The 2021 Hong Kong FinTech Week will be held at the Hong Kong Convention and Exhibition Centre on the 3rd and 5th of this month. Themed "Leading the Future of Fintech", this year's event brings together fintech companies, banking, insurance and asset management financial institutions, investors and regulators around the world to explore how emerging technologies and innovative thinking can drive the financial services industry to bring maximum benefits to consumers, industries and society.
Speaking at the main forum on November 5, Ji Kuisheng, co-CEO of Lukkin Holdings (nyse: lu), said that the fintech industry is moving towards a mature stage of development, and in an environment of increasing regulatory levels and requirements, only licensed and well-funded enterprises can succeed. He expects the market to further consolidate under the new industry and policy trends, and Hong Kong will play an important role in the development of fintech.
Fintech supervision is improving day by day, and cooperation between platforms is expected to become a new trend
Ji Kuisheng believes that the adjustment of the policy is to further improve the development environment of the financial technology industry and lay a new foundation for social issues such as how to improve the availability of financial services, and multiple factors are working together to promote the healthy development of the financial technology field and standardize competition standards.
He said bluntly that only licensed platforms with abundant funds and resources will succeed in the new regulatory trend. Ji Kuisheng believes that in the future, there will be closer cooperation between technology platforms and traditional institutions, and inter-agency collaboration will be further enhanced to create more convenience and choices for consumers. Therefore, there is a greater need to promote cooperation between platforms to provide better customer service, and the application of technologies in the financial field such as artificial intelligence will be indispensable in this regard.
The industry has a good momentum of development, and the long-term value is expected to be recognized by the market
Ji Kuisheng pointed out that taking the 10 financial technology companies listed in the United States as an example, the total profit growth in the first half of this year and the first half of last year, whether it is average growth or weighted average growth, has achieved optimistic growth, which shows that in the face of new changes, the overall profitability of the industry can still maintain a certain level.
Under the new regulatory trend, corporate compliance costs are expected to rise slightly or be used primarily for technology investments to meet requirements. He believes that fintech will continue to maintain a good momentum of development, in this process, the industry may face a certain degree of integration, but with the standardized development of the industry, the long-term value of the head advantage enterprises in the field is expected to be recognized by all parties in the market.
Hong Kong will play a major role in the development of fintech
Ji Kuisheng believes that with the implementation of the supporting policies of the Greater Bay Area, the interconnection between the mainland and Hong Kong in the financial sector will be further deepened, and Hong Kong will play an increasingly important role in it. He predicts that in three to five years, fintech may account for 10 to 20% of the business scale for companies that focus on providing wealthtech-related services, which is a huge opportunity.
Cai Hua, CEO of Lu Jin Law Firm Hong Kong under Lu Jin Holdings, also said in the master class class of Hong Kong FinTech Week 2021 that cross-border wealth management will undoubtedly bring great opportunities to the wealth management market in the Greater Bay Area. Fintech/wealth technology companies, including Luxe & Co., Ltd. in Hong Kong, can provide technology output empowerment for financial institution partners in the region, and provide one-stop fintech solutions for the latter's wealth management business, such as providing cloud computing technology and services in terms of technology and operational support, software, platform and infrastructure, to help financial institutions improve the service efficiency of wealth management and effectively save operating costs, so as to better grasp the opportunities of this era.
Disclaimer: This article is for informational purposes only and does not constitute investment advice.
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