On 28 Jul 2025, the HKMA’s Complaints Watch Issue No.26 reported a 33% year-on-year rise in banking complaints (1,889 total), primarily due to increased account operation disputes linked to fraud prevention measures. The HKMA urged Als to improve customer communication during account reviews and adopt a customer-centric approach in product design to mitigate disputes arising from opaque pricing and restrictive promotional terms.
This article was generated using SAMS, an AI technology by Timothy Loh LLP.
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Complaint Statistics and Trends
On 28 Jul 2025, the Hong Kong Monetary Authority (HKMA) published Complaints Watch Issue No.26, reporting a 33% year-on-year increase in banking complaints (1,889 total for Jan–Jun 2025), driven primarily by a 54% surge in complaints related to banking account operations (601 cases). This rise stems from enhanced fraud prevention measures by Authorized Institutions (Als) and improved police intelligence sharing, which have intensified account reviews despite reducing fraud incidents.
Handling of Account Operation Complaints
The HKMA noted that most account-related complaints arose from banks proactively verifying unusual transactions, with 80% of cases resolved after customer explanations. However, disputes occurred when customers refused to provide information or attend face-to-face meetings, often involving fraudulent activity. The HKMA has reminded Als to strengthen customer communication during account reviews to minimise unnecessary inconvenience, while acknowledging that fraud prevention measures remain critical amid rising deception cases (17,077 reported in Jan–May 2025, up 8.4% YoY).
Product Design and Customer Perspective Guidance
The HKMA highlighted recurring complaints about banking products designed without sufficient customer-centric consideration, citing two key examples: (1) credit products pricing against opaque cost-of-funds benchmarks, causing disputes despite disclosure; and (2) credit card promotions with restrictive reward conditions (e.g., limited quotas or merchant-specific redemptions) that were inadequately highlighted. The HKMA emphasised that Als should prioritise customer interests during product design to prevent avoidable disputes, noting that poor experiences risk reputational damage in the digital era.
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