With the innovation of new technological applications and solutions, the development of FinTech has marked the beginning of a new era in digitalisation.
While FinTech could mean differently in different contexts, it generally covers the use of artificial intelligence, blockchain, cloud computing, and big data in areas such as payments, clearing and settlement, deposits, lending and capital raising, insurance, investment management, and market support.
Hong Kong has witnessed reassuring progress of FinTech development. The city is home to over 600 FinTech companies and start-ups, including a flock of unicorns, globally recognised research centres and innovation laboratories. To date, eight virtual banks and four virtual insurers have been licensed to provide comprehensive financial services for business and the public.
The bright prospect of Hong Kong's FinTech industry is also evident in findings of a 2020 survey conducted by the Hong Kong Institute for Monetary and Financial Research, which shows that 86% of banks have adopted or plan to adopt FinTech solutions across all types of financial services.