ICYMI: Partnerships between banks and fintechs could lead to a more distributed model for Hong Kong's banking industry
The fact that the fintech regulatory landscape is also constantly evolving exacerbates this further, with 73% of incumbents and 88% of virtual banks citing this as a challenge to partnering. In addition, 78% of incumbents state cybersecurity risks as a hurdle, as they're concerned that fintechs' IT security is .
For fintechs to benefit from an increasingly distributed banking model, they'll need to both overcome the current hurdles and prepare for increased regulatory oversight. For example, fintechs could develop initiatives with banks within the Fintech Regulatory , which enables partners to launch pilot trials for limited customers without having to achieve full compliance.
This environment would alleviate banks' concerns regarding regulatory uncertainty. To mitigate cybersecurity concerns, Hong Kong fintechs should look to harness the local open banking by working with banks to develop security standards for the sharing of customer data. They could also propose to help banks upgrade their IT systems to ensure full interoperability.
These initiatives would promote further partnerships with incumbents and virtual banks, with fintechs increasingly involved in the distribution of financial services, enabling them to scale and reach wider customer bases. However, fintechs should also prepare for more stringent requirements, as their growing role in the banking system will mean increased oversight from financial supervisors.
Canada Latest News, Canada Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
31% Of Small Businesses Have Stopped Operating Amid Coronavirus: Sheryl Sandberg Shares How Facebook’s Latest Product Aims To HelpFacebook out with their new State of Small Business survey on how businesses are faring amidst the ongoing pandemic as well as how their new e-commerce product, Facebook Shops, can help.
Read more »
Hong Kong Chief Appeals for Citizens’ Support as Trump Moves LoomThe city’s top official appealed to people to support new national security legislation imposed by Beijing, as international criticism of China’s decision to bypass city lawmakers mounted.
Read more »
Ai Weiwei says new security law is the end of Hong KongDissident Chinese artist Ai Weiwei believes the newly passed national security law for Hong Kong augurs the end for the semi-autonomous city. Ai was arrested at Beijing&39;s airport in April 2011 and held for 81 days without explanation during a wider crackdown on dissent that coincided with the international
Read more »
China's 'nervous' Xi risks new Cold War, last Hong Kong governor saysChinese President Xi Jinping is so nervous about the position of the Communist Party that he is risking a new Cold War and imperiling Hong Kong's position as Asia's preeminent financial hub, the last British governor of the territory told Reuters.
Read more »
Fintech unicorn Brex cuts 62 jobs as the downturn slams startups - Business InsiderBusiness Insider is a fast-growing business site with deep financial, media, tech, and other industry verticals. Launched in 2007, the site is now the largest business news site on the web.
Read more »
Trump Announces New Sanctions On Chinese Officials, But Won’t Scrap Phase One Trade DealPresident Trump announced new targeted sanctions against Chinese officials and directed his administration to remove special exemptions for Hong Kong, but he kept the phase one trade deal intact by skleb1234
Read more »