Interbank Account Data Sharing pilot commences in Hong Kong

An Interbank Account Data Sharing (IADS) pilot programme covering deposit account information launched yesterday (1 January) in Hong Kong, with the participation of 28 banks.

The Hong Kong Monetary Authority (HKMA) said the pilot IADS initiative is intended to allow customers to share their bank account data with other banks “securely and efficiently”, subject to customer consent.

It follows a preliminary study of the IADS initiative by HKMA’s Fintech Facilitation office in collaboration with the Hong Kong Association of Banks and the banking industry.

Among the study’s findings were that sharing customer bank account data between banks could help digitalise banking operations, strengthen risk management of banks, and improve the experience for customers.

The study helped to establish the rules and standards facilitating interbank customer-consented data sharing for the pilot programme, covering retail, corporate and small and medium-sized enterprise customer segments.

The HKMA will monitor the implementation progress and market developments throughout the duration of the IADS pilot, with a view to further formulating a “possible implementation approach” to the initiative in the future.

Howard Lee, deputy chief executive officer of HKMA, said: “The IADS pilot programme marks a significant milestone in fostering a customer-centric banking landscape.

“We expect this programme will empower customers to further unlock the potential of their account data at banks.”

Lee added: “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.”