The HKMA has announced the trial launch of its IADS platform, designed for the secure implementation of open APIs and the acceleration of financial inclusion. The Hong Kong Monetary Authority announced the trial launch of its Interbank Account Data Sharing, also known as IADS, which has made new progress in its aim for a secure and efficient implementation of open APIs and the overall acceleration and development of financial inclusion.

The bureau invited banks and financial institutions to participate in the IADS pilot scheme in order to hold a plenary meeting and discuss the first draft of the product. IADS included a master agreement developed by the standardised code, and the launch of the service is set on a trial basis in this quarter. More information on the product launch The concept of Application Programming Interface (API) revolves around the possibility of financial institutions and banks to share their monthly statement and basic account transaction information and data (including account number, type, balance, active transactions, and more) with the client’s consent to other banks through the use of a compatible interface.

According to sources, by leveraging the IADS solution, customers and clients will have the possibility to authorise the bank to leverage their information on a one-time basis, as well as the capability to choose other plans,  including periods of 30 days, 90 days, and 180 days. This will allow the account data to be shared safely and quickly across multiple banks with the user’s consent. In the first phase, the data is set to be shared with only corporate customers, and if the platform operates according to plan, the HKMA aims to extend the use of its solutions for retail bank accounts from June 2024 to the end of December.

With the focus on promoting the standardisation of the Code and the collective signing of the master agreement, the HKMA will focus on making the open API to be widely used, bringing the competitiveness of large banks and small or medium-sized banks closer. This will also make the process of opening accounts more convenient and secure for users, as well as the procedure of approving loans, or trade financial products like Invoice Discounting. The Hong Kong Monetary Authority teamed up with the Association of Banks and other relevant financial institutions and recently completed a preliminary study on how the IADS Pilor Scheme works.

Currently, the organisation is preparing to incorporate the scheme with its clients, with approximately 28 banks expressing interest in being included in the process. At the same time, a couple of financial institutions reportedly started to develop relevant banking solutions, operational processes, as well as business models. The Pilot Scheme will prioritise the digitalisation of banking businesses and optimise overall risk management as well.

The HKMA discussed the establishment of an IADS platform about a year ago, and it was reported that the user acceptance test (UAT) which is related to the solution has been already securely completed. The organisation also aims to implement IADS in November 2023 earliest, or no later than the end of the year. .