As if Hong Kong needed to add another string to its bow, the city already holds the much-prized status as an internationally renowned hub for finance, trade, maritime, and aviation. Yet its deeply ingrained progressive, ahead-of-its-time spirit prevents the world-class metropolis from ever resting on its laurels. The proliferation of financial technology, or more commonly known as fintech, continues swiftly in Hong Kong. Providing financial services in novel ways, fintech is transforming the industry from top to bottom. As Hong Kong moves ahead at full throttle with financial inclusion, combining the expertise of incumbents with newcomers’ agility for disruptive innovation to deliver cutting-edge solutions, there will be opportunities aplenty for startups and established players to enrich the city’s fintech ecosystem.
At present, Hong Kong is home to over 1,100 fintech companies, underscoring the city’s growing reputation as a fintech powerhouse. In addition, it hosts over ten unicorns, including Airwallex, HashKey Group, Micro Connect, WeLab, and ZA Group. The momentum is showing no signs of slackening. The market is forecast to generate USD 606 billion in revenue by 2032, supported by a projected annual growth rate of 28.5 per cent over the eight-year period starting in 2024. Against the backdrop of shifting global, regional, and local dynamics, the fintech industry — taking after its host city’s versatility and nimbleness — will no doubt skilfully manoeuvre through these changes for its betterment and growth.
Under the auspices of Invest Hong Kong (“InvestHK”) and the Financial Services Development Council (“FSDC”), the Fintech Association of Hong Kong published the Hong Kong Fintech Ecosystem Report (“Report”) in March 2025. The publicly accessible report presents valuable and detailed insights garnered from research with the aid of current participants in the ecosystem. The guide below aims to flesh out some of the key research findings, highlighting potential businesses opportunities for investors and aspiring entrants.
Background: The rise of fintech
The birth of fintech can be traced back to roughly 2010. Initially, the phenomenon took the online payment scene by storm, enabling small businesses to carry out digital transactions through a mobile device with ease. What began as an innovation addressing a specific need has evolved into a sweeping force, turning nearly every facet of the financial sector upside down, including those that were once thought to be impervious to technological upheaval.
Currently, banking is in the midst of a second wave of digitalisation, according to analysis by McKinsey. Back in the day, the conventional customer service model centred around physical branches and call centres. If a customer required assistance, they would call or visit a branch in person. Then came the omnipresence of smartphones that enabled us, for the first time, to manage many aspects of our lives right from our fingertips. This momentous shift led to a sharp surge in banking apps and automated user journeys, which were integrated into banks’ existing operational systems.
Over the vicissitudes of technological progress, however, the then-existing systems became legacy systems — out of touch with the needs of the now tech-savvy, highly discerning banking customer with a dwindling attention span. This gap created an opening for fintech newcomers to disrupt traditional models, culminating in the provision of enhanced and more user-friendly offerings. Now, incumbent banks find themselves at a critical juncture, needing to revamp both customer interfaces and back-end systems.
Global fintech trends
Last year saw USD 95.6 billion worth of fintech investment worldwide. In 2025, the global fintech scene is showing signs of recovery, rebounding after a challenging patch marked by sluggish investment and M&A activity.
The following key trends can be observed in fuelling the fintech’s industry next leg of development:
Digital payments
Payment-related fintech has retained its ascendancy in the arena. Global investment in the segment rose to USD 31 billion in 2024, rebounding sharply from a dip to USD 17.2 billion in 2023. Both B2C and B2B fronts have basked in success in equal measure. The popularity of cashless payments has surged by leaps and bounds since the days of the pandemic. Innovations in instant-payment systems and the rising usage of digital wallets in economies with a penchant for cash are likely to propel growth in the segment globally. Transaction volumes for e-payments have shown a persistent upward trend, outpacing the growth of revenue streams generated from payments. This reflects a distinct shift in preferred payment methods, characterised by a growing inclination towards lower-fee mechanisms and a compression of margins associated with scaling transaction volumes.
Regtech
More and more financial institutions are embracing the adoption of regtech amid rising compliance pressures. Application of AI and machine learning tools is helping institutions enhance the accuracy and efficiency of regulatory reporting and risk-monitoring processes. In particular, natural language processing facilitates a swifter adaptation to ever-evolving regulations. Blockchain technologies, on the other hand, are increasingly recognised for their role in optimising know-your-client verification and transaction-oversight practices.
AI-enablement
Corporate investors are drawn to startups specialising in AI-enablement, especially those seeking to optimise regulatory compliance, bolster cybersecurity, or improve the responsiveness and productivity of customer-facing personnel. AI-enablement refers to the process by which organisations are provided with appropriate tools, connectivity, infrastructure, and technologies, thereby allowing them to effectively utilise AI capabilities across their various functions. This extends beyond the mere installation of a pre-configured, one-size-fits-all AI system. Instead, AI applications are embedded fluidly and cohesively into existing processes, platforms, and systems.
Wealthtech
Wealthtech is on track for a major expansion this year, driven by advances in AI capabilities and the rising demand for personalised services. AI-powered portfolio management tools are expected to increase in number and sophistication. This will facilitate more precise asset allocation, provide timely and accurate risk assessments, and help investors make better informed decisions. Another noteworthy development is the rise of embedded finance in wealth management. Investment offerings and advisory services will be integrated into everyday digital platforms.
Digital assets and currencies
By any statistical measure, 2024 was a landmark year for the digital issuance of securities. Momentum in digital asset issuance is set to build further in 2025, thanks to an expansion of asset classes, repeat issuance, and more issuer adoption. Activity throughout the lifecycle of digital assets, including repurchase agreements and collateral management, is also set to gain further traction.
Digital currencies, on the other hand, have long since outgrown their early, immediate association with Bitcoin. Upgrades to blockchain infrastructure, such as the partition technique “sharding” to improve scalability and “Layer 2” solutions to cut costs and speed up transactions, are making networks run more efficiently.
Overview of Hong Kong’s fintech ecosystem
Hong Kong’s fintech ecosystem is distinguished by its breadth and scope — spanning the full spectrum of “techs” — from credit-tech, greentech, insurtech, regtech, wealthtech, payments and remittances to digital assets and cryptocurrencies. The sheer diversity reflects the city’s position as a comprehensive, burgeoning innovation hub for financial services.
Typically, fintech ecosystems are comprised of intricate, interconnected networks where financial as well as educational institutions, regulators, government bodies, investors, startups, and scale-ups converge and interact with one another.
Hong Kong’s fintech ecosystem draws strength from cross-sector collaboration, bringing together stakeholders from the financial milieu with expertise in investment management, insurance, and retail banking as well as from adjacent fields, such as academia, fundraising entities, government bodies, and non-profit organisations. The broad base of participation means that Hong Kong is ideally positioned to drive innovation across different domains and accelerate the uptake of new technologies, while being attuned to shifting market demands and regulatory changes.
Below are the key players identified in the Report:
Government
- Policy bureaus
- Financial Services and the Treasury Bureau
- Innovation, Technology and Industry Bureau
- Regulatory bodies
- Hong Kong Monetary Authority (“HKMA”)
- Insurance Authority
- Securities and Futures Commission
- Ecosystem partners
- Cyberport
- Hong Kong Science and Technology Parks (“HKSTP”)
- InvestHK
Market
- Fintech startups, scale-ups, unicorns
- Financial institutions
- Tech companies
- Investors
- Corporates
- SMEs
- Industry associations
- Consumers
Education
- Universities
- Professional institutions
- Training providers
Hong Kong’s competitive edge in all things fintech
The go-to fintech hub for overseas innovators and investors
At this year’s World Economic Forum Annual Meeting, business executives from top European fintech companies conveyed a keen interest in establishing their base in Hong Kong to expand their presence in the region. Time and time again, Hong Kong’s all-round appeal is cited as the overriding reason for overseas fintech players’ choice. Among the most frequently mentioned attributes are its burgeoning fintech and I&T ecosystems, robust funding support across different stages, a flowing talent pipeline, a business- and innovation-friendly regulatory framework, its integration into the GBA — offering a vast market for application and scalability right on its doorstep — and strong connectivity to other regional hubs and global markets.
A vibrant and high-functioning fintech ecosystem
Dotted around the globe are well-established as well as budding fintech hubs vying for investment — each with their unique amalgam of competitive advantages, specialisations, and characteristics. According to the Saïd Business School, University of Oxford, there is a set of overarching criteria against which the success of a fintech ecosystem can be gauged.
The main make-or-break factors are:
- Supportive policies conducive to the cultivation and acquisition of new talent, both local and international, and the reduction of brain drain;
- A well-functioning financing infrastructure with availability of funding at every stage, from initial seed funding and early-stage venture capital to late-stage growth equity and exit financing;
- Buoyant demand for innovative financial services, both at home and further afield.
Each of the above criteria will be examined in turn in relation to Hong kong.
Cradle of fintech talent
According to a survey conducted by eFinancialCareers, Hong Kong edged out other heavyweights— the likes of Frankfurt, London, and New York — in terms of perceived desirability among aspirants eyeing a career in fintech. Meanwhile, finance and tech professionals in Hong Kong commanded higher pay than their peers in Singapore, according to Bloomberg Intelligence, highlighting the city’s growing appeal as a hub for fintech talent.
In a report published by the World Economic Forum last year, fintechs across various regions and verticals designated the availability of a skilled workforce a main contributing factor to driving growth. Given the centrality of nurturing fintech talent, Hong Kong has launched a wide array of schemes to facilitate talent acquisition and training, such as the following:
- Top Talent Pass Scheme seeks to attract high-income professionals and graduates from the world’s best universities. Eligible applicants must either earn an annual income of at least HKD 2.5 million or be graduates of one of the 198 top-tier universities listed, with a specified number of years’ qualifying work experience.
- Quality Migrant Admission Scheme is a points-based, non-sector-specific scheme designed to attract highly skilled and talented individuals. There is a separate Achievements-based Points Test catering to those with exceptional achievements, such as Nobel Prize laureates or holders of other international accolades.
- Technology Talent Admission Scheme provides a fast-track entry pathway for non-local tech professionals to undertake research and development (“R&D”) work. It covers 14 domains, including AI, biotechnology, cybersecurity, and quantum technology.
- Fintech Career Accelerator Scheme aims to strengthen the talent pipeline by offering students through hands-on experience in the industry, while enabling companies to identify and recruit promising future tech professionals.
Diverse capital and funding streams
A wide variety of funding avenues underpins Hong Kong’s fintech ecosystem, supporting innovation and scalability. These range from government schemes to venture capital and private equity participation.
As the fourth largest centre globally for initial public offerings (“IPO”), the city boasts deep capital markets that complement early- and growth-stage financing, offering fintech companies a secure platform to raise funds through public listings. The addition of Chapter 18C by the Hong Kong Exchanges and Clearing (“HKEX”) marked a watershed moment for its listing rules. The appended chapter provides a new listing pathway for qualifying Specialist Technology Companies operating in one of the following designated areas:
- advanced hardware and software;
- advanced materials;
- new energy and environmental protection;
- new food and agricultural technologies; and
- next-generation information technology.
Furthermore, HKEX rolled out the Fast Interface for New Issuance in October 2023. It is a digital platform designed to streamline Hong Kong’s IPO settlement process by significantly narrowing the window between pricing and trading. The overhaul grants investors faster access to new listings, while lowering market risk and enhancing efficiency across the board.
On the government funding front, a plethora of incubation and subsidy schemes have been launched to lend a helping hand to fintech companies at every stage of development — for startups, scale-ups, and more established ventures.
Schemes offered by HKSTP
Ideation Programme for startups seeking to transform ideas into viable business models (Up to HKD 100,000)
Incubation Programmes
- Incu-Bio stream for biomedical tech startups (Up to HKD 6 million)
- General stream for those engaged in R&D work in electronics, green technology, information and communications technology, and precision engineering (Up to HKD 1.29 million)
Acceleration Programme for growth-stage companies looking to scale globally (Up to HKD 4.8 million)
Elite Programme for aspiring unicorns looking to expand into global markets (Up to HKD 21.5 million)
Schemes offered by Cyberport
Incubation stage
- Cyberport Creative Micro Fund (Up to HKD 100,000 in seed funding)
- Cyberport Incubation Programme (Up to HKD 500,000)
Commercialisation stage
- Cyberport Accelerator Support Programme (Up to HKD 300,000)
- Overseas/Mainland Market Development Support Scheme (Up to HKD 200,000)
Funding
- Cyberport Macro Fund (ranging from HKD 1 million to HKD 20 million per investment)
Ever-growing demand for fintech services
Around the world, fintech companies regard market demand not merely as a litmus test of success, but as a critical driver of continued investment and market penetration. In a survey conducted by the World Economic Forum in 2024, 51% of total respondents, made up of 227 fintechs spanning five industry sectors and six global regions, cited it as a key driving force behind their expansion. This finding reflects the considerable extent to which fintech players rely on user interest and uptake, as they look to scale in competitive marketplaces.
Hong Kong’s sprawling, highly sophisticated financial services industry has generated a rising demand for B2B fintech innovations, in particular. According to the Global Financial Centres Index 37 Report jointly published by Z/Yen from the United Kingdom and the China Development Institute from Shenzhen in March 2025, the international financial centre has retained its position as the world’s third-largest financial hub for another year, with its overall rating rising by 11 points to 760. In addition, it has successfully defended its title as the leader in the Asia Pacific region.
Ranked first globally in the areas of “finance”, “insurance”, and “investment management”, and third in “banking”, the city jumped by five places to claim the fourth place worldwide in fintech offerings of financial centres. This significant leap in its ranking illustrates Hong Kong’s rapid adoption of fintech solutions and its rising prominence as a fintech powerhouse on the global stage. As demand for disruptive financial technologies continues to grow apace, Hong Kong’s ascendant position is slated to be further consolidated.
Hong Kong Monetary Authority’s “Fintech 2025”
Custodians of financial system and enablers of innovation
While fintech ecosystems share many of the common denominators of success, as stated in the previous section, they must also contend with a distinct set of challenges unique to the financial services industry. An additional hurdle is the cascade of regulatory parameters that precisely define the scope within which they must operate. Legal frameworks, competition policies, and access to regulatory bodies all play a pivotal role in determining the success of fintech ecosystems.
Accordingly, policymakers, such as the HKMA in Hong Kong, play a more complex and multifaceted role in fintech ecosystems than in other tech ecosystems. One the one hand, they serve as regulators, protecting the integrity of the financial system, safeguarding the interests of consumers, and ensuring fair competition. On the other hand, they often position themselves as champions of innovation, promoting experimentation and testing of new offerings, and supporting market entry.
What is “Fintech 2025”?
In 2021, the HKMA unveiled its “Fintech 2025” strategy to propel fintech development and spur a comprehensive adoption of fintech solutions in the city by 2025. The landmark strategy encompasses the following five pillars:
“All banks go fintech”
The HKMA is pressing ahead with its fintech agenda by promoting full-scale digitalisation of banks and launching a Tech Baseline Assessment to identify gaps in adoption. It will also issue guidance to encourage the uptake of emerging technologies and the digitalisation of its own supervisory practices.
“Future-proofing Hong Kong for Central Bank Digital Currencies (“CBDC”)"
The HKMA is ramping up its research endeavours into both wholesale and retail CBDCs, including a study on e-HKD and collaboration with the Bank of International Settlements Innovation Hub on retail-use cases. Additionally, it will continue the technical testing of e-CNY with the People’s Bank of China to enhance convenience in cross-boundary payments.
“Creating the next-generation data infrastructure”
The HKMA is leading efforts to upgrade Hong Kong’s data infrastructure, including the Commercial Data Interchange, digital corporate identity, and a credit data platform powered by distributed ledger technology for consent-based data-sharing purposes.
“Expanding the fintech-savvy workforce”
The HKMA is joining hands with partners from the industry as well as academia to develop specialised training programmes and qualifications and launching joint initiatives.
“Nurturing the ecosystem with funding and policies”
The HKMA will form a Fintech Cross-Agency Coordination Group with industry stakeholders to shape policies favourable to fintech advancement, enhance its Fintech Supervisory Sandbox (“FSS”), and explore funding support for fintech projects with the Innovation and Technology Commission.
Sandbox initiatives
Initially introduced in 2016, the FSS enables banks and their technology partners to carry out pilot tests of their fintech solutions with a limited participant base, while temporarily exempting them from full compliance with the HKMA’S supervisory regulations. This arrangement facilitates the collection of valuable data and insights from users, which in turn helps players enhance the effectiveness and market-readiness of their innovations. The initiative is now in its third iteration, conducted in collaboration with Cyberport. The second round of FSS3.1 Pilot was launched in November 2024.
In August 2024, the HKMA launched the Project Ensemble Sandbox to explore the usage of wholesale CBDC for smoother interbank settlements. The initiative provides a testing ground for banks and other industry players to evaluate the technical interoperability of tokenised assets, deposits, and wholesale CBDC. In addition, participants can assess the viability of tokenised transactions in real-world applications.
Most recently, in April 2025, the HKMA, in partnership with Cyberport, rolled out the second cohort of the Generative AI Sandbox Initiative. The sandbox provides a controlled, low-risk environment where financial institutions can develop and test AI-based fintech solutions. Riding on the positive feedback from the inaugural cohort in January, the second cohort will continue to prioritise use cases aimed at strengthening risk management practices, refining anti-fraud mechanisms, and enhancing overall customer experience.
Hong Kong: Gateway to neighbouring thriving hubs in the Greater Bay Area
Recognised as one of the four “core cities” in the Guangdong-Hong Kong-Macau Greater Bay Area
(“GBA”), the international financial powerhouse also serves an indispensable role as a launchpad for fintech companies seeking to tap into the vast regional market. Boasting a population of 86 million and a combined GDP of USD 1.96 trillion, the GBA has been the embodiment of high-quality economic development arising from deeper regional integration. The colossal market just a stone’s throw away presents an abundance of opportunities, particularly in cross-boundary finance, digital payments and technologies, investment, and wealthtech.
The Report identifies key fintech- and tech-related opportunities within the GBA by leveraging Hong Kong’s unique placement. The city is the go-to R&D and capital-raising hub for companies engaged in innovation and technology (“I&T”). Across the boundary, Shenzhen, dubbed China’s “Silicon Valley”, is home to big tech names, including BYD, Huawei, and Tencent. The closely bonded cities are intensifying collaborative efforts in I&T through the formation of the Hong Kong-Shenzhen Innovation and Technology Park and the development of the Northern Metropolis.
Rapid fintech developments in the integrated economic area can be observed following the introduction of Connect schemes, especially the GBA Wealth Management Connect. The set of initiatives, also comprising Bond Connect, Insurance Connect, Stock Connect, and Swap Connect, expands mutual access between the capital markets of Hong Kong, Macao, and mainland China. Notably, the improvements to the GBA Wealth Management Connect undertaken at the beginning of last year proved to be a significant catalyst, catapulting cross-boundary investment via the trading channel by fourfold in the first quarter of 2024. The continued expansion of mutual market access will create new business opportunities for fintech companies, particularly in the provision of a broader range of offerings to support cross-boundary investment activities.
Capturing opportunities in high-growth fintech segments in Hong Kong
Capturing the various fintech opportunities in Hong Kong requires a clear understanding of the high-growth segments emerging from the city’s unique competitive advantages.
According to the Report, the city has seen steady growth in the number of fintech companies across almost all segments. As of July 2024, wealthtech, blockchain, digital assets and cryptocurrencies, as well as payments and remittances led the field. Between 2022 and 2024, the number of players in the blockchain application and software segment surged by 250 per cent, while those in the digital asset and cryptocurrency space climbed by nearly 30 per cent. The sharp rise reflects the fruits borne from the supportive digital asset policies, which began taking shape in October 2022. In addition, fintech enterprise solutions also stood out, particularly in areas such as AI applications for financial services and data analytic platforms catering to financial institutions.
Wealthtech
The focus of wealthtech is on enhancing wealth management — from financial planning, investment management, and client engagement to portfolio analysis and trade execution. Opportunities abound for fintech players to develop platforms offering real-time portfolio tracking, performance analytics, risk assessment, and automated rebalancing. These tools can help optimise asset allocation as well as risk oversight and control. The roll-out of the GBA Wealth Management Connect, as discussed in the previous section, has driven up demand for new technologies that enable investors to take advantage of offerings through the expanded mutual market access.
On another front, aggregate wealth in the Asia-Pacific region is poised to accumulate even more amidst a broader shift in wealth dynamics. Wealthtech companies stand to benefit from a golden opportunity: a treasure cove of an estimated USD 81 trillion in onshore personal financial assets, offering a rapidly expanding pool of affluent investors. Cross-border wealth management connectivity is an up-and-coming phenomenon. The influx of capital flowing into Hong Kong and Singapore are steadily on the rise. By 2027, these inflows are projected to account for approximately USD 3.5 trillion in booked assets.
Digital assets and cryptocurrencies
Digital assets generally refer to assets of value that exist exclusively in digital form, most notably cryptocurrencies and non-fungible tokens. In recent years, Hong Kong has been stepping up its game in the race to become Asia’s digital assets hub. In 2023, the city introduced a licensing regime for digital asset trading platforms, following the “same activity, same risk, same regulation” principle. The workings behind this deceptively simple slogan is key to ensuring a level-playing field for all financial service providers, narrowing the regulatory gap between traditional banks and non-bank entities, such as fintech enterprises.
In March 2024, the HKMA launched a stable-coin-issuer sandbox to support pilot testing and facilitate dialogue on forthcoming regulatory standards. Later that year, in December, the Stablecoins Bill had its first reading in the Legislative Council, representing a key milestone towards establishing a formal regulatory framework for the issuance of stable coins and related activities in Hong Kong. These developments are, no doubt, laying the groundwork for a well-regulated and dynamic digital asset market, offering fintech companies a fertile ground to innovate, scale, and flourish.
Blockchain technology
Blockchain technology refers to a decentralised digital ledger that securely records transactions across a network of computers, ensuring transparency and resistance to tampering. Transactions are grouped into blocks, each cryptographically linked to the one before it, forming a continuous and unchangeable chain. Beyond its roots in cryptocurrencies, blockchain has a wide range of applications. The blockchain market is forecast to surge to USD 43.1 billion by 2030, with a compound annual growth rate of 53.6 per cent.
Hong Kong’s FSDC has spotlighted blockchain as a high-growth strategic area in fintech, citing its potential to streamline operations, cut costs, and enhance customer experience, thereby sharpening Hong Kong’s competitive edge in financial services. The city’s revered status as an international financial hub, supported by a well-developed B2B infrastructure, presents a myriad of opportunities for fintech players to develop blockchain solutions that could transform the financial system.
The Hong Kong Special Administrative Region Government announced plans to roll out a slew of digital initiatives between 2024 and 2025, aimed at advancing digital governance and smart city development. Among one of these efforts is the use of blockchain technology to enable the electronic issuance and verification of licences and certificates, in a bid to modernise public services and increase administrative efficiency.
How CW can help you establish a foothold in Hong Kong’s fintech ecosystem
As a forward-oriented, tech-friendly professional advisory firm headquartered in Hong Kong, we understand the host of unique hurdles faced by those seeking to break into the city’s fast-evolving tech scene. To cater to their specific needs, we have developed a tailored service package for tech companies.
Our streamlined service package is built with your needs at every stage in mind — to support your entry, operations, and growth in Hong Kong. We provide comprehensive assistance, from company setup, regulatory compliance to market entry advisory, business development support, HR administration, and workforce upskilling.
Moreover, we can help position you for investment success with our investor and fundraising support for tech companies:
- Financial model and pitch deck review
- Virtual CFO advisory for funding readiness
- Network access to regional technology hubs, VCs, PE firms, and strategic investors (exclusive for CW clients)
Ready to seize the opportunities on offer and build a high-impact presence in Hong Kong’s fintech industry? We will be glad to help — connect with us.
