HSBC unveils new SME credit application process under Hong Kong’s IADS pilot

Under the Hong Kong Monetary Authority’s Interbank Account Data Sharing (IADS) pilot programme, HSBC has launched a new credit application process for SMEs that aims to speed up access to bank financing for commercial customers.

HSBC will be able to access customers’ deposit account information, including account availability, status, balance and transaction details, from other participating banks with their consent.

Direct API integration with other participating banks in the IADS pilot programme means that customers are no longer required to submit paper bank statements, making the process of securing finance more streamlined.

Selected ‘Business Integrated Account’ holders have been able to give permission for HSBC to access their data at Hang Seng Bank when applying for financing through HSBC Business Internet Banking, as of late February.

Connections with additional banks will be available in the coming months.

Frank Fang, general manager, head of commercial banking, Hong Kong and Macau at HSBC, said: “The IADS pilot programme marks another milestone in Hong Kong’s Open Banking journey, paving the way for a more interconnected and customer-centric banking landscape.

“By leveraging consented account data, we can further streamline the loan assessment process and provide SMEs with more timely access to bank financing.”

Fang added: “As an active player in the fintech and innovation space, we look forward to forging more partnerships to nurture a vibrant financial ecosystem.”

The Hong Kong Monetary Authority launched its IADS pilot programme on 1 January this year and will monitor the implementation progress and market developments throughout the duration of the pilot.