Hong Kong's de facto central bank has released a fintech promotion blueprint to foster responsible innovation and fintech advancement, with four flagship projects to be launched in the coming months.
Under “Fintech 2030”, this tactical blueprint focuses on more sophisticated applications of artificial intelligence and distributed ledger technologies (DLT), enabled by the infrastructural support of high-performance computing, the Hong Kong Monetary Authority said.
With data excellence and cyber resilience being the foundational pillars, the blueprint aims to further strengthen the banking sector’s ability to better manage risks associated with advanced technologies, it said.
The blueprint sets out a cohesive framework of initiatives structured around tactical dimensions of ecosystem collaboration, technological advancement, as well as talent and outreach.
The regulator will develop the quantum preparedness index as one of the projects to assess the readiness of the banking sector for post-quantum cryptography.
The index will not only offer a comprehensive current-state analysis but also serve as a measurable target for the next few years and guide the HKMA’s efforts to provide practical support throughout the PQC transition journey, it said.
The HKMA will implement a new risk data strategy designed to enhance the data management capabilities of banks, which, it said, will then be able to more effectively leverage complex structured and unstructured data for advanced analytics, navigating the dynamic risk landscape.
The banking watchdog will work with industry experts to establish a new, standardized, industry-led fintech cybersecurity baseline for fintech solution providers, focusing on specific novel applications of AI and DLT.
It will also work with the industry to provide practical guidance to enhance the skills of general fintech users, complementing existing competency support efforts.
The blueprint also introduces a series of activities, including FiNETech events, responsible innovation competitions, a revamp of the Fintech Connect matching platform, and practical workshops, to address the key challenges to further fintech advancements.
By embracing responsible innovation, strengthening cross-boundary collaboration, and investing in talent development, the blueprint provides the tactical guidance we need to build a resilient and forward-looking Fintech ecosystem – one that balances the rapid evolution of both risk and opportunity, deputy chief executive Arthur Yuen Kwok Hang said.
