Hong Kong Fintech Ecosystem Report

INTRODUCTION 3 As of January 2024, there are approximately 13,100 fintech companies in the Americas (North America, South America, Central America and the Caribbean), nearly 11,000 in the EMEA region (Europe, the Middle East and Africa), and close to 5,900 fintech companies operating in the Asia Pacific region.¹0 Hong Kong’s Stance on Fintech as a Global Financial Center The financial services sector is one of the most critical economic pillars of Hong Kong. Ranked first in Asia Pacific and third globally in the latest Global Financial Centers Index (GFCI) 36 Report,¹1 Hong Kong’s status as a leading global financial center is reaffirmed. Advancements in cutting-edge technologies have propelled the fintech sector from the periphery to the forefront of the financial services industry, making fintech integral to Hong Kong’s efforts to maintain its competitive edge as a global financial center. Since 2015, the Hong Kong government has committed substantial resources and implemented a range of measures to facilitate the growth of the local fintech sector. By July 2024, there were more than 1,100 fintech companies in Hong Kong.¹2 The revenue for the Hong Kong fintech market is projected to reach US$606 billion by 2032,¹3 with an anticipated annual growth rate of 28.5% from 2024 to 2032.¹4 As global and local conditions continue to evolve, the Hong Kong fintech sector is expected to continue surpassing its current maturity and vibrancy. Fintech Investment Growth by Region (2011-2021) 6,000 Number of investment deals United States Source: The World Bank Group China European Union Rest of the World United Kingdom 2021 2017 2019 2015 2013 2020 2016 2018 2014 2012 2011 4,000 2,000 5,000 3,000 1,000 0 10. https://www.statista.com/statistics/893954/number-fintech-startups-by-region/#: ~:text=There%20were%20 approximately%2013%2C100%20fintechs,in%20the%20Asia%20Pacific%20region. 11. https://www.longfinance.net/programmes/financial-centre-futures/global-financial-centres-index/ 12. The figure includes only the fintech-related startups, companies, corporations and organizations served/ tracked by InvestHK, fintech companies registered/ located at Cyberport, and fintech companies registered/ located at Hong Kong Science and Technology Parks Corporation (HKSTP). It is not guaranteed that the figure covers all Hong Kong fintech companies. New entrants often start in stealth mode and might not be publicly visible in their first year. Therefore, the actual number of Fintech companies in Hong Kong may be higher. 13. https://www.datacuberesearch.com/hong-kong-fintech-market 14. Ibid