Hong Kong banks to share account data to ‘improve efficiency, lower costs’ under HKMA pilot scheme

The Hong Kong Monetary Authority (HKMA) is poised to initiate a pilot programme that will facilitate customers to securely share their account data with other banks. This initiative, dubbed Interbank Account Data Sharing (IADS), is slated to commence on January 1, with 28 banks participating. The HKMA, the city’s de facto central bank, made this announcement on Thursday.

The pilot scheme will encompass deposit account information for various customer segments, including retail, corporate, and small and medium-sized enterprises. It is anticipated that the banks will progressively develop innovative banking services, such as streamlined loan applications, consolidated account views, and bespoke data-driven services. Prominent lenders such as HSBC, Bank of China (Hong Kong), China Citic Bank and DBS Bank, are among the participants. Several of the city’s digital banks, including Livi Bank, Welab Bank and ZA Bank, will also partake in the pilot scheme.

Howard Lee, the deputy chief executive of the HKMA, stated that the IADS pilot programme signifies a substantial milestone in cultivating a customer-centric banking landscape. He asserted that by facilitating secure interbank account data sharing, both banks and customers will reap the benefits of enhanced efficiency, reduced cost, and innovative digital services, thereby propelling the growth of the digital economy in Hong Kong. The HKMA has been spearheading the evolution of the city’s digital banking ecosystem through a variety of pilot programmes, including the development of central banking digital currencies (CBDCs), tokenised assets, green finance, and the internationalisation of the yuan.