Open banking and the data privacy dilemma

Cover Story 

Open banking and the data privacy dilemma

Open banking is often touted as a solution for increasing competitive pressure on traditional financial services providers and reducing the friction and inertia that often prevents customers from moving between banking providers, even where the second banking provider may provide a better product and service offering. At its core, open banking relies on application programming interfaces (APIs) – the bridge that makes it possible for two systems to talk to each other and share data to achieve win-win outcomes for banks and customers, while at the same time protecting the privacy of individuals. In this edition of Banking Today, the Cover Story explores the various drivers behind open banking in Hong Kong and the issues financial institutions and regulators will have to address to ensure that all participants – financial institutions, third-party providers, and consumers alike – can reap the benefits of open banking. 

Special Article

Foreign Exchange Reserves: An Anchor Asset or a Vulnerable Liability?

Are foreign exchange reserves an anchor asset or a vulnerable liability?   This is the topic of focus of our Banking Today Special Article which looks at the various geopolitical, sovereign risk and systemic consequences for foreign currency reserves (forex) in the wake of sanctions imposed on Russia over the ongoing invasion of Ukraine, which saw the Central Bank of Russia's access to about USD630 billion in foreign currency reserves (forex) and gold reserves frozen.

China World

Expanded Qianhai Zone Opens the Way for More Opportunities for Cooperation

Intertwined with the blueprint of the Greater Bay Area (GBA), the Qianhai Shenzhen-Hong Kong Modern Service Industry Cooperation Zone (Qianhai Zone) is a prominent driving force behind broadening cooperation between Shenzhen, Hong Kong and Macao. Covering an area roughly equivalent to 40% of Hong Kong's urbanised area, the Qianhai Zone opens up more markets and opportunities for Hong Kong's professional services industry, including the banking and finance sector, which is the focus of the China World article in this edition of Banking Today.

Fintech

A Catalyst for Good: Fintech Can Contribute to Achieving Sustainable Financing Goals

Against the backdrop of rising environmental, social and governance (ESG), green finance and sustainability issues, Fintech products and services that are oriented towards these areas can help provide quality data and tools to help individuals and institutions make optimal decisions. Our Fintech article in this edition of Banking Today takes a close look at the growing intersection between Fintech and ESG and the human capital skills and knowledge required to scale -up business models within the ESG and Fintech landscape.

Knowledge Plus

Seamless Banking in the Greater Bay Area: The Need to Build Trust and Raise Standards

For Hong Kong and the financial services sector including banking, connecting with markets in the Mainland and deeper integration is critical for the city's future development and positioning as an international financial hub.  While the rollout of the Wealth Connect scheme is designed to bind the different parts of the Greater Bay Area (GBA) more closely together, regulatory differences between the GBA’s three jurisdictions present both challenges and opportunities. Our Knowledge Plus article in this edition of Banking Today raises the question of why not create uniform regulations as part of a voluntary Code of Practice between the three GBA jurisdictions?

GRC Corner 

Setting Standards is the Key to Hong Kong Becoming a Leading Green Finance Centre

Hong Kong's green finance activities are on an upward trajectory. Already recognised as a major international financial centre, underpinned by the necessary financial framework and wide-ranging expertise, Hong Kong has the fundamentals in place to establish self-defined green financial standards and promote and apply them internationally.