HSBC: nearly 60 per cent of Hong Kong respondents ready to embrace open banking

A recent HSBC survey found significant public awareness about open banking in Hong Kong. More than half (56 per cent) of respondents have heard about this framework and are likely to give consent for banks to access their account data to use related services.

The Open API Framework is one of the initiatives announced by the Hong Kong Monetary Authority (HKMA) in 2017 to facilitate financial innovation in the banking sector. In January 2024, the HKMA commenced the Interbank Account Data Sharing (IADS) pilot programme, covering 28 banks for sharing deposit account information, including HSBC. HSBC is keen to support HKMA and our customers in meeting their needs for open banking services through HSBC HK Mobile App.

Conducted in May by HSBC, the survey covered 800 local respondents with the purpose to understand how customers perceive the model of open banking and analyse what it takes to drive its future development in Hong Kong.

When it comes to the key considerations for sharing personal data, which is indispensable for customers to use open banking services, 56 per cent of respondents said system security of individual banks is the most critical factor, followed by their trust worthiness (43 per cent) and data protection adequacy (43 per cent).

Whilst customers in Hong Kong used 3 banks on average based on our survey, nearly 80 per cent of them experienced challenges when managing personal finances across multiple bank accounts. These included difficulties in selecting the best offers from my banks (60 per cent) and deducing the total account balance (56 per cent); as well as trouble in remembering due dates for bills and credit card payments (51 per cent), and hassle of submitting documents for credit card or personal loan applications (50 per cent).

Respondents who were willing to share data with other banks cited account balance consolidation (86 per cent) and faster credit card and loan applications as attractive open banking service features. In contrast, those who did not intend to share data were discouraged by concerns about receiving irrelevant and frequent service promotions (86 per cent), personal data privacy (84 per cent), and data security (84 per cent).

The survey also uncovered some common misconceptions regarding how data privacy is managed in open banking. Specifically, these misconceptions pertain to the scope of banking data to be shared, the required procedures for data-sharing setting, as well as the level of information access banks will be given upon customer consent.

Maggie Ng, General Manager of Wealth and Personal Banking, Hong Kong, HSBC, said: “Open banking, which opens better and greater variety of financial services, aligns with our commitment to deliver an excellent customer experience. It also helps address the challenges faced by customers with multiple banking relationships. As a leading retail bank in Hong Kong, HSBC is well positioned to foster the adoption of open banking by leveraging our best-in-class infrastructure for data sharing and cybersecurity, as well as strong track record of customer education and engagement.”

To support open banking adoption in Hong Kong, HSBC will join forces with the HKMA to educate the public. This complements the bank’s preparation efforts with other industry players to ensure system readiness and seamless data-sharing including the implementation of IADS related services.

As a starting point, HSBC has also launched a pilot programme for selected customers to experience open banking through the HSBC HK Mobile Banking App. The pilot focuses on consolidating bank account details. Following a comprehensive assessment, the pilot will also be expanded to other banks and different use cases, which is integral to HSBC's open banking roadmap towards the full rollout of these services, covering various aspects of this financial service model.

Open banking is an industry-wide initiative. HSBC values service quality and reliability and will endeavour to work closely with market participants under applicable rules and regulations to overcome implementation challenges for open banking.