Although Hong Kong is among the top three global financial centers in Asia, its investment in financial technology (FinTech) doesn’t figure in the top three slots.
If this continues experts warn that the the city could lose its competitiveness as well as its appeal in terms of attracting talented professionals from overseas.
As an international financial center, Hong Kong has strong fundamentals as well as a mature business environment and facilities. In addition, rich client management experience and diversified wealth management products of financial firms in the city also provide advantages for FinTech development. The banking industry’s spending on information technology (IT) is generally always high, accounting for a notable part of the firms’ overall operational costs. According to a study by McKinsey last year, IT expenditure accounts for about 15 percent in banks of developed Asia-Pacific markets. The percentage is close to European banks’ level, which is at 18 percent. About 70 percent such IT expense is allocated to run the bank, while 30 percent is for enabling strategic change.