The Hong Kong Monetary Authority (HKMA) has launched Project SAGE and set up an expert group to support agentic finance.
Named Project SAGE, short for ‘Securing Agentic Finance with Governance and Enablement’, the programme is designed to enable practical applications of agentic finance in Hong Kong while ensuring that a governance framework is in place. Alongside the project, the authority has formed the Agentic Finance Expert Group to support its work.
According to the HKMA, the maturing of agentic AI technologies has prompted the financial industry to look beyond internal use and examine how AI agents could make financial services more efficient and secure. The authority describes this emerging model, commonly referred to as agentic finance, as having the potential to transform how customers engage with financial services. At the same time, it notes that the associated risks and challenges must be addressed for the model to develop and be adopted responsibly.
Four areas of focus
Project SAGE is structured around four areas. The first, market development and use case exploration, will see the HKMA support industry participants and their partners in exploring and validating agentic finance use cases and solutions, while facilitating dialogue with the authority on practical implementation considerations and challenges. Potential areas cited span B2C applications such as agentic commerce and everyday payments, B2B functions including procurement and treasury management, and M2M scenarios such as usage-based payments for digital services.
The second area addresses agent identity. The project will explore approaches to verifying AI agents’ identities and delegated authority, including Know Your Agent (KYA) practices and authentication mechanisms, with the aim of enabling agents to participate in financial activities in a trusted manner.
Interoperability standards form the third strand. The HKMA intends to facilitate industry discussion on relevant standards and protocols to support secure interactions across the agentic finance ecosystem. The fourth area covers legal and regulatory frameworks, under which participants will exchange views on considerations raised by agentic finance, including governance arrangements, liability, and consumer protection.
Expert group and regulatory approach
The Agentic Finance Expert Group brings together financial institutions, technology service providers, professional service firms, and academia. By pairing use case exploration with work on identity verification, interoperability, and legal frameworks, the project addresses both the commercial applications of agentic finance and the questions of trust, accountability, and consumer protection that the HKMA has identified as conditions for its responsible adoption.
Commenting on the launch, Mr Eddie Yue, Chief Executive of the HKMA, stated that agentic finance could transform how financial services are delivered and used. The official added that the initiatives and exchanges with industry experts are intended to support innovation and reinforce Hong Kong’s position in next-generation financial technology, while helping the authority navigate the opportunities and challenges ahead. According to the HKMA, the aim is to ensure that agentic finance serves users’ interests while safeguarding the stability of Hong Kong’s financial system.
