And for another, we need to factor in various considerations to keep up with the latest international standards, including measures to uphold and protect data privacy. Therefore, enhancing our financial data infrastructure must be a concerted effort by the banking and tech industry as a whole. A team effort will ultimately lead to public goods that deliver value, benefit all the parties, and at the same time are commercially viable. 30. By improving our data infrastructure, we are empowering the industry and encouraging creativity for developing innovative financial products and solutions, in turn building up the overall appetite for fintech solutions. Expanding the fintech-savvy workforce 31. The three strategies I just mentioned will, hopefully, generate demand in the industry for fintech solutions. However, from what we learnt from the industry, the supply of fintech talent remains a pressing issue. Therefore, our fourth strategy is that we want to foster a fintechsavvy workforce and nurture all-round fintech talent, including students and practitioners. 32. We don’t need reminding of how Hong Kong boasts an extremely strong talent pool – be it in law, finance, accountancy, or other professions. We are a city that thrives on our people’s high agility and efficiency. We pride ourselves on keeping up with international standards as well as customer and market requirements. 33. With fintech being a relatively new area, it is understandable that we currently face an acute fintech talent shortage. Hong Kong is in need of grooming all-round fintech talent and expertise.
The Riksbank conducted a study in 2007 with the aim of investigating how large a proportion of the cash in circulation could be explained on the basis of what we know about cash usage.2 The study was based on available statistics on retail sales, secondary markets, liquidity buffers, lost or destroyed banknotes and coins and a number of other factors. Despite this we were unable to explain more than around 40 per cent of the value of the banknotes and coins in circulation. Although the study did not reach beyond 2004, I dare to claim that we still cannot explain what a large proportion of the cash is used for. Part of the explanation may be that the public has more  1  This comparison is based on cash usage measured as the value of the banknotes and coins in circulation (MO) in relation to GDP and on the number of card payments per person and year. 2  Guibourg, Gabriela and Björn Segendorff (2007). The Use of Cash and the Size of the Shadow Economy in Sweden. Sveriges Riksbank Working Paper Series, No. 204. 2  BIS central bankers’ speeches  cash at home, as a buffer, than we believe. Unfortunately, it is difficult to get good statistics on things like this as people may feel it is risky and sensitive to say how much cash they have at home. Another explanation is that cash is used in the shadow economy, for example for various household services such as repairs and cleaning.