The Fintech Facilitation Office acts as an initiator of industry research in identifying potential applications and risks of fintech solutions.
The HKMA began the research on DLT in 2016 and has published two whitepapers to deliver the results.
The HKMA facilitated the development of eTradeConnect, a blockchain-based trade finance platform.
The HKMA launched the CFI in December 2016 with a view to raising the cyber resilience of Hong Kong’s banking system.
The HKMA published an Open API Framework in July 2018 to facilitate the development and adoption of Open API by the banking sector.
The Hub was launched in November 2016 in collaboration with the Hong Kong Applied Science and Technology Research Institute to provide a neutral ground for innovative collaboration for the fintech industry. The Hub is equipped with hardware, software, and experts to enable banks, stored value facilities operators, fintech firms, and the HKMA to try out and evaluate new fintech solutions, and to conduct Proof-of-Concept trials.
In collaboration with the three note-issuing banks, the Hong Kong Interbank Clearing Limited and the R3 consortium, the HKMA conducted a study on CBDC in 2017 with a view to better understanding its feasibility, implications and possible benefits through exploring its use in domestic inter-bank payments, corporate payments at wholesale level and delivery-versus-payment debt securities settlement.
As a follow-up to the Memorandum of Understanding signed between the HKMA and the Bank of Thailand (BOT) in May 2019, the two authorities initiated Project Inthanon-LionRock to study the application of CBDC to cross-border payments. The project was completed in December 2019 and a distributed ledger technology-based Proof-of-Concept prototype was developed successfully together with ten participating banks from both places. The HKMA and the BOT jointly published a report in January 2020 to present the key findings.
The HKMA conducted a survey on AI application in Q3 2019 among the Hong Kong banking industry. The results have proved valuable for understanding the current AI landscape of retail banks in Hong Kong. The key survey results on retail banks were summarised in a fact sheet and published in November 2019.
In December 2019, the HKMA published a report titled “Reshaping Banking with Artificial Intelligence” as part of a series of publications on the study of the opportunities and challenges of applying AI technology in the banking industry.
Please click this link to view the AI report trailer video.
In November 2020, the HKMA published a report titled “Alternative Credit Scoring of Micro-, Small and Medium-sized Enterprises” to study the use of artificial intelligence in SME loan applications.