Hong Kong Towards a Leading Global FinTech Hub

16 17 Introduction Introduction 2. Market players are the biggest stakeholder group in the ecosystem. The market is made up of over 600 fintech companies including the five unicorns (Airwallex, Amber Group, BITmex, TNG, and WeLab); over 160 banks with eight virtual banks; more than 160 insurers with four virtual insurers; close to 3,000 insurance brokers, wealth and asset managers, and securities and futures dealers; industry associations such as the Fintech Association of Hong Kong (FTAHK), the Hong Kong Association of Banks (HKAB), the Hong Kong Institute of Bankers (HKIB), the Hong Kong Federation of Insurers (HKFI), and the RegTech Association of Hong Kong (RTAHK); and investors including angel investors, venture capitalists, accelerators, and peer-to-peer lenders. 3. Education providers include local universities, professional institutions, and any other training providers who offer fintech-related training courses and programs. The main objective is to fill any skill gaps faced by the industry through upskilling and reskilling existing workers and nurturing future talent. Note: FSTB = Financial Services and the Treasury Bureau; ITB = Innovation and Technology Bureau; HKMA = Hong Kong Monetary Authority; IA = Insurance Authority; SFC = Securities and Futures Commission; ASTRI = Hong Kong Applied Science And Technology Research Institute Company Limited; Cyberport = Hong Kong Cyberport Management Company Limited; HKPC = Hong Kong Productivity Council; HKSTP = Hong Kong Science and Technology Parks Corporation; HKTDC = Hong Kong Trade Development Council; InvestHK = Invest Hong Kong; APFinSA = Asia Pacific Financial Services Association; CAIA = Chartered Alternative Investment Analyst; CFA = Chartered Financial Analyst; CISI = Chartered Institute for Securities & Investment Fintech participants in Hong Kong are mainly from three major stakeholder groups: Government, Market, and Education , where Market consists of the most number of participants. [ Exhibit 5 ] : Key Stakeholder Groups of Active Participants in the Hong Kong Fintech Ecosystem Participants in the ecosystem would perform fintech-related activities on their own or through collaboration with other participants. The level of interaction that takes place in the ecosystem represents its vibrancy and maturity, i.e., the more communication and collaboration within the ecosystem, the more dynamic and mature the ecosystem becomes. The quality and quantity of activities also reflect the health of the fintech ecosystem. The four broad types of fintech activities include regulation, government support, business environment, and talent . They are also instrumental factors that affect the Hong Kong fintech landscape. 1. Regulation includes laws that govern and policy initiatives that facilitate fintech activities that take place in Hong Kong or by businesses that operate in Hong Kong. Fintech regulatory sandboxes, HKMA’s “Fintech 2025” strategy, Cybersecurity Fortification Initiative, virtual banking and insurance companies licenses, virtual asset trading platform licenses, and the Personal Data (Privacy) Ordinance (PDPO), etc., are some examples of what falls under the Regulation domain. 2. Government Support can be in the form of monetary or non-monetary means including initiatives and programs that are operated by public funding targeted to facilitate the growth of fintech and enhance its capabilities. Support schemes can be initiated by government bureaus, regulators, or other facilitators. Examples include the Cyperport Incubation Programme, HKSTP Science and Technology Entrepreneur Programme, Technology Voucher Programme (TVP), and Hong Kong Fintech Week. 3. Business Environment includes a variety of factors and activities that could impact the market in which a fintech-related business operates such as: (1) readiness of fintech infrastructure; (2) level and quality of research activities; (3) size of the existing fintech community; (4) availability of networking opportunities; and (5) level of fintech awareness of the public. Other than financial institutions and fintech companies, fintech associations, accelerators, and investors are also key players crucial for driving a healthy fintech business environment. 4. Talent refers to existing and future workers who are engaged in fintech-related businesses. Key players include providers of training and education activities that facilitate the supply of talent, including universities and other public or private organizations who offer fintech and related training. Education Market Government Policy bureaus Universities Fintech companies Banks and financial institutions Corporates Industry associations Technology companies SMEs Consumers Regulators Professional institutions Ecosystem partners Other training providers - FSTB - ITB Local universities that offer fintech and related trainings - HKMA - IA - SFC E.g., APFinSA, CFA Institute, CISI & CAIA, etc. E.g., angel investors, accelerators & incubators, banks, peer-to-peer lenders, personal investors, venture capitalists, etc E.g., ASTRI, Cyberport, HKPC, HKTDC, InvestHK Investors