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Hong Kong FinTech Machine to Power Asian Financial Industry

Hong Kong is known to be one of the world’s major financial centers with a wide range of international financial industry giants having their Asian hubs in the city. Barclays, HSBC, Lloyds Bank, RBS, BBVA, UBS, Citi and Wells Fargo represent almost an endless list of international banks that have chosen Hong Kong as an Asian satellite location. It’s no surprise that some of the largest banks are represented in Hong Kong since it is the leading financial center in the Asia-Pacific region.

Moreover, according to BI, Hong Kong is leading the FinTech adoption market as 29% of the digitally active people in Hong Kong reported that they have used at least two FinTech services in the last month. The US and Singapore come next.

According to HK FinTech, in 2013, over $3 billion of investments in FinTech have been made worldwide and this is set to triple by 2018. In fact, within APAC, FinTech provides one of the most cost-effective methods of delivering banking services to the 1.2 billion people without a formal bank account.

Moreover, China's digital banking customers are expected to triple by 2020, reaching 900 million. China is the largest worldwide crowdfunding market with a potential of $47 billion. Global Financial Centers Index of 2014 placed Hong Kong among the world's big four—New York, London, Hong Kong and Singapore.

According to Hong Kong’s official government website, at the end of April 2015, there were 157 licensed banks (LB), 23 restricted license banks (RLB) and 21 deposit-taking companies (DTC) in Hong Kong, together with 64 local representative offices of overseas banking institutions in the banking sector. These institutions come from 36 countries and include 71 of the world’s largest 100 banks.

The daily turnover in the Hong Kong interbank market averaged $31 billion in February 2015. Hong Kong’s stock market was the fifth-largest i ...

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