Hong Kong financial institutions aim to partner with FinTech firms: survey

PricewaterhouseCoopers (PwC), a multinational professional network, launched its 2nd Global FinTech Survey, showing that 82 percent of financial institutions in Hong Kong intend to form partnerships with financial technology (FinTech) companies in the next three to five years, the organization said here Thursday.

"The survey respondents in Hong Kong are showing a very pragmatic response to the challenge thrown down by FinTech start-ups," Matthew Phillips, Financial Services leader for PwC China and Hong Kong said in the report.

"The incumbents are looking for a win-win," he said, "They can import culture change through partnership, and the start-ups can more easily gain penetration."

PwC sees significant potential for Hong Kong to play a regional role.

However, the survey finds that there are some issues that can dampen enthusiasm for these partnerships. About 60 percent of Hong Kong respondents are concerned by the regulatory uncertainty that could arise, while 70 percent of Hong Kong respondents believe FinTech firms can increase information security and privacy threats.

"While there are challenges, the survey highlights a number of exciting opportunities in the FinTech sector in Hong Kong," Henri Arslanian, FinTech and RegTech lead for PwC China and Hong Kong said.

Respondents here show strong interest in Robotic Process Automation and other RegTech solutions that can greatly reduce the cost of compliance, he said, adding that it presents a unique opportunity for Hong Kong to position itself as a hub for such services that can then be successfully exported regionally. Enditem