Watch Matthew Phillips, Henri Arslanian and Marin Ivezic discuss the key issues and trends coming out of PwC Hong Kong’s 2017 FinTech Survey. Find out how FinTech is changing the industry and what the opportunities for Hong Kong are, whether disruption is at the core of strategy for Hong Kong’s Financial Services sector, and how significant information security and privacy is as a threat to FinTech in Hong Kong.
This report will argue that Hong Kong may differ significantly from some of the major FinTech hubs around the world. Many of these hubs (London, New York, Singapore) boast companies that have positioned themselves as disruptors. They have a high risk appetite and a great deal of firepower behind them. Hong Kong–dominated to a greater extent than other financial centres by a small number of very large players–has not experienced this degree of disruption.
But disruption is not the only route to success. Rather than the model described above, the vast majority (82%) of Hong Kong banks and other financial institutions aim to enter into some form of partnership with a FinTech business in the next three to five years. Institutions may be able to achieve their transformation goals without major capital expenditure or development costs by establishing such partnerships. The question is: will the solutions and partnerships developed in this way be innovative enough?
This survey also demonstrates that Culture and Talent are two significant constraints within the financial services industry that are impacting the growth of the FinTech sector in Hong Kong. Trust and Security, meanwhile, are the main challenges that FinTech businesses may face as they try to work with Hong Kong’s financial services sector.