HKMA defends fintech position
(29 September 2015 – Hong Kong) Hong Kong’s banking watchdog, Hong Kong Monterary Authority (HKMA) has for the first time, defended its position on fintech companies.
Speaking at an event last week, deputy chief executive, Arthur Yuen, said HKMA has moved away from a security focus, instead seeking to provide a better balance between protection and convenience.
“The same customer protection requirement will more or less remain relevant regardless of the channel used to deliver it,” Yuen said.
Responding to criticism that the country does not have suitable regulatory framework for fintech, he said: “People have the impression that regulation is needed for fintech to flourish.
“That is wrong. Fintech will flourish with or without regulation. The whole premise of fintech is not to be regulated, so I think that criticism is completely misplaced.”
Yuen suggested that the biggest concern with new entrants is the impact on customers, whether current rules cover fintechs, and if the public understands the associated risks
Yuen said that Hong Kong’s fintech development is making steady headway. He cited a revised guidance issued earlier this month on e-banking, highlighting that it will provide more flexibility for a range of banking services.
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