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%)
HK FinTech Buzz Index
HK FinTech Buzz Index 2020Q4
Hong Kong FinTech Buzz Index (FBI) is a quarterly index which represents a quantified sentiment of the local FinTech-related news articles in local Chinese news media.
According to the 2,426 news articles analysed in the past three months, Hong Kong FBI for the fourth quarter (Q4) of 2020 rebounds to 103.6, a sharp increase of 10.1 index points (or 10.8%) from the third quarter. Year-on-year (YoY) change is increased by 2.3 index points (or 2.27%)
All six sectoral indices moved upward mainly because of a series of activities between Hong Kong and the Greater Bay Area. Among six sectors, the Blockchain & Cryptocurrency sectoral index recorded the largest increase of 32.2 index points (or 47.4%) because of the completion of the first batch of blockchain-based cross-border trade transactions and the first trade finance transaction upon the connection of Hong Kong’s innovative trade finance platform eTradeConnect and the Mainland’s Trade Finance Platform. A roadmap developed by HKMA to promote RegTech adoption in the Hong Kong banking sector, announced in the HK FinTech Week, also brought good news to the RegTech & Cybersecurity sub-sector. Meanwhile, bitcoin scam involving an amount of 1000 bitcoins created negative impacts on both Blockchain & Cryptocurrency and RegTech & Cybersecurity sub-sectors, resulting in normal levels around 100.
