Hong Kong's FinTech Growth Index for 2019-20 grew by 52.9% compared with its base period from April 1, 2018 to March 31, 2019, which represents an optimistic outlook by partnered companies. It can be attributed to policies and measures which act as accelerators to foster a positive impact on the industry's development.
The anticipated growth of business performance, indicated by FinTech customer adoption rate grew by 113% as compared with the 2018-19 financial year, representing an optimistic outlook of the business development by the companies.
The business environment, measured by both internal and external factors on FinTech business operations and development, grew by a modest 5% in the same period. Although there is a positive effect of the internal factors by the companies in terms of funding and other capital allocations, it has been cancelled off by the relatively lower average rating on external factors such as investment environment, government policy and regulations.
Investment on R&D or product development, measured by the anticipated percentage change between 2019-20 financial year and the base period, grew moderately by 48.4%, mainly on areas including AI, big data and machines/deep learning (55.3%), followed by Blockchain (42.3%) and Customer experience (39.5%).
Demand on Talents, measured by the anticipated percentage change between 2019-20 financial year and the base period, grew moderately by 45.3%. On the required skills for new employees, Programming skills (68.4%) are the most preferable skills for new hires, followed by Marketing expertise (47.4%) and Knowledge of machine/deep learning and AI (42.1%)
Business Environment
Business
Environment
This is to mainly measure acquisition rate of FinTech companies in Hong Kong.
Sub-index Value
Present: 90.4
Expected: 97.6
Among the four sub-indices, the Business Environment sub-index, measured by both internal and external factors on FinTech business operations and development, has seen the largest decline (14.6%) from the previous year.
Other Results
The majority of them (89%) are startup businesses. Moreover, 7% of them are Unicorns, which are startup companies with values of over 1 billion USD.
According to the survey, the respondents perceived that “Safe and stable investment environment” and “External funding opportunities” posed increased challenges to FinTech businesses during this period.
