Deloitte FinTech Forum Draws Insights into The Future of FinTech in Hong Kong

HONG KONG, CHINA - Media OutReach - November 24, 2016 - Deloitte China today hosted a FinTech Forum, in which regulators, influencers and industry protagonists discussed hot button issues affecting the development of financial technology (FinTech) in Hong Kong.

Over 100 participants, including bankers, regulators, and FinTech executives, attended this Deloitte forum on the theme of "How FinTech shapes the future of Hong Kong -- challenges and opportunities? Leaders or followers?". The event is supported by Cyberport, Hong Kong Science and Technology Parks Corporation and Authority of Qianhai Shenzhen-Hong Kong Modern Service Industry Cooperation Zone of Shenzhen. Guest speaker Mr. Howard Lee, Senior Executive Director of Hong Kong Monetary Authority shared his views on "FinTech for the banking sector".  "There is no doubt FinTech is changing the financial landscape, globally, and drastically. It is changing the way as to how we bank and how banks operate. The key is banks need to embrace not just technology, but to embrace changes in their customers' financial management culture in order to stay ahead of the curve, " he said.

During his keynote speech, Mr. Tim Pagett, Financial Services Industry Leader, Deloitte China said "Disruption has been a continuing feature of the global market for Financial Services and whilst the advent of the FinTech era would appear to have accelerated this disruption, it has also simultaneously created a raft of opportunities for the market participants, customers and service providers. It is critical for the continued positioning of Hong Kong as a premier financial centre in the region that we embrace these opportunities and to provide incentives and infrastructure for FinTech players to innovate and prioritize the customer and business experience, and to explore opportunities in non-conventional financial products and services. It is critical that we recognise and endorse the important role that government regulation and policy play in supporting this positioning. Through collaboration, incentive and a collective understanding of the risks and benefits to be obtained through fully leveraging digital technologies, we should be well positioned to undertake this exciting journey of exploration in a manner that sees benefits for the economy as a whole.  We have a lot of ground to cover in what always appears to be a little time -- focusing not just on market benefits but also on the valid concerns of investors and customers."

The forum included a panel discussion moderated by Mr. Koo, where speakers covered a wide range of topics spanning the role of the Government, regulation, talent and the development of blockchain -- a major innovative and emerging technology that is expected to have a significant impact on the financial industry in the coming decades. The panelists included Mr. Nelson Chow, Chief FinTech Officer, Hong Kong Monetary Authority, Ms. Bénédicte N. Nolens, Senior Director, Head of Risk and Strategy, Hong Kong Securities and Futures Commission, Mr. Peter Yeung, Head of ICT, Smart City and Green Technology, Hong Kong Science and Technology Parks Corporation, Dr. Toa Charm, Chief Public Mission Officer of Cyberport, and Dr. Witman Hung, JP, Principal Liaison Officer Authority of Qianhai Shenzhen-Hong Kong Modern Service Industry Cooperation Zone of Shenzhen.

Mr. Peter Koo, National Leader of IT Advisory Services, Deloitte China, also highlighted digital/smart identification will be a key to open the door of different FinTech applications, which has re-defined the way of identity authentification for individuals or organizations by leveraging technology to streamline the identification process and mitigate any related risk. "There is a pressing need for financial institutions, as well as all industries, to drive the development of digital identity if they are hoping to launch FinTech products or services, such as cryptocurrencies. Without robust digital  identity infrastructure, financial institutions will find it difficult to convince customers to use FinTech related products and solutions, " he said.

Commenting on the challenges faced by FinTech companies, Mr. Koo said "For many FinTech start-ups, the challenges for products and services development can be ample, but the dearth of funding capital can be one of the major hurdles for FinTech start-ups as they seek to further develop and expand their business models." "Companies can count on external intermediaries, professionals and incubator organizations to get connected with potential angel funds and venture capital investors. But, most importantly, they should ensure they can prove to institutional investors that they can execute and convert their initial business idea into a sophisticated, sustainable and revenue generating model," he said, noting that there is an expert professional network subsidized by the Hong Kong Government, which has included professionals from different domains and disciplines to assist various FinTech start-ups residing in Hong Kong.

"Cyberport is committed to fostering the development of FinTech in Hong Kong through collaborating with industry partners and leveraging Hong Kong's advantages as an international financial centre," said Mr. Herman Lam, Chief Executive Officer of Cyberport. "By collaborating closely with Deloitte, Cyberport look forward to creating synergy to accelerate the growth of FinTech companies and unlock Hong Kong's potential in FinTech."

About Deloitte Global

Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited, a UK private company limited by guarantee ("DTTL"), its network of member firms, and their related entities.  DTTL and each of its member firms are legally separate and independent entities.  DTTL (also referred to as "Deloitte Global") does not provide services to clients.  Please see www.deloitte.com/about for a more detailed description of DTTL and its member firms.

Deloitte provides audit, consulting, financial advisory, risk management, tax and related services to public and private clients spanning multiple industries. Deloitte serves four out of five Fortune Global 500® companies through a globally connected network of member firms in more than 150 countries bringing world-class capabilities, insights, and high-quality service to address clients' most complex business challenges. To learn more about how Deloitte's approximately 244,400 professionals make an impact that matters, please connect with us on Facebook, LinkedIn, or Twitter.

About Deloitte in Greater China

We are one of the leading professional services providers with 24 offices in Beijing, Hong Kong, Shanghai, Taipei, Changsha, Chengdu, Chongqing, Dalian, Guangzhou, Hangzhou, Harbin, Hefei, Hsinchu, Jinan, Kaohsiung, Macau, Nanjing, Shenzhen, Suzhou, Taichung, Tainan, Tianjin, Wuhan and Xiamen in Greater China. We have nearly 13,500 people working on a collaborative basis to serve clients, subject to local applicable laws.

About Deloitte China

The Deloitte brand first came to China in 1917 when a Deloitte office was opened in Shanghai. Now the Deloitte China network of firms, backed by the global Deloitte network, deliver a full range of audit, consulting, financial advisory, risk management and tax services to local, multinational and growth enterprise clients in China. We have considerable experience in China and have been a significant contributor to the development of China's accounting standards, taxation system and local professional accountants. To learn more about how Deloitte makes an impact that matters in the China marketplace, please connect with our Deloitte China social media platforms via www2.deloitte.com/cn/en/social-media.

This communication contains general information only, and none of Deloitte Touche Tohmatsu Limited, its member firms, or their related entities (collectively the "Deloitte Network") is by means of this communication, rendering professional advice or services. None of the Deloitte Network shall be responsible for any loss whatsoever sustained by any person who relies on this communication.

© 2016. For more information, contact Deloitte China.