Hong Kong will launch fintech sandbox to take on rivals
On Tuesday, Hong Kong announced its willingness to establish a regulatory regime. In other words, it’s going to be a sandbox for financial technology innovation in the banking sector, amid worries that the city’s gradually losing ground to Australia, China and Singapore in the fintech race.
The initiative would help to maintain Hong Kong's competitiveness as a financial hub by backing the development of fintech in the banking sector. That’s what Hong Kong Monetary Authority (HKMA) Chief Executive Norman Chan revealed at a conference.
The given sandbox will enable financial institutions to conduct tastings as well as trials of newly developed technology on a pilot basis. Within the sandbox, banks can test new fintech products without the necessity to achieve full compliance with the HKMA’s usual supervisory requirements.
Chan told the financial center should remain diligent all the time if the city’s authorities are eager to keep maintaining their competitive edge.