Date
23 January 2017
Banks must strike a balance between risk and customer convenience while allowing mobile fund transfers to non-preregistered accounts, says Arthur Yuen. Photo: HKEJ
Banks must strike a balance between risk and customer convenience while allowing mobile fund transfers to non-preregistered accounts, says Arthur Yuen. Photo: HKEJ

HKMA gives nod to banks for P2P mobile services

The Hong Kong Monetary Authority (HKMA) has revised its supervisory policy manual to give the green light to licensed lenders to provide peer-to-peer mobile services, the Hong Kong Economic Journal reported.

Bank customers will no longer be required to go through double verifications to transfer small amount of funds to a third party’s clients via internet banking.

HKMA is also allowing, for the first time, bank clients to use mobile devices such as smartphones to transfer funds to a non-preregistered account of a third party’s clients.

Yet such transactions from internet banking accounts will be subject to a limit of HK$3,000 for every two days. 

The restriction is meant to strike a balance between the potential risks and the convenience that such new businesses may bring about, HKMA’s deputy chief executive Arthur Yuen was quoted as saying.

The new policy will enable individuals to channel funds among friends. Account registration on smart phone will take one day to be effective as a security precaution.

[Chinese version中文版]

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