Exploring the Future of Cross-Border Payments: Insights from Industry Leaders at EY Event: Prof. Amber Li Discusses Opportunities and Challenges in Cross-Border Payments
We are pleased to announce that HKUST IEMS’s Faculty Associate, Prof. Yao Amber Li, recently attended an insightful event hosted by Ernst & Young Global Limited (EY), where she served as a panelist in a discussion titled “Unlocking the Potential of Cross-Border Payments: The Opportunities and Challenges in Asia.”
The event started with a fireside chat with Mr Jack Chan, EY Chairman, Mr Henry Zheng, Partner, Fintech and Innovation, Greater China, EY, and Ms Vida Ghazavi, APAC head of Product Implementation and Change Management, J.P. Morgan, on the topic of “Harnessing the power of GenAI for the financial services industry.” Mr Jack Chan mentioned that the rise of GenAI has witnessed unprecedented digital adoption, with massive investments pouring into the AI space and a rising innovation boom. Venture capital investment in GenAI has surged 120% in the past two years, reaching $20.3 billion by 2023 and continuing to grow. At the same time, many enterprises are actively integrating GenAI into their own business systems and exploring application opportunities in more diverse business scenarios.
The second discussion, meanwhile, focuses on the future of cross-border payments. HKUST IEMS Faculty Associate, Prof Amber Li, joined Mr Dick Ho, Deputy General Manager, Bank of China Credit Card (International) Ltd., Dr Rocky Tung, Director and Head of Policy Research, Financial Services Development Council and Ms Patricia Tay, Partner, Banking and Capital Markets, Financial Services, EY to delve into this topic.
During the event, Prof. Li shared her expertise on the evolving landscape of cross-border payments in the Asian market, addressing both the growth opportunities and the challenges stakeholders face in this dynamic environment. She emphasized that technological advancements allow financial institutions to reach previously unbanked populations, providing essential banking services through digital wallets and mobile banking. As protectionism rises in mature markets, Prof. Li noted that businesses are increasingly looking towards emerging Southeast Asian markets, where significant growth potential exists.
While new payment systems like Alipay and WeChat are gaining traction, Prof. Li highlighted the continued importance of traditional banking services in international trade, particularly in B2B transactions, where businesses still rely on established services such as letters of credit. She pointed out that there is a unique opportunity for financial institutions to combine traditional services with innovative technologies like blockchain and fintech to enhance their offerings and build trust with business owners.
Furthermore, Prof. Li discussed the critical role of cross-border payment systems in fostering regional economic development. She stated that these systems can reduce transaction costs, create new job opportunities, and facilitate e-commerce development for small and medium-sized enterprises.
Fintech innovations are transforming the global cross-border payment landscape, presenting significant opportunities for financial institutions. Panelists noted that the rise of digital financial services in emerging markets, particularly in ASEAN, is expected to become mainstream. To seize this opportunity, enhanced infrastructure, including improved data flows and regulatory standards, is essential.
Central Bank Digital Currency (CBDC) is also poised to create vast potential. With China leading over ten countries in exploring CBDC, and as a major trading partner for more than 150 regions, the internationalization of the RMB is expected to drive further development.
Hong Kong, as a key offshore RMB business hub, will play a crucial role in this evolution by enhancing digital payment capabilities and leveraging its strengths in professional services. Additionally, the tokenization of assets and currencies is anticipated to improve mobility, facilitating trade development and resource flows across the region.
EY is the Knowledge Partner of the Asian Financial Forum starting in 2025. We thank EY for organizing this important discussion and all the panelists for their valuable contributions. Looking forward to more invaluable insights in the EY Knowledge Series.
Get updates from HKUST IEMS
