Hong Kong Towards a Leading Global FinTech Hub

6 7 With local and global situations in constant flux, fintech hubs will maintain stronger positions if they have the ability to produce, retain, and attract top talent both locally and globally. Governments need to formulate effective short-term policies to provide enough skilled people to overcome the current shortage. Simultaneously, governments need to design a long-term talent policy to keep up with the predicted exponential growth of fintech in the future. A multi-pronged approach may include: 1. Funding support to long-term policy instruments; 2. Measures to attract foreign talent; 3. Programs for upskilling existing workers; and 4. Changes to the current lower and higher educational curricula. Ten Key Features of a Global Fintech Hub Based on our observations of the selected hubs’ regulation, government support, business environment, and talent landscape related to fintech, we have identified the following key features: 1. A comprehensive, clear, and transparent regulatory and licensing framework that is highly responsive. 2. A strong cybersecurity and consent-based digital identity infrastructure, for a secure and privacy-respecting environment. 3. A favorable legal framework and tax system for enhancing business and generating innovation. 4. Forward-looking strategic plans for the fintech industry, and a dedicated task force to implement these plans. 5. An enabling and open government that provides a high fault-tolerance and inclusive sandbox environment to encourage innovation. 6. A robust fintech community that is actively engaged in different types of collaboration through agreements, conferences, and other networking events. 7. Policy-driven public and private funding support are available and balanced. 8. A pipeline of fintech talent through connecting the universities and the industry. Internships will give students the opportunity to gain industry experience. 9. Further education and retraining programs that are strategically planned and executed to upskill and reskill the existing workforce. 10. High awareness, acceptance, and trust-building towards fintech for all members in the society, including the government, industry players, and the people they serve. 2. Government Support Aside from regulatory policies, the government can facilitate the development of the fintech industry by: (1) providing financial support through public funding; (2) organizing programs that encourage innovation and entrepreneurship in the industry; and (3) providing opportunities that give the fintech industry access to experts’ advice, the latest information, and public services. Governments should regularly assess the fintech landscape locally, regionally, and globally, to draw up development plans for the short -, medium-, and long- term. 3. Business Environment Partnership building is a key growth driver for the fintech industry. Partnerships between mature players and new entrants, between fintech and lifestyle industries or between competitors are common business strategies used by fintech companies. 6 The availability and accessibility of industry associations where fintech companies and startups can find assistance and support and where networking and collaboration begin to form is important to the success of a fintech hub. In addition, large-scale events and conferences that regularly take place help build local, regional, and international networks and opportunities. The most vibrant hubs in our research are those with coordinated support to build local and international networks. 4. Talent To keep up with the growing demand for talent, a global fintech hub will need to have a stable and sustainable supply of skilled personnel by sourcing from the existing workforce, attracting foreign workers who are already equipped with the required skills, as well as nurturing new talent from their local education systems. Governments must examine the following to formulate an effective talent policy: 1. The number of existing qualified professionals in the sector; 2. Hiring trends for the local and global fintech industry; 3. Effective measures to attract foreign talent; 4. The number and type of existing city-level or country-level programs to develop talent; 5. The challenges that educational institutions have in developing quality training programs and schemes to reskill existing workers; and 6. How to best cultivate future generations of talent. 6. HKUST Business School. | The Fintech Talent Development, Competency, and Manpower Study (June 2020). | https://www.bm.ust.hk/en-us/media-resources/overview/publications/reports/issue: 2/ Executive Summary Executive Summary