Survey: Hong Kong banking sector shows widespread interest in AI-based chatbots

Maria Nikolova

Chatbots are one of the top three most popular applications among the 27 listed in HKMA survey.

The Hong Kong Monetary Authority (HKMA) has earlier this week published a report on the opportunities and challenges of applying AI technology in the banking industry. The report also shares the result of an industry-wide survey on banks, industry organisations and fintech firms conducted in the third quarter of 2019.

The report shows that the top five AI use cases being adopted by the banking sector relate to cybersecurity, client-facing chatbots, remote client on-boarding, biometric customer identification, and personalised advertising. Regarding planned use cases, the most attractive for banks include anti-money laundering, fraud detection and financial advisory. Overall, the current trend for AI adoption is towards the development of risk management and customer-facing applications.

Chatbots are one of the top three most popular applications among the 27 listed in HKMA’s survey. The banking sector has shown widespread interest in this technology, especially due to its ability to help automate account management in core banking, and customer services in the mobile and Internet channels. Seventeen banks have already launched or plan to launch their own chatbot, while 25 are exploring this option, the survey shows.

One of the interviewee banks stated that its chatbots handle more than four million customer enquiries from Mainland China on a daily basis. Most Hong Kong respondents are exploring more extensive use of chatbots, in light of their benefits in terms of cost savings and their ability to capture customer insights that are valuable for marketing and product design.

Let’s recall that, a survey conducted early in 2018 by the Hong Kong Securities Association has shown that whereas banks in Hong Kong embrace new AI-based technologies, small and medium-sized brokerages shun chatbots. Many small and medium-sized brokerages, which account for the bulk of Hong Kong’s licensed securities dealers, have no plans of using the technology, that survey shows. Of the 300 brokerages surveyed in January and February 2018, the vast majority (81%) said they did not intend to deploy a chatbot, while 8% said they use one.

The results of the latest survey conducted by HKMA show that while AI has been widely adopted in retail banking, total adoption across the whole banking sector still has room to grow. According to HKMA’s survey, just 48% of the entire Hong Kong banking sector has adopted or plan to adopt AI applications. Local banks, in particular, are still hesitant about applying AI technologies.

Some of the major barriers to AI application concern building trust and safety mechanisms and complying with regulations through transparent, explainable algorithms, as well as identifying talent, collaborating and outsourcing to implement AI solutions, and the changing landscape of regulations required in a complex digital world.

Read this next

Chainwire

PrimeXBT to democratise financial markets with total revamp and upgraded product offering

Leading Cryptocurrency broker, PrimeXBT, has just launched a total revamp of its brand, website, and all-in-one platforms, as part of its vision to “democratise the financial markets” and “make investing available to all”. 

Industry News

SEC’s Gensler reminds industry why T+1 is needed

“For everyday investors who sell their stock on a Monday, shortening the settlement cycle will allow them to get their money on Tuesday. Shortening the settlement cycle also will help the markets because time is money and time is risk.”

Industry News

Citi fined £61 million after $189 billion algo order by mistake

The regulator noted that some primary controls at Citi were absent or deficient. In particular, there was no hard block that would have rejected this large erroneous basket of equities in its entirety and prevented any of it reaching the market.

blockdag

Retik Finance Uniswap Listing Shocker: Why Presale Investors Are Abandoning $RETIK for BlockDAG’s Astounding 30,000x ROI

Explore how major influencers champion BlockDAG’s 30,000X ROI, overshadowing Retik Finance’s Uniswap listing and shifting investor focus.

blockdag

Crypto Influencer ‘Crypto Jogi’ Names BlockDAG the Leading Investment for 2024, Outshining Retik Finance Exchange Listing

Explore why ‘Crypto Jogi’ has singled out BlockDAG as the investment to watch in 2024, shifting focus from Retik Finance’s upcoming exchange listings.

blockdag

Over the Moon or Lost in Space? MoonBag Presale vs. Retik Finance and Pepe Coin

Discover why MoonBag presale is the best crypto presale 2024, surpassing Pepe Coin and Retik Finance with innovative features and high returns. Don’t miss out!

Digital Assets

Uniswap challenges SEC’s planned lawsuit over decentralized exchange

Decentralized finance (DeFi) exchange Uniswap is moving to address a looming regulatory spat with the U.S. Securities and Exchange Commission (SEC).

Digital Assets

Solana trader turns $2K into $2.26 million with 1DOL bet

The Solana ecosystem has proven to be a profitable environment for both savvy traders and lucky speculators. In line with this trend, memecoin trader invested 2,275worth of Solana (SOL) to buy a stash of meme coins, which then became worth $2.26 million in just eight hours.

Executive Moves, Uncategorized

Bitget appoints Gracy Chen as CEO

“I’m extremely honored to step into the role of CEO at Bitget. Over the past six years, we’ve built a robust foundation and an incredible team. Bitget has transformed into a leading crypto platform, consistently innovating to create value for our 25 million users. I’m excited to lead our global expansion to new heights.”

<