Felix Pinkston
Aug 26, 2024 08:06
The Hong Kong Monetary Authority and Digital Policy Office have established a CDI-CDEG linkage to enhance data sharing, benefiting SMEs and promoting digital economy.
The Hong Kong Monetary Authority (HKMA) and the Digital Policy Office (DPO) have jointly announced the full operational status of the connection between the HKMA’s Commercial Data Interchange (CDI) and the Government’s Consented Data Exchange Gateway (CDEG). This linkage, which began pilot trials in December 2023, has shown promising growth in utilization rates, according to the Hong Kong Monetary Authority.
Streamlining Banking Processes
As the first government data source for CDI, the Companies Registry (CR) has connected to CDI through CDEG. This integration allows banks to directly obtain company particulars such as names, registered office addresses, and share capital structures. Such streamlined access facilitates various banking processes, including account opening, fraud detection, and know-your-customer (KYC) procedures.
The HKMA and DPO will continue to explore the inclusion of additional business operation data to assist banks in obtaining more comprehensive company search records, thereby supporting the digitalization of the financial services industry and promoting the overall development of Hong Kong’s digital economy.
Impact on SMEs and Loan Approval
Since its official launch, CDI has significantly enhanced the loan approval processes for small and medium-sized enterprises (SMEs). By the end of June 2024, CDI had facilitated over 27,000 loan applications and reviews, with an estimated credit approval amount exceeding HK$23.8 billion. The HKMA plans to explore extending the use of CDI to personal levels, leveraging the CDI-CDEG linkage to bolster the government’s digitalization initiatives for public convenience.
Statements from Key Officials
Deputy Chief Executive of the HKMA, Mr. Howard Lee, expressed optimism regarding the CDI-CDEG connection, highlighting its success as a testament to the HKMA’s efforts in meeting the industry’s demand for government data in its digitalization journey. Lee stated, “Leveraging the established connection between the two platforms, the HKMA will invite more government bureaux and departments to share consented data with banks. These concerted efforts will greatly benefit SMEs across various sectors and contribute to the advancement of Hong Kong’s digital economy.”
Commissioner for Digital Policy, Mr. Tony Wong, emphasized the importance of data in promoting smart city development and innovation. Wong said, “The connection of the two data sharing platforms is an important milestone. With the banking sector making good use of the new measure, it will enable customers to enjoy more convenient services and facilitate the banking industry to explore more business opportunities.”
Both the DPO and HKMA are committed to continuing their collaboration with government bureaux and departments to prepare for additional data sharing. This initiative aims to support the development of more convenient government services, ultimately benefiting citizens and businesses.
For more details, visit the Hong Kong Monetary Authority.
Image source: Shutterstock
