Feel strongly about these letters, or any other aspects of the news? Share your views by emailing us your Letter to the Editor at [email protected] or filling in this Google form. Submissions should not exceed 400 words, and must include your full name and address, plus a phone number for verification As someone managing a deceased parent’s estate, I have recently encountered a disturbing pattern of outdated practices across Hong Kong’s financial institutions that threatens our city’s status as a leading financial centre.
The inconsistency across Hong Kong’s financial institutions is striking. While some embrace modern solutions, others stubbornly cling to physical paperwork and wet signatures, citing security concerns that do not stand up to scrutiny. The Hong Kong Jockey Club, despite processing billions in electronic bets, insists on
physical cheques for estate settlements. Meanwhile, more progressive institutions like HK Electric and the Water Supplies Department efficiently handle similar matters through electronic channels. Citi demands wet signatures for authorisation to release account information to my attorneys preparing probate applications, refusing to communicate and authenticate electronically. HSBC requires weeks to process asset transfers after presentation of probate grant, while Citi completes them on the spot.
This is not merely about convenience. These archaic practices have real consequences: delayed probate applications and thus grants, additional stress during an already difficult time, and unnecessary travel burdens for overseas executors. Each required trip to Hong Kong carries significant personal and financial costs.
The solution is straightforward: implement market-driven modernisation by applying true-cost pricing to cheque issuance and processing while mandating free or low-cost electronic alternatives. Hong Kong’s
Faster Payment System, with its robust name and ID verification, already has the infrastructure for secure transactions. Banks should be required to relax overly restrictive transfer limits for unregistered third parties, if transfers are sent to, say, a Hong Kong identity card or business registration number. Progressive institutions have demonstrated that these solutions work effectively.
With an ageing population and many Hong Kong families spread globally, our financial institutions must modernise their processes or risk undermining Hong Kong’s competitiveness. In an era where cities compete globally to attract financial business and talent, such outdated practices are a liability we cannot afford.
