Hong Kong Towards a Leading Global FinTech Hub

77 76 Part I: Examination of Seven Fintech Hubs Based on our observations of the selected hubs’ approaches and strategies in terms of their regulation, government support, business environment, and talent landscape related to fintech, we have identified the following features for which a leading global fintech hub is expected to possess: 1. A comprehensive, clear, and transparent regulatory and licensing framework is in place. Regulators must take initiatives to lead the industry in the right direction. Having regulators that are able to react quickly to industry developments, and provide regulations and guidelines that fit the industry’s needs is a must. 2. A strong cybersecurity and consent-based digital identity infrastructure that underpins the city, making it a resilient and privacy-respecting environment for business, innovation, and customers. 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 fintech innovation and an entrepreneurial culture. 6. A robust fintech community that is actively engaged in different types of collaboration. Through organizing international industry conferences and participating in fintech bridge agreements with overseas fintech communities and other industries, to strengthen its regional and international connectivity, and reinforce its status as a strong fintech powerhouse. 7. Policy-driven public and private funding support are available and balanced. An effective and impactful public funding mechanism and a robust venture capital scene are vital to support the growth of the fintech industry. 8. A strong pipeline of fintech talent through connecting the universities and the industry to foster opportunities for students to gain practical industry experience and skills through work placements. 9. Further education and retraining programs that are strategically planned and executed to upskill and reskill the existing workforce. This ensures a sustainable supply of fintech talent, and narrows the technical gap between senior management, middle management, and operational level workers. 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. PART II Key Observations, Policy Implications and Recommended Actions for Hong Kong Ten Key Features of a Global Fintech Hub