HKMA Reports Surge in Banking Complaints Amidst Enhanced Monitoring
The Hong Kong Monetary Authority (HKMA) has released its latest edition of Complaints Watch, Issue No. 25, highlighting notable trends in banking complaints and emerging issues within the sector. This semi-annual publication aims to promote proper standards of conduct and prudent business practices among Authorized Institutions (AIs), according to the Hong Kong Monetary Authority.
Significant Increase in Banking Complaints
In the second half of 2024, HKMA recorded 2,039 banking complaints, marking a 32% increase compared to the same period in 2023. A major contributor to this rise was the surge in complaints related to banking account operations, which saw a 64% increase, reaching 640 cases in the latter half of the year. This spike is attributed to enhanced account reviews and monitoring by banks, facilitated by improved intelligence sharing between law enforcement and financial institutions.
Focus on Fraud Prevention and Customer Communication
As the landscape of financial fraud continues to evolve, HKMA emphasizes the importance of public-private collaboration in combating fraudulent activities. The authority has urged banks to enhance customer communication efforts to minimize inconvenience during this heightened monitoring phase. This initiative reflects HKMA's commitment to maintaining a secure and efficient banking environment for consumers.
Featured Articles Addressing Critical Issues
The latest Complaints Watch issue includes three feature articles: “Handling Media Enquiries on Customer Complaints,” “Debt Collection Activities Conducted by Purchasers of Bank Debts,” and “Liability for Unauthorised Transactions with Lost Credit Card.” These articles provide insights into pressing issues faced by the banking sector and offer guidance on best practices for handling them.
The complete publication of Complaints Watch is available on the HKMA website, offering detailed insights and recommendations for AIs to navigate the complex banking landscape effectively.
