Green Fintech: Integrating Beyond Finance for Economic Growth

The Importance of Green Fintech in Hong Kong

The significance of green fintech has been highlighted in Hong Kong, where experts have recommended extending ties to sectors beyond finance to serve the city’s economy. This advice comes in light of the growing number of fintech companies in the region, which has seen a 25 per cent increase in 2023.

During the Hong Kong Green Fintech Summit, industry experts emphasized the importance of integrating with multiple sectors to enhance the ability of green fintech players to serve the real economy. Jason Tu, founder and CEO of MioTech, emphasized that green fintech is not limited to finance and asset management, but has a much broader scope that extends into the real economy.

Rocky Tung, director and head of policy research for the Financial Services Development Council, urged green fintech players to explore opportunities beyond the financial sector and the compliance market. According to him, the integration of green fintech with different sectors holds immense potential for growth and impact.

During the summit, it was revealed that Hong Kong is home to around 1,000 fintech companies, indicating a rapidly growing sector. This growth aligns with the city’s aspirations of becoming a hub for green technology and environmental finance, as reflected in the ongoing Hong Kong Green Week.

The summit is part of a series of sustainability-themed discussions, exhibitions, and events, aiming to attract 5,000 attendees from various jurisdictions. As part of the event, the Hong Kong Green FinTech Map prototype will be unveiled, outlining the landscape of green fintech companies and their services in the city.

In 2022, Hong Kong led the region in green and sustainable bond issuance, accounting for 35 per cent of the Asian market. The total amount of green and sustainable debt issued in Hong Kong saw a significant increase of over 40 per cent year-on-year, amounting to US$80.5 billion.

The increasing focus on green fintech and sustainable finance in Hong Kong reflects the global shift towards more environmentally conscious and responsible practices. The city’s position as a key player in this sector is evident, as it continues to drive the growth and adoption of green technology and finance.

In conclusion, the recommendations to expand ties to sectors beyond finance and integrate with various industries will undoubtedly contribute to furthering the impact and relevance of green fintech in Hong Kong’s economy. As the sector continues to grow, its significance in driving sustainable economic development and addressing environmental challenges cannot be overstated.