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%)
Investment on R&D
Investment on R&D
This is to measure the research and development expenditures and areas for product development.
Sub-index Value
Present: 116.7
Expected: 122.1
The Investment on R&D or Product Development sub-index has decreased by 9.9 index points (or 7.8%) compared to the previous year, possibly due to continued uncertainties arising from COVID-19. It is expected that the sub-index will increase by 5.4 index points (or 4.6%) in the following year, fluctuating between 115 and 125 index points.
Other Results
Almost 26 companies have their spending remain unchanged (=100%) or reduced.
The top three areas of Research and Development of the companies are Customer experience, AI, Big data analytics and Machine/Deep learning, as well as Blockchain.
