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53 F<strong>in</strong>tech <strong>in</strong> <strong>India</strong> - A global growth story<br />
• Corporate venture fund amount<strong>in</strong>g to HKD50 million was<br />
allocated for co-<strong>in</strong>vestment opportunities by the Hong<br />
Kong Science and Technology Park, established to assist<br />
<strong>in</strong> <strong>in</strong>vestment and f<strong>in</strong>ancial needs of start-ups 142 .<br />
Regulatory support<br />
Specialized bodies with<strong>in</strong> HKMA have been created to<br />
offer a strong regulatory framework to the f<strong>in</strong>tech<br />
ecosystem. Examples:<br />
• The Securities and Future Commission of Hong Kong<br />
has set up a F<strong>in</strong>tech Advisory Group to monitor the<br />
risks and regulatory implications of developments <strong>in</strong><br />
f<strong>in</strong>tech.<br />
Academic focus on f<strong>in</strong>tech<br />
Universities are plac<strong>in</strong>g emphasis on the f<strong>in</strong>tech sector<br />
through talent and m<strong>in</strong>dshare build<strong>in</strong>g for leadership,<br />
entrepreneurship and management, <strong>in</strong> a traditionally<br />
analytical workforce 143 . Examples:<br />
• Courses dedicated to entrepreneurship are promoted <strong>in</strong><br />
HK.<br />
• For 2016-17, the F<strong>in</strong>ance Secretary has <strong>in</strong>cluded<br />
provisions for 300 university students, through<br />
Cyberport, to ga<strong>in</strong> overseas exposure <strong>in</strong> the f<strong>in</strong>tech<br />
sector 144 .<br />
Next stage focus areas<br />
Regulations specific to f<strong>in</strong>tech companies<br />
The f<strong>in</strong>ancial regulations <strong>in</strong> Hong Kong need to make<br />
provisions that cater specifically to the f<strong>in</strong>tech sector<br />
<strong>in</strong> terms of set-up, licens<strong>in</strong>g requirements, regulatory<br />
supervision and ongo<strong>in</strong>g compliance and legal<br />
requirements. F<strong>in</strong>tech start-ups with limited legal and<br />
compliance resources need help to navigate through<br />
the regulatory maze, ga<strong>in</strong> a full understand<strong>in</strong>g of the<br />
legal requirements applicable to them and then to<br />
build a compliance model appropriate for their size<br />
and operational model.<br />
High Property costs and difficulty <strong>in</strong> open<strong>in</strong>g bank<br />
accounts, makes it a challenge for start-ups to ga<strong>in</strong><br />
traction <strong>in</strong> the sector. The ease and cost optimization<br />
of these logistic <strong>in</strong>frastructure elements will unlock<br />
the possibilities for many other f<strong>in</strong>tech firms to<br />
susta<strong>in</strong>ably grow <strong>in</strong> the region.<br />
Accelerator programmes<br />
Accelerators and <strong>in</strong>cubators are ga<strong>in</strong><strong>in</strong>g traction <strong>in</strong> the<br />
region, spurred by a favorable bus<strong>in</strong>ess environment <strong>in</strong><br />
Hong Kong. Examples:<br />
• FF16 campaign, a f<strong>in</strong>tech competition launched by<br />
NxtBnk as part of StartmeupHK Festival 145 .<br />
• SuperCharger Accelerator, a 12-week programme<br />
for f<strong>in</strong>tech companies and RISE, a conglomeration<br />
of world’s biggest companies 146 and HK’s most<br />
excit<strong>in</strong>g start-ups has attracted global f<strong>in</strong>tech<br />
community attention.<br />
• Nest is a programme <strong>in</strong>vest<strong>in</strong>g <strong>in</strong> early stage startups<br />
and high growth bus<strong>in</strong>esses by runn<strong>in</strong>g a<br />
corporate-backed accelerator 147 .<br />
142 F<strong>in</strong>tech Innovators Champion Hong Kong as Asian Hub, JumpStart Magaz<strong>in</strong>e, L<strong>in</strong>k, accessed on 13 May<br />
2016<br />
143 Mak<strong>in</strong>g Hong Kong a F<strong>in</strong>tech Sector, Thomson Reuters, 2015<br />
144 HK sees some progress on F<strong>in</strong>tech, but still a long way to go, Ej<strong>in</strong>sight, 19 April 2016,<br />
http://www.ej<strong>in</strong>sight.com/20160419-hk-makes-some-progress-<strong>in</strong>-f<strong>in</strong>tech-but-still-a-long-way-to-go/ accessed<br />
on 30 May 2016<br />
145 InvestHK website, http://www1.<strong>in</strong>vesthk.gov.hk/news-item/<strong>in</strong>vesthk-launches-startmeuphk-ventureprogramme-to-boost-hong-kongs-position-as-worlds-most-promis<strong>in</strong>g-start-up-hub/,<br />
accessed on 25 May 2016<br />
146 F<strong>in</strong>tech supercharger website, http://www.f<strong>in</strong>techsupercharger.com/, accessed on 30 May 2016<br />
147 http://www.F<strong>in</strong>techsupercharger.com/, accessed on 25 May 2016; 15. NEST, http://nest.vc/, accessed on 25<br />
May 2016<br />
© 2016 KPMG, an <strong>India</strong>n Registered Partnership and a member firm of the KPMG network of <strong>in</strong>dependent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.