Hong Kong FinTech Week 2024: Illuminating New Pathways in FinTech

Hong Kong FinTech Week (HKFTW) 2024, held from October 28 to November 1, is one of Asia’s largest and most influential fintech events. This year’s event, themed “Illuminating New Pathways in FinTech,” showcased advances in artificial intelligence (AI), blockchain, green finance, and Web3.

Asia’s largest and most influential fintech events

The event brought together top industry leaders, regulators, investors, and entrepreneurs worldwide, attracting over 30,000 participants from over 100 economies. The event format included exhibitions, keynote speeches and panel discussions, workshops, networking sessions, and business matching, providing a platform for participants to network, share insights, and explore new business opportunities.

Paul Chan, Financial Secretary of the Government of the Hong Kong SAR, delivered an opening speech at the event, reviewing Hong Kong’s progress in fintech and emphasizing Hong Kong’s ambition to lead in fintech, artificial intelligence, and sustainable finance.

Hong Kong’s New Policy on Artificial Intelligence and Virtual Assets

Artificial intelligence’s convenience and substantial financial benefits have led to its rapid integration into daily life and mainstream finance, but it also brings many unknown risks. In his keynote speech, Christopher Hui, Secretary for Financial Services and the Treasury of the Hong Kong SAR Government, shared Hong Kong’s new policy to promote AI and Web 3.0 in the financial market. He emphasized that AI has both potential and risks in financial services, so the government needs to focus on data protection, governance transparency, and operational resilience and work with the industry to establish a clear regulatory framework. He also announced the extension of tax incentives to virtual assets and the introduction of a licensing regime for virtual asset custody services next year. Mr. Hui noted that with its geographical advantage of connecting East and West, Hong Kong is well-positioned to drive the global market adoption of AI.

“AI is a double-edged sword with both great potential and hidden risks.”said Christopher Hui.

The future of FinTech and cross-border payments

The potential of tokens and digital assets took center stage during the two-day discussion, particularly their ability to simplify cross-border payments. Many experts noted that digital currencies can offer significant advantages to businesses and consumers, especially in Asia’s fast-growing markets.

Eddie Yue, Chief Executive Officer of the Hong Kong Monetary Authority, discussed the future of fintech in his keynote address. He noted that the establishment of a fintech ecosystem is a long-term process and that technological innovations should serve the public interest, not just as an end in itself. Highlighting advances in cross-border payments, such as the use of a local wallet, PayMe, to promote ease of payment in mainland China and the rest of Asia, Mr. Yue demonstrated how data exchange can be a catalyst for business development.

Industry leaders from crucial institutions such as the Hong Kong Monetary Authority (HKMA), HSBC, and Ant Group shared their views on managing AI-driven risks and leveraging innovation to improve customer experience and operational efficiency. Delegates discussed the need for a risk-based approach to AI in banking, where institutions can maximize the benefits of digital technology without exposing themselves or their customers to unnecessary risk.