Banking customers in Hong Kong are willing to embrace new banking services based on emerging technologies such as Artificial Intelligence (AI) and machine learning, according to a report by Unisys.
The study found that 60% of the banking customers in Hong Kong are comfortable with their bank using software and algorithms to assess online credit card applications, however only 31% are willing to use this for home loans.
Go deeper with GlobalData
Unisys Asia Pacific vice president of financial services Richard Parker said:”The Unisys Banking Insights findings suggest there is a great opportunity for Hong Kong banks to use smart software to lead decision making for commodity products such as credit cards.
“But currently consumers are less willing to use this for life events such as home loan applications which involve larger financial amounts and emotional involvement.”
The study also revealed that consumers are willing to allow banks to share data for Open Banking-based services if their privacy and security concerns are addressed.
According to the report, nearly 38% of the respondents support their bank sharing their personal data with other companies to access financial products.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalDataHowever, one-third of the customers said don’t support it, citing concerns about privacy and the ability of the bank and third party to secure their data.
The Hong Kong Monetary Authority (HKMA) issued its proposed approach to Open API for banking for industry consultation in January this year.
Parker added: “For Open Banking to really take off in Asia, banks must address customer concerns about how they protect their customer data – not just in the bank, but across all of the departments, partners and agencies in the value chain.
“Doing business in the 21st century requires dynamic software that adapts to business trends and evolves with security concerns.”
Majority (53%) of the respondents cited long queues as the top annoyance.
The percentage of people who are most frustrated when they are required to a document or visit a branch to complete an online service doubled from seven to 15% last year.
“Hong Kong bank customers are annoyed by bank queues and are increasingly frustrated when transactions can’t be finished to completion online. To move more customers to digital services many banks need to improve the functionality of their digital services to enable completed transactions, and provide an omnichannel experience so that customers can start a transaction in one place and pick it up in another without having to start over.
“Artificial intelligence and machine learning can help banks deliver more targeted and relevant online services to their customers,” Parker said.
