On 25 Jul 2024, the HKMA published Complaints Watch Issue No. 24, highlighting a 46% rise in fraud-related banking complaints in 2023 and advising AIs to improve e-communication practices with distinct email subject lines and secure message delivery. The bulletin also stressed the need for prompt incident reporting and shared the HKMA’s 8% efficiency gain from adopting STT and RPA technologies in complaint handling.
This article was generated using SAMS, an AI technology by Timothy Loh LLP.
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Introduction
On 25 Jul 2024, the Hong Kong Monetary Authority (HKMA) published Complaints Watch Issue No. 24, a half-yearly bulletin highlighting recent complaint trends, emerging issues, and guidance for Authorized Institutions (AIs) to promote prudent business practices and customer awareness.
Complaint Statistics
The bulletin reports 1,401 banking complaints received by the HKMA between July and December 2023, with service quality (46%), fees and charges (47%), and credit card disputes (16%) as the top complaint categories. Fraud-related complaints rose significantly to 1,201 cases in 2023, up from 555 in 2022.
E-Communication Guidance
The HKMA advises AIs to improve customer notification practices, noting that generic email subject headings (e.g., identical for account statements and critical corporate action notices) have caused customers to miss time-sensitive messages. AIs are urged to adopt distinct subject lines, send reminders for due-date actions, and use secure channels (e.g., app push notifications) to ensure clear disclosure while protecting data privacy.
Incident Reporting and Technology Adoption
The HKMA emphasizes that AIs must promptly report material incidents (e.g., suspected fraud, data breaches, or staff misconduct) to the HKMA and relevant authorities, even if evidence is incomplete or financial impact is unquantified. The bulletin also shares the HKMA’s successful adoption of Speech-to-Text (STT) and Robotic Process Automation (RPA) tools, which reduced complaint handling time by 8% in 2023 and enabled 100% adherence to response time pledges. AIs are encouraged to leverage similar technologies to enhance complaint resolution efficiency.
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