Hong Kong announces Data Strategy and Regtech Roadmap
As Hong Kong Fintech week gets underway, Eddie Yue, Hong Kong Monetary Authority’s (HKMA’s) Chief Executive, has announced a raft of new initiatives designed to take advantage of tech innovation.
A new data strategy was amongst the measures announced. Currently at concept stage, the new Commercial Data Interchange (CDI) will allow for easier flow of data between banks and sources, allowing, for example, alternative data to be used in credit scoring and trade-related data to facilitate trade finance applications. HKMA hopes this will help small and medium enterprises to benefit from access to their own data.
HKMA also unveiled a two-year roadmap to promote wider adoption of regulatory technology – or Regtech – in Hong Kong’s banking sector. The roadmap recommends various ways to increase adoption, from boosting awareness to promoting innovation and enhancing regulatory engagement with the Regtech ecosystem.
The eventual aim is revolutionise risk management and compliance. The promotion of fintech seen in recent years has certainly been transformational for the financial industry – perhaps this pivot to Regtech can help Hong Kong’s banking industry capitalise on new opportunities.