Hong Kong’s fintech competitiveness against rivals like Singapore hurt by talent crunch, regulatory hurdles: Google survey

Many fintech start-up executives surveyed by Google view Hong Kong as being relatively uncompetitive compared to other fintech hubs

More than 60 per cent of them said they face a severe talent gap amid intense competition from other regions for skilled manpower

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Some 60 per cent of C-suite fintech executives surveyed by Google said they see Hong Kong as being relatively uncompetitive compared to other fintech hubs. Photo: K. Y. Cheng

Published: 7:00pm, 23 Aug 2022

Financial technology executives in Hong Kong are concerned about the city’s competitiveness as an industry hub, as complex regulations and a talent shortage drag down business prospects, according to a survey conducted by US tech giant Google and financial consultancy Quinlan & Associates.

The survey, which interviewed 126 C-suite executives from early-stage and late-stage private fintech companies, found that around 60 per cent of respondents see Hong Kong as being relatively uncompetitive compared to other fintech hubs.

More than half of the respondents find Hong Kong’s current regulatory set-up costly, complex and time-consuming, according to the research report released on Tuesday.

Roughly 64 per cent of the respondents also said they face a “severe talent gap” and intense competition from other regions to secure manpower – a problem that has been exacerbated by the Covid-19 pandemic.

In June, the Hong Kong Monetary Authority pledged to “groom all-round fintech talent, both students and practitioners”. Photo: Handout

Amid stringent border control and quarantine measures, as well as Beijing’s introduction of a national security law in Hong Kong in 2020, more than 113,000 residents left the city over the past 12 months, according to figures released by the local Census and Statistics Department earlier this month.

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