Hong Kong Towards a Leading Global FinTech Hub

102 103 Part II: Key Observations, Policy Implications and Recommended Actions for Hong Kong Currently, there is no dedicated government department or industry association that provides centralized information on available fintech-related training for those who are eager to shift into this industry. A complete picture of course options and a clear understanding of how the skills and competencies being taught would be classified under the Qualification Framework are much needed. 348 Having a centralized platform for providing training information related to the fintech industry could be organized by the Committee as one of the initiatives that would sustain the fintech talent pipeline. In addition, adding more CEF reimbursable fintech courses would increase the incentive to study. As of May 2021, there are 16 CEF reimbursable courses available, and nearly all of them are required modules for bachelor’s and master’s degrees. 349 None of the short or day-long fintech courses are currently CEF reimbursable. However, it would be practical to include them, 350 as these would very likely be the only choices available to people who work and can only attend classes outside of their work hours. Furthermore, there is no official standard to certify fintech qualifications for practitioners who want to upskill. But seeing how relevant learning is to market needs, we suggest the government facilitate fintech course registration, as recognized under the Hong Kong Qualifications Framework (QF). 351 There are currently 18 fintech courses registered under QF, and most of them are courses under full-time bachelor degree or above programs. 352 As much as the fintech sector would like to recruit people with prior fintech work experience, this is often not possible. Therefore, adding internship opportunities in the CEF reimbursable courses would help increase the number of experienced individuals. All fintech and financial services companies would be encouraged to offer internship positions for CEF students, as well as for students in the internship scheme mentioned in Opportunity 8. Fintech companies, CEF students and Hong Kong in general would benefit by enhancing CEF fintech courses with recognition under the QF and incorporating internship as a requirement. At the same time, the government could encourage civil servants to participate in big data, AI or data analytic training programs to raise their awareness when they do policy making. Banks and other financial institutions could also provide fintech training facilitation to senior management to promote a culture that embraces the beneficial uses of technology. Certified courses and training programs linked to QF would incentivize their participation in the upskilling courses and programs. 348. One of the policy intents of Qualification Framework is to ensure the relevancy of learning to industry needs. For details, please visit https://www.hkqf.gov.hk/en/home/index.html 349. Continuing Education Fund. | Reimbursable Course (Fintech and financial technology were searched) (2021). | https://www.wfsfaa.gov.hk/cef/en/preparation/course_search_result.php?area=&institution_ name=&institution_code=&course_name=fintech&course_code=&course_fee=&qr_number=&qf_level= 350. Use HKU SPACE Community College as reference, all fintech short courses (study period from 5 hours to 4 months) are not reimbursable through CEF. For details, please visit https://hkuspace.hku.hk/cht/interest/ accounting-and-finance/fintech-and-financial-intelligence?gclid=EAIaIQobChMI-fGc2e_m8AIVMylyCh3NjwzsE AAYAiAAEgLvJPD_BwE 351. Qualifications Framework. | QF-Recognized Qualifications (Sep 2018). | https://www.hkqf.gov.hk/filemanager/ en/share/leaflet%20(QF-recognised%20qualifications)%20e.pdf 352. Qualifications Framework. | Qualifications Search. | https://www.hkqr.gov.hk/HKQRPRD/web/hkqr-en/search/ qr-search/ 353. Solimano, Andres. | The International Mobility of Talent and its Impact on Global Development (2006). | https:// ideas.repec.org/p/ess/wpaper/id3063.html 354. DATA.GOV.HK. | Statistics on Applications Approved under “Technology Talent Admission Scheme” (As of 2020). | https://data.gov.hk/en-data/dataset/hk-immd-set4-statistics-applications-approved-techtas 355. Even there are projected 1,600 fintech graduates in 2024 in Hong Kong, the local graduates will not meet the market demand. For details, please visit South China Morning Post. | Addressing the fintech talent gap (Aug 2020). | https://www.scmp.com/presented/news/hong-kong/education/topics/new-normal/article/3098761/ addressing-fintech-talent-gap Opportunity 10 Observation: A specific immigration scheme, the Technology Talent Admission Scheme (TechTAS), was launched in 2018 to target technology talent. However, the number of applications approved under the Scheme are not sufficient to meet the city’s demand. Objective: To ensure Hong Kong can compete in the global environment to attract and retain fintech talent for both the city’s short-term and long-term fintech talent supply. Recommended action: To proactively and regularly review and evaluate the overseas talent scheme and allow more flexibility for fintech companies to hire overseas fintech talent. For example, allowing more overseas talent to work remotely for Hong Kong fintech companies without having to be physically stationed in Hong Kong could help increase the number of overseas talent hired. As talented people contribute large economic value to the places where they are living and working, attracting them is one of the prominent policies of all developed economies. 353 Currently, there are four talent admission schemes in Hong Kong that target skilled labor with different expertise from overseas and Mainland China. A specific immigration scheme, the Technology Talent Admission Scheme (TechTAS), was launched in 2018 to target technology talent. However, as of 2020, there were a total of 215 approved applications across two-and-a-half years. 354 The applications approved under TechTAS have not been able to fill the city’s demand for people skilled in technology. 355 The Hong Kong government could help increase the numbers of overseas talent by regular reviews and evaluation of the overseas talent schemes. Fintech firms would likely benefit from more flexibility in the schemes, especially TechTAS, including allowing them to hire overseas talent for remote work, without requiring that the talent physically relocate to Hong Kong. With regular and frequent engagement with the financial and fintech sectors, and the development of flexible and effective talent schemes and immigration policies, the Hong Kong government can ensure the city remains globally competitive by developing, attracting and retaining top fintech talent for the industry’s short- and long-term needs.