The Hong Kong Monetary Authority (HKMA) and the Financial Services Regulatory Authority (FSRA) of the Abu Dhabi Global Market (ADGM) have announced the signing of a Memorandum of Understanding (MoU) to enhance their ongoing partnership on fintech. The focus of the agreement will mainly be on cross-border trade-related data exchange and business collaboration to promote innovative financial services using fintech and data in both markets.

The MoU was signed by Colin Pou, Executive Director, Financial Infrastructure, HKMA, and Wai Lum Kwok, Senior Executive Director, Authorisation and Fintech, FSRA. This agreement builds upon the solid foundation laid by the signing of a Co-operation Agreement in 2018 and is seen as an important milestone in cementing and strengthening the collaboration between the two authorities.

Specifically, under the MoU, the two authorities will explore joint Proof-of-Concept projects to connect the HKMA’s Commercial Data Interchange to the ADGM’s SME Financing Platform. They will also collaborate on exploring use cases for cross-border data exchange with user consent to tackle potential challenges in cross-border banking services such as small and medium-sized enterprise (SME) account opening and financing to facilitate cross-border trading.

Colin Pou expressed enthusiasm for deepening the collaboration with the FSRA through this MoU, emphasizing the shared commitment to advancing fintech development and unleashing the potential of data. He stressed the importance of creating next-generation data platforms and enabling cross-border data exchange in the digital age. He hopes that this collective effort will foster financial innovation and empower SMEs in both jurisdictions with enhanced financing opportunities.

Wai Lum Kwok also highlighted the strategic partnership between the FSRA and HKMA through this MoU, pointing out the exciting potential of the digital bridge between their platforms in connecting the marketplace of the UAE and the Greater Bay Area through the respective gateways of ADGM and Hong Kong. He looks forward to working closely with the HKMA in building a vibrant ecosystem for SMEs in both jurisdictions.