Hong Kong Towards a Leading Global FinTech Hub

60 61 Business Environment Part I: Examination of Seven Fintech Hubs Singapore Singapore hosts several major global industry events including the most attended Singapore Fintech Festival, which had 60,000-plus participants from over 160 countries in 2020. 195 The country’s fintech players are represented by one of the most effective fintech associations in the world – the Singapore Fintech Association which is a cross-industry association that facilitates collaboration of various stakeholders in the country’s fintech ecosystem. It not only works with professional services firms and conducts research studies about the Singapore fintech landscape and talent market, but also shares industry’s opinions with regulators, and forms an extensive international fintech network with other financial associations and government bodies around the world. Tokyo Relatively speaking, Tokyo has fewer fintech events and forums, but hosts two large conferences, FIN/SUM organized by Nikkei and TEAMZ Blockchain Summit . The Tokyo- based Fintech Association of Japan organizes events and creates networking opportunities for its members regularly, including domestic and overseas meet-ups to provide updates on market trends and latest market insights of the fintech ecosystem. It also serves as a platform for members to exchange opinion with regulators through events such as Meet up with SFA and obtain information through the Fintech Support Desk. Tokyo Fintech is another industry association based in Tokyo, connecting entrepreneurs and startups to form a domestic drive on fintech innovation and development. In terms of accelerators, the MUFG Digital Accelerator helps startups brush up their business plans, others such as Plug and Play Fintech and 500 Kobe Accelerator help fintech startups connect with large financial institutions. In 2018, venture-backed fintech investments in Japan jumped more than fivefold to US$542mn. 196 Despite having good exposure to capital investments, Tokyo’s fintech market has lagged behind other cities with no significant growth in the past years. Tokyo is keen on closing the gap with Hong Kong and Singapore to become the leading financial city in Asia, and it is believed that fintech would be a fuel central to this vision. With the advantage of Japan being a global technology leader, both the TMG and industry associations are stepping up the game with harnessing opportunities to bring foreign fintechs and startups into Tokyo. Shanghai The Shanghai Technology Innovation Center (STIC) has selected over 30 accelerators and incubators in Shanghai to facilitate overseas startups development in the city, such as XNode , Chinaccelerator, PwC Fintech Accelerator and more. 197 Fintech events held in Shanghai include the Shanghai Fintech International Forum, Fintech Innovation Summit, Inclusion Fintech Conference which attracted up to 30,000 participants, 198 and more. In 2019, the trading volume of Shanghai’s financial markets totaled RMB1,934tn (US$298tn), which is almost 8 times the level in 2009. By the end of 2019, the total number of licensed financial institutions in Shanghai had reached 1,646, which is 660 more than that at the end of 2009. 199 Shanghai is now home to more than 1,600 financial institutions, of which one-third are from overseas, and over 100,000 fintech-related firms that make up 61.7% of all fintech-related companies in the country. 200 The city is also home to the headquarters of over 50 payment institutions, including Alipay, making it a major powerhouse for China’s payment industry. 201 In May 2020, the Shanghai FinTech Industry Alliance was formed with a “8+44” structure, 202 with eight government units including the PBOC Shanghai Branch, Shanghai Banking and Insurance Regulatory Bureau, Shanghai Securities Regulatory Bureau and the Shanghai Finance Bureau, and 44 units from the city’s financial sector including financial institutions, fintech enterprises, and research institutes of universities. The Alliance serves as an open platform that integrates fintech- related production, study, research, and investment for the advancement of the local fintech sector. 195. Singapore FinTech Festival 2020. | https://www.fintechfestival.sg/ 196. Accenture. | Global Fintech Investments Surged in 2018 with Investments in China Taking the Lead, Accenture Analysis Finds; UK Gains Sharply Despite Brexit Doubts (Feb 2019). | https://newsroom.accenture.com/news/ global-fintech-investments-surged-in-2018-with-investments-in-china-taking-the-lead-accenture-analysis- finds-uk-gains-sharply-despite-brexit-doubts.htm 197. Kingdom of the Netherlands. | Startup Playbook Shanghai. Incubators, accelerators and co-working spaces. | https://www.netherlandsworldwide.nl/countries/china/startup-playbook-shanghai/startup-ecosystem-china/ incubators-accelerators-and-co-working-spaces 198. Business Wire. | Ant Financial Debuts World’s Leading Fintech Conference, to Take Place in Shanghai (Jan 2020). | https://www.businesswire.com/news/home/20200115005313/en/Ant-Financial-Debuts-World%E2%80%99s- Leading-Fintech-Conference-to-Take-Place-in-Shanghai 199. SHINE. | Shanghai now third in ranking of global financial centers (Sep 2020). https://www.shine.cn/biz/ finance/2009266846/ 200. Sina Tech. | The total number of registered financial technology-related companies in my country is nearly 40 times that of ten years ago (Oct 2020). | https://finance.sina.com.cn/tech/2020-10-26/doc-iiznctkc7671892. shtml (In Chinese). 201. Z/Yen, China Development Institute and Long Finance. | The Global Financial Centres Index 28 (Sep 2020). | https://www.longfinance.net/media/documents/GFCI_28_Full_Report_2020.09.25_v1.1.pdf 202. Shanghai International Group. | Shanghai Financial Technology Industry Alliance was formally established. (May 2020). | https://www.sigchina.com/index.php?m=content&c=index&a=show&catid=50&id=1013 (In Chinese). 203. With reference to The Fintech Talent Development, Competence, and Manpower Study by HKUST Business School, cross-disciplinary collaboration and actively building partnership within and beyond the traditional financial services industry would benefit the fintech ecosystem and general business development of fintech sector (p.10). For more details, please visit https://www.bm.ust.hk/en-us/media-resources/overview/ publications/reports/issue:2/ Building Local and International Networks A vibrant fintech hub is built upon a mutually beneficial and sustainable network of all the industry participants including regulators, financial institutions, startups, their partners and collaborators, and the clients being served. Based on our observations, the most vibrant hubs are those with coordinated support to build local and international networks. To expand fintech uses and increase fintech adoption, fintech companies see the need to collaborate and co-create with each other and also with other industries. 203 Networking opportunities with local and international firms are important, for fintech is a team effort where different types of collaboration are needed to facilitate the creation and enhancement of solutions and products on top of the existing financial services infrastructure.