Hong Kong allows banks to use fintech (data analytics) to make more consumer loans

  • In May 2018, the Hong Kong Monetary Authority (HKMA) allowed banks to use new methods (big data, behavioural analytics, etc.) to make some loans to individuals.
  • Meant that banks did not have to follow some of the HKMA’s usual requirements for lending – such as collecting borrower’s proof of income.
  • The loans bank could make using this exemption were capped at 10% of the bank’s capital base.
  • This 10% cap has now been removed.

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