Hong Kong announces plan for all banks to go fintech by 2025
The Hong Kong Monetary Authority (HKMA) has announced plans to ensure all banks are transformed into fintech facilities through the ‘Fintech 2025’ strategy.
In a press statement, HKMA noted that the move is supported by a solid foundation for fintech adoption in the region, and it will keep backing institutions towards realizing the goal.
The regulator will establish a Tech Baseline Assessment that will document the ongoing and planned adoption of fintech in the coming years. The plan will also look out for fintech business areas and the type of technology that can benefit the sector.
HKMA adds that it will also provide supervision and guidance in adopting emerging technologies in the financial sector.
Interestingly, the regulator also stated that it will take the lead by digitizing its supervision of banks through advanced technologies.
“Fintech is, without doubt, a key growth engine for the financial industry in the post-pandemic era. Now is the right time to double down on our efforts to grasp the opportunities. “Fintech 2025” sets out our vision in this regard. I urge all stakeholders to join forces with the HKMA. Together, we can take our city’s fintech ecosystem to new heights,” said Eddie Yue, the Chief Executive of HKMA.
Accelerated research into CBDCs
Additionally, HKMA said it is accelerating research towards supporting Hong Kong’s central bank digital currency (CBDC). The regulator acknowledges that it is researching retail CBDCs in collaboration with the Bank for International Settlements.
In the region, China is in the advanced stages of rolling out a CBDC. The HKMA also noted that it will continue working with the People’s Bank of China to offer a convenient means of cross-boundary payments for both domestic and mainland residents.