ENG-2018 — Page 114

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Financial and Monetary Affairs

allowed 42 pilot trials. The sandbox, including the chatroom, was opened to regulatory technology (regtech) projects and ideas raised by banks and technology firms starting from September to develop the regtech ecosystem.

Under the Banking Made Easy initiative, the HKMA streamlined regulatory requirements on remote onboarding, online finance and online wealth management. These enhancements helped banks offer better user experience in online banking. The scope of the initiative was expanded in September to encourage banks to adopt regtech.

A revised Guideline on Authorisation of Virtual Banks was issued on 30 May to facilitate the introduction of virtual banking in Hong Kong. About 30 applications had been received up to the year end. The HKMA will start granting virtual banking licences in the first quarter of 2019.

SFC Fintech Initiatives

Since the establishment of a Fintech Contact Point and Regulatory Sandbox, the SFC has fielded enquiries from firms and individuals intending to operate fintech businesses. These include robo-advising, equity crowdfunding platforms and the application of blockchain in delivering financial services and products.

On the international front, the SFC maintains close contact with overseas regulators on fintech trends and market intelligence. Fintech cooperation agreements are in place with counterparts in Abu Dhabi, Australia, Dubai, Malaysia, Switzerland and the UK. During the year, the SFC joined the Global Financial Innovation Network as a Coordination Group member.

IA Fintech Initiatives

The IA facilitates development in insurance technology (insurtech) through:

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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 for the authorisation of new insurers owning and operating solely digital distribution channels, under which the licence for the first virtual insurer was granted in December;

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the Insurtech Facilitation Team, which enhances communication with businesses involved in the development and application of insurtech in Hong Kong; and

• a fintech cooperation agreement signed with the Gibraltar Financial Services Commission in March to enhance collaboration in supporting fintech innovation.

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 both global needs and local circumstances.

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