Banking Today

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Issue #98 (Jan - Feb 2018)
	Cover Story Moving into a New Era: FinTech at the Forefront As China undergoes intensive financial reform, its FinTech industry has grown to become one of the global leaders in applying technologies such as Big Data, cloud computing, AI, and blockchain to payment and settlement, data risk control, high frequency trading, and biometric identification. The maturation of the industry has given rise to online direct banks that pose various challenges to the traditional banking industry and traditional banks are collaborating with FinTech pioneers to deliver better products. Hong Kong continues to play the “super liaison” role to connect mainland China to the global market, better position itself in the strategic “Belt and Road” policies and takes the lead as the global financial hub in the new digital era.
	China World New Monetary Policy Tools to Maintain Stability and Aid Growth To support the development of a real economy, China has used the new monetary policy tools such as Medium-Term Lending Facility (MTL) and Standing Leading Facility (SLF) multiple times since October 2017. Meanwhile, targeted reserve requirement ratio (RRR) cuts and loose monetary policies have been a timely measure to release financial pressure for banks hit by the tightening monetary policies in early 2017. With increasing pressure of capital outflow, it is expected that China will continue to adopt a combination of these measures to hedge the base currency and balance market liquidity.
	FinTech Hong Kong’s Expedition to Become a FinTech Hub Joint effort by the government, businesses, institutions and universities in pushing Hong Kong as a global FinTech leader was fully showcased in last year’s FinTech Week, FinTech Education Week, and FinovateAsia 2017. During the FinTech Week, HKMA announced two major collaborations with authorities in Shenzhen and Singapore to support cross-border expertise exchange and innovative projects. Meanwhile, The University of Hong Kong has also announced the lift-off of a new certified FinTech course, MOOC. The nurturing and developing of new talent is acknowledged as an integral part of Hong Kong’s path to FinTech success.
	Knowledge Plus Transforming Hong Kong’s Talent Pool to Talent Power Given new regulatory measures proposed and exciting leaps made in the FinTech area, it is crucial for banking professionals to keep themselves informed and equipped. The Hong Kong Institute of Bankers’ Certified Banker (CB) Programme has thus launched two new modules, namely “Introduction to Banking Law” in CB (Stage I) and “Technology Management & Innovation in Banking” in CB (Stage II). While the former explains fundamentals of relevant laws, regulations and internal policies that precedes the more advanced courses such as “Banking Law and Practice”, the latter discusses current FinTech topics including blockchain, AI, big data, open API banking, and cyber security threats.
	GRC Corner A New Raft of AML/CFT Regulations Much has been done to enhance the Anti-Money Laundering (AML) and Counter-Financing of Terrorists (CFT) regulations in recent years. In light of the mutual evaluation by the Financial Action Task Force in 2018, Hong Kong is strengthening its AML regulations. Amendments have been proposed to existing legislation like the Companies Ordinance and the Anti-Money Laundering and Counter Terrorist Financing (Financial Institutions) Ordinance (AMLO) and new legislation like the Cross-boundary Movement of Physical Currency and Bearer Negotiable Instruments Ordinance will soon come into force.
	Talk Around Town Transforming Tourism through Technology and Culture The Hong Kong government has published a blueprint with 4 development strategies and 72 initiatives to strengthen the competitiveness of the city’s tourism industry. One of the strategies is to develop smart tourism by incorporating technology into the travelling experience. Meanwhile, shopping malls are also transforming to cater to millennials who prefer cultural experiences over shopping, such as the new creative spot “The Mills” and concept mall “The Boxes”. Hong Kong is advancing from its strong reliance on shopping and culinary experience to a cultural hub utilising smart technology for a sustainable tourism industry.