Hong Kong students and research professionals overseas to return to the city. The programme will provide eligible companies with salary subsidies and accommodation support for returning professionals, helping to address talent needs in the growing I&T sector.

Albert Wong, CEO of HKSTP, added,

“As a growing engine situated at an international I&T hub in Asia, the HKSTP understands that nurturing next-generation I&T talent is as important as any R&D project, if not more. We’re currently an ecosystem that over 2,200 tech companies from 26 countries and regions call home, offering comprehensive support to more than 15,000 research and development professionals – a network we’re looking overseas to extend, and a number we’re eager to invest in for a sustainable future.”

These initiatives align with HKSTP’s mission to solidify Hong Kong’s position as a leading global I&T hub. For further details, visit www.hkstp.org.

Source of image: Edited from HKSTP

The post HKSTP European Innovation Mixer Tour Nurtures Global Ties For Hong Kong appeared first on Fintech Hong Kong.

During the launch ceremony, WeBank Technology Services signed partnership agreements with Mega Corp (Indonesia), SCBX (Thailand), Hong Leong Bank (Malaysia), and Fusion Bank (Hong Kong).

These collaborations focus on providing digital banking infrastructure and facilitating digital transformation within the financial sector.

The Hong Kong headquarters will act as a hub for global operations while fostering financial collaboration and high-quality connectivity in the Greater Bay Area.

The company has already contributed to cross-boundary initiatives such as the Shenzhen-Hong Kong Cross-Boundary Data Validation Platform, providing secure digital solutions for finance, education, and healthcare.

Locally, its partnership with Fusion Bank has upgraded core banking systems, enhancing digital capabilities and reducing operational costs.

WeBank Technology Services is now expanding its global presence, with partnerships spanning Southeast Asia and beyond.

In Indonesia, the company developed a next-generation core banking system for Allo Bank, incorporating AI, big data, and cloud computing to improve efficiency and broaden financial coverage.

The company also aims to support Chinese enterprises in navigating international markets by addressing challenges like supply chain finance and enabling access to reliable local financial services through partnerships with regional institutions.

Paul Chan, Financial Secretary of Hong Kong, emphasised the significance of WeBank Technology Services’ establishment in enriching the city’s fintech ecosystem and contributing to its innovation and technology development.

“WeBank Technology Services, supported by Hong Kong’s open business environment, aims to become a hub for technology services delivery, innovation, and sales while remaining committed to advancing the development of the Greater Bay Area.

We are also collaborating with local financial partners by offering reliable digital solutions, which supports Chinese companies aiming for international markets and upgrading services and technology.”

said Li Nanqing, President of WeBank and Chairman of WeBank Technology Services.

Featured image: Edited from The Standard. 

The post WeBank’s Fintech Arm Kicks off Global Expansion With New Hong Kong Headquarters appeared first on Fintech Hong Kong.

This program aims to explore the potential of generative AI in the banking sector through innovative and practical use cases.

From over 40 proposals, 15 use cases submitted by 10 banks and four technology partners have been selected.

The participating banks are Bank of China (Hong Kong), China CITIC Bank International, China Construction Bank (Asia), Citibank (Hong Kong), Dah Sing Bank, Hang Seng Bank, HSBC, Livi Bank, Societe Generale, and Standard Chartered.

The technology partners include Aereve, Alibaba Cloud, Baidu, and FORMS HK.

The selected proposals focus on enhancing risk management, fraud prevention, and customer experiences.

Examples include AI-powered AML Suspicious Transaction Reporting (STR), enhanced Know Your Customer (KYC) with unstructured data, and intelligent assistants for fraud investigators.

Other applications aim to improve customer service with AI-enhanced interactivity for more complex inquiries, advancing beyond typical pre-defined chatbot capabilities.

Participants will begin technical trials on a platform operated by Cyberport’s Artificial Intelligence Supercomputing Centre in early 2025.

The onboarding process will be gradual, and the trials will be conducted in an interactive and iterative manner, with supervisory and technical guidance from both HKMA and Cyberport.

Insights from the trials will be shared with the broader industry to establish best practices.

Initial findings will also be shared before the application deadline for the second cohort, set to be announced by the end of Q1 2025, to guide prospective participants.

Arthur Yuen, Deputy Chief Executive of the HKMA, said,

“We are pleased to see a keen interest from the banking industry in the exploration of Gen AI, reflecting the eagerness and openness of banks of all sizes to utilise novel technologies in their operations and services.

As the market continues to develop more innovative ideas, the Gen AI Sandbox remains ready to provide a risk-controlled testing ground for the industry. We look forward to seeing the results from our participants and sharing these experiences with the industry.”

The post HSBC, StanChart, Alibaba Cloud Among First Cohort of HKMA’s Gen AI Sandbox appeared first on Fintech Hong Kong.

The platform aims to connect financial institutions with fintech solution providers to foster collaboration and innovation.

This includes Qianhai-based fintech providers to strengthen partnerships in the Greater Bay Area.

HKMA also rolled out Project Ensemble to enhance asset tokenisation in Hong Kong through its Ensemble Sandbox, supporting use cases across digital bonds, money market funds, CBDCs, and real-world assets.

The project completed six tokenisation use cases across four main themes, with a report on these expected in 2025.

International collaborations with the Central Bank of Brazil and the Bank of Thailand are exploring cross-border tokenisation, while HKMA’s founding membership in the Linux Foundation Decentralised Trust aims to improve DLT interoperability.

The Architecture Community for Project Ensemble has also expanded, adding three members and four new participants who are experimenting with the Ensemble Sandbox on fixed income and investment fund use cases.

Further promoting digital bond innovation, HKMA introduced the Digital Bond Grant Scheme under Project Evergreen, which offers up to HK$2.5 million per eligible issuance.

Following industry consultations, HKMA plans to release detailed guidelines shortly.

EvergreenHub was also launched as a knowledge resource on digital bond transactions to support issuers and investors.

Additionally, HKMA is advancing cross-border payments by working with the People’s Bank of China to connect Hong Kong’s Faster Payment System (FPS) with Mainland China’s Internet Banking Payment System (IBPS), aiming for instant, 24/7 small-value transfers by mid-2025.

In data infrastructure, the HKMA is enhancing its Commercial Data Interchange (CDI) to support SME lending, with connections to the Land Registry and integration with the Airport Authority’s cargo platform.

HKMA is also piloting cross-boundary credit referencing with Mainland credit reference platforms to expand cross-border banking services.

Additionally, a proof-of-concept upgrade for the Commercial Credit Reference Agency (CCRA) is underway to further streamline lending assessments.

On a global scale, HKMA is involved in Project Aperta to build an open finance API network focused on reducing costs in SME trade finance.

In a separate initiative, the HKMA continues its FiNETech series, including sessions on GreenTech and DLT, following the launch of the Generative Artificial Intelligence Sandbox in August.

An AI-powered programme is also being introduced to enhance banks’ monitoring of complex money laundering cases.

Eddie Yue, Chief Executive of the HKMA, said,

“As we approach the ninth edition of Hong Kong Fintech Week, the ecosystem has experienced remarkable growth and development in various aspects, with ongoing innovation consistently reshaping the fintech landscape.

To further propel the growth of the industry, our financial sector must remain adaptable and open to new opportunities. We are committed to unlocking the full potential and advantage of fintech, and harnessing its power to drive sustainable growth of the ecosystem.”

The post Hong Kong Fintech Week 2024: HKMA Unveils Fintech Connect, Expands Tokenisation Efforts appeared first on Fintech Hong Kong.

This initiative provides a controlled environment for authorised institutions to experiment with AI-powered solutions in real-world banking scenarios.

Participants in the sandbox can utilise Cyberport’s computing resources and receive supervisory feedback from the HKMA throughout the trial process.

The regulator plans to use the insights gained from these trials to share best practices and potentially develop further guidance on AI adoption in the banking sector.

The HKMA encourages AIs to explore various AI implementation approaches, including those focused on Retrieval-Augmented Generation, model adaptation, fine-tuning of pre-trained models, or training of new models.

Trials are expected to leverage advanced AI, including GenA.I., for real-time interaction, domain-specific assessment, decision-making support, or predictive analytics, with a particular emphasis on risk management, anti-fraud measures, and customer experience.

Collaboration between authorised institutions and fintech firms is also encouraged, with Cyberport providing a catalog of potential partners and technology providers.

Applications for the first cohort of the Gen AI Sandbox are open until 15 November.

Selected projects are expected to commence in December and conclude within six months.

For further information or inquiries, interested parties can contact Nitish Koladoo of the Banking Supervision Department at GenAI_sandbox@hkma.gov.hk.

Featured image credit: Edited from Freepik

The post HKMA and Cyberport Invite Applications for Generative AI Sandbox appeared first on Fintech Hong Kong.

Launched in collaboration with Cyberport, the sandbox aims to facilitate the safe and responsible development of AI applications in the financial sector.

OneDegree’s cybersecurity arm, Cymetrics, plays a crucial role in this effort.

According to Alex Leung, co-founder of OneDegree Global, their AI Red Team solutions are designed to identify vulnerabilities and risks related to security, privacy, and bias, which are becoming increasingly significant as AI technologies advance.

Through Cymetrics’ automated testing platform, Cymetrics Vulcan, OneDegree offers scalable AI risk assessments that help financial institutions navigate the complexities of generative AI risks.

This enhances their risk management and reinforces security measures in an evolving digital landscape.

The sandbox, first introduced at the FiNETech2 event on 13 August, provides a controlled environment for banks to pilot new AI applications with technical support and supervisory feedback from the HKMA and Cyberport.

The HKMA also plans to share global AI developments and insights from the sandbox to encourage wider adoption across the financial sector.

Leung concluded,

“Alongside the exciting use cases around Generative AI including Large Language Model (LLM) applications bring new types of vulnerabilities and uncertainties to businesses who are eager to become early adopters.

By providing scalable AI risk assessments through our automated testing platform, Cymetrics Vulcan, we help financial institutions navigate the complexities of Generative AI risks, enhancing risk management and reinforcing security measures that are essential in this new environment.”

This article was updated on 15 August at 4.38pm to reflect that OneDegree Global is providing technology solutions to the sandbox participants rather than joining the programme itself.

The post OneDegree Supports HKMA’s Generative AI Sandbox with AI Risk Solutions appeared first on Fintech Hong Kong.

FiNETech2, co-hosted by the HKMA, Cyberport, and the Fintech Association of Hong Kong, focused on the growing role of artificial intelligence in the financial industry.

The event brought together over 300 professionals from the banking, securities, insurance, and technology sectors to explore innovative AI applications in areas such as risk management, anti-fraud measures, customer service, and process improvement.

The Gen AI Sandbox aims to facilitate collaboration between financial institutions and AI solution providers, allowing banks to pilot new Gen AI applications within a controlled environment.

The HKMA plans to use insights from the sandbox to share best practices and ensure that its guidance remains relevant as AI technology evolves.

The HKMA is also committed to supporting responsible innovation in Gen AI, including capacity-building initiatives like a recent training session attended by over 120 financial professionals.

The central bank is conducting case studies on global developments in AI, which will be shared to encourage wider adoption.

Looking ahead, the HKMA plans to host additional FiNETech events focusing on greentech and Distributed Ledger Technology (DLT), continuing its efforts to advance tintech adoption in the financial sector.

Eddie Yue, Chief Executive of the HKMA, said,

“The new Gen AI Sandbox is a pioneering initiative that promotes responsible innovation in Gen AI across the banking industry. It will empower banks to pilot their novel Gen AI use cases within a risk-managed framework, supported by essential technical assistance and targeted supervisory feedback. Banks are encouraged to make full use of this resource to unlock the power of Gen AI in enhancing effective risk management, anti-fraud efforts and customer experience.”

The post HKMA and Cyberport Launch Generative AI Sandbox for Financial Sector appeared first on Fintech Hong Kong.

New reports released by the Hong Monetary Authority (HKMA), French consulting firm Capgemini and tech corporation IBM explore the top trends shaping the industry, highlighting the digital transformation sweeping across the sector, the adoption of generative artificial intelligence (AI), the emergence of tokenization and digital assets, and the growing focus on green and sustainable banking practices.

These trends are not just limited to Hong Kong but also reflect global developments as banks adapt to meet evolving market demands.

Digital transformation

The rising digitalization of banking services is a prominent trend in the sector, with an increasing proportion of banking services being now accessed via digital channels. In H1 2023, 19% of mortgage applications in Hong Kong were done via digital channels, according to a report by the HKMA, up 17% points from 2021. A similar trend is observed for time deposit placements and loan-on-cards via digital channels, which grew by 12% points and 20% points, respectively, during the period.

Usage of regtech solutions is another trend outlined in the report, recording a 90% adoption rate across multiple risk management and compliance functions in credit risk, wealth management and foreign exchange (FX) settlement, among other use cases.

These trends are expected to carry on in 2024 as banks continue to adopt AI and network analytics to enhance their offerings and strengthen real-time fraud monitoring. Other strategies outlined in IBM’s 2024 Global Outlook for Banking and Financial Markets report include digitalization for access, leveraging cloud technology for omnichannel experiences, and incorporating AI and machine learning (ML) for improved communication and personalization.

Fintech innovation and development

Fintech promotion and development were other key areas of focus in 2023, with initiatives aimed at promoting financial inclusion, enhancing consumer protection, and exploring advanced analytics capabilities.

In August 2023, the HKMA launched the new Fintech Promotion Roadmap to give further impetus to fintech adoption in the Hong Kong financial services industry. The roadmap focuses on the fintech business areas of wealthtech, insurtech and greentech, as well as the technology types of AI and distributed ledger technology (DLT), paving the way for greater innovation in these areas.

Other areas of focus for HKMA in 2024 include strengthening the city’s fintech infrastructure, enhancing advanced analytics capabilities, and continuing to adapt to the evolving digital landscape, the HKMA has said.

Generative AI transformation

In 2023, Hong Kong banks emerged as the world’s top adopters of generative AI, a survey conducted by financial software company Finastra, found. The study, which polled ~1,000 finance professionals across nine markets in the Americas, Europe, the Middle East and Asia, revealed that 38% of Hong Kong financial organizations had already started rolling out generative AI, the highest rate across the markets studied and a figure that’s well above the global average of 26%.

In 2024, banking institutions in Hong Kong and around the world will continue to explore and deploy generative AI tools, driven by hopes of improved customer experiences, streamlined core banking operations and enhanced productivity. The Capgemini report highlights code development, customer service enhancement and automation tasks like summarizing customer conversations and answering queries, as top use cases being piloted by banks and financial institutions.

McKinsey and Company estimates that generative AI could potentially generate value from increased productivity of 2.8-4.7% of the banking industry’s annual revenues, translating to an additional US$200-340 billion in revenues annually.

Virtual assets and tokenization

As digital tokens and decentralized finance (DeFi) continue to evolve, banks continued to explore tokenization initiatives in 2023, developing frameworks and investigating multiple use cases through pilot programs, the Capgemini report notes. For instance, TransUnion, a major credit agency in the US, began offering credit scores for DeFi lenders in Q2 2023. In Singapore, DBS Bank became in November 2023 the first bank in Asia to complete an intraday repurchase transaction on a blockchain-based network.

Financial institutions are also actively engaging in blockchain innovation to enhance cross-border transactions, improve security, and explore new opportunities in the digital asset space. For example, JP Morgan completed its first live cross-border transaction on a public blockchain in 2022 as part of Singapore’s Project Guardian. JP Morgan is also developing a blockchain-based digital deposit token for accelerating cross-border payments and settlement, and is awaiting approval from US regulators.

Furthermore, the Capgemini report highlights that almost all central banks globally are exploring the opportunity of central bank digital currencies (CBDCs). In Hong Kong, the HKMA has been researching CBDCs since 2017, placing increased emphasis on strengthening its effort to increase the city’s readiness in issuing CBDCs at both wholesale and retail levels.

The growth of tokenization and digital assets in Hong Kong will be fueled by new regulations introduced over the past year. In November 2023, the Securities and Futures Commission issued a circular laying out guidelines for regulated intermediaries such as fund managers to issue tokenized securities.

Green and sustainable banking

The HKMA report draws attention to several trends in green and sustainable banking observed in Hong Kong. In particular, the report highlights a focus on transition planning to promote the use of technology and capacity building in green and sustainable banking practices, an escalation of supervision of banks’ climate risk management, and increased industry collaboration to promote green and sustainable banking practices.

At the regulatory level, efforts are currently underway to develop a framework for green and sustainable banking practices. In particular, the HKMA has committed to developing a common framework to assess the “Greenness Baseline” of individual banks and says that it will also be consulting with the industry on what expectations or requirements should be set for green banking. The central bank will also be implementing, monitoring and evaluating Hong kong banks’ progress in green banking.

Echoing the HKMA, the Capgemini report stresses that banks globally are actively incorporating environmental, social and governance (ESG) considerations into their strategies, offering green products and services, and aligning with global initiatives to promote sustainability in the financial sector. For example, Nasdaq launched in 2021 the ESG Data Hub to connect investors with sustainability data sets, while banks including Barclays, Citibank, and HSBC are providing various green financing options.

These efforts are arising on the back of a surge in investor demand for sustainable investments. Between 2019 and 2023, products featuring ESG-related claims grew by 28%, versus 20% for products that made no such claims, according to a 2023 McKinsey and NielsenIQ study.

Featured image credit: Edited from freepik

The post Top Trends in Banking in 2024 According to HKMA appeared first on Fintech Hong Kong.