On Apr. 26, HKMA launched cross-industry platform for fintech.
HKMA launched the FiNETech series, gathering around 100 banks, securities and insurance companies, technology firms to explore collaboration in wealthtech, insurtech, greentech, artificial intelligence (AI), and distributed ledger technology (DLT).
Through FiNETech, financial institutions will have one-stop access to the latest information about sourcing options provided collectively by the technology community.
Financial institutions and strategic technology partners connected via FiNETech can approach HKMA’s fintech supervisory chatroom (#36467) on innovative proposals.
Fintech supervisory sandbox 2.0, which is linked up with other financial regulators’ sandboxes, will also be available for testing and obtaining early supervisory feedback.
Upcoming Plans
HKMA will expand joint efforts in fintech areas, to zoom into themes of AI, including generative AI, as well as DLT and greentech through further FiNETech sessions.
Make tangible progress in fintech adoption by banks and other financial institutions.
Share good industry practices and issue further practical guidance for the priority themes, while making reference to global development and international experience.
In Jul. 2024, HKMA spoke on unlocking bancassurance potential, see #218552.
Aug. 2024 GenA.I. Sandbox
On Aug. 13, 2024, HKMA announced the launch of the new generative artificial intelligence (GenA.I.) Sandbox at FiNETech2, the second edition of the FiNETech series.
The new GenA.I. Sandbox is a initiative that promotes innovation in GenA.I. such as enhancing effective risk management, anti-fraud efforts and customer experience.
The HKMA will organize additional editions of FiNETech in the coming months, focusing on the areas of Greentech and distributed ledger technology (DLT).
On the same day, HKMA published opening remarks by Carmen Chu, executive director (banking sector) of HKMA, at FiNETech2, on building secure A.I. ecosystem.
Chu encouraged all banks to start considering how GenA.I. can be applied.
Detailed information about the sandbox, will be announced in the coming weeks.
Sep. 20, 2024 Sandbox Applications Open
On Sep. 20, 2024, HKMA issued circular on arrangements for generative AI sandbox.
Provides risk-controlled environment for banks to pilot AI-based solutions, especially focusing on retrieval-augmented generation, model fine-tuning, predictive analytics.
Aims to enhance risk management, anti-fraud measures, and customer experience.
Supports the banking sector in developing AI and GenA.I.-based solutions; provides early supervisory feedback and guidance on AI adoption based on sandbox trials.
Solutions should demonstrate significant risk mitigation strategies specific to GenA.I..
Data security is critical, with requirements for encryption and access control measures.
Key criteria for evaluating sandbox applications include level of innovation, technical complexity, potential industry impact, and adherence to ethical AI usage principles.
Interested parties must provide project details, including high-level design, applicable models, preliminary risk assessments, information about their technology partners.
HKMA invites applications, which are open until Nov. 15, 2024 for the first cohort, with selected projects starting in Dec. and expected to be completed within six months.
Sep. 27, 2024 Research Paper
On Sep. 27, 2024, HKMA issued circular on GenA.I. research paper for financial sector.
Paper explores GenAI's transformative potential, implications for financial industry and focuses on operational efficiency, risk management, as well as customer engagement.
Part of All banks go Fintech under Fintech 2025 strategy to promote Fintech adoption.
Authorized institutions encouraged to review paper and consider GenA.I. integration; should responsibly integrate GenA.I. into operations, services, and risk management.
