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
    News

    APRA Finalizes Guidance on Management of Climate Change Risks

    The Australian Prudential Regulation Authority (APRA) released the final Prudential Practice Guide on management of climate change financial risks (CPG 229) for banks, insurers, and superannuation trustees.

    November 26, 2021 WebPage Regulatory News
    News

    European Council Adopts Position on Digital Finance Package Proposals

    The European Council adopted its position on two proposals that are part of the digital finance package adopted by the European Commission in September 2020, with one of the proposals involving the regulation on markets in crypto-assets (MiCA) and the other involving the Digital Operational Resilience Act (DORA).

    November 25, 2021 WebPage Regulatory News
    News

    PRA Proposes Rulebook Changes; BoE Extends BEEDS Testing Window

    The Prudential Regulation Authority (PRA) is proposing, via the consultation paper CP21/21, to apply group provisions in the Operational Resilience Part of the PRA Rulebook (relevant for the Capital Requirements Regulation or CRR firms) to holding companies.

    November 25, 2021 WebPage Regulatory News
    News

    EC Proposes New Measures Under Capital Markets Union Package

    The European Commission (EC) has adopted a package of measures related to the Capital Markets Union.

    November 25, 2021 WebPage Regulatory News
    News

    EBA Publishes Standards to Calculate Risk-Weights of CIUs Under CRR

    The European Banking Authority (EBA) published the final report on draft regulatory technical standards for the calculation of risk-weighted exposure amounts of collective investment undertakings or CIUs, in line with the Capital Requirements Regulation (CRR).

    November 24, 2021 WebPage Regulatory News
    News

    FED Outlines Lending Conditions and Supervisory Activities in H1 2021

    The Board of Governors of the Federal Reserve System (FED) published a report that summarizes banking conditions in the United States, along with the supervisory and regulatory activities of FED.

    November 24, 2021 WebPage Regulatory News
    News

    APRA Expects Boards to Strengthen Ability to Oversee Cyber Resilience

    The Australian Prudential Regulation Authority (APRA) recently completed two pilot initiatives in its 2020-2024 Cyber Security Strategy, which was published in November 2020.

    November 23, 2021 WebPage Regulatory News
    News

    FSB Updates List of Global Systemically Important Banks

    The Basel Committee on Banking Supervision (BCBS) published further information related to its 2021 assessment of global systemically important banks (G-SIBs), with additional details to help understand the scoring methodology.

    November 23, 2021 WebPage Regulatory News
    News

    FASB Proposes Improvements to Credit Losses Standard

    The Financial Accounting Standards Board (FASB) is consulting on an Accounting Standards Update and the associated taxonomy improvements for requirements on troubled debt restructurings and vintage disclosures under the credit losses standard (for financial instruments) topic 326.

    November 23, 2021 WebPage Regulatory News
    News

    US Agencies Issue Statement on Crypto-Asset Policy Initiatives

    US Agencies issued a statement that summarizes the work undertaken during the interagency policy sprints focused on crypto-assets and provides a roadmap of future work related to crypto-assets.

    November 23, 2021 WebPage Regulatory News
    RESULTS 1 - 10 OF 7733