Featured Product

    HKMA Requires Banks to Submit Plans for Fintech Adoption

    June 18, 2021

    HKMA is requesting banks to participate in a tech baseline assessment, which forms part of the HKMA Fintech 2025 strategy. The assessment takes stock of banks’ current and planned adoption of fintech to enable HKMA to identify the fintech business areas or specific technology types that may potentially be underdeveloped and would benefit from the HKMA support. As part of the assessment, all licensed banks with significant operations in Hong Kong will be required to prepare and submit a three-year plan for fintech adoption to HKMA. HKMA also plans to circulate a questionnaire on fintech adoption in the near future. The questionnaire will highlight the factors that the covered banks should consider during the development of the three-year plan. Both the three-year plan and the completed questionnaire should be submitted to HKMA by December 31, 2021.

    HKMA announced the new Fintech 2025 strategy on June 08, 2021 to give further impetus to fintech development in Hong Kong. One of the five key focus areas under “Fintech 2025” is the “All banks go fintech” initiative. This initiative aims to promote the adoption of fintech by Hong Kong banks and to encourage them to fully digitalize their operations from front-end to back-end. The tech baseline assessment is being introduced to take forward work in this regard. The three-year plan should include:

    • A review of an institution’s current adoption of fintech and clear indications of how, and the degree to which, fintech will be incorporated in different aspects of the institution’s front to back-end operations by 2025. Details on the fintech business areas or specific technology types that the institution has already adopted or plans to adopt should be covered.
    • Concrete action plans on how the institution intends to reach the desired level of fintech adoption, covering relevant factors of consideration such as budget and resource allocation, talent development, and leadership/governance arrangements.
    • The institution’s assessment of how fintech adoption will impact its longer-term business strategy and competitiveness, including scope of business services and products offered as well as the ensuing benefits to customers.

    For locally incorporated banks, the three-year plan should be endorsed by the board of directors. For foreign bank branches, the three-year plan should be developed under the scrutiny of their head office or regional headquarters.


    Keywords: Asia Pacific, Hong Kong, Banking, Fintech, Fintech Strategy, Tech Baseline Assessment, Adoption Plans, HKMA

    Related Articles

    ESAs Issue Multiple Regulatory Updates for Financial Sector Entities

    The three European Supervisory Authorities (ESAs) issued a letter to inform about delay in the Sustainable Finance Disclosure Regulation (SFDR) mandate, along with a Call for Evidence on greenwashing practices.

    November 15, 2022 WebPage Regulatory News

    ISSB Makes Announcements at COP27; IASB to Propose IFRS 9 Amendments

    The International Sustainability Standards Board (ISSB) of the IFRS Foundations made several announcements at COP27 and with respect to its work on the sustainability standards.

    November 10, 2022 WebPage Regulatory News

    IOSCO Prioritizes Green Disclosures, Greenwashing, and Carbon Markets

    The International Organization for Securities Commissions (IOSCO), at COP27, outlined the regulatory priorities for sustainability disclosures, mitigation of greenwashing, and promotion of integrity in carbon markets.

    November 09, 2022 WebPage Regulatory News

    EBA Finalizes Methodology for Stress Tests, Issues Other Updates

    The European Banking Authority (EBA) issued a statement in the context of COP27, clarified the operationalization of intermediate EU parent undertakings (IPUs) of third-country groups

    November 09, 2022 WebPage Regulatory News

    OSFI Sets Out Work Priorities and Reporting Updates for Banks

    The Office of the Superintendent of Financial Institutions (OSFI) published an annual report on its activities, a report on forward-looking work.

    November 07, 2022 WebPage Regulatory News

    APRA Finalizes Changes to Capital Framework, Issues Other Updates

    The Australian Prudential Regulation Authority (APRA) finalized amendments to the capital framework, announced a review of the prudential framework for groups.

    November 03, 2022 WebPage Regulatory News

    BIS Hub and Central Banks Conduct CBDC and DeFI Pilots

    The Bank for International Settlements (BIS) Innovation Hubs and several central banks are working together on various central bank digital currency (CBDC) pilots.

    November 03, 2022 WebPage Regulatory News

    ECB Sets Deadline for Banks to Meet Its Climate Risk Expectations

    The European Central Bank (ECB) published the results of its thematic review, which shows that banks are still far from adequately managing climate and environmental risks.

    November 02, 2022 WebPage Regulatory News

    ESAs, ECB, & EC Issue Multiple Regulatory Updates for Financial Sector

    Among its recent publications, the European Banking Authority (EBA) published the final standards and guidelines on interest rate risk arising from non-trading book activities (IRRBB)

    October 31, 2022 WebPage Regulatory News

    EC Adopts Final Rules Under CRR, BRRD, and Crowdfunding Regulation

    The European Commission (EC) recently adopted regulations with respect to the calculation of own funds requirements for market risk, the prudential treatment of global systemically important institutions (G-SIIs)

    October 26, 2022 WebPage Regulatory News
    RESULTS 1 - 10 OF 8582