ExclusiveHong Kong’s struggling small businesses may soon find it easier to get bank loans, thanks to HKMA’s new data platform

Hong Kong’s struggling small businesses may soon find it easier to get a bank loan, thanks to a new online data platform set to be launched soon by the Hong Kong Monetary Authority.

The Commercial Data Interchange (CDI) will allow banks to make quick and easy decisions about lending to small and medium-sized enterprises (SMEs), according to the HKMA’s chief executive, Eddie Yue Wai-man.

Yue, who will mark his third anniversary at the helm of Hong Kong’s de facto central bank on Saturday, has been a keen promoter of financial technology, often referred to as fintech. During his first three years, the HKMA has granted eight virtual bank licences, and initiated a project aimed at introducing a digital currency called the e-HKD.

Fintech will remain a focus for Yue for the two remaining years of his tenure. The next planned move is the launch of the CDI, which will link different data companies, SMEs and lenders.

Many small companies find it difficult to get bank loans as they do not have collateral. Yue said the new platform, scheduled for launch before the end of the year, will allow banks to access the operational data of the SMEs via reliable feeds, thereby allowing them to make a sound and fast decision.