If you read the circular, the banks need to submit to the HKMA plans on how their schemes will manage the credit risks and they will revisit the effectiveness of the schemes. Nothing in the circular says anything about waivers of legal and regulatory requirements on client due diligence.
- Micro lending from money lenders have been going on since stone age, so is this new pie in the sky discovered by FinTech?
- Timing is also perfect, on the one hand HKMA is warning public to stay away from debt binge and on the other hand ...........
- This is clearly a mainland style steroid implemented out of FOMO.. Fundamental questions are 'Do HK market/demographics really need mainland style micro loans? How many small entrepreneurs survive these days?'
Speaking of mainland style micro loans...
‘Nude selfies for loans’ scandal sheds light on China’s rampant underground banking | South China Morning Post
You're right - micro lending is nothing new and the presentation of this scheme with a Fintec label doesn't make it so, it's just good PR.
I can't say for sure, but the reason for allowing banks to operate these schemes is because they have been watching and learning from existing micro-finance operations and no-show application operations. Still, a lot is unknown if this level of new investment capital enters this market (including whether Hong Kong "needs" micro loans), hence the wait and see approach set out in the circular.
Big Data/Data Analytics or lame stereotyping!!“Someone who uses a very outdated or cheap phone probably doesn’t belong in a high-income group.”And best of all,Customers who apply at midnight are in urgent need of money,What the!!! I always fill form in capital letters because my handwriting are worse than doctors not because lack of attention to details..An applicant who fills in the form in capital letters may not pay much attention to details.
Just filled up an Immigration form the other day that specifically says "Write in BLOCK LETTERS".An applicant who fills in the form in capital letters may not pay much attention to details.