HKMA links data platform with Companies Registry to help SMEs open bank accounts

Hong Kong’s de facto central bank is pulling out all the stops to help the city’s struggling small and medium-sized (SME) businesses open accounts remotely and access loans.

Close on the heels of setting up the Task Force on SME Lending last Friday to help SMEs and mortgage borrowers get funding, the Hong Kong Monetary Authority (HKMA) on Monday expanded its electronic platform designed to help SMEs by linking up with the Companies Registry to share more data with banks.

HSBC and Bank of China (Hong Kong), the city’s two biggest lenders and note-issuing banks, are among the first batch of banks to connect to the Companies Registry via the HKMA’s Commercial Data Interchange (CDI).

The HKMA said that the linking of data from the Companies Registry and the CDI will enhance online account openings for SMEs, as it will allow lenders to access information such as the type of business, registered address and details about the company’s directors.

“Leveraging the established connection between the two platforms, the HKMA will invite more government bureaus and departments to share consented data with banks,” said Howard Lee Tat-chi, deputy CEO of HKMA, in a statement.

“These concerted efforts will greatly benefit SMEs across various sectors and contribute to the advancement of Hong Kong’s digital economy.”

The HKMA said it will continue to explore the possibility of including additional business operations data to assist banks in obtaining more comprehensive company search records.

All local limited companies or companies incorporated outside Hong Kong but doing business in the city have to be registered with the Companies Registry. There are 1.45 million local companies and 14,967 non-Hong Kong companies registered as of July.

The CDI, launched in October 2022, is an electronic platform that allows 23 banks to access the information they need to determine the creditworthiness of SMEs via six data providers, including New World Development, Dun & Bradstreet (Hong Kong), HKT Payment, and Tradelink Electronic Commerce.

The CDI has successfully enhanced the SME loan approval processes, facilitating more than 27,000 loan applications and reviews, with an estimated credit approval amount in excess of HK$23.8 billion (US$3 billion) as of June this year, according to HKMA data.

“By leveraging third-party data through CDI, we are transforming and streamlining the online account opening journey for SMEs in Hong Kong, deepening our commitment to innovation and customer-centric solutions,” said Christina Ong, a managing director at HSBC Hong Kong.

HSBC, which was involved in a trial launched in April, has since completed 1,600 online applications auto-filled with commercial data obtained from the Companies Registry.

“We will continue to harness data and technology to revolutionise banking services and enhance operational efficiency for SMEs,” Ong said.

Tong Wong, the Commissioner for Digital Policy, said the connection of the Companies Registry with CDI is an important milestone on government data sharing.

“With the banking sector making good use of the new measure, it will enable customers to enjoy more convenient services and facilitate the banking industry to explore more business opportunities, thereby contributing to the development of Hong Kong’s digital economy,” Wong said.