With a focus on frontier technologies, innovation, and new economy development, Bojan OBRADOVIĆ, Chief Digital Officer Hong Kong at HSBC, is driving a strategy to position HSBC as a market leader in digital.
Hong Kong is undergoing a significant transformation to establish itself as one of the world’s leading digital hubs. Commitment to this goal was made clear during April’s Digital Economy Summit, where government representatives outlined five key pillars for development: enhancing policy initiatives, strengthening relevant infrastructure, improving cross-border data flow, creating a sustainable talent strategy, and expediting overall efforts towards digital transformation.
As this shift becomes a priority for businesses in every sector, HSBC, Hong Kong’s largest banking institution, is taking proactive measures to play a crucial part in advancing these changes and helping others stay ahead of the game.
“We see this digital hub ambition as a positive development for Hong Kong to future-proof its position as an international finance center and also diversify its economy from traditional sectors to create new opportunities for growth” said Bojan Obradović, Chief Digital Officer Hong Kong at HSBC.
“We have a very long heritage here, and an important role now in helping Hong Kong move towards that vision in an audacious and sustainable manner.”
Obradović emphasized that digital transformation will be exciting, but it also carries risks. It is not just a short-lived trend, but a business imperative, which requires thoughtful handling and involvement from everyone in the organization.
Unlocking cutting-edge sectors
Obradović pays close attention to emerging technologies and innovations that could impact the financial services industry.
“I deal with cutting-edge sectors with an aim to understand how we can take these frontier technologies and commercialize them in line with the bank’s priorities,” he said.
To this end, HSBC has been active in collaborating with government officials, regulators, experts in academia, and taking part in joint working groups with the likes of the Hong Kong University of Science and Technology. The aim is to promote technological transformation in the world of finance and, to date, projects have focused on everything from digital assets and AI to FinTech ecosystems.
At the same time, Obradović is responsible for driving change initiatives within HSBC, a process that begins with generating ideas before turning them into viable products and services. Doing that depends on having the right people with the right skills working in an environment that fosters an innovation culture.
“They are the essential building blocks for success in any venture, but in particular for cutting-edge innovation where there may not be well-trodden paths ahead,” he said. “If Hong Kong wants to achieve its digital ambitions, it must be selective and forward-looking in attracting and nurturing talent.”
Being agile, staying connected with broader ecosystems
He added that a key aspect of HSBC’s ongoing transformation has been the buy-in from the top leadership team, who recognize that technology enables the future growth of the business and ensure that the bank is fully committed on this front.
Making that clear, where appropriate for the nature of the initiative, HSBC has shifted from traditional waterfall methodologies, which involve detailed upfront planning followed by large-scale execution, to “Agile” practices. The latter allows staff to break down projects into smaller, manageable deliverables, making it easier to push forward efforts to transform quickly.
“This project management method enables us to have smaller development cycles and faster measurable outcomes, starting with minimal viable products,” Obradović said, adding that he has also been keen to create a fail-fast, fail-forward mindset within the organization. “It’s okay to fail, but what’s important is that you fail fast, learn, adjust, and go again and let that approach become a critical part of development and learning.”
To keep things moving, he noted, it is similarly important to be connected to the broader ecosystems and the external landscape to understand what is happening around you.
Therefore, HSBC works closely with big tech companies, fintech ecosystems, start-ups, regulators and other key industry players to stay abreast of developments and be fully informed about emerging trends and best practices. The bank also invests heavily in understanding their clients and how the needs of different market segments are evolving, in order to identify gaps, reshape the business, and deliver on expectations.
“Tech is now a constant presence in our everyday lives,” Obradović said. “Understanding how it impacts and enables your ability to deliver on clients’ needs is an essential aspect of future-proofing your business.”
Embracing digital transformation
Of course, the transformation journey has many complexities and is bound to be challenging, especially if an organization is reluctant to switch from traditional ways of doing business. In such cases, Obradović’s advice is to clearly communicate the benefits of the change and its alignment to organizational goals.
For this to happen, though, everyone needs to get involved with the process, and change needs to flow from the top and not be seen as just a stand-alone IT department initiative.
“HSBC has embraced transformation, and that makes all the difference,” he said.
Indeed, that bank’s senior leadership team has consistently supported innovation and experimentation, with a view to fostering a culture which looks to the future. This can be found in initiatives that include idea- sharing platforms, in-house competitions, recognition programs, and dedicated think tanks which experiment with emerging technologies in separate, controlled environments.
HSBC has a strategic partnership with the School of Business and Management of The Hong Kong University of Science and Technology that aims to accelerate the bank’s digital journey by connecting academic research to industry practice. Through this partnership, researchers and professors from HKUST work on use cases together with subject matter experts from HSBC.
Earlier this year, the Hong Kong Science and Technology Parks Corporation (HKSTP) and HSBC have entered into a three-year strategic partnership agreement to drive innovation and create a more effective bank-fintech collaboration ecosystem.
Looking ahead, Obradović identified several frontier technologies that will shape the future of the financial services industry. They include artificial intelligence (AI), digital assets and currencies, and quantum computing.
Adopting each of these will inevitably raise issues relating to risk, data privacy, systems security, and ethical considerations. In navigating these new environments, it will be necessary to ensure all initiatives comply with international agreements and local laws and regulations to protect client data.
“Transparency for customers is absolutely essential, as is ensuring personal data is accessed and used appropriately,” Obradović said.
With so much digital transformation happening at what seems like lightning speed, his general advice is that companies should continuously upskill their workforces by investing in training to ensure that employees have the know-how to implement and work with new technologies. This also helps to get everyone on board with all the changes.
“Introducing any disruptive and transformative technology has to be a gradual process as it is integrated into the everyday business,” Obradovic said. “There will be a number of challenges, but that is the nature of change.”
