LendIt China July 9th 2017 – Journal Entry: AMTD + LendIt: Fintech, The 4th Industrial Revolution.

Hong Kong

AMTD-LendIt Conference officially kicked off today in one of the most metropolitan cities in the world, Hong Kong, China.

This town, considered as one of the busiest financial centers of the world is now on the brink of another step in this city’s evolution, Fintech.

I’ve been coming to Hong Kong for a few years now and each year, the city is getting more and more private and public support to establish this city to be one of the major hubs for Financial Technology in the world.

Hong Kong is a natural pick as the home base for #Fintech in southeast AsiaClick To Tweet

Hong Kong is a natural pick as the home base for Fintech in southeast Asia. It has been a key financial center for China, the greater Asian and the world. Every major bank, financial institutions is here in Hong Kong and they have been here for at least a hundred years.

Hong Kong’s financial acumen, it’s 7 universities and the talent pool is unparalleled. Standing at the bleeding edge of the 4th Industrial revolution is AMTD and LendIt FinTech Summit.

The 2nd annual AMTD and LendIt FinTech Summit is well attended by heads of state from PwC, FuTu Securities (Wealth Management and Robo Advisor), AMTD and many of the leading industry heavyweights giving the audience a preview of what’s to come.

PwC Global FinTech Survey

PwC unveiled their latest Fintech survey from hundreds of financial institution’s CEO and found that more than 60% of the CEOs are making investments into Fintech and some have dedicated 15% of their top line revenue into Fintech R&D. This survey showed us that there are hundred of millions of dollars are being poured into Fintech and most CEOs recognizes that they have to evolve to survive. Fintech is no longer a novelty item on their agenda, it has become a central theme in their current and future plans. I walked away excited about what’s to come in the greater Asia region.

Raymund Chao, Chairman, PwC Greater China region closed his opening remark challenging Fintech entrepreneurs to explore new product concepts, new business models and look out for new challenges in cyber security, compliance, and government regulation.

Dianrong delivers hundreds of millions of loans in China. Dianrong’s platform is balanced & profitable #P2PLendingClick To Tweet

Dianrong

Another highlight of the morning session is the P2P rockstar Soul Htite. Soul has been diligently cultivating the Chinese market after co-founding Lending Club in the United States. His new venture Dianrong now delivers hundreds of millions of loans in China. Dianrong’s platform is balanced and profitable. Millions of investors and borrowers are actively using Dianrong’s platform to seek better yield and accessing credit where traditional banks in China wouldn’t otherwise offer.

Futu Securities

I was most impressed with Futu Securities Robo advisor chatbot. Leveraging artificial intelligence, Futu’s clients can pose a question to the A.I. assistant on what’s causing a particular stock in their portfolio to fall. The A.I. algorithm then mines social media sites, news sites and the internet, in general, trying to establish whether there was a press release, news articles that may have caused the drop in stock price.

The A.I. Chatbot goes one step further and analyzes subsequent events of all prior crashes. For example, in the last 7 crashes, 85% of the time the stock rebounded by more than 10%. This insightful and timely information allows Futu Securities platform investors to make a sound decision to either hold or sell that said security. Crazy stuff right? I can’t wait to see what Futu has to demo next year.

Futu Securities CEO Dennis Wu is one to watch in the coming years. His vision for his new equity platform and product design is very interesting and thoughtful.

 

AMTD’s Vision for China

We concluded our Hong Kong stay with a roundtable discussion at AMTD’s office. Mr. Calvin Choi (Chairman of the Board) and Group Vice President Bob Leung gave their vision for bridging U.S. companies and Hong Kong companies to create even greater value for consumers worldwide.

I was most excited about Chinese government’s new plan to develop Macau, Hong Kong, and Shenzhen into a tech center to rival San Francisco Bay Area. If you know China, and the will of the Chinese government, the project will get done before we know it.

China has a plan to develop Macau, Hong Kong, & Shenzhen into a tech center to rival San Francisco Bay Area #FintechClick To Tweet

The regional Chinese government is pumping massive incentives for tech companies to open up new offices in that region.  The Greater Bay Area Initiative is hard proof that the Chinese are serious about competing for tech companies and talent. AMTD is working with the regional Chinese government to seek out partnerships and introduce companies to the project and help to understand and profit from China’s plans.

We talked extensively about how Fintech companies need to align themselves with large initiative championed by the Chinese government such as One Belt, One Road, and The Greater Bay Area initiative. I wonder when we should open up our R&D office in H.K.

Capital City, here we come

The hospitality and friendship extended by the Hong Kong government, AMTD, and the people of Hong Kong is unforgettable. A four-hour flight to Beijing is ahead of us. I look forward to coming back to Hong Kong in the next few months. Hong Kong is hosting an A.I. conference that I am looking forward to attending.


 

Timothy Li is the CEO of Kuber and MaxDecisions. He has over 14 years of Fintech industry experience. He’s passionate about changing the finance and banking landscape. Kuber launched Fluid, a credit building product designed for college students to borrow up to $500 interest free. Kuber’s 2nd product Mobilend is a true debt consolidation product, aiming to lower debt for all Americans. Li also the co-founder and President of P2P Protect, an Insurtech platform that offers P2P insurance products. Li sits on multiple advisory boards including Rocketloans.


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