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As one of the annual signature events of the MPFA, industry leaders convened at the MPF Symposium 2023 on December 12 to discuss leveraging emerging technologies envisioned under the new eMPF Platform to power the retirement system of tomorrow.
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At the MPF Symposium 2023 – Embrace, Enrich, Evolve: The Future of MPFTech, distinguished guest speakers and a panel of pioneering trustees explored opportunities for the eMPF Platform to optimize efficiency, protect personal data and drive digital adoption. With testing underway and migration of MPF account information slated to begin in the second quarter of 2024, the symposium reflected the industry's goal of continuously advancing the MPF experience through the innovative Platform.
“As one of the major initiatives under Hong Kong's Smart City Blueprint, the eMPF Platform is a game-changer that aims to empower 4.7 million MPF scheme members and 360,000 employers to more easily manage their MPF for greater convenience,” MPFA Chairman Mrs Ayesha Macpherson Lau said.
Echoing the vision laid out by the government, Mr Joseph Chan, Acting Secretary for Financial Services and the Treasury, noted, “The one-stop eMPF Platform will allow for streamlined administration processes across MPF schemes. This will enhance operational efficiency through revamped workflows, with a view to achieving cost savings of $30 to $40 billion for scheme members during the first 10 years of the Platform’s operation.”
A new dawn for MPF
The eMPF Platform is the most significant reform of the MPF System since its introduction. By establishing a centralized infrastructure facilitating standardization, streamlining, and automation of back-end functions, the innovative system aims to fundamentally reform operational processes across the sector.
At the panel discussion titled “eMPF Take-off: Charting the Path Forward with Early Adopters and Platform Operator”, the senior management of three trustees who are among the first batch onboarding the new eMPF Platform – YF Life Trustees, China Life Trustees, and Bank of Communications Trustee – joined the Chief Executive Officer of the eMPF Platform Company Mr Eric Lui.
Moderated by Ms Cynthia Hui, Chief Operating Officer and Executive Director of MPFA, the panelists discussed strategies and visions for the future of the eMPF Platform, sharing views about how to take advantage of the paradigm shift in the new era as the adoption of the Platform expands.
YF Life Trustees will be the first adopter onboarding the groundbreaking eMPF Platform. As the Chief Executive Officer of YF Life Trustees, Mr Alvin Tse said the company will utilize its early position through content marketing, social media campaigns and employer seminars, “Through these channels, we will showcase the Platform's functions and benefits to strengthen our brand awareness.” With standardization boosting visibility and trust, Tse believes YF Life can compete effectively against larger market players.
China Life Trustees Chief Executive Director Mr Thomas Tam emphasized product innovation and personalized solutions tailored to changing customer needs. “Our overarching goal is to help scheme members achieve their retirement objectives, conveniently monitor accounts, and effectively manage investment risks,” he said.
For Bank of Communications Trustee Executive Director Ms Zana Lau, maximizing the advantage of the company's banking expertise through convenient branch access is key. She outlined a dual strategy of relationship-strengthening and new service introductions to maintain brand presence as the Platform expands, while highlighting customized support and digital servicing through improved website and app.
All panelists agreed the digital transformation ushered in by the eMPF Platform stands to significantly benefit all stakeholders for the years to come. “The Platform will fundamentally reshape Hong Kong's MPF ecosystem by reducing manual tasks, simplifying data processing, and lowering scheme administration fees. Greater visibility into accounts means scheme members can easily grasp often complex financial nuances when planning for retirement,” Tam noted.
“The digital nature of the Platform enables account holders to easily check balances and monitor investment performance,” noted Tse, adding that MPF and additional offerings can work together to help ensure peace of mind for employees and employers alike as they work to achieve their retirement objectives.
Lau echoed that the Platform will present a win-win situation by “standardizing presentation of account information, allowing scheme members to easily compare schemes and make informed investment decisions.” “This increased transparency will likely spark demand for more personalized guidance,” she noted.
Presiding over the digital transformation, Lui underscored how the new centralized Platform marks an evolution from the past. Where once the 12 MPF trustees each operated separate online portals in isolation, the eMPF Platform inaugurates an era of coordinated standardization that will drive “greater user convenience, data transparency and overall efficiency across the MPF sector.”
Changing roles and optimizing customer experience
Looking ahead, the panelists saw opportunities to optimize the customer experience and better serve evolving needs through a proactive approach harnessing centralized digital access. Tse affirmed that YF Life Trustees will solidify its role as a trusted advisor through “enhancing staff training and skills development,” who would provide customized support on the digital journey and better assist customers with financial planning.
Tam noted the Platform will empower them to respond more quickly to customer inquiries about both near-term financial progress and longer-term fund performance, “With more tools at our fingertips, we are better positioned than ever to guide scheme members toward achieving their retirement goals through customized, proactive support.”
Lau shared plans to leverage the resources freed up through the eMPF Platform integration to launch new investment funds in the coming year, while harnessing innovative technologies like AI, ChatGPT and blockchain to evolve digital offerings and deliver a “more personalized and seamless experience.”
Ensuring robust user data protections as the Platform expands was a key priority for the eMPF Platform Company. “Extensive staff training, thorough testing before launch, and regular security audits and external reviews” would stay integral to upholding member privacy, Lui reassured.
Navigating the digital frontier
At the MPF Symposium 2023, a roster of distinguished speakers explored both the opportunities and challenges presented by recent advancements in Fintech, AI, and their corresponding data security and cybersecurity issues.
As Hong Kong pursues its goal of becoming a leading smart city, Ir Tony Wong, Government Chief Information Officer, outlined an ambitious digital vision, “The territory’s I&T blueprint aims to enhance ecosystems, enlarge talent pools, promote digital economy growth and smart development, plus integrate with countrywide progress.”
Government support in research and development efforts goes a long way in advancing AI technologies in a safe, ethical manner. Wong also noted over 100 forward-thinking digital government initiatives will hit the ground running by 2025, future-proof services through open data, blockchain, geospatial analytics, and chatbots, with an overarching goal of providing residents with “streamlined services by optimizing public service delivery systems”.
In today's increasingly data-driven landscape, cyber threats endanger organizations across all sectors. Ms Ada Chung, Privacy Commissioner for Personal Data, said, “Excessive data collection, a lack of meaningful user consent, and weak data security created significant bottlenecks in implementing Fintech adoption and inhibiting digitalization growth.”
After proposing measures for organizations to strengthen cyber defenses, such as conducting vulnerability tests and security assessments, Chung recommended enterprises adopt a Personal Data Privacy Management Programme (PMP) comprising organizational commitment, programme controls, and continual assessment and revision, thereby demonstrating the commitment to safeguarding personal data privacy and security, and building trust with clients.
The Hong Kong Computer Emergency Response Team Coordination Centre (HKCERT), managed by the Hong Kong Productivity Council (HKPC), has been making headway in coordinating responses to cyber incidents impacting local businesses and residents.
Mr Alex Chan, General Manager of the Digital Transformation Division at HKPC, pinpointed major cyber threats for 2023, including identity theft, AI-enabled assaults, and risks pertaining to Web 3.0 technologies. Though acknowledging AI’s potential to aid security work like analysis and detection, he warned the technology exacerbates new dangers including deepfakes, malware, and rising incidents of phishing year-over-year.
The MPF Symposium 2023 enlightened pathways for Hong Kong's digital progress and for revolutionizing the MPF System through emerging technologies. In his closing remarks, MPFA Managing Director Mr Cheng Yan-chee thanked the esteemed speakers and 600 people from the industry attending in person and online.
“I hope you all gained valuable insights from our discussions today. It is encouraging to see senior government leaders endorse the vision and objectives of the eMPF Platform,” Cheng concluded. “As we look ahead to completing the onboarding of all MPF schemes by 2025, I look forward to ongoing collaboration with the MPF industry. Together, let us continue advancing the MPF System so it best serves the working population of Hong Kong on their retirement protection for many years to come.”
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