Green Fintech Competition
The HKMA announced the launch of the Green Fintech Competition on 21 September 2023. The competition invites green fintech firms in Hong Kong and around the world to showcase how their solutions can be applied to the banking industry. The solutions should be relevant to any of the four themes below:
- Net-zero Transition or Transition Planning
- Climate Risk Management
- Green and Sustainable Finance
- Sustainability or Climate-related Disclosure and Reporting
The themes and problem statements were developed based on feedback received from the industry, reflecting challenges faced by the Hong Kong banking industry which might benefit from green fintech solutions. Interested firms will need to submit a market-ready solution for at least one of the above themes by 20 October 2023.
Solutions will be judged by a panel comprising representatives from both the public and private sectors, including the banking and technology sectors, professional associations and academia. Winners of the competition will be offered a fast-track opportunity to the presentation stage of Cyberport Incubation Program which provides comprehensive business support to facilitate the development of their green fintech solutions. Finalists will be invited to join and host exhibition booths in the HKMA event “Green and Sustainable Banking Conference” to be held in December 2023 for conducting in-depth exchange with and showcasing their solutions to the industry, as well as exploring opportunity for further collaboration.
Central Bank Digital Currencies
The HKMA will also strengthen its research work to increase Hong Kong’s readiness in issuing central bank digital currencies (CBDCs) at both wholesale and retail levels. CBDCs are digital forms of money issued by central banks that can potentially enhance payment efficiency, financial inclusion, and cross-border interoperability.
In addition to the continued effort on wholesale CBDCs, the HKMA has been working with the Bank for International Settlements (BIS) Innovation Hub Hong Kong Centre to research retail CBDCs and will begin a study on e-HKD to understand its use cases, benefits, and related risks. The HKMA will also continue to collaborate with the People’s Bank of China in supporting the technical testing of e-CNY in Hong Kong with a view to providing a convenient means of cross-boundary payments for both domestic and mainland residents.
Next-generation Data Infrastructure
To unleash Hong Kong’s potential for the next generation of banking, the HKMA will take the lead in enhancing the city’s existing data infrastructure and building new ones, including Commercial Data Interchange, digital corporate identity, and DLT-based credit data sharing platform, to facilitate consent-based data sharing. These data infrastructure projects will enable banks to access more comprehensive and reliable data for credit assessment, customer verification, and product offering, while ensuring data privacy and security.
Fintech-savvy Workforce
To increase the supply of fintech talent, the HKMA aims to collaborate with various strategic partners to groom all-round fintech talent, both students and practitioners, through various initiatives, including developing fintech-specific training programmes and qualifications, as well as promoting joint projects between the industry and the academia. The HKMA will also support the establishment of a Fintech Cross-Agency Coordination Group to foster a holistic approach to talent development across different segments of the financial services industry.
Fintech 2025 Strategy
The HKMA’s green fintech initiatives are part of its Fintech 2025 strategy, which was unveiled on 8 June 2021. The strategy aims to encourage the financial sector to adopt technology comprehensively by 2025, as well as to promote the provision of fair and efficient financial services for the benefit of Hong Kong citizens and the economy. The five focus areas of the strategy are:
- All banks go fintech
- Future-proofing Hong Kong for CBDCs
- Creating the next-generation data infrastructure
- Expanding the fintech-savvy workforce
- Fostering an integrated ecosystem
The HKMA’s Chief Executive, Mr Eddie Yue, said, “The HKMA is committed to supporting and enabling Hong Kong’s banking industry to rise to the challenge of climate change. We believe that fintech is a key enabler for the banking sector to enhance its capabilities and performance in addressing climate-related issues. We hope that through our green fintech initiatives, we can foster a greener and more sustainable future for Hong Kong and beyond.”
