Bank of China (Hong Kong) (“BOCHK”) announced the launch of Blockchain technology for property valuation and completed the first case with its partnered surveyor. The new technology can speed up the valuation and loan approval processes and enhance operational efficiency, representing a major step in fostering the development of financial technology in Hong Kong.
Blockchain technology helps strengthen data traceability and ensure data accuracy, by creating and transmitting cryptographic information using the Distributed Ledger Technology (DLT). As a result, banks can save costs by streamlining the validation process of valuation results, while property surveyors will help promote green finance as property valuation paper reports are no longer required.
Mr Rocky Cheng, General Manager of IT Department of BOCHK, said, “BOCHK is currently partnering with two property surveyors. To promote the application of Blockchain technology, we are planning to invite more surveyors and other banks to participate in order to enrich the content of the property valuation information. We would like to thank Hong Kong Monetary Authority (HKMA) for its strong support to the launch of Blockchain technology for property valuation. BOCHK will strive to bring more innovative ideas to the application of financial technology in the financial industry. This will benefit both financial institutions and consumers and promote the development of financial technology in the industry.”
Mr Shu-pui Li, Executive Director of HKMA, said, “HKMA is pleased to see the materialising of the value proposition of DLT and the proof-of-concept work involving the use of DLT in actual banking business. Today, we would like to congratulate BOCHK on applying DLT successfully to the property valuation process which forms an important part of the mortgage loan application process. Such use case and lessons learned are also crucial for other proof-ofconcept work currently underway in Hong Kong. In this connection, the HKMA will continue to encourage banks to harness new innovative technologies and devise new solutions to enhance user experience and operational efficiency, while ensuring customer and investor protection at the same time.”
In addition to property valuation in the mortgage loan application, BOCHK will continue its effort to explore and study for further applications of Blockchain in other areas, including trade finance, digital ID management and cross-border payments.
About Bank of China (Hong Kong) Limited
Bank of China (Hong Kong) Limited (BOCHK) is a leading listed commercial banking group in Hong Kong with strong market positions in all major businesses. It has the most extensive local branch network and diverse service platforms, including about 220 branches, efficient e-channels of over 1,000 self-service machines, as well as Internet and mobile banking services. It offers a comprehensive range of financial, investment and wealth management services to personal, corporate and institutional customers. BOCHK is one of the three noteissuing banks and the Clearing Bank for Renminbi business in Hong Kong. With its strong RMB franchise, BOCHK is the first choice for customers in this business.