What exactly is the problem in Hong Kong compared to other places?
I've used WorldPay in the beginning, then Citi and almost BEA for direct merchant accounts. PayDollar also for a while (and PayPal of course).
KYC requirements have stepped up considerably in the past couple of years. So why haven't transactions (wires) processing time gone up? Or costs?
Yes it takes a level of resources to perform KYC but it's not going to make up the difference of a nearly instantaneous BTC txn compared to your International bank wire that takes days.
Seeing as you seem to be so in tune with the banking industry. Why don't you tell us how much it costs to send a SWIFT message, and tell us what the breakdown (B&M overhead, SWIFT fees, labour costs, KYC, etc) of a bank wire costs.
You said, "and the service provider stakeholders want to earn a profit". That's a huge difference right there. There are no shareholders on the blockchain. Miners get a fair reward for their work and if they charge too much, there are no regulations prohibiting another miner from doing the same work for a cheaper price.
The exchanges (real currency to Bitcoin and vice versa) will want to take a cut. Wire transfers don't take days - it is the processing on either end that can take time, depending on how modern/efficient the banks systems are. When I send from my UK bank to HSBC the money shows up a few seconds later. When I send from my Singaporean bank to my Japanese bank sometimes the money shows up 4 days later. They all use the same SWIFT infrastructure. It just depends on how much verification and manual work is required - some banks have automated systems... some don't.
Good luck living your your idealistic world. I inhabit what we call reality