The Hong Kong Investment Corporation (HKIC) has partnered with local fintech firm WeLab to enhance AI applications in financial technology.

WeLab, based in Hong Kong, plans to apply for a digital banking license in Thailand. This adds to its existing licenses in Hong Kong and Indonesia.

This announcement was made during the “Pioneering AI-Finance • Powering Asia’s Digital Future” summit.

Financial Secretary Paul Chan Mo-po, speaking at the event, emphasized the growth of Hong Kong’s fintech ecosystem.

It now includes approximately 1,100 companies and startups, including 10 unicorns. He noted significant advancements in areas like digital assets, blockchain, and cybersecurity.

🔗 Source: The Standard

🧠 Food for thought

1️⃣ Hong Kong’s strategic positioning as Asia’s fintech powerhouse

Hong Kong’s fintech landscape has more than doubled in five years, growing from around 500 companies in 2019 to approximately 1,100 today, including 10 unicorns as mentioned by Financial Secretary Paul Chan1.

Among these unicorns, WeLab stands alongside HashKey Group, Micro Connect, and ZA Group, each valued at over $1 billion and specializing in different areas of financial technology2.

This growth is supported by Hong Kong’s regulatory framework that balances innovation with consumer protection, exemplified by initiatives like the Fintech Supervisory Sandbox from the Hong Kong Monetary Authority1.

The city’s development as a fintech hub benefits from significant investment inflows, with funding reaching approximately $1.2 billion in 2018 alone, while WeLab itself has raised a total of $1.156 billion from backers including Sequoia Capital and Citigroup13.

Hong Kong’s strategic position in the Greater Bay Area provides fintech companies access to mainland China’s vast market while serving as a gateway to Southeast Asian expansion opportunities.

2️⃣ WeLab’s calculated regional expansion through digital banking

WeLab’s Thailand digital banking license pursuit represents a deliberate Southeast Asian expansion strategy, following its successful establishment of virtual banks in both Hong Kong and Indonesia4.

The company has partnered with Lightnet specifically for the Thailand venture, combining WeLab’s fintech expertise with Lightnet’s extensive local network that reaches 46 million Thai customers, with a licensing decision expected in the first half of 20255.

Recent WeLab developments