Hong Kong regulator launches test scheme for new financial technologies
The Hong Kong Monetary Authority (HKMA) has created a "sandbox" for banks to test ideas and unlicensed technology, inspired by a similar move from the UK’s Financial Conduct Authority in 2016. Participating banks will be able to test financial technologies such as blockchain, robotics, biometrics and augmented reality. The "sandbox" will allow for the gathering of data and feedback from users before banks launch new products. Since the original UK scheme began, similar programmes have also been implemented in Australia, Singapore and Abu Dhabi.

Hong Kong follows UK lead with fintech “sandbox”

Hong Kong is the latest city to follow the example of the UK's financial watchdog and set up its own scheme to accelerate the development of financial technology.

The Hong Kong Monetary Authority (HKMA) has launched a so-called sandbox to let banks experiment with as yet unregulated technology and ideas.

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"Within the Sandbox, banks can try out their new fintech products without the need to achieve full compliance with the HKMA’s usual supervisory requirements," said chief executive Norman Chan.

"This will enable banks to gather real-life data and user feedback on their Fintech products or services more easily and in a controlled environment, so that they can make suitable refinements to their products before the full launch. The HKMA does not intend to stipulate an exhaustive list of the supervisory requirements that may potentially be relaxed within the Sandbox."

It will apply to bank's looking at testing out technology such as biometrics, blockchain, robotics and augmented reality and interested banks have been asked to contact the HKMA directly.

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Britain's Financial Conduct Authority was the first to set up its sanbox this summer following on from the success of Project Innovate. The UK's scheme differs from Hong Kong's in that it supports startups rather than banks.

Since then, Singapore, Australia and Abu Dhabi have also followed suit with similar schemes.