FinTecubator -- Hang Seng Bank embraces Fintech innovation through Corporate Innovation Programme

Date:2020-07-23 09:52
Why we launched FinTecubator

The Fintech market in Hong Kong

As the wave of the Fourth Industrial Revolution rages across the globe, an increasing degree of digitalization has been witnessed in the past few years, along with rapid development in telecommunications as well as financial technology (Fintech) innovations.

Supported by Big Data Analytics, Artificial Intelligence (AI), Blockchain, Cloud Computing, Open APIs and other cutting-edge technologies, the operation of banking business has been significantly disrupted and is heading to a brand-new business model which has a better customer experience, lower operational cost and higher efficiency. Fintech, which has been widely adopted across all types of financial services, is a new phenomenon in the banking industry. It is believed that the future of banking greatly hinges on Fintech innovation.

Hong Kong, known as the top three global financial hubs with more than 160 licensed banks and 8 licensed virtual banks, undoubtedly, has the best soil to nurture Fintech innovations. With its well-known reputation of the world’s freest economy and its openness, diversity and tolerance, Hong Kong has attracted hundreds of thousands of technology talents and bankers both domestically and internationally, which give Hong Kong a greater advantage in sprouting Fintech.

Apart from a prosperous banking system and a rich talent pool, sufficient money has been invested in Fintech development to support its continuous thrive. According to Hong Kong Economic and Trade Office, London, 2018, there is a US$63.8 million HK Government Funding Scheme (2018-2023) to expedite the development of financial services. Started from 2014 to 2018, a total Fintech investment of more than US$1.1 billion had been put into HK-based companies. And, remarkably, in 1H 2019 alone, the number had reached US$152 million under the report of Accenture, 2019, which indicates the strong vibrancy of Hong Kong’s Fintech ecosystem.

To be an active player in the Fintech market

As a leading domestic bank in Hong Kong, embracing changes and innovations have always been one of the core missions for Hang Seng to keep abreast of the trend of the times. We see it as an opportunity to evolve our services so that the bank could better meet the rising needs of our customers. By actively participating in Fintech development, launching Fintech service solutions and sparking innovation within the bank, we are targeting to sustain corporate innovation with existing assets and to become an active player in the Fintech market. It is a promising way for Hang Seng to explore unveiled possibilities of the bank’s future growth.

Launching FinTecubator programme is Hang Seng’s strategic move towards the future of banking. It is an internal incubation programme which aims to form a Fintech-oriented start-up ecosystem by bridging our intrapreneurs with the whole Fintech industry, including investors, enterprises, academia and technology talents to nurture innovative ideas and validate them into Fintech products.

Backed by Hang Seng’s partnerships, strategical supports, skilled talents, FinTecubator is a separate innovation and intrapreneurship division within Hang Seng Bank, which gives us more freedoms and resources to participate in the Fintech development.

With the vision of “Make innovation a verb”, FinTecubator is and will well serve as a virtual space for exchanging and sprouting innovative ideas. We warmly welcome all practitioners from the whole industry to jam idea with us to unearth more possibilities. The launch of FinTecubator would certainly bring tremendous momentum to the Fintech market since we connect and empower businesses to thrive through Fintech innovation.

Accelerate the pace of Fintech adoption within the bank

Amid working closely with external partners in Fintech development, FinTecubator, aligning with the Fintech adoption strategy, also functions as an internal Fintech promotion programme to accelerate the Fintech adoption pace within Hang Seng Bank.

Knowing your customer is one of the bank’s most crucial guidelines that requires bankers to verify who they are serving in a business relationship. Lots of times and efforts have been put in, but, as we can notice, is relatively inefficient and sophisticated.

Fintech solutions, specifically data analytics, will greatly facilitate this process. By accessing and analysing the data, we can truly understand customers’ behaviours and create comprehensive profiles to deliver more values. Through updating our colleagues with technology trends, encouraging them to adopt the latest Fintech solutions, we believe we could better serve our customers and reduce our cost-to-income ratio as well.

Promote innovation to renew culture and mind-set

To drive innovation within the bank, the role and mind-set of our colleagues as passive followers need to be changed. FinTecubator is designed to promote innovation culture within the bank to facilitate the huge transformation of them into being proactive adopters.

They are encouraged and authorized to initiate creative products, services as well as projects and take full ownership in validating them into an effective business model. During this journey, not only will they acquire practical skills in handling their daily works, but also they will be equipped with problem solving mind-set, which, ultimately, will be a key driver in exploring new opportunities and solutions to address business pain-point.

“Ever-growing” is Hang Seng Bank’s core value and FinTecubator is living its principle to empower our colleagues to grow. By continuously sparking innovation and enabling our colleagues to think and act like an entrepreneur, we are confident that Hang Seng will play a key role in the Fintech market while at the same time, marching towards the future of banking.
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