This initiative allows authorised institutions to test AI-driven solutions within a controlled setting, focusing on practical applications in banking operations. Participants will have access to Cyberport's computing infrastructure and receive guidance from the HKMA during the testing phase. The regulator aims to gather insights from these experiments, which may inform future guidelines on AI adoption in the financial sector.
The HKMA is encouraging the exploration of AI technologies, including Retrieval-Augmented Generation, model fine-tuning, and the development of new models. The trials will explore advanced AI applications such as real-time interactions, decision-making support, and predictive analytics, with a particular focus on risk management, anti-fraud systems, and customer experience enhancements.
To support collaboration, the HKMA supports partnerships between authorised institutions and fintech companies, with Cyberport offering a directory of potential partners. Applications for the first batch of the Gen AI Sandbox are open until 15 November, with selected projects starting in December and expected to conclude within six months.
In addition, the HKMA has announced the launch of Phase 2 of the e-HKD Pilot Programme. This phase aims to investigate potential use cases for digital currencies, such as e-HKD and tokenized deposits, as part of the broader Project e-HKD+.
Eleven groups have been chosen for Phase 2 to test scenarios such as cross-border payments, asset tokenization, and tokenized asset settlement. Visa and ANZ will focus on how Australian corporations can invest in Hong Kong-based funds via digital currency, using a sandbox environment to issue fiat-backed tokens and facilitate near-real-time cross-border transfers.
Visa’s involvement in this phase follows its earlier work in Phase 1, where it examined interbank payment flows using tokenized deposits. ANZ will contribute its experience in decentralised networks and the development of stablecoins.
Additional trials include DBS’s effort to leverage digital money for a scalable ESG reward platform, and HSBC’s exploration of secure digital money use in permissioned distributed ledger technology (DLT) systems for asset storage and transfer. Other participants, including Mastercard, Kasikornbank, and Airstar Bank, will examine the role of digital money in facilitating trade finance.
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