The Hong Kong Monetary Authority (HKMA) has recently issued a Circular on the use of personal data in FinTech development. The Circular is of particular interest for those in the banking and FinTech sectors involved in product development and innovation.
The Circular suggests that authorised institutions should adopt and implement the “Ethical Accountability Framework” (Framework) for the collection and use of personal data issued by the Office of the Privacy Commissioner for Personal Data last year (see link here). The Framework encourages going beyond mere compliance issues and focusses on the role of ethics and stewardship in the emerging conversation around the use of data and artificial intelligence. The Framework sets out the justifications and proper use for big data analytics, artificial intelligence and machine learning.
The HKMA acknowledged that the trend to provide customers with tailored services necessitates an increased processing of personal data, which ought to be complemented by adopting good working practices in the online data space. The Circular references the two models (Data Stewardship Accountability, Data Impact Assessments Model and Oversight Model) supporting the Framework, which can be a good starting point for authorised institutions to address customers’ privacy concerns and enhance their trust in using FinTech services.
The Circular can be accessed here.
This document (and any information accessed through links in this document) is provided for information purposes only and does not constitute legal advice. Professional legal advice should be obtained before taking or refraining from any action as a result of the contents of this document.