China has been moving at high speed to develop its FinTech sector, creating a host of opportunities for Hong Kong start-ups
According to Henri Arslanian of PwC China and Hong Kong, “China is now the global leader in many aspects of B2C FinTech, with innovative firms such as Tencent, Lufax and Ant Financial completely transforming the way financial services are delivered to millions of customers. “Indeed, many players in the west are now looking at China to identify business models they can replicate.”
Next, he suggests companies should look at the insurance industry, where there are opportunities for technology to create efficiencies, lower costs, and enhance service levels – but new InsurTech start-ups need to fill the void.
For Vincent Chan Wing-shing, a co-convenor of the information technology interest group for the Hong Kong Institute of CPAs, “Today’s tech-savvy generation is looking for services and solutions that meet their needs and give the best customer experience”. This is seen most obviously in the widespread adoption of e-wallets and mobile payment systems and the rapid growth of e-commerce.
“Another area for special caution is cyber security” Chan continues. “Online attacks are getting more sophisticated every day, so there has to be more investment in protecting against them.”
For Paul Sin, Deloitte China consulting partner, a top priority is the development of distributed ledger technology (DLT) applications. “DLT can infuse transparency and trust into the ecosystem,” Sin says. “Other problems such as identity theft and fraudulent transactions could also be resolved. DLT can also be applied in energy, media, health care, pension funds and loyalty programmes.”
“Adapted with permissions from South China Morning Post”