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 2021Q1
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.
Having analysed 1,288 news articles posted between January and March 2021, the Hong Kong FBI for the first quarter (Q1) of 2021 is computed to be 101.7, showing a moderate decline of 1.9 index points (or 1.83%) in the fourth quarter of 2020 (2020 Q4).
Performance differed across the six sectors, with a rise recorded in the sectoral indices of InsurTech, RegTech & Cybersecurity, and Supporters & Others. The rise in the InsurTech sectoral index can be attributed to the event of ZA Bank being granted an insurance agency licence by Insurance Authority, to acts as an agent of ZA Insure. The fact that HKSTP has been rolling out its Banking Virtual Lab with Hang Seng and HKMA’s plan in enhancing its FinTech Supervisory Sandbox led the RegTech sectoral index to reach its historical high. Financial development in the Greater Bay Area also contributed to the increase in the index for the Supporters & Others sector. On the other hand, the decrease in the Blockchain & Cryptocurrency sectoral index was mainly due to the concerns with regards to regulation on cryptocurrency.
