The Hong Kong Monetary Authority (HKMA) has announced plans to initiate its Interbank Account Data Sharing (IADS) pilot program in the early part of next year. The scheme will allow customers, upon their agreement, to share their bank account data securely and efficiently with other banks.
According to a press release issued by HKMA, an initial study conducted by the authority's Fintech Facilitation Office, in collaboration with the Hong Kong Association of Banks and the banking industry, revealed that sharing customer bank account data with other banks offers advantages for both banks and customers. HKMA stated that IADS could further propel banks towards digital operations, mitigate risks and enhance customer experience.
The press release also clarified that the IADS pilot program will involve sharing deposit account information among 28 banks. Some of the participating institutions include Bank of China (Hong Kong), Citibank (Hong Kong), DBS Bank (Hong Kong), Nanyang Commercial Bank, Shanghai Commercial Bank and ZA Bank.
The pilot is slated to launch on January 1, 2024, as per the press release. The regulations and standards for data sharing within the scope of the IADS pilot program were formulated through a study conducted by HKMA’s Fintech Facilitation Office.
HKMA anticipates that participating banks will eventually develop and offer new services such as streamlined loan applications and consolidated account views. It also mentioned that it would monitor the progress of the pilot and market developments while studying it to help shape its implementation strategy for future IADS initiatives.
Deputy Chief Executive of HKMA Howard Lee referred to the pilot program as a significant milestone in customer-centric banking. "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, fueling the growth of the digital economy in Hong Kong," Lee said in his statement included in the press release.