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Financial and Monetary Affairs
requests to access the Fintech Supervisory Chatroom for regulatory feedback at the early stage of fintech projects. Around 70 per cent of the requests were made by technology firms.
Between March and May, the HKMA granted eight virtual banking licences. Virtual banks have no physical branches and rely on the internet to receive customers and deliver banking services. The introduction of virtual banks is a major milestone in reinforcing Hong Kong's position as a premier international financial centre.
SFC Fintech Initiatives
The SFC, through its Fintech Contact Point and Regulatory Sandbox, handles enquiries about operating fintech businesses, such as robo-advising, equity crowdfunding platforms and the application of blockchain in delivering financial services and products.
The SFC maintains close contact with overseas regulators to keep up with fintech trends and market intelligence. Fintech cooperation agreements are in place with counterparts in Abul Dhabi, Australia, Dubai, Malaysia, Switzerland and the UK. The SFC also participates in fintech- related policy discussions as a member of the International Organisation of Securities Commissions. It is a Coordination Group member of the Global Financial Innovation Network of financial regulators, which is committed to supporting financial innovation in the interests of
consumers.
IA Fintech Initiatives
The IA facilitates development in insurance technology (insurtech) through:
the Insurtech Sandbox, which allows authorised insurers to conduct a pilot run of innovative insurtech applications to be applied in their business operations;
• a Fast-Track application scheme, which authorises applicants owning and operating solely digital distribution channels, and under which licences for the first life virtual insurer and non-life virtual insurer were granted in December 2018 and October 2019 respectively; and
⚫ the Insurtech Facilitation Team, which communicates with businesses that develop and
apply insurtech in Hong Kong.
In June, the IA became a member of the Global Financial Innovation Network.
Other Measures to Enhance Hong Kong's Competitiveness as International Financial Centre
The government drives, facilitates and coordinates initiatives to ensure the overarching regulatory framework will protect investors and promote market development in the face of global needs and local circumstances.
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