The Hong Kong Monetary Authority (HKMA) welcomes the launch of the revised Code of Banking Practice (the Code) by the Hong Kong Association of Banks (HKAB) and the DTC Association (DTCA) today (10 December). The Code is jointly issued by HKAB and the DTCA with endorsement by the HKMA.
The HKMA has been promoting digitisation of banking services, and the banking industry has also devoted a lot of effort to developing financial technology (fintech) to provide innovative services and products to customers. In addition, the pandemic in the past two years has also accelerated the industry’s use of digital channels to deliver services and increased consumer demand for digital banking services. While digital banking services have greatly enhanced consumer experience, banks must also ensure proper protection of their customers in the digital environment. The Code of Banking Practice Committee, comprising representatives of the industry associations and the HKMA, has reviewed the Code and formulated enhancement measures such that protection to customers would not be affected during provision of digital services through new digital channels and modes of services by banks; but rather, services would be more tailored to customer needs with enhanced protection. Overall, this would ensure bank consumer protection is in line with fintech developments.
Major enhancements to the Code will:
Mr Eddie Yue, Chief Executive of the HKMA, said, “The Hong Kong banking industry has been embracing the application of innovative technology to enhance the quality and diversity of products and services in recent years. One of the key areas of the HKMA’s “Fintech 2025” Strategy is also for “all banks go fintech” so as to provide consumers with reasonable and efficient financial services. I am very pleased that HKAB and the DTCA have, in response to the trend of technological development of the banking industry and the evolving needs of consumers, timely enhanced the Code of Banking Practice. Under this, banks can better protect interests of consumers and cater for the needs of different customers while at the same time bringing convenience to customers through financial innovations.”
The revised Code is effective from today (10 December 2021). AIs are expected to achieve full compliance with the new provisions as quickly as possible within 6 months of the effective date, with an extension of up to 12 months for provisions requiring more extensive system enhancements. Meanwhile, the HKMA and the industry are reviewing other parts of the Code and will announce the details in due course.
A copy of the revised Code can be found at: https://www.hkma.gov.hk/media/eng/doc/code_eng.pdf.
Hong Kong Monetary Authority
10 December 2021