The Hong Kong University of Science and Technology (HKUST) Business School has received a $20 million research grant to improve the security capabilities of electronic payment systems, China News reported August 12.
The university has reportedly partnered with the University of Hong Kong (HKU), the Chinese University of Hong Kong (CUHK), and the City University of Hong Kong (CityU) to work on the research project.
The university is already looking for electronic payment security system upgrades for mechanisms that are already in place. The parties will also explore blockchain technology applications, and discuss the possibility of Hong Kong’s transformation into a global financial technology hub.
The interdisciplinary research, according to the report, is to be coordinated by professor Tan Jiayin, known for his work on the “Strengthening Hong Kong’s Strategic Position as a Regional and International Business Center”. His work centered around blockchain, network security, and artificial intelligence (AI).
He emphasized that the research of the subject focuses on academics and practice, involving digital payment, financial product design and distribution services. Banks will be a predominant part of the research. They will also explore digital currencies and financial product design and distribution services as viable products that they might invest into.
Tan Jiayin said that artificial intelligence learning has been upgraded to be able to detect colors:
For market analysis, for example, purely a piece of text may not see anything. If it matches the image, the speaker’s eyes, tone, tone and tone. Speed can be analyzed, and real-time analysis can be done in the future, just like a lie detector.
While this may not be breakthrough, it is radical for a university research and development initiative. Tan Jiayin said that Tokyo and Shanghai have set up a special financial risk assessment model, and Hong Kong has no time. Market changes in one place, fluctuations in the gold stock market, and even economic and political developments are worthy of attention and preparation.
In 2017, in order to “significantly reduce the input of human resources and time that trade finance normally requires, and reduce chances of fraud,” the Hong Kong government announced plans to establish a blockchain-powered trade financing system. The system was expected to benefit the country in its participation in China’s Belt and Road Initiative, which aims to promote trade links between China and its global partners.
A 2017 survey by the Asian Development Bank found the global trade finance gap – the amount of unmet demand for trade finance – was $1.5 trillion, 40 percent of which originated from the Asia-Pacific region. Market participants hope emerging technology, including blockchain, will allow them to serve more clients while also serving existing clients more effectively.
In June of this year, Alibaba subsidiary Ant Financial, formerly known as AliPay, tried its first blockchain remittances, sending a transaction between AliPayHK app in Hong Kong and Filipino payment app GCash in three seconds. Jack Ma, the owner of Alibaba’s Ant Financial will use some of the $14 billion it just raised to boost blockchain development. Alibaba is now worth a reported $150 billion, making it one of the world’s most valuable private companies. Ant Financial said in a statement:
The Company will continue to invest in developing its blockchain, AI, security, IoT and computing capabilities to upgrade its global technology platform for the next generation
Last month, the Hong Kong Monetary Authority and a Ping An Group fintech subsidiary announced the launch of their own blockchain trade finance solution with 21 banks. The solution aims to reduce the amount of time and bureaucracy involved in signing up new fledgling businesses for banking services by smoothing over transactions.
While most financial institutions have steered clear of bitcoin and other volatile cryptocurrencies, CEOs across industries are investing heavily in blockchain. These developments rehabilitate the somewhat damaged investor and trader faith that the ban on ICO’s debate has inflicted in China and far eastern countries.