Digital belongings, synthetic intelligence, and cybersecurity high the transformation agenda
HONG KONG SAR – Media OutReach Newswire – 22 January 2026 – Hong Kong’s banking sector enters 2026 from a place of monetary energy — well-capitalised, extremely liquid, and supported by structural inflows and strong wealth administration progress. Regardless of an evolving macroeconomic and funding surroundings, the sector stays well-positioned to pursue focused progress alternatives.
KPMG’s newest report, the Hong Kong Banking Outlook 2026, expects Hong Kong banks to capitalise on the robust wealth administration pipeline and a revitalised IPO market, deploying capital the place risk-adjusted returns seem most tasty. The report additionally spotlights the important thing priorities for the yr forward: advancing digital belongings, embracing AI innovation, and fostering nearer collaboration between personal banks and asset managers to strengthen Hong Kong’s place as a world-leading centre for offshore personal wealth administration.
Paul McSheaffrey, Senior Banking Associate, Hong Kong SAR, KPMG China, says: “As we enter 2026, KPMG is extra optimistic about Hong Kong’s banking sector. The robust efficiency of Hong Kong’s fairness market in 2025 has considerably lifted sentiment. Current coverage initiatives, together with efforts to strengthen town’s fixed-income market and to help Chinese language Mainland enterprises in ‘going international’ by means of Hong Kong, present additional confidence sooner or later. We count on elevated financial institution funding and hiring to observe.”
Jianing Music, Head of Banking and Capital Markets, Hong Kong SAR, KPMG China, says: “In 2026, AI will evolve from a help instrument to a core driver of competitiveness for Hong Kong banks. Banks are more and more targeted on productiveness good points, on measuring ROI, and on embedding AI throughout operations in a approach that delivers tangible profit. In company banking, this shift might lastly see paper, bodily signatures, and batch processing section out.”
Tokenisation strikes past proof of idea
Hong Kong is positioning itself as a world chief in digital belongings, with banks conducting real-world transactions utilizing tokenised deposits by means of the Hong Kong Financial Authority’s Undertaking Ensemble1. A wave of stablecoin licence functions can also be underway, and tokenised gold is being issued. Looking forward to 2026, KPMG expects conventional banks and the digital-asset ecosystem to maneuver nearer collectively. Banks will doubtless start providing providers resembling digital-asset custody and a broader vary of tokenised merchandise because the regulatory framework turns into clearer.
Simon Shum, Head of Digital Property, Hong Kong SAR, KPMG China, says: “The tempo of change will solely speed up this yr. Banks ought to concentrate on constructing their blockchain experience, guaranteeing governance and controls are strong, and staying near regulatory developments, notably round AML, cybersecurity and danger administration, because the digital asset ecosystem continues to evolve quickly.”
Rising threats push banks towards automation-led cyber defence
As Hong Kong banks speed up towards a digital-first future, the cyber menace panorama will stay a crucial problem in 2026. KPMG expects menace actors to more and more leverage AI and automation to determine vulnerabilities with better pace and precision, whereas assaults by means of third events and the broader digital ecosystem proceed to rise. For banks, this implies cyber resilience will develop into an much more urgent board stage precedence. The HKMA will proceed expectations round know-how danger administration, clear accountability for cyber danger, and the power of banks to keep up crucial providers and get well swiftly when incidents happen.
Lanis Lam, Associate, Expertise Danger, KPMG China, says: “As rising cyber dangers, evolving know-how, and shifting regulatory expectations redefine the panorama, banks in 2026 should strategically prioritise three areas: real-time menace detection, governance of third-party dependencies, and seamless integration between know-how, danger, and enterprise features to drive cohesive and efficient responses. In the end, automation needs to be a core enabler of cyber resilience, not only a instrument for effectivity however a catalyst for proactive defence and operational agility.”
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About KPMG
KPMG in China has workplaces situated in 31 cities with over 14,000 companions and employees, in Beijing, Changchun, Changsha, Chengdu, Chongqing, Dalian, Dongguan, Foshan, Fuzhou, Guangzhou, Haikou, Hangzhou, Hefei, Jinan, Nanjing, Nantong, Ningbo, Qingdao, Shanghai, Shenyang, Shenzhen, Suzhou, Taiyuan, Tianjin, Wuhan, Wuxi, Xiamen, Xi’an, Zhengzhou, Hong Kong SAR and Macau SAR. It began operations in Hong Kong in 1945. In 1992, KPMG turned the primary worldwide accounting community to be granted a three way partnership licence within the Chinese language Mainland. In 2012, KPMG turned the primary among the many “Massive 4” within the Chinese language Mainland to transform from a three way partnership to a particular basic partnership.
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