City needs strategy to take a decisive lead

The broad consensus expressed at the recent FinTech First seminar organised by Education Post, Hong Kong Design Centre and Nest Hong Kong was that Hong Kong has everything needed to assume and maintain a leading position in the field.

All the essentials are there, from entrepreneurs and corporate know-how to active support from government, universities and investors. Still missing, though, is a co-ordinated strategy to tie it all together and steal a decisive march on the competition.

In his opening remarks, Simon Galpin, director-general of investment promotion for Invest Hong Kong, notes that FinTech is becoming very important as a global phenomenon, with US$3.1 billion of new investment in the sector recorded in just the fourth quarter of 2014.

“Hong Kong now has one of the fastest growing start-up ecosystems in the world,” he says, adding that 74 new FinTech ventures were set up locally last year. That total is sure to have risen to well over 100 by now, besides which 41 of the international “FinTech 100” companies also have a presence and an office in Hong Kong.

“Our job as a government department is really to support companies one-to-one, providing specialist advice and acting as ‘account managers’ over a period of several years,” Galpin says.

“Hong Kong has a great opportunity to become a leading centre on the global stage, but it won’t happen by accident,” says Steve Monaghan, regional director and head of edge (group innovation) for AIA Hong Kong. “The best ecosystems are designed to create ease of access, impact and scale. At present, the FinTech ecosystem here appears to be somewhat fragmented, making it more difficult for entrepreneurs to connect into the many resources Hong Kong has at its disposal.”

He adds, though, that it wouldn’t take long to effect change and set the right course. Sufficient talent is available and, provided those involved don’t simply talk but, instead, learn by doing, tremendous strides can be made in just one year. The priority is to focus on design, engineering, and figuring out what users or customers will want.