HSBC, Hong Kong’s science park sign 3-year partnership to drive fintech development

Hong Kong’s biggest bank and start-up hub aim to build ‘international fintech corridor’ to further city’s goal of being international hub for such technology
HSBC will provide financial services to Hong Kong Science and Technology Parks companies and look to adopt their technologies

Fintech

Aileen Chuang

Published: 5:15pm, 19 Mar 2024

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Hong Kong’s largest bank HSBC and start-up hub Hong Kong Science and Technology Parks (HKSTP) will work together to drive fintech development, supporting the city’s aspiration of creating a digital economy and becoming an international hub for such technology.

The two entities signed a three-year agreement on Monday to leverage their resources, expertise and networks to foster collaboration. The partnership is the first “public-private cooperation between the city’s largest innovation and technology ecosystem and leading global bank”, the companies said on Tuesday.

“Bank-fintech partnerships unlock value for parties on each side of the equation, making banking better for consumers and businesses alike,” said Luanne Lim, CEO of HSBC Hong Kong.

Under the partnership, HSBC and HKSTP will build an “international fintech corridor” that will see collaboration between Hong Kong fintech firms and global partners and attract companies to set up in the city. Outputs will include market insights, services, and events such as HKSTP’s annual event Elevator Pitch Competition.

Albert Wong, CEO of Hong Kong Science and Technology Parks (front left) and Luanne Lim, Hong Kong CEO of HSBC (front right) sign a three-year strategic partnership agreement on March 18, 2024. Photo: Handout

Other focus areas include offering investment opportunities and financial services to fintech companies.

HSBC will provide finance and investment opportunities to at least 50 fintech companies nominated by HKSTP. The bank will also offer customised financial services such as payment, lending, foreign exchange, cash management and trade finance support to fintech firms in the HKSTP ecosystem.

HSBC will organise workshops to help fintech companies assess their products’ ability to operate safely in partnership with financial institutions and address gaps they identify. HKSTP will invite up to 20 fintech firms annually to these workshops.

The partners also plan to enhance capacities for cross-industry data collaboration, fostering innovation and accessibility to products and services.

Finally, HSBC will assess fintech solutions from HKSTP’s tech ventures and incorporate them into its products and services where appropriate.

Hong Kong green fintech players must extend ties to sectors beyond finance

The bank is “well-placed to connect fintechs with emerging opportunities in Hong Kong and beyond”, drawing on its expertise and experience operating in 62 countries and territories, Lim added.

“We stand ready to leverage our networks, offering tech ventures the crucial funding, mentorship and business matching to prosper,” said Albert Wong, CEO of HKSTP. “We aim to create synergies to thrive on interdependence and scale up Hong Kong’s fintech ecosystem.”

The partnership comes after Hong Kong identified a digital economy, underpinned by data and technological innovation, as a driving force for economic development in Financial Secretary Paul Chan Mo-po’s budget address last month.

This month, the Hong Kong Monetary Authority launched the second phase of a pilot programme to explore a digital currency, e-HKD, for public use, a wholesale central bank digital currency pilot to improve interbank settlements using tokenised money, and a stablecoin sandbox to allow companies to trial cryptocurrency tokens pegged to fiat currency in the city.

Hong Kong is home to 1,000 fintech companies and over 4,000 start-ups, including more than 10 unicorn companies valued over US$1 billion, according to InvestHK, a government promotion agency.

Hong Kong to launch subsidy scheme for green fintech start-ups, official says

Hong Kong has also expanded collaboration with Saudi Arabia since the city’s Chief Executive John Lee Ka-chiu attended a flagship technology conference in Riyadh in 2023. Earlier this month, a delegation of businesses from Science Park also visited the same conference whilst HKSTP and Cyberport each signed memorandums of understanding with Saudi Arabia’s King Abdulaziz City for Science and Technology Parks to share knowledge and explore collaboration opportunities.

Green finance is a promising area for fintech start-ups in Hong Kong, and the government recently announced a subsidy scheme for start-ups with expertise in the collection, analysis and reporting of sustainability data.