Frustration as Covid controls dent Hong Kong’s fintech ambitions
- Business prospects are hurting as more firms see Hong Kong as becoming less competitive relative to other places in the region
Hong Kong’s position, both geographical and economic, offers many advantages in the development of fintech. Proximity to the hi-tech hub in neighbouring Shenzhen is one. Its complementary relationship with local banking needs is another.
Unfortunately, they are being eroded by ongoing tough Covid-19 restrictions. A Google survey of top executives at fintech companies confirms what most in the industry already know: a “severe talent gap” has opened up due to intense competition from other hi-tech hubs such as Singapore to secure skilled and experienced manpower.
Call it a brain drain or talent shortage, business prospects are hurting as more fintech firms see Hong Kong as becoming less competitive relative to other places in the region, including those on the mainland.
The problem is faced by practically all service sectors in the local economy, but is seen as acute because of the constant need for fresh talent in fintech, a field that tends to have high turnovers and where top people command a high premium.
Another common complaint in the survey is regulatory hurdles that make set-up costly, complicated and time-consuming. Given the priority assigned to promoting fintech, every effort needs to be made to face the challenges. Easing red tape would be a good start in a city once famous for its freewheeling and dealing environment.