Adoption of Virtual Banks and Insurers

Adoption of Virtual Banks and Insurers 62 Survey Findings Using facial recognition and the Hong Kong ID card as authentication when conducting financial transactions Since November 2018, the Hong Kong SAR government has rolled out “new smart HKID cards” 11 with imbedded microchips. The data in the new chips can be read by devices without direct contact. During the card renewal process, the Hong Kong Immigration Department collects facial images and fingerprints of an applicant. Only authorized government departments have access to the relevant database. 12 As mentioned in the previous question, the digital equivalent of the new smart HKID card is the iAM Smart Account, which is an electronic identification of an individual. Since the iAM Smart Account was yet to be launched at the time of this survey, respondents may not be aware of its existence, and hence many might not understand its functionalities. In the following question, we made reference to the new smart HKID card in terms of features that are common to both the HKID card and the iAM Smart account. Specifically, we asked respondents if they agree with using facial recognition and the HKID card as a two-token authentication method when conducting financial transactions. The majority of the respondents (37.1%) replied they feel indifferent to this question, while 34.3% totally agree/agree. When compared with Exhibit 31, the percentage in favor of government facilitation (34.3%) is larger than those who oppose the idea (28.6%). This could be explained by the fact that specific use of personal information is mentioned in this question, whereas the previous question is more general in nature. 11 Immigration Department of Hong Kong, Development of Hong Kong Identity Cards, https://www.smartid.gov.hk/en/Development-of-Hong-Kong-Identity- Cards/index.html 12 Immigration Department of Hong Kong, New Smart ID card, Personal data protection, https://www.smartid.gov.hk/en/Persona-Data-Protection/index. html. Exhibit 32 Using facial recognition and the HKID card as authentication when conducting financial transactions [1 - Totally Disagree ...... 5 - Totally Agree]