The Hong Kong Monetary Authority is preparing to widen the scope of its artificial intelligence sandbox as part of a long-term plan to advance financial technology development.
The initiative is outlined in a new five-year roadmap called Fintech 2030. The strategy moves beyond the banking sector and brings in other industries under regulatory supervision. The goal is to support practical uses of generative AI across financial services and related fields.
HKMA Chief Executive Eddie Yue confirmed that the sandbox will expand to allow broader testing of AI tools. These tools target areas such as fraud detection, risk management, and customer service. The authority aims to improve outcomes by enabling secure data use and controlled experimentation.
The HKMA is coordinating with other regulators to support this effort. Yue said discussions are ongoing with the Securities and Futures Commission and the Insurance Authority. The regulators are exploring ways to share insights and align oversight frameworks. Combining data from multiple sectors is expected to improve AI model training and performance.
Fintech 2030 represents the third stage of Hong Kong’s fintech roadmap. Earlier phases were launched in 2017 and 2021. This phase places stronger emphasis on applied technology and cross-industry collaboration. The AI sandbox will act as a central platform for these efforts.
Yue said regulators are already reviewing joint projects involving companies from different sectors. One example involved a local bank working with a telecommunications provider to test fraud prevention methods. The HKMA did not disclose company names. The project reflects the authority’s push for real-world testing under regulatory guidance.
The expanded sandbox will allow firms from non-banking industries to participate. This approach increases the variety of data available for AI testing. Regulators believe diverse data sources are necessary to evaluate advanced AI systems accurately.
The HKMA plans to use the sandbox to balance innovation and risk control. All testing will take place within defined regulatory boundaries. The authority said the framework is designed to encourage experimentation while maintaining financial stability.
Fintech 2030 officially began this year. Over the next five years, the HKMA expects stronger cooperation between regulators and industries. The strategy aims to position Hong Kong as a hub for responsible AI adoption in financial services.
Source: https://blockonomi.com/hkma-eyes-industry-partnerships-to-advance-fintech-2030-goals/
