Hong Kong digital tech park Cyberport announced that the Fintech Proof-of-Concept Subsidy Scheme, commissioned by the Financial Services and the Treasury Bureau, is now open for applications with the Hong Kong government earmarking HK$10 million for the scheme.
The scheme aims to encourage financial institutions (FI) to partner with fintech companies, including startups, to conduct proof-of-concept projects on innovative financial services products.
Each approved project will be provided a maximum grant of up to HK$100,000, while projects with greater complexity and broader usage, such as those involving cross-sector or cross-border applications may receive a grant of up to HK$150,000.
Applications for Phase 1 of the scheme will close on 30 April 2021 while Phase 2 application will be open from 10 May to 30 June 2021.
Christopher Hui, Secretary for Financial Services and the Treasury said,
“We encourage the financial services market practitioners to actively participate in the Fintech Proof-of-Concept Subsidy Scheme, thereby integrating the cutting-edge technologies and innovative ideas of fintech companies with the practical experience of financial institutions, injecting new impetus for financial innovation in Hong Kong.”
Peter Yan, Chief Executive Officer of Cyberport said,
“Cyberport is committed to fostering the development of fintech in Hong Kong. With a community of over 380 fintech enterprises and start-ups, and strong connections with financial industry stakeholders, Cyberport is able to recognised the pressing needs and pain points of the sector.
The PoC scheme encourages financial institutions to work with fintech enterprises and start-ups as well as provide valuable data and technical support to facilitate collaboration and create win-win situations.”
Fintech companies submitting an application for the scheme are required to obtain a written agreement with an FI that exhibits active engagement to see the PoC project through to completion and provide IT support with open data access to the applicant.
All approved PoC projects are required to commence within one month from the date of approval and be completed in three months from the date of commencement. Those PoC projects that demonstrate greater complexity and broader usage can be completed within six months of commencement.
Cyberport will also seek advice from a panel formed by representatives from the Hong Kong Monetary Authority (HKMA), the Securities and Futures Commission (SFC), the Insurance Authority (IA) and the Mandatory Provident Fund Schemes Authority (MPFA), as well as academics in regard to the applications.
Applicants will be informed of the result by email within six weeks after the end of the application period. Upon project approval, an initial instalment of 50% of the approved amount will be made by Cyberport to the applicant to help kick-start the development. The final instalment will be made after completion of the project and acceptance of the final report.
Cyberport will organise online briefing sessions on the 1 March 2021 to introduce the scheme and offer useful information to interested fintech companies.
