PwC Ltd (goo.gl/z75hs0)
Date: 6 April 2017
PwC’s 2nd Global FinTech Survey shows the vast majority (82%) of financial institutions in Hong Kong intend to form partnerships with FinTech companies in the next 3-5 years, rather than radically re-invent themselves. Only 51% of Hong Kong institutions have adopted a ‘disruptive’ strategy, compared to 56% globally and 59% in China.
“The survey respondents in Hong Kong are showing a very pragmatic response to the challenge thrown down by FinTech start-ups,” says Matthew Phillips, Financial Services leader for PwC China and Hong Kong. “The incumbents are looking for a win-win. They can import culture change through partnership, and the start-ups can more easily gain
penetration. We are excited about the momentum that is building in the Fintech space and see significant potential for Hong Kong to play a regional role.”
However, the survey finds that there are some issues that can dampen enthusiasm for these partnerships. 60% of Hong Kong respondents are concerned by the regulatory uncertainty that could arise (compared to a global average of 54%). More starkly, 70% of Hong Kong respondents believe that FinTech firms can increase information security and privacy threats – against 42% of respondents in China.
The race for talent could also be an issue: 87% of Hong Kong respondents say it is difficult to hire and retain people who can innovate. This is a higher rate than in China (71%), Singapore (79%) or globally (80%).
To view the full report: http://www.pwchk.com/en/financial-services/publications/fintech/hong-kong-fintech-survey-2017.pdf