CDI is a next-generation financial data infrastructure that aims to enable more efficient financial intermediation in the banking system and enhance financial inclusion in Hong Kong.
Instead of multiple one-to-one connections between banks and sources of commercial data, such as utility companies, each bank and data provider will have a single connection to CDI. Data sharing will become more secure, efficient, and scalable.
The building of CDI is part of the HKMA’s Fintech 2025 strategy to improve Hong Kong’s data infrastructure, empower the industry, and encourage creativity for developing innovative financial products and solutions, in turn building up the overall appetite for fintech solutions in Hong Kong.
Consent-based sharing – The following two types of data will only be shared with banks after data owners (e.g. small and medium-sized enterprises (SMEs)) have given their explicit consent to banks and data providers, and specified the scope of the data to be shared as well as the duration: (1) data which contains information that could be used to directly identify a data owner; and (2) transactional data generated by data owners’ activities.
Traceability – The CDI platform does not store any data to uphold the principle of data protection and increase system efficiency. Although data is not stored in CDI, its blockchain-based design means records on the platform are traceable and verifiable, ensuring a proper audit trail.
Standardisation – As standardised application programming interface (API) and data models will be used, data sharing will be more scalable and efficient.
Once related mechanisms have been established, banks can connect with new data providers with minimal efforts, eliminating the need for building and customising connectivity for each data provider.
As banks can obtain more up-to-date and comprehensive information about their customers (e.g. SMEs), they can better understand the firms’ latest operating conditions and business prospects. In turn, they can conduct more precise and objective risk assessments and offer customers the most suitable banking services.
The flexible design of the CDI platform enables banks to easily plug in their own applications to create new or extend existing functionality, in turn providing a conducive environment for developing innovative solutions on the platform.
Bank customers, particularly SMEs, will be able to take more control of their digital footprint and use their own data to enhance their access to financial services.
This video introduces how the CDI helped 3 Hong Kong-based SMEs with their businesses in a series of Proof-of-Concept studies completed by the HKMA, and how alternative data were applied to facilitate the underwriting of their loans.