Press Release

Finastra global survey finds Hong Kong banks leading adoption of generative AI

Hong Kong financial institutions accelerate rollout of BaaS and embedded finance amidst higher confidence in potential

Hong Kong – November 28, 2023 – Finastra’s annual global survey reveals acceleration in Hong Kong institutions’ exploration and roll out of new models and technologies, including Banking as a Service (BaaS), embedded finance and generative AI.

The ‘Financial Services: State of the Nation Survey 2023’ finds Hong Kong finance executives are moving faster than other major markets in the adoption of generative AI, with 38% saying their organization has already started rolling out the technology. This is the highest of all the markets surveyed and well above the global average (26%), as well as being more than double that of Singapore (16%), which appears to be taking a more cautious approach. In fact, just 1% in Hong Kong say their financial institution is not interested in the technology at all.

However, this contrasts with attitudes towards AI more broadly, with just 29% saying their institution has improved or deployed AI technology in the last 12 months – the lowest of the markets surveyed apart from France (28%).

Bullish on BaaS and embedded finance

Finastra’s research also finds that Hong Kong decision makers are the most enthusiastic globally about the potential for BaaS and embedded finance, with 95% (vs global average of 84%) seeing the emerging banking models as generators of business growth and revenue. This represents a significant increase since last year’s survey (79%), which is mirrored by large increases in organizations deploying or improving their BaaS capabilities (51% in 2023, up from 33% in 2022), or their embedded finance capabilities (43% in 2023, up from 27% in 2022) in the last 12 months.

Relative stability in the face of challenging conditions

The challenging economic climate has affected banks’ investment plans globally, with significant proportions in every market saying their financial institution’s investments in technology and digital banking have been constrained to some extent (ranging from 64% in Saudi Arabia to 87% in Vietnam and the UAE). However, Hong Kong has the highest proportion of financial institutions that have not been constrained at all (30%) behind Saudi Arabia (34%). Of those whose organizations have been constrained, 70% have either resumed their tech investments in full or expect to have done so by the end of H1 2024.

Growth potential in green lending

There is a strong perception that ESG-focused finance can benefit both financial institutions and communities, with 87% in Hong Kong agreeing that a focus on ESG and sustainability will be the next big disruptor in the sector.

Specifically, 90% – the highest globally – agree that ‘green lending’ provides an opportunity for growth and revenue generation. One of the keys to unlocking this potential might be generative AI. Of those interested in the technology, the most popular use (current or planned) globally is the collection, processing and analysis of data for ESG decision-making or criteria classifications (36%), with 35% in Hong Kong planning to use it in this way.

“Despite the challenging economic climate, it’s clear from our research that investment in AI, BaaS, and embedded finance remain key priorities for financial services organizations over the next 12 months, particularly as they seek to further enhance and personalize the customer experience,” said Simon Paris, Chief Executive Officer at Finastra. “We share the industry’s ongoing commitment to ESG initiatives, to collaboration around Open Finance, and excitement in using advanced technologies like AI to help deliver on the opportunities ahead.”

Access the full report and findings here.

Survey Methodology

  • A total of 956 professionals (at managerial level) in financial institutions and banks across the US, UK, France, Germany, Hong Kong, Singapore, Saudi Arabia, Vietnam and the UAE were surveyed. These financial institutions represent a gross total of around USD$33 billion in turnover over the last 12 months, employ approximately 2.4 million staff and have approximately 240 million client / customer / member relationships.
  • As a result of rounding up percentage results, the answers to some questions might not always add up exactly to 100%. Respondents were also able to select more than one answer for some questions.
  • Comparative analysis was made from results of a similar survey run by Finastra in August 2022 which was also conducted online amongst financial institutions and banks across the same markets, except for Saudi Arabia and Vietnam.
  • The research was conducted by Savanta via an online panel (August to September 2023).


For further information please contact:

Benjamin Jun Tai
Head of PR, APAC
T +65 9058 1160

About Finastra

Finastra is a global provider of financial software applications and marketplaces, and launched the leading open platform for innovation,, in 2017. It serves institutions of all sizes, providing award-winning software solutions and services across Lending, Payments, Treasury & Capital Markets and Universal Banking (Retail, Digital and Commercial Banking) for banks to support direct banking relationships and grow through indirect channels, such as embedded finance and Banking as a Service. Its pioneering approach and commitment to open finance and collaboration is why it is trusted by over 8,000 institutions, including 45 of the world’s top 50 banks. For more information, visit For more information, visit