Following are the closing remarks by the Secretary for Innovation and Technology, Mr Nicholas W Yang, at the 2016 FinTech Innovation Lab Asia Pacific Investor Day today (November 9):

Jonathon (Senior Managing Director for Financial Services of Accenture, Mr Jonathon Allaway), Adrian (Director of FinTech Innovation Lab Asia Pacific, Mr Adrian Seto), George (Chairman of Hong Kong Cyberport Management Company Limited, Dr George Lam), distinguished guests, friends, ladies and gentlemen,

     Good afternoon.

     It was not too long ago that I was at the welcome cocktail of this year's FinTech Innovation Lab Asia Pacific in August. I am glad to be back at the Investor Day to mark the grand finale for this year's Innovation Lab. This is the day for participating start-ups to give their best pitches after a 12-week accelerator programme.

     The FinTech Innovation Lab Asia Pacific has been running in Hong Kong since 2014. We are honoured to be one of the three cities in the world to host the event, on top of New York and London. The Investor Day underscores best practice in which the financial services industry works together with Accenture and the Government to nurture start-ups that offer innovative solutions to challenges facing the industry. More importantly, alumni of this programme have already raised more than US$40 million from investors. This is very encouraging.

     Fintech continues to grow rapidly globally. Last year, global investment in Fintech grew 75 per cent to US$22.3 billion. It is estimated that cumulative global investment in Fintech will reach US$150 billion over the next three to five years. The Asia Pacific region is, and no doubt will continue to be, a hotspot for Fintech development. The region accounts for 19 per cent of global financing activities and is the second biggest region for Fintech investment, after North America. According to the latest survey by InvestHK, there are almost 2 000 start-ups in various technology sectors in Hong Kong, representing a 24 per cent increase from 2015. Among these, the Fintech sector experienced a much higher growth rate of 60 per cent, which is a clear indication of the strong interest in Fintech in Hong Kong.

     As an international financial centre, Hong Kong is well positioned to be an innovative Fintech hub. Our advanced information and communication technology infrastructure and excellent broadband coverage give us an added edge. Hong Kong's mobile penetration rate of some 230 per cent is among the highest in the world. Our average peak Internet connection speed at 114.3 Mbps is the second fastest globally.

     The Government is sparing no effort to support the development of Fintech in Hong Kong. Earlier this year, the Government put forth a package of recommendations, involving all major stakeholders including the Hong Kong Monetary Authority (HKMA), the Securities and Futures Commission and the Office of the Commissioner of Insurance. Cyberport complements these by introducing a host of incubation support and dedicated Fintech Smart-Space to help develop Hong Kong as a Fintech hub.

     In September this year, HKMA launched a Fintech Innovation Hub together with the Hong Kong Applied Science and Technology Research Institute (ASTRI) for industry players to brainstorm and try out innovative Fintech solutions. HKMA also established the Fintech Supervisory Sandbox for facilitating pilot trials of Fintech and other technology initiatives before they are launched on a fuller scale. In addition, the HKMA will sign a series of Memorandums of Understanding with a number of key players, including ASTRI, Science Park and Cyberport, later this month.

     In closing, let me congratulate Accenture and Cyberport on their efforts and foresight for kick-starting the development of Fintech in Hong Kong. I want to thank you for doing that. I look forward to the continued support and collaboration among all parties in the coming years to build Hong Kong into a true regional Fintech hub.

     Thank you very much.

Ends/Wednesday, November 9, 2016
Issued at HKT 15:45

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