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The connection arrangement between the Hong Kong Monetary Authority’s (HKMA) Commercial Data Interchange (CDI) and the Government’s Consented Data Exchange Gateway (CDEG) has officially entered full operation, following a joint announcement by the HKMA and the Digital Policy Office (DPO). This is a significant step towards the digitalisation of Hong Kong’s financial services sector, particularly in the integration of government and financial data to enhance operational efficiency. The CDI-CDEG linkage has shown promising growth in utilisation rates, with pilot banks conducting trial transactions successfully. With the completion of the trial phase, the connection is now accessible to all banks participating in the CDI initiative.
A notable feature of this initiative is the integration of the Companies Registry (CR) as the first government data source connected to CDI via CDEG. This connection, referred to as “CR@CDI,” enables banks to directly access crucial company information such as names, registered office addresses, and share capital structures. The availability of this data is expected to streamline various banking processes, including account opening, fraud detection, and Know Your Customer (KYC) procedures. By facilitating access to government data related to corporate and business operations, this arrangement supports the digitalisation efforts within the financial services industry and promotes the broader development of Hong Kong’s digital economy.
The HKMA and the DPO have indicated that, with the phased pilot trials underway, there are plans to further expand the range of business operation data available through the CDI-CDEG connection. This expansion would allow banks to obtain more comprehensive company search records, further enhancing their operational capabilities.
Since its official launch, CDI has already demonstrated significant benefits, particularly in streamlining the loan approval processes for small and medium-sized enterprises (SMEs). By the end of June 2024, CDI had facilitated over 27,000 loan applications and reviews, with the total estimated credit approval amount exceeding HK$23.8 billion. Acknowledging CDI’s potential beyond corporate use, the HKMA is exploring its extension to personal banking via the CDI-CDEG linkage, in line with government efforts to enhance public convenience and expand digital services.
The Deputy Chief Executive of the HKMA attributed the success of the CDI-CDEG connection to the DPO’s strong support. He emphasised that this achievement reflects the HKMA’s commitment to addressing the industry’s growing demand for government data as part of its digital transformation efforts. With the established connection between CDI and CDEG, the HKMA plans to invite more government bureaus and departments to share consented data with banks. These collaborative efforts are expected to provide significant benefits to SMEs across various sectors and contribute to the advancement of Hong Kong’s digital economy.
Meanwhile, the Commissioner for Digital Policy focused on the critical role of data in driving the development of smart cities, innovation, and technology. The connection of the two data-sharing platforms represents a key milestone in government data sharing. The Commissioner noted that the effective utilisation of this new measure by the banking sector will not only enable customers to enjoy more convenient services but will also open up new business opportunities for banks. This, in turn, will contribute to the ongoing development of Hong Kong’s digital economy.
Looking ahead, the DPO is committed to promoting data-driven, people-centric, and outcome-based digital policies both within the government and across various sectors. To this end, the DPO will continue to facilitate the opening up and sharing of data and will leverage digital technologies and data to innovate government services. In collaboration with the HKMA, the DPO plans to engage actively with other government bureaus and departments to prepare for additional data-sharing initiatives, ultimately supporting the development of more convenient government services that benefit both citizens and businesses.
