Hong Kong banks to share account data to 'improve efficiency, lower costs' under HKMA pilot scheme
The Hong Kong Monetary Authority (HKMA) is set to launch a pilot programme that will enable customers to use a consent-based and secure way to share their account data with other banks.
The initiative, called Interbank Account Data Sharing (IADS), is set to launch on January 1 with the participation of 28 banks, the city's de facto central bank announced on Thursday.
The pilot scheme will cover deposit account information for the retail, corporate and small and medium-sized enterprise customer segments.
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It is expected that the banks will gradually develop new and innovative banking services, such as streamlined loan applications, consolidated account views and tailored data-driven services.
HSBC, Bank of China (Hong Kong), China Citic Bank and DBS Bank, are among the lenders participating. Some of the city's digital banks such as Livi Bank, Welab Bank and ZA Bank, will also take part in the pilot scheme.
"The IADS pilot programme marks a significant milestone in fostering a customer-centric banking landscape," said Howard Lee, the deputy chief executive of the HKMA, in a statement released to the press on Thursday.
"By enabling consent-based and secure interbank account data sharing, both banks and customers will benefit from improved efficiency, lowered cost and innovative digital services and solutions, fuelling the growth of the digital economy in Hong Kong."
The HKMA, which celebrated its 30 year anniversary this year, has been driving the development of the city's digital banking ecosystem through various pilot programmes including the development of central banking digital currencies (CBDCs), tokenised assets, green finance and the internationalisation of the yuan.
It was the first central bank worldwide to issue tokenised green bonds, leading the city's efforts to become a hub for virtual assets and sustainable finance. Earlier this month Hong Kong announced it would launch its second batch of tokenised green bonds.
Hongkongers can also now use the Faster Payment Service (FPS) to make purchases in Thailand, while Thais travelling to Hong Kong will be able to use their local equivalent, PromptPay, in the city at merchants that accept QR code payments.
Such fintech innovations have long been seen as a must for the city to upgrade its overall banking system to a new and higher level of smart banking.
Throughout the new pilot programme, the HKMA said it will monitor the implementation progress and market developments, and further formulate a possible implementation approach of the IADS initiative in the future.
The city's de facto central bank, working with the Hong Kong Association of Banks and the banking industry, has already completed a preliminary study of the IADS initiative.
It found that sharing customer bank account data between banks helped to digitalise banking operations, strengthen the risk management of banks, and enhance customer experience.
This article originally appeared in the South China Morning Post (SCMP), the most authoritative voice reporting on China and Asia for more than a century. For more SCMP stories, please explore the SCMP app or visit the SCMP's Facebook and Twitter pages. Copyright © 2023 South China Morning Post Publishers Ltd. All rights reserved.
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