Featured Article: Priming Hong Kong’s RegTech start-ups for global success

By Cyberport

As countries have tightened regulations of the financial industry and digital financial products proliferate around the world, RegTechs are flourishing in tandem. In advanced and developing economies alike, RegTechs are becoming indispensable in helping banks and financial institutions to ensure compliance and regulators to maintain oversight. Start-ups and entrepreneurs that ride the wave of RegTech are finding a kaleidoscope of opportunities in a fast-expanding market.

In Hong Kong, many RegTech start-ups are stepping up. As the city’s largest FinTech cluster where RegTech is a key focus, Cyberport’s RegTech start-ups and companies have been claiming footholds in key areas along the financial value chain. These include regulatory compliance obligations, risk management, customer protection, and financial crime monitoring.

To enable more RegTech entrepreneurs to crack the market, enrich their offerings, identify new opportunities, and scale their ambitions, Cyberport offers a mature and vibrant digital tech ecosystem and a raft of initiatives to help them grow.

Eric Chan, Cyberport’s Chief Public Mission Officer, noted: “A holistic ecosystem is crucial in nurturing start-ups. As Hong Kong’s foremost FinTech hub, Cyberport offers one-stop support to start-ups, from proof of concept and team formation to marketing and international expansion. Start-ups can receive financial assistance of up to HK$1.1 million.”

For example, budding start-ups can join Cyberport’s long-standing Cyberport Incubation Programme to receive up to HK$500,000 in financial assistance and enjoy a broad range of professional and business support. They can access networks such as the Cyberport Enterprise Network, Cyberport Investors Network, and Cyberport Technology Network to explore collaborations with conventional companies, seek financing, and forge partnerships with leading technology firms.

RegTech start-ups that are ready for collaborations with financial institutions can now tap the newly launched FinTech Proof of Concept Subsidy Scheme, presented by the Financial Services and the Treasury Bureau and administered by Cyberport. Start-ups can partner with traditional financial institutions to conduct proof-of-concept projects, and each approved project can receive a subsidy of up to HK$150,000.

Mr. Chan added: “Hong Kong is well-positioned for success and leadership in RegTech, which is set to boom, propelled by cross-border finance, trade, and business growth. Cyberport will be working closely with industry partners such as RegTech Association of Hong Kong to foster the city’s RegTech development, connect start-ups and companies to more potential clients, and help them capture the tremendous opportunities that are emerging across the region and around the globe.”