On 16 Jul 2025, the HKMA published results from its Tech Maturity Stock-take, highlighting significant fintech adoption growth across regtech (97%), insurtech (29% increase), AI (75%), and DLT (45%). The report identifies key challenges including implementation costs and cybersecurity risks, and outlines the HKMA's plan to develop a strategic blueprint supporting responsible fintech advancement over the next three years.
This article was generated using SAMS, an AI technology by Timothy Loh LLP.
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Introduction
On 16 Jul 2025, the Hong Kong Monetary Authority (HKMA) published the results of its Tech Maturity Stock-take exercise, detailing key observations on fintech adoption across Hong Kong banks and outlining future strategic directions for the industry.
Key Observations on Fintech Adoption
The Stock-take report reveals remarkable growth in fintech adoption across front-to-back operations, with regtech penetration rising to 97% (from 83% in 2022), insurtech growing by 29%, greentech by 19%, and wealthtech by 9%. Significant advancements in AI and DLT adoption were noted, with 75% and 45% of banks implementing these technologies respectively (up from 59% and 30% in 2022), reflecting a transition from exploratory to operational phases.
Future Investment and Challenges
Ninety-five percent of surveyed banks plan to maintain or increase fintech investments over the next three years, with half anticipating 10-20% budget growth. Key challenges identified include implementation costs (75%), novel technology risks (73%), system integration (71%), data privacy/cybersecurity (61%), talent shortages (59%), and regulatory evolution (59%). The report emphasizes that high-performance computing, data excellence, and cyber resilience are foundational enablers for sustainable fintech maturity.
HKMA's Next Steps
Based on the Stock-take findings, the HKMA will formulate a detailed blueprint over the next few months to support the industry's responsible adoption of novel and sophisticated technologies, building on the Fintech 2025 strategy to enhance cross-sectoral fintech maturity.
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