HKMA launches Project SAGE to promote the responsible development and application of agentic finance

The Hong Kong Monetary Authority (HKMA) announced today (2 November) the launch of Project SAGE, which aims to promote the responsible development and application of agentic finance in Hong Kong. As agentic artificial intelligence (AI) technology matures, the financial industry, while advancing internal adoption, is further exploring how AI agents can make financial services more efficient and secure. This emerging model, widely known as agentic finance, has the potential to transform the way customers use financial services, but the risks and challenges arising from it also need to be properly managed to promote responsible development and application. To this end, the HKMA has launched Project SAGE to enable practical applications of agentic finance while ensuring that governance frameworks are in place. Project SAGE will focus on the following four main areas: (1) Market development and exploration of use cases: To support market participants and their partners in exploring and validating use cases and solutions for agentic finance, while facilitating ongoing dialogue among stakeholders and the HKMA on the considerations and challenges involved in practical implementation. Potential areas of exploration include: Business-to-consumer (B2C), such as agentic shopping and everyday payments; Business-to-business (B2B), such as procurement and treasury management; Machine-to-machine (M2M), such as usage-based payments for digital services. (2) Agent identity: To explore methods for verifying the identity and authorised permissions of AI agents, including "Know Your Agent (KYA)" measures and identity authentication mechanisms, to facilitate the reliable participation of AI agents in financial activities; (3) Interoperability standards: To promote industry discussion on interoperability-related issues, including relevant standards and protocols, to support secure and smooth interactions within the agentic finance ecosystem; (4) Legal and regulatory framework: To exchange views on the legal and regulatory issues involved in agentic finance, including governance arrangements, legal liability and consumer protection. To pool expertise and perspectives from various sectors, the HKMA has established an Agentic Finance Expert Group to support the work of Project SAGE, with members drawn from relevant stakeholders including financial institutions, technology service providers, professional service firms and academia. Eddie Yue, Chief Executive of the HKMA, said: "Agentic finance has the potential to reshape how financial services are provided and used. By implementing a series of measures and promoting exchanges with industry experts, we hope to drive innovation while striving to consolidate Hong Kong's leading position in the next generation of fintech. These measures will help us address future opportunities and challenges, ensuring that agentic finance serves the best interests of users and maintains the stability of our financial system."