On 10 May 2023, the HKMA released its ninth “Regtech Adoption Practice Guide”. The focus of this issue is on “regtech” solutions for banks in relation to the handling and use of customer data and privacy.
As noted in the guide, many banks pointed to customer data and privacy as an area where regtech could be used to ensure that compliance with relevant requirements. The guide provides examples of the challenges faced by banks in Hong Kong regarding customer data and privacy compliance, including divergence of regulatory requirements across jurisdictions and the decentralised and fragmented nature of customer data, as well as potential ways in which regtech can assist with these challenges, including solutions for identifying the data being collected and processed and centralising such data, consent management, data breach responses, etc.
The HKMA offered guidance on the implementation of such solutions, including the need to have and obtain the right operating model and team to handle such solutions, conducting appropriate training, the ability to identify the relevant data being collected and processed, and conducting appropriate risk assessments in relation to privacy.
The regtech guide, the ninth in the series, is a continuation of the HKMA’s aim to encourage the adoption of technology by banks as a way to improve on their business and their service to customers, as well as to improve efficiency for the bank and customers alike.
The Regtech Adoption Practice Guide can be found here.
