The swift advance of fintech is reshaping global finance. In response, the Hong Kong Monetary Authority (HKMA) has launched its “Fintech 2025” strategy to lead the city's banking sector toward deeper innovation, adaptability, and resilience. This article focuses on the first three strategic pillars — “All Banks Go Fintech,” fintech talent development, and ecosystem support through funding and policy — while deferring discussion of the remaining two pillars (CBDC and data infrastructure) to a companion piece next week.

The ambition of the “All Banks Go Fintech” pillar is full-spectrum digitization — not just front-end apps, but embedding fintech capabilities throughout banks'operations. HKMA has encouraged this transformation in multiple verticals:

1. Digital Banks
   Hong Kong now has eight Digital Banks (formerly virtual banks). They have rapidly expanded in customer base, especially among tech-savvy individuals and SMEs. Offering deposits, lending, and even investment/insurance services via fully digital channels, these new players have galloped ahead — putting pressure on traditional banks to catch up. Hong Kong Monetary Authority
   [Preserve original figure: DBs' customer / deposit / loan statistics as of June 2025]

2. Regtech for Risk and Compliance
   Regtech adoption is a core supervisory priority. HKMA has released practice guides, use-case bulletins, and educational materials to help banks integrate Regtech into operations. As a result, all retail banks have now adopted Regtech, with overall industry adoption reaching 97%. Hong Kong Monetary Authority
   [Preserve original figure: Growth in Regtech adoption (2025 vs 2022)]

3. Insurtech, Wealthtech, Greentech
   Based on a 2022 techno-baseline assessment, HKMA identified Insurtech, Wealthtech, and Greentech as high-growth areas. Its Fintech Knowledge Hub and Fintech Connect platform have accelerated adoption, with growth ranging from 20% to over 100% in relevant areas. Hong Kong Monetary Authority

By mid-2025, HKMA reports that 95% of banks have reached a fintech maturity threshold, meaning fintech is embedded end-to-end. Customers are already benefiting from remote account opening, alternative-data credit models, and AI-based defense (e.g. deepfake detection). Hong Kong Monetary Authority

This shift marks movement from the phase of “banks going fintech” to a new state — “banks that are fintech.”

Technology demands human capacity. HKMA‘s strategy for talent and ecosystem development unfolds in parallel with digitization:

• Talent Cultivation
  Initiatives include fintech training programs under the Enhanced Competency Framework, internship schemes (e.g. Fintech Career Accelerator), and project-based partnerships with universities to embed real-world fintech experience. 

• Funding & Policy Support
  The authority extends funding and regulatory support for fintech ventures via supervisory sandbox programs and policy incentives — helping promising ideas scale from pilot to commercial deployment. 

These efforts reinforce a virtuous cycle: as banks adopt fintech, demand for talent and innovation rises — which in turn supports further adoption.