The Hong Kong Monetary Authority is developing a commercial data interchange platform that can reduce the need for small and medium enterprises to provide collateral when obtaining loans, which is expected to commence operation next year, said Chief Executive Carrie Lam Cheng Yuet-ngor.
The new financial infrastructure offers a centralized platform for connecting to banks through which enterprises can authorize service providers such as payment systems, public bodies, or utility companies to furnish the banks with data, said the Chief Executive when delivering the last policy address of the current administration yesterday.
On the platform, the banks can make more accurate predictions about the sales and operation of the enterprises, thereby reducing the need for enterprises to provide collateral, according to Lam.
The platform will facilitate secure data sharing based on the consent of enterprises and allow the local banking system to serve the real economy more efficiently, she added.
"The Commercial Data Interchange enables SMEs to make use of their own data to gain access to more convenient financing services," said the Chief Executive, describing the act as a "major breakthrough" in the city's development of financial infrastructure.
The interchange platform is one of the major initiatives under the "Fintech 2025" strategy unveiled by the HKMA in June this year to promote the provision of fair and efficient financial services for the benefit of Hong Kong citizens and the economy.
A commercial data interchange platform will help ease collateral requirements. SING TAO
