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

Institutional FX

Euronext’s FX volume takes yet another step back in July

Pan-European exchange, Euronext has reported a 7.6 percent drop in the average daily volume on its spot foreign exchange market. The ADV figure stood at $21.4 billion in July 2022, which is down from June’s $23.1 billion.

Executive Moves

IG Group strengthens institutional sales with appointment of Glen Hastings

IG Group, Europe’s largest online trading platform, has onboarded Glen Hastings to the role of its institutional sales manager. He joins the FCA-regulated broker with immediate effect, based out of its offices in London.

Digital Assets

Voyager customers can withdraw up to $100K in cash via ACH transfer

Following approval of the bankruptcy judge, cryptocurrency brokerage firm Voyager plans to return $270 million in customer cash. The amount represents a small portion of investors’ crypto holding that have been locked up since the company filed for bankruptcy in April.

Retail FX

Britain’s lifeboat system to conclude LCG compensation scheme

Britain’s Financial Services Compensation Scheme (FSCS) said today it’s preparing to close the compensation scheme of the collapsed mini-bond provider, London Capital & Finance.

Uncategorized

Robinhood parts ways with its first CPO Aparna Chennapragada

In what apparently part of the restructuring it announced last month, Robinhood is parting ways with its Chief Product Officer Aparna Chennapragada. However, she’ll remain employed in an advisory role to the CEO through January 2023.

Digital Assets

Crypto.com expands regulatory footprint with new licence in South Korea

Crypto.com has acquired payment service provider ‘PnLink Co., Ltd.’ and virtual asset service provider ‘OK-BIT Co., Ltd.’ The move effectively provides a regulatory stamp for the company’s digital assets and cryptocurrencies business in South Korea.

Metaverse Gaming NFT

Why NFT Technology Could be the Much Needed Solution to Crypto Inheritance 

The digital asset market may have started with Bitcoin’s humble beginning but its fortunes have changed over the past decade.

Industry News

Kohle Capital Markets expands CFDs lineup to 200+ stocks

Kohle Capital Markets (KCM), the leading international provider of online trading, has once again expanded its contracts-for-difference (CFDs) offering, this time with the addition of new products on its trading platform.

Industry News

Kohle Capital Markets continues CSR initiatives with donation of art piece to Lions Club International

Global brokerage firm Kohle Capital Markets (KCM) is taking its corporate social responsibility very seriously and continues to navigate the challenging period brought forth by the pandemic and Russia-Ukraine war.

<