So the HKMA will, in the months and years ahead, collaborate with the industry to reach out to the corporates on the Mainland and overseas to promote Hong Kong as the hub for corporate treasury centres. This is an ongoing endeavour for which the support of the TMA and its members is greatly needed. Credibility 21. As I am running out of time, I just wish to have a brief word on the second component of a Brand, and that is credibility. It is not enough just to sell good quality products to customers. Like any world class brands in cars, watches and luxury goods, post-sale maintenance or support service is equally important. In other words, the success of a “Brand” also rests on establishing a reputation for being credible – to deliver a product that stands up to what it is sold for. 22. Credibility is even more important when it comes to financial services. This is because financial products usually have a finite life, and very often customers need to renew or purchase similar or different products from time to time. To develop into a long-lasting and successful “Brand”, Hong Kong must be able to provide a platform for offering products that can effectively meet the changing needs of customers. While such needs are always evolving, one thing never changes, and that is “fair treatment of customers”.
I don’t think so, judging from the strong investor reactions after the collapse of many internet-based crowd funding platforms on the Mainland and overseas. 12. While regulators like the HKMA must exercise care when new technology is introduced in financial services, there are understandable concerns amongst the Fintech industry that overly rigid or conservative regulations may stifle new technology and innovation. So how do we in the HKMA deal with this issue? Let me say this: the regulatory philosophy of the HKMA is that we adopt a risk-based and technology neutral approach. Specifically, we would endeavour to see through the nature and magnitude of the risks involved in a financial transaction or product without positive or negative discrimination on whether a new technology is used. However, it is important not to misinterpret this “technology neutral” approach as one that is insensitive to the contributions that Fintech and innovation can bring to the financial sector. The more correct narrative is that, without compromising consumer and investor protection, the HKMA embraces the use of Fintech and innovation. A practical demonstration of our effort in supporting Fintech development in Hong Kong is the setting up of the “Fintech Facilitation Office” (FFO) by the HKMA earlier this year. In May, the FFO launched its first major initiative, namely, the “Cybersecurity Fortification Initiative”. It is a major endeavour involving the key stakeholders in the banking as well as the Fintech industry. In the interest of time, I do not propose to say much about this important initiative today. 13.