HKMA to improve efficiencies through tech
Tuesday, January 21, 2020
Howard Lee Tak-chi, the deputy chief executive of the Hong Kong Monetary Authority, expects that a digital transformation to strengthen its regulatory capability and improve the efficiency of operations.
Lee wrote in a blog that last year HKMA studied the use of new technologies, for mainly the data collection from a variety of sources, followed by the use of advanced technology to analyze the data.
"Through exchanges with a number of central banks and regulators around the world, we all came to the conclusion that data science would be capable of providing analyses that could improve risk assessment and policy-making," he wrote.
The HKMA’s digital transformation covers multiple functions, including banking supervision, anti-money laundering, financial stability surveillance, economic research, and reserves management, according to Lee.
The HKMA expects in the long-run, the use of new technology will replace the current requirement for banks to submit template-based regulatory reports, thereby lessening their reporting burden.
"This will be a win-win outcome for the HKMA and the banking industry."
Lee said the new measures will not only cut across different departments within the HKMA, but also hinge on close co-operation from the banking industry, public sector and various service providers, adding that in view of critical issues such as data security and privacy, the HKMA has put in place stringent mechanisms for the new data and procedures.
The HKMA plans to set up a new “digitalisation office” to keep pace with the technological changes, Lee said.
The office will also formulate a long-term digital development strategy for the HKMA and promote a culture of technology within the organization.