The Hong Kong Monetary Authority (HKMA) and the Financial Services Regulatory Authority (FSRA) of the Abu Dhabi Global Market (ADGM) have signed a Memorandum of Understanding (MoU) to deepen the partnership between them, particularly regarding cross-border trade-related data exchange and business collaboration.
Both the Hong Kong Monetary Authority and the FSRA hope to further promote inclusive and innovative financial services leveraging fintech and data in both markets.
Colin Pou, executive director of financial infrastructure for the HKMA, joined Wai Lum Kwok, senior executive director of authorisation and fintech at the FSRA, in signing the MoU. The exchange of the MoU signifies an important milestone in cementing and strengthening the collaboration between the two authorities, building upon the solid foundation laid by the signing of a cooperation agreement in 2018.
Under the MoU, the two authorities will contemplate joint Proof-of-Concept projects to connect the HKMA’s Commercial Data Interchange to the ADGM’s SME Financing Platform.
Both authorities will also join forces to explore use cases for cross-border data exchange with user consent to address potential pain points in cross-border banking services such as small and medium-sized enterprise (SME) account opening and financing to facilitate cross-border trading.
‘Building a vibrant ecosystem for SMEs’
Discussing the news, Pou explained: “We are delighted to deepen our collaboration and knowledge exchange with the FSRA through this MoU.
“This underscores our shared commitment to advancing fintech development and unleashing the potential of data. Both authorities recognise the importance of creating next-generation data platforms and enabling cross-border data exchange in the age of digitalisation. We trust that our collective effort will foster financial innovation and empower SMEs in both jurisdictions with enhanced financing opportunities.”
Kwok also offered his take on the collaboration: “This MoU further strengthens the strategic partnership between the FSRA and HKMA to foster cross-border trade and business leveraging technological innovation.
“We are excited by the tremendous possibilities that the digital bridge between our platforms can bring, in connecting the marketplace of the UAE and the Greater Bay Area through the respective gateways of ADGM and Hong Kong. We look forward to working closely with the HKMA in building a vibrant ecosystem for SMEs in both jurisdictions.”
