Finastra’s annual global survey, ‘Financial Services: State of the Nation’ finds that 38% of Hong Kong finance executives say their financial institution has already begun using generative AI (GenAI), making it the highest of all the markets surveyed.
The figure more than doubled Singapore’s 16% and went above the global average (26%). Only 1% in Hong Kong says their organisation is not interested in technology at all.
However, just 29% of them say their institution has improved or deployed AI technology in the last 12 months, one of the lowest of the markets surveyed just next to France (28%).
BaaS and embedded finance
Hong Kong executives are globally the most positive about the potential for Banking as a Service (BaaS) and embedded finance. Exceeding the global average (84%), a huge percentage (95%) of finance executives in Hong Kong agrees that these emerging banking models generate business growth and revenue.
“Despite the challenging economic climate, it’s clear from our research that investment in AI, BaaS, and embedded finance remain key priorities for financial services organisations over the next 12 months, particularly as they seek to further enhance and personalize the customer experience,” said Simon Paris, chief executive officer at Finastra.
Sustainability
The majority (87%) of finance executives in Hong Kong agree that the recent focus on Environmental, Social, and Governance (ESG) and sustainability will disrupt the industry and benefit financial institutions and communities.
Logging the global highest, 90% agree that ‘green lending’ generates revenue and growth and one of its potential drivers is GenAI.
“We share the industry’s ongoing commitment to ESG initiatives, to collaboration around Open Finance, and excitement in using advanced technologies like AI to help deliver on the opportunities ahead,” added Paris.
