Project SAGE pairs agentic finance trials with governance
The Hong Kong Monetary Authority (HKMA) has launched Project SAGE to support responsible adoption of agentic finance. A new expert group will support work on use cases, agent identity, interoperability and legal frameworks.
From payments to procurement
Project SAGE, short for Securing Agentic Finance with Governance and Enablement, combines practical applications with governance across four work areas.
It will help industry participants and partners explore and validate use cases while discussing implementation challenges with the HKMA.
Potential applications include business-to-consumer commerce and everyday payments, business-to-business procurement and treasury management, and machine-to-machine usage-based payments for digital services.
Work on agent identity will explore verification of AI agents and their delegated authority, including Know Your Agent practices and authentication mechanisms.
Interoperability discussions will cover standards and protocols for secure interactions across the ecosystem.
Who answers for agents
The legal and regulatory work will cover governance arrangements, liability and consumer protection.
The HKMA has established an Agentic Finance Expert Group comprising financial institutions, technology service providers, professional service firms and academia.
The initiative comes as the industry moves beyond internal AI adoption to explore agents that interact with financial services.
The HKMA sees potential for greater efficiency and security, while noting that associated risks and challenges require attention.
Innovation needs safeguards
HKMA Chief Executive Eddie Yue sees agentic finance changing how financial services are delivered and used.
He links industry exchanges and innovation to Hong Kong's financial technology role.
His stated test is whether adoption serves users while safeguarding financial stability.