Featured Product

    HKMA Outlines Principles for Consumer Protection in Use of BDAI

    November 05, 2019

    HKMA published a set of guiding principles on consumer protection aspects in respect of the use of big data analytics and artificial intelligence or BDAI. The principles, which are applicable to all authorized institutions, are focused on four major areas: governance and accountability, fairness, transparency and disclosure, and data privacy and protection. HKMA states that the authorized institutions should adopt a risk-based approach commensurate with the risks involved in their big data analytics and artificial intelligence applications when applying these guiding principles.

    HKMA specifies the following guiding principles: 

    • Governance and Accountability—The board and senior management of the authorized institutions should remain accountable for all the big data analytics and artificial intelligence driven decisions and processes. They should ensure the use of appropriate governance, oversight, and accountability framework, appropriate level of explainability of the big data analytics and artificial intelligence models, and proper validation before launch of big data analytics and artificial intelligence applications. The board and management should also focus on ongoing reviews and adherence to the consumer protection principles set out in the Code of Banking Practice.
    • Fairness—The authorized institutions should ensure that big data analytics and artificial intelligence models produce objective, consistent, ethical, and fair outcomes to customers. These outcomes include compliance with the applicable laws, customer access to basic banking services, and robust models of big data analytics and artificial intelligence driven models. 
    • Transparency and Disclosure—The authorized institutions should provide appropriate level of transparency to customers regarding their big data analytics and artificial intelligence applications through proper, accurate, and understandable disclosure. They should provide explanations of the types of data used and how the models affect the big data analytics and artificial intelligence driven decisions, on customer request and where appropriate. 
    • Data Privacy and Protection—The authorized institutions should implement effective protection measures to safeguard customer data. These institutions should ensure compliance with the Personal Data (Privacy) Ordinance and should pay regard to the relevant good practices issued by the Privacy Commissioner for Personal Data.

    Keywords: Asia Pacific, Hong Kong, Banking, Artificial Intelligence, Fintech, Consumer Protection, Big Data, Guidance, HKMA

    Related Articles
    News

    BOE Sets Out Its Thinking on Regulatory Capital and Climate Risks

    The Bank of England (BOE) published a working paper that aims to understand the climate-related disclosures of UK financial institutions.

    March 13, 2023 WebPage Regulatory News
    News

    OSFI Finalizes on Climate Risk Guideline, Issues Other Updates

    The Office of the Superintendent of Financial Institutions (OSFI) is seeking comments, until May 31, 2023, on the draft guideline on culture and behavior risk, with final guideline expected by the end of 2023.

    March 12, 2023 WebPage Regulatory News
    News

    BIS Paper Examines Impact of Greenhouse Gas Emissions on Lending

    BIS issued a paper that investigates the effect of the greenhouse gas, or GHG, emissions of firms on bank loans using bank–firm matched data of Japanese listed firms from 2006 to 2018.

    March 03, 2023 WebPage Regulatory News
    News

    HMT Mulls Alignment of Ring-Fencing and Resolution Regimes for Banks

    The HM Treasury (HMT) is seeking evidence, until May 07, 2023, on practicalities of aligning the ring-fencing and the banking resolution regimes for banks.

    March 02, 2023 WebPage Regulatory News
    News

    BCBS Report Examines Impact of Basel III Framework for Banks

    The Basel Committee on Banking Supervision (BCBS) published results of the Basel III monitoring exercise based on the June 30, 2022 data.

    February 28, 2023 WebPage Regulatory News
    News

    PRA Consults on Prudential Rules for "Simpler-Regime" Firms

    Among the recent regulatory updates from UK authorities, a key development is the first-phase consultation, from the Prudential Regulation Authority (PRA), on simplifications to the prudential framework that would apply to the simpler-regime firms.

    February 28, 2023 WebPage Regulatory News
    News

    DNB Publishes Multiple Reporting Updates for Banks

    DNB, the central bank of Netherlands, updated the list of additional reporting requests and published additional data quality checks and XBRL-Formula linkbase documents for the first quarter of 2023.

    February 28, 2023 WebPage Regulatory News
    News

    NBB Sets Out Climate Risk Expectations, Issues Reporting Updates

    The National Bank of Belgium (NBB) published a communication on climate-related and environmental risks, issued an update on XBRL reporting

    February 24, 2023 WebPage Regulatory News
    News

    EBA Updates Address Securitization Standards and DGS Guidelines

    The European Banking Authority (EBA) published the final draft of the regulatory technical standards that set out conditions for assessment of homogeneity of the underlying exposures in simple, transparent, and standardized (STS) securitizations.

    February 21, 2023 WebPage Regulatory News
    News

    FSB Publishes Letter to G20, Sets Out Work Priorities for 2023

    The Financial Stability Board (FSB) published a letter intended for the G20 Finance Ministers and Central Bank Governors, highlighting the work that FSB will take forward under the Indian G20 Presidency in 2023

    February 20, 2023 WebPage Regulatory News
    RESULTS 1 - 10 OF 8793