In Hong Kong, a bustling metropolis where small and medium-sized enterprises (SMEs) form the backbone of the economy, the need for efficient and integrated financial solutions has never been more pressing.
Amidst the city’s macroeconomic challenges and the growing importance of digitalisation, Aspire, an all-in-one finance platform headquartered in Singapore, has successfully obtained a Money Service Operator (MSO) License issued by the Hong Kong Customs and Excise Department.
Fintech News Hong Kong spoke with Andrea Baronchelli, CEO and Co-Founder of Aspire, to discuss the company’s vision for empowering Hong Kong’s SMEs and navigating the city’s unique business landscape.
Unlocking opportunities with the MSO license
The acquisition of the MSO License marks a significant milestone for Aspire. It enables the company to offer a comprehensive suite of financial solutions tailored to the specific needs of Hong Kong’s SMEs.
“The MSO license enables Aspire to offer a unified suite of financial solutions to small and medium-sized enterprises (SMEs) in Hong Kong. These include empowering these SMEs with the ability to open local business accounts for payables and receivables management, international payments, and payment gateway solutions, among others,”
Andrea explained.
With digital transformation becoming increasingly important among local businesses, Aspire’s tech-first approach to spend management is well-positioned to cater to the needs of Hong Kong’s growing number of digital-minded startups and SMEs.
According to a DBS survey, over 93 percent of local SMEs recognise the importance of digitalisation, a sentiment echoed by the startup ecosystem in Hong Kong. This digital shift is crucial, as data from InvestHK indicates a three-fold increase in local startups over the past decade.
“By providing them with a robust and integrated platform to streamline their business finance operations, they stand to save considering resources in the form of time and finances that can be reinvested to support long-term, sustained growth.”
Andrea added.
The evolving needs of SMEs
Hong Kong’s SMEs face many challenges, from rising costs to the lack of integrated finance systems. Traditionally, SMEs in Hong Kong have relied on conventional banking systems to manage their financial operations.
However, as the business world becomes increasingly complex and interconnected, traditional methods often fail to meet the dynamic needs of modern enterprises.
Andrea observed,
“Rising costs continue to be a top concern for Hong Kong’s businesses, with data from DBS identifying cash flow and the ability to manage costs as a top business priority among local SMEs.”
According to the survey, more than half of the respondents (55.6 percent) and Mainland China (50.8 percent) express a neutral forecast for their economic outlooks while being slightly more optimistic about Mainland China’s (27.3 percent) than Hong Kong’s (20.6 percent).
He further noted that a primary factor contributing to this pain point is the lack of an integrated finance system among many organisations.
Traditional financial management practices often involve engaging multiple service providers, each overseeing various functions such as payroll, payments, and corporate cards.
This fragmented approach not only increases operating costs but also creates data silos that hinder visibility into company finances. The resulting manual and cumbersome processes required to consolidate and analyse data further impact competitiveness and growth potential.
The power of integration
To address these challenges, Aspire offers a paradigm shift in SME finance management.
“Aspire’s integrated solution simplifies this process and helps fast-growing organisations better manage their financial data by consolidating disparate financial processes, and data flows onto a single platform,”
stated Andrea, who emphasised the importance of integration.
By providing a unified suite of financial solutions, Aspire empowers business leaders in Hong Kong to gain a comprehensive view of their finances. This enables them to make data-driven decisions that reduce costs, save time, and optimise resources.
This integrated approach streamlines operations and positions SMEs to capitalise on growth opportunities within and beyond Hong Kong.
For instance, their payment gateway solutions for Southeast Asian markets, such as Indonesia, enable Hong Kong businesses to expand effortlessly into the region.
Additionally, Aspire’s platform facilitates multi-currency cash management and cross-border money transfers, which is particularly important given Hong Kong’s role as a major Asian business hub and gateway for enterprises in mainland China to globalize.
“This empowers SMEs to seamlessly manage multi-currency cash flow and facilitate cross-border transactions with full visibility into the overhead costs, enabling them to scale and expand more efficiently,”
added Andrea.
Navigating the regulatory landscape
As the fintech revolution unfolds, the regulatory landscape in Hong Kong and across Asia continues to evolve. Compliance with an ever-changing set of rules and regulations can be daunting for SMEs, particularly those with limited resources.
However, Andrea states that compliance should be viewed not as a burden but as an opportunity to build trust and credibility.
“At Aspire, efforts to remain compliant include conducting meticulous regulatory analyses with in-house and external counsel, setting up robust compliance frameworks, policies, and procedures, and ensuring that we work closely with regulatory bodies,”
stated Andrea.
Aspire’s proactive approach to compliance involves staying attuned to industry developments and adapting swiftly to new requirements.
By fostering a culture of transparency and investing in high-caliber legal and compliance teams, Aspire ensures that its clients can focus on growing their businesses with peace of mind, knowing they are in capable hands.
Harnessing the power of AI
As the fintech landscape continues to evolve, the role of artificial intelligence (AI) in shaping the future of SME finance cannot be overstated.
Andrea highlighted AI’s transformative potential:
“Aspire is actively investing in and integrating the latest financial technologies into its platform, such as Artificial Intelligence (AI), to enhance our product and help businesses across Asia thrive in the digital economy.”
The recent introduction of Aspire AI exemplifies this commitment. This suite of AI-powered features provides real-time analytics and automates financial processes, enhancing productivity and decision-making.
“Aspire AI offers significant upgrades to our analytics dashboard, facilitating data-driven decisions in real-time. Other features include automating month-end reporting and receipt matching and smarter fraud detection processes,”
said Andrea.
Supporting SMEs through HKMA initiatives
Recognising the vital role of SMEs in Hong Kong’s economy, the Hong Kong Monetary Authority (HKMA) has introduced a series of measures to strengthen its support for SMEs further. These initiatives aim to alleviate operational pressures faced by SMEs due to varying business performances during recent economic challenges.
The Banking Sector SME Lending Coordination Mechanism, established by the HKMA in collaboration with local banks, has introduced nine new support measures tailored for SMEs. These measures include fee waivers, launching unsecured loan products, and incorporating more flexible cash flow management solutions to support SME resilience and growth.
The HKMA’s Commercial Data Interchange (CDI) will also significantly enhance credit accessibility for SMEs, especially those without property as collateral. By utilising a wide range of commercial data combined with advanced data analytics, banks are now better equipped to design credit products that address the specific needs of SMEs.
The newly launched one-stop SME information platform on the HKMA’s website is pivotal to this enhanced support. This platform provides detailed information about lending services available to SMEs, including dedicated service hotlines and various loan products like trade financing and unsecured overdrafts. It empowers SMEs to make informed decisions, boosting their bargaining power with banks.
The HKMA remains committed to closely monitoring the implementation of these support measures in collaboration with the Hong Kong Association of Banks and the Chinese Banking Association of Hong Kong.
Plans include easing the transition for credit limit adjustments and facilitating SMEs’ more efficient switch to lending banks. These initiatives reflect the HKMA’s dedication to sustaining the vital role of SMEs in Hong Kong’s economy. SMEs account for 98 percent of all businesses and are a significant source of employment.
The Financial Secretary has also extended the application period for the 80 percent and 90 percent Guarantee Products under the SME Financing Guarantee Scheme until the end of March 2026, reflecting ongoing support for SMEs. In addition, HKMC Insurance Limited is set to review and potentially expedite the loan approval process based on commercial sector feedback.
The future of SME finance in Hong Kong
As Hong Kong continues to embrace digital transformation, the future of SME finance looks increasingly promising.
With fintech redefining business financial management, SMEs must adopt innovative solutions to stay competitive and unlock their full potential.
Andrea envisions a world where SMEs have access to the same financial sophistication as their larger counterparts, enabling them to compete on a level playing field.
He concluded,
“By leveraging the power of integration, prioritising compliance, and harnessing the potential of AI, fintech providers like Aspire are empowering SMEs to thrive in an era of unprecedented change and opportunity. The future of SME finance in Hong Kong is one where businesses can focus on what they do best while leaving the complexities of financial management to trusted partners who understand their unique needs.”
Featured image credit: Edited from Freepik
