A report written by Ajay Shamdasani of Thomson Reuters Regulatory Intelligence bureau today outlined the factors holding back Hong Kong’s fintech innovation.
In this report, Shamdasani discusses the complexities of Hong Kong’s regulatory environment as well as the apparent resistance from incumbent financial institutions. It contains a warning from industry officials across the city and from Europe, that unless barriers to innovation are lifted, the uptake of fintech across the city-state would be hampered.
Further, the message from financial technology experts and industry officials is that there needs to be less of a focus on future cryptocurrencies and more emphasis on fixing the existing broken payment solutions.
Auka CEO, Daniel Döderlein, is quoted within the piece as saying that the challenges incumbents will face in Hong Kong are likely to come from third-party players in the form of innovative, user-friendly mobile payments solutions. He pointed to examples we’re currently seeing being driven by tech-giants such as Facebook, Apple and Google.
He also gives his viewpoint about what should be taking the place of the current hype around bitcoin. “It is overshading the real problems and opportunities in financial services and payments,” Daniel was quoted as saying.
READ MORE: Banks have bigger issues than bitcoin
Lastly, much of the piece is dedicated to how incumbents can build a new digital channel strategy, based around mobile payments.
He pointed to the success China (and Scandinavia) has seen with their mobile payments solutions, despite their prior reliance on cash. He was further quoted as saying he couldn’t see fintech innovators getting too hung up on the use of cash or card as a barrier to innovation.
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