The FinTech Association of Hong Kong (FTAHK) has signed a memorandum of understanding with a non-profit group that promotes financial technology in Southeast Asia to facilitate development of a global cloud-based financial platform across Asia.
The platform, known as API Exchange, will enable financial institutions and fintech firms to deploy innovative solutions at lower cost, FTAHK says in a statement on November 6.
The two groups will also support the fintech industry’s interactions with regulators and government bodies.
According to FTAHK, these activities will help foster greater links between the banking, technology and fintech industries across Hong Kong and the Association of Southeast Asian Nations, or ASEAN, a ten-member bloc that includes Indonesia, Malaysia, Singapore and Thailand.
“Hong Kong and Singapore are world leaders in fintech and so collaboration between the two centres is essential for the growth of Asia’s ecosystem as a whole,” Helene Li, general manager of FTAHK, says in the statement.
Manish Diwaan, managing director of the ASEAN Financial Innovation Network, adds that Asia is undergoing a “fintech revolution” and as such it’s “increasingly important to facilitate collaboration between different hubs across the region”.
KPMG figures show that investments in fintech in Asia Pacific declined to US$3.6 billion in the first half of 2019 from $18.3 billion in the same period last year, primarily because of a lack of megadeals in China.
FTAHK, which was established in 2017, represents over 160 fintech companies in Hong Kong and has more than 1,000 individual and corporate members.
The ASEAN Financial Innovation Network was set up last year by the ASEAN Bankers Association, the International Finance Corporation, the World Bank’s private sector arm, and the Monetary Authority of Singapore.