HK, Singapore rivalry hobbling Asia in $100b Fintech race
Asia’s competitiveness in fintech is being undermined by the rivalry among the region’s financial centers that has created regulatory complexity and uncertainty, a financial lobby group has warned.
Governments across Asia—most notably Hong Kong and Singapore—have launched a raft of initiatives to grab a slice of the $100 billion invested in financial technology globally but the regulatory hotch-potch is making it tough for firms to scale up, the Asia Securities Industry and Financial Markets Association said in a report on Friday, PTI reported.
“The regulatory landscape is very fragmented and a lot of the initiatives, though well-intentioned, are not necessarily well thought through,” said Mark Austen, CEO of ASIFMA.
The lobby group, which represents global banks and asset managers such as Goldman Sachs and BlackRock, has called on Asian regulators to coordinate better and to adopt a consistent set of best practices for fostering fintech in the region.
“By not cooperating on fintech, Asian financial centers are putting themselves at a real disadvantage relative to the rest of the world: that traditional competitive dynamic and rivalry between the likes of Hong Kong and Singapore may actually, in this case, be a disadvantage,” said Hannah Cassidy, partner at Herbert Smith Freehills in Hong Kong, which contributed to the report.
Investors poured $19 billion worldwide into fintech—including P2P lenders, distributed ledger technology and crowdfunding platforms—in 2016 alone and thousands of fintech start-ups continue to proliferate, according to a February report by global regulatory body the International Organization of Securities Commissions.
Hong Kong, Singapore, Australia, Japan, South Korea and Malaysia have launched a range of special programs to attract and foster fintech ventures, from incubators and grants, to temporary license waiver schemes, with competition fiercest between Hong Kong and Singapore.
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