The Greater Bay Area (GBA) is perhaps the best contender in becoming Asia’s version of both Silicon Valley and Wall Street. The region is already one of the global tech hubs, and it is home to major advancements in fintech. Since the announcement of the initiative in February this year, it has been well-received in the technology and finance industries across the region.

With a combined GDP of over US$1.6 trillion, and a population of nearly 70 million, it makes sense to closely integrate the region’s cities — namely Guangzhou, Shenzhen, Zhuhai, Foshan, Huizhou, Dongguan, Zhongshan, Jiangmen Zhaoqing, and the two special administrative regions, Hong Kong and Macao — for efficiency in trade and transactions.

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Investments in technology will greatly facilitate growth in the region and will be a testbed for how effective these technologies will be in the bigger picture. The so-called “Web 3.0” or the “internet of value” focuses on decentralized technologies, artificial intelligence, and smart and connected devices. With a diverse population, culture, and economic systems, these innovations will be the glue that brings together the GBA’s 11 cities within tight integration.

What makes the greater Bay Area attractive?

The GBA’s economic growth and large market size make the region a land of opportunities for businesses in various sectors including finance, real estate, infrastructure and many others, according to a comprehensive report by KPMG. In particular, strong manufacturing industry and tourism will contribute to growth, according to a report by PWC China.

The different cities involved present a region of diverse industries and skills that together make for a strong comparative advantage in manufacturing, IT, technology, global tourism, trade, asset management, and finance.

Compared with the rest of the world, the GBA has already made strong headway in finance, technology, insurance, property and blockchain technology. Some of these industries even outpace their global counterparts. 

Specific technologies that will drive integration and growth

For the Greater Bay Area goals to be achieved, there needs to be adequate integration among the 11 cities. Investments in innovation and technology in these areas will help enhance competitive advantage and promote better integration across the region.

Blockchain and distributed ledger technologies

One such area for investment is in decentralized technology. The nature of blockchain may be the right infrastructure to pursue, considering the 11 cities that make up the GBA. “Blockchain today is like how the internet was discovered over 20 years ago. I am convinced that blockchain will become the infrastructure of the future,” says Shirley Hsu, Chief Finance Officer, Tus Pine Peak Group. She adds that data will be a driver of growth and profit. “It’s a matter of how we can take advantage of this data.”

Integrated digital identity

One reason to rally behind blockchain tech is the opportunity for a user-centric model for decentralized digital identities. With no single city maintaining control over the know-your-customer (KYC) and identification system, businesses and governments across the region can achieve a standardized identification system that ensures the privacy of data and almost entirely mitigates control by centralized platforms. 

KYC procedures currently take up to several days or weeks before completion. A decentralized and standard digital identity system makes it possible for businesses to onboard clients in a faster and more effective manner, ensuring seamless service delivery and huge cost savings in terms of personnel, time and money. 

A number of experts in the field hold similar beliefs in the transformational capacities of decentralized digital identity framework. “We can’t reach the age of 3.0, i.e., web decentralization, unless we create a platform for decentralized digital identities and assets,” says Hans Lombardo, Co-Founder, Blockpass, a platform that decentralizes KYC and identity management. 

“The internet at present is centralized, and data is controlled by specific companies like Facebook, JP Morgan Chase, Google, and other companies in the United States. It is really very important that we have a decentralized digital identity,” he adds.

A decentralized standard for identity management will allow for an easier flow of transactions and remove barriers in resource exchange. This will make it easier for travellers across different cities to transact and travel easily without going through different ID verification protocols.

Artificial Intelligence

Artificial intelligence is another field with transformational capacities to help facilitate growth. Presently, Hong Kong holds a strong position in providing educational resources on AI, as home to two of the world’s top 10 universities for AI research. 

Investing in AI will help attract talent and provide quality AI research, which is crucial to innovation and technological advancement. With adequate advancements in AI, the GBA can provide substantial technical support to various sectors including finance and telecommunications.

“AI is still at an early stage in terms of applications, but as soon as the technology matures, we will see AI-driven taxi, trucks, customer service reps at banks and shops, as well as AI-controlled robots acting as police and security guard joining humans,” shares Aaron Tsai, Founder and Chief Capitalist at MASEx, a global security token exchange.

“Machine learning can simplify and simplify processes, and apply the lessons learned to other areas,” says Pradip Madhanagopal, Risk Audit Partner at PriceWaterhouseCoopers.

A testbed for innovation

The year 2035 has been set as the milestone date for the GBA initiative to reach its maturity. With accelerated investments in infrastructure and technology, there is optimism that the economic potential of the region may be more quickly realized, given its market size, diverse resources, talent, and institutions.

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