meta_id 3009538

On 26 March 2026, the Hong Kong Monetary Authority (HKMA) issued updated guidance on consumer protection in the use of alternative data by authorized institutions. This circular represents the HKMA's current supervisory expectations for banks and other authorized institutions operating in Hong Kong. The guidance addresses how authorized institutions should protect consumers when utilizing alternative data sources in their operations. This update forms part of the HKMA's broader framework governing the use of advanced data analytics and artificial intelligence technologies by financial institutions. The circular is directly related to existing HKMA guidance on consumer protection in the use of generative artificial intelligence (issued 19 August 2024) and builds upon foundational principles established in prior circulars on big data analytics and artificial intelligence (5 November 2019) and high-level principles on artificial intelligence (1 November 2019). The guidance also cross-references relevant supervisory policy manual modules governing credit data sharing through credit reference agencies and sound practices for customer data protection. The circular applies to all authorized institutions supervised by the HKMA, including banks engaged in consumer lending and credit card businesses. The issuance of this guidance reflects the HKMA's ongoing commitment to ensuring that as financial institutions increasingly rely on alternative data sources and advanced analytics, consumer protection standards remain robust and clearly defined. Authorized institutions should review the circular and ensure their policies, procedures, and risk management frameworks align with the HKMA's expectations outlined in this guidance. **Reference:** Hong Kong Monetary Authority Banking Regulatory Document Repository