In the wake of the 21st century, more and more companies have made it a point to utilize latest technological advancements in all aspects of their business processes. Tasks which were once dependent on human beings, are now being replaced with softwares and applications.
Today, anybody with an internet connection is able to carry out banking activities, trading, buying and selling of shares, purchasing essential goods from e-commerce stores, conduct currency exchanges and numerous other activities which clearly indicates there is a shift happening in the consumer world right now.
In Hong Kong, new fintech firms are racing to create the next innovative application for the benefit of consumers and 40% of these firms have decided in someway, to incorporate DLT or blockchain technology as part of their application offering.
The Hong Kong’s Treasury Department recently released a report providing a detailed glimpse of blockchains accelerating growth within the territory.
Blockchain comprises the fastest-growing segment of the territory’s fintech industry, with 22 of the 57 fintech firms that have launched in Hong Kong over the past year operating with DLT.
WealthTech comprised the second-fastest-growing sector with 20% of new fintech firms, followed by Payments with 17%, and InsurTech with 9%.
- WealthTech – 20%
- Payments – 17%
- InsurTech – 9%
Apart from these sectors, other sectors have also taken great strides in differentiating themselves from the crowd and have decided to infus some of the latest technologies such as blockchain, IoT and Ai in their applications.
- Cryptocurrency trading platforms – 27%
- Digital asset custodians – 14%
- Trade finance settlement with 9%
In fact, trading platforms for cryptocurrencies comprise one of the highest, 27%, of Hong Kong’s blockchain sector.
If you took a closer look and the data published within the report, since April 2019, the number of fintech businesses operating in Hong Kong have also exceeded to a whopping 600. This includes the governments approval and issuance of 8 virtual bank licenses and 4 virtual insurers.
With so much going on right now, especially with the current COVID-19 pandemic issue which has practically brought the world of business and finance to a stand still, many Fintech companies in Hong Kong have embraced blockchain technology to offer a more efficient, transparent and cost saving solution to the business world.
Check out this video from Hong Kong Monetary Authority to understand why fintech companies all over the world prefer Hong Kong as their fintech hub.