Following is the speech by the Secretary for Innovation and Technology, Mr Nicholas W Yang, at the Cyberport University Partnership Programme (CUPP) 2016 Demo Day today (October 27):
 
George (Chairman of the Board of Directors of Hong Kong Cyberport Management Company Limited, Dr George Lam), distinguished guests, friends, ladies and gentlemen,
 
     Good afternoon. It's indeed a great pleasure to join you all today at the Cyberport University Partnership Programme Demo Day or CUPP Demo Day. 
 
     It is with special significance that I join this programme today. And I do want to tell you why. Because 13 years ago, I stepped up at Cyberport as its first CEO. I spent seven years of my life here almost. And then second of all, I just told the Stanford professor that I am a member of the class of 1982, that graduated about almost 35 years ago. I certainly can share the excitement you have learning from the Stanford business school.
 
     For our young friends and participants of the CUPP programme, I hope you have learnt much from the Stanford University and have now better equipped yourselves for the challenges ahead as an innovator and entrepreneur. Today is the day to show us what you've learnt in the past few months, and more importantly, how you intend to change the world. 
 
     The rapid upsurge of the Fintech sector is a global phenomenon, and Hong Kong, as an international financial centre, is in an enviable position. Fintech offers consumers novel ways to manage their finances, and provides financial institutions new tools to enhance their operational efficiency and security. Let me ask you all a question: Do you know which place in the world has the highest Fintech adoption rate around the globe? You might think it is United States, United Kingdom or Singapore. No, the answer is right here. It's Hong Kong!
 
     According to a study conducted by Ernst & Young in December 2015, Hong Kong has the highest Fintech adoption rate, at 29.1 per cent, of all markets surveyed, followed by the United States at 16.5 per cent and Singapore at 14.7 per cent. The study surveyed the percentage of digitally active consumers in the financial services sector, such as online banking. Hong Kong is well equipped with the most efficient, safest and robust financial infrastructure to support high-frequency and large-volume transactions, and our people here are very receptive and accustomed to Fintech services. In short, Hong Kong's Fintech services are robust, diverse, tech-savvy while not gimmicky, and, most important of all, trusted.
 
     The Government is committed to motivating and collaborating closely with the industry to develop Hong Kong into a Fintech hub. The Financial Secretary announced in the 2016-17 Budget Speech a range of measures for fostering Fintech development in Hong Kong. To name a few, Cyberport will set aside a dedicated section of 3 000 square metres in its Smart-Space co-working space, and roll out a designated incubation programme to support 150 Fintech start-ups over the next five years. Under the CUPP programme, Cyberport will arrange 300 university students to join Fintech training camps in overseas universities to gain more in-depth understanding of career prospects in the Fintech sector.
 
     The Innovation and Technology Bureau has also established a new $2 billion Innovation and Technology Venture Fund to co-invest with private venture capital funds into our local start-ups, including Fintech start-ups. We strongly believe this new Venture Fund will fill a much-needed funding gap in our start-up ecosystem, attract internationally renowned venture capital funds to bring their professional experience to Hong Kong and take our start-ups to the next level.
 
     The Hong Kong Monetary Authority has recently launched two new initiatives to support the development of Fintech in Hong Kong. The first is a Fintech Supervisory Sandbox which allows banks to conduct testing and trial of newly developed technologies and applications without the need to fully comply with HKMA's usual supervisory requirements. The second is the Fintech Innovation Hub set up jointly with the Hong Kong Applied Science and Technology Research Institute, known as ASTRI. The Hub is equipped with the necessary system and support resources to enable players to test new Fintech solutions.
 
     The founder of the Ford car manufacturer, Henry Ford, once said, "Coming together is a beginning; keeping together is progress; working together is success." We are confident that with the commitment and concerted efforts of the Government, industry, academia and our young talents here, Hong Kong will become the Fintech hub in the region. 
 
     Last but not least, my warmest congratulations to all of the 2016 CUPP participants. I wish the 20 teams good luck on their presentations, and everyone here an enjoyable afternoon. Thank you very much.
 

Ends/Thursday, October 27, 2016
Issued at HKT 15:55

NNNN