Hong Kong bankers careful with Internet

June 3, 1997 The imminent introduction of Internet banking services in Hong Kong has raised bankers' concerns over computer hacking.
The Hong Kong Monetary Authority's executive director for banking policy, Raymond Li Ling-cheung, said that while measures could be implemented to minimise the risk of hackers gaining access to a bank's mainframe, an element of risk would still remain. Li was speaking at a conference on secure-payment transactions, reported the South China Morning Post.
The authority is to establish a study group of banking representatives and information technology experts within the next month to discuss the introduction of electronic banking.
No Hong Kong banks yet offer Internet transactions, although Citibank does provide direct dial-up banking services. Li anticipates intense competition in the Internet-banking market because while "physical" banks had to deal with overhead such as rent, facilities, and wages, there are no such obstacles to Internet banking. He added that Internetbanking could also increase the volatility of bank deposits because customers could easily shop around for the most attractive returns.