The Hong Kong Monetary Authority (HKMA) and the Financial Services Regulatory Authority (FSRA) of the Abu Dhabi Global Market (ADGM) have announced a significant development in fintech collaboration through the exchange of a Memorandum of Understanding (MoU).
This agreement focuses on enhancing cross-border trade-related data exchange and business collaboration, with the aim of promoting innovative and inclusive financial services in both regions.
Signed by Colin Pou of the HKMA and Wai Lum Kwok of the FSRA, the MoU is a major advancement in the relationship between the two authorities, building on a Co-operation Agreement from 2018.
It includes joint Proof-of-Concept projects to connect HKMA’s Commercial Data Interchange with ADGM’s SME Financing Platform, exploring cross-border data exchange possibilities.
This collaboration will particularly address challenges in cross-border banking services like SME account opening and financing, vital for cross-border trading.
Colin Pou emphasized the importance of this collaboration in advancing fintech development and harnessing data potential. Both authorities aim to use next-generation data platforms and cross-border data exchange to spur financial innovation and enhance financing opportunities for SMEs in both jurisdictions.
Wai Lum Kwok underscored the strengthened strategic partnership’s potential to boost cross-border trade and business through technological innovation.
He envisions the digital bridge between the platforms opening up new possibilities, connecting the UAE and the Greater Bay Area markets through ADGM and Hong Kong. Kwok anticipates building a dynamic SME ecosystem in collaboration with the HKMA.
“This MoU further strengthens the strategic partnership between the FSRA and HKMA to foster cross-border trade and business leveraging technological innovation,” Kwok said.
Earlier, Hong Kong and Thailand jointly announced an interoperable digital payment systems.
From December 4, residents from both regions will be able to make transactions using their local digital payment platforms, thanks to a landmark agreement between the Hong Kong Monetary Authority (HKMA) and the Bank of Thailand.
Hongkongers traveling to Thailand will be able to make purchases using the Faster Payment System (FPS), while Thai visitors in Hong Kong can pay via PromptPay at merchants accepting QR code payments.
