Hong Kong: Embracing Digital Transformation
The COVID-19 pandemic has accelerated the digital transformation in businesses at a pace that was not considered possible before. Hong Kong is no exception and has experienced a significant boost in digital transformation over the past two years. As an innovation hub, Hong Kong has invested massively in its digital transformation to meet the challenges of the future. Hong Kong has doubled down on its commitment to revamp the city into a leading global innovation and entrepreneurship hub. It has developed an impressive information and communication technology (ICT) ecosystem, with over 93% household penetration of broadband and nearly 100 000 people working in the industry.
Hong Kong has outlined its vision in the Smart City Blueprint 2.0 to embrace innovation and technology (I&T), to build a world-famed smart Hong Kong characterised by a strong economy and high quality of living. Examples include the application of “Building Information Modelling”, enhancement of smart tourism platforms, establishment of the LawTech Fund, development of the Traffic Data Analytics System and Smart Village pilots. The HKSAR Government has invested over HK$130 billion (EUR15.7) billion in the past four years to drive I&T and smart city development, notably in supporting research and development (R&D), pooling talent, attracting investment and enhancing technology infrastructure.
Digital transformation requires a vibrant environment that attracts talent with a digital mindset. The Hong Kong Science Park provides an environment full of opportunities and potential for innovation. The Science Park is home to about 900 technology enterprises, as well as start-ups in areas such as artificial intelligence (AI), life and health, environmental technology. Four unicorns have been incubated therein so far. Cyberport is another landmark I&T community in Hong Kong which accommodates a number of technology enterprises and has incubated five unicorns. To date, its Fintech cluster comprises nearly 400 Fintech companies specialising in blockchain and mobile payment. It is estimated that for every EUR 1 invested by Cyberport, an external investment of EUR 13 would be attracted.
Unlocking Hong Kong’s Fintech potential
Hong Kong has embarked on a journey of digital transformation in the financial services sector to safeguard its role as a leading global financial centre. To ensure that Hong Kong is prepared for the digital future, the HKSAR Government is actively promoting the city’s digital development which is continuously attracting the world’s brightest minds in AI, blockchain, big data, Internet of Things (IoT), and 5G. Hong Kong’s Fintech expansion has been impressive and is on the right track. With a more mature ecosystem, the city is hosting some of the forefront Fintech start-ups and witnessing more applications that will affect the dynamics of financial services. Hong Kong boasts one of the highest consumer Fintech adoption rates globally, with the Faster Payment System (FPS) recording over 9 million registrations since October 2021 for real-time fund settlement anytime and anywhere. It is worth noting that Hong Kong is ranked amongst the world’s top ten technology hubs outside the Silicon Valley, with over 600 Fintech companies operating in the city. Hong Kong’s Fintech expansion has been impressive and is on the right track.