Bank of China Hong Kong, the largest local mortgage provider, plans to use in its mortgage business in the second half of this year the blockchain technology, a highly-secured transaction database.
Rocky Cheng Chung-ngam, general manager of IT, said valuation of collaterals and customers' information will be transmitted through the blockchain technology to ensure their accuracy, security and confidentiality.
Use of the technology can lower operating costs by reducing transactions and enhancing the efficiency and security of transmitting information between banks.
Financial Secretary John Tsang Chun-wah said the blockchain technology helps banks to better fulfill the know-your-client requirement by verifying clients' identities.
He said other financial technologies that Hong Kong will develop in future include cyber security, electronic payment, big data analysis and behavioral recognition. Application of these technologies is the key factor in the conversion to economic growth. BOCHK signed an agreement yesterday with the Applied Science and Technology Research Institution for the use of the new technology.
Howard Lee Tat-chi, senior executive director at the Hong Kong Monetary Authority, said that a cyber defense program has been deployed to the local banking industry and the blockchain technology has been developed with ASTRI.