HKMA Eddie Yue Highlights Transformative Role of AI in Finance

HKMA Eddie Yue Highlights Transformative Role of AI in Finance

by March 5, 2024

Eddie Yue, Chief Executive of the Hong Kong Monetary Authority (HKMA), delivered a keynote speech at the ASIFMA Annual Conference today, highlighting key observations from the past year and outlining Hong Kong’s positioning as an international financial centre.

Amid discussions on sustainability, digitalisation, and the opening-up of Mainland financial markets, Eddie’s insights into AI stood out for its potential to drive significant changes across the sector.

The HKMA Chief pointed to recent analyses, including one by Goldman Sachs, which suggest AI could automate up to a quarter of current work and impact two-thirds of existing jobs. This automation spans various financial processes, reshaping the industry’s landscape and introducing both opportunities and challenges.

Eddie’s vision for AI in finance is not just about operational efficiency but also encompasses broad-based implications for risk management, customer service, and regulatory compliance.

Eddie YueHKMA AI

Eddie Yue

” For example, an area where we see great promise is the adoption of AI in areas such as remote customer onboarding, fraud monitoring and cyber defence. We are encouraging banks to make the best use of them,”

said, Eddie.

Eddie’s remarks were set against a backdrop of Hong Kong’s robust financial health, underscored by strong banking sector resilience, significant foreign exchange reserves, and an increase in bank deposits. He highlighted the importance of continuing to build financial system buffers to withstand external shocks.

Looking forward, the HKMA Chief identified three enduring trends – the mainland’s strategic shift towards high-quality growth, the imperative of sustainability, and the unstoppable force of digitalisation, with AI at its core.

He elaborated on Hong Kong’s strategic initiatives to leverage these trends, from enhancing cross-border financial cooperation with Mainland China to spearheading sustainability efforts and embracing technology-driven innovations like CBDCs, virtual assets regulation, and the tokenisation of financial instruments.

The speech also previewed several government initiatives aimed at bolstering Hong Kong’s financial sector, including the development of the asset and wealth management industry and the introduction of a new Capital Investment Entrant Scheme.

Featured image credit: Edited from Freepik