Opening Remarks at FiNETech6 on “Data Excellence, Cyber Resilience: The Dual Imperatives Driving Fintech Maturity”

1. Good morning, everyone. Welcome to FiNETech6, the sixth edition of our flagship series.  Since its launch in 2024, FiNETech series has been at the forefront of the HKMA’s Fintech promotion journey, bringing together Fintech enthusiasts from the financial and technology sectors to explore next-level collaboration.
2. As part of the “All banks go Fintech” initiative, the HKMA, in collaboration with key stakeholders in the Fintech ecosystem, has rolled out a variety of cross-sectoral activities which encouraged the adoption of Fintech over the past few years.
3. For example, we published research papers focused on AI and DLT, launched the Fintech Connect directory that facilitates precise matching between financial institutions and solution providers, and also shared industry good practices of Fintech adoption through a series of training sessions.
4. These activities nurtured a secure and encouraging environment for innovation. As we are near to the completion of our “Fintech 2025” journey, it may be an opportune time to reflect on the progress that has been made to promote Fintech adoption.  This review will enable us to identify areas for further development and inform our future plans.
5. Notably, 97% of major banks, and all retail banks, have adopted Regtech solutions now, up from 83% three years ago. The adoption rates of Wealthtech, Insurtech and Greentech have also increased by about 10-30% in the past three years.  The widespread adoption of these technologies has enhanced the financial sector’s ability to manage risks, improve operational efficiencies, and promote sustainable growth, setting a new standard for customer experience.
6. The encouraging progress is a testament to the power of collaboration and the industry’s readiness to embrace change. It is clear that our collective efforts have been the key to unlocking this thriving and harmonised Fintech ecosystem.
7. As we continue to push the boundaries of Fintech innovation, our vision is to make our institutions and financial system future-proof. Data excellence, cyber resilience, and strategic collaboration, are the key elements supporting Fintech maturity.  Let me elaborate.

Data Excellence

8. Similar to musical instruments that must be well-tuned for harmonious chords and melodies to be played, data excellence is like the right pitch that ensures the optimal performance of Fintech solutions. It sets the stage for financial institutions to train and refine their models effectively, enabling them to play in perfect harmony to the needs of customers.
9. As we witness the increasing use of machine learning in Fintech solutions, the accuracy and reliability of such models rely heavily on the quality of the data used to train them. Data excellence, therefore, is not merely an aspiration but a necessity for maintaining the integrity and reliability of Fintech systems. 
10. Taking the process of training a credit risk assessment model as an example – if the data used is noisy, incomplete, or biased, the model will perpetuate or even amplify these flaws, leading to inaccurate credit ratings and misinformed decision-making. In computer science terms, we call it GIGO – “Garbage in, garbage out”.
11. In fact, although advanced technologies are vulnerable to poor data governance, some advanced technologies can play a critical role in helping organisations to achieve data excellence. For instance, advanced access control solutions, such as behavioural analytics, can safeguard sensitive data from unauthorised access.
12. These innovative technologies not only enhance data security but also empower financial institutions to leverage data-driven decision-making, improving their overall risk management capabilities.
13. To further promote the culture of data-driven innovation across the industry, the HKMA is working on a data strategy to expand the use of granular risk data, in terms of the level of detail as well as the frequency of updates. It will provide both banks and the HKMA with deeper insights into the rapidly evolving risk landscape.  We will soon reach out to the industry to collaboratively devise this new data strategy.
14. The importance of data quality can never be overstated. Pursuing data excellence allows financial institutions to maximise the potential of data as a valuable asset, supporting the effective use of Fintech solutions to deliver outcomes.

Cyber Resilience

15. In today’s digital age, cyberattacks, such as advanced persistent threats and ransomware, have evolved into a pervasive menace, threatening the stability and interconnectedness of our financial system with their far-reaching and systemic impact.
16. As such, cyber resilience is essential in providing a robust defence for the Fintech solutions adopted, like a soundproofing concert hall that shields the orchestra from external noises. A comprehensive cybersecurity strategy, augmented by advanced techniques such as AI-powered threat detection is essential.  These tools allow for timely detection, efficient incident response, and effective disaster recovery planning, ensuring our performance remains acoustically protected and our symphony continues uninterrupted.
17. Integral to this strategy is the recognition that cyber resilience is also a cornerstone of data excellence. It acts as a guardrail for data confidentiality, safeguarding against risks such as data poisoning, where malicious actors corrupt or manipulate data.
18. As we take proactive steps to mitigate the risks, the cyber mapping exercise conducted by the HKMA with other local financial authorities, for instance, maps out the network interdependencies between key financial institutions, financial market infrastructures, and technology service providers. It enables financial institutions to identify potential concentration risks, shedding light on better managing the potential systemic impact.

Strategic Collaboration

19. Innovation driven by advanced technologies such as AI, blockchain, and high performance computing are advancing the solutions with greater sophistication and enabling more sophisticated uses.
20. However, innovation itself does not thrive in isolation. Industry collaboration is the linchpin that holds us together, ensuring a harmonised ecosystem where resources, talents, expertise, and innovative ideas are glued cohesively. This involves collaboration across sectors, with not only financial institutions and Fintech firms, but also the academia, government agencies as well as cross-border organisations.
21. As we explore the way forward, the HKMA signed a memorandum of understanding with the Hong Kong University of Science and Technology in May 2025, which aims to strengthen collaboration in applied cybersecurity research. Furthermore, we will also continue working with various cross-boundary Fintech firms and government agencies in the Greater Bay Area, introducing more advanced uses of emerging technologies in the financial industry.
22. Today, we are also publishing a report on the results of our Fintech Maturity Stock-take exercise, which offers a comprehensive overview of the latest Fintech adoption landscape, emerging trends, and key challenges as adoption widens. It serves as a resource for understanding where we stand and where we are heading in the Fintech journey.
23. A detailed blueprint for further enhancing the sophistication and maturity of Fintech adoption across the Hong Kong financial sector in the upcoming years, will be developed based on these insights.
24. As we take the stage, our Fintech orchestra is ready to perform. With financial institutions adopting cutting-edge solutions and Fintech providers innovating responsibly, we can together create a harmonious and innovative Fintech ecosystem that resonates with customers, empowers businesses, and transforms the financial world.
25. Before we start today’s programme, please allow me to express sincere gratitude to our co-host Cyberport, and to the Securities and Futures Commission, the Insurance Authority, the Mandatory Provident Fund Schemes Authority, the Authority of Qianhai Shenzhen-Hong Kong Modern Service Industry Cooperation Zone of Shenzhen, the Hong Kong Association of Banks, the Hong Kong Science & Technology Parks Corporation, and the FinTech Association of Hong Kong, for supporting the event today.
26. Without further ado, let us start the ternary on data excellence, cyber resilience and strategic collaboration. Thank you.