Commercial Data Interchange - Breaking Down Data Barriers for SME Financing

The Digital Solution

The Hong Kong Monetary Authority (HKMA) launched Commercial Data Interchange (CDI) in 2022, as part of the “Fintech 2025” strategy. The consent-based data infrastructure enables banks to access commercial data of enterprises, particularly small and medium-sized enterprises (SMEs), through a secure, standardised interface to optimise the loan application and credit assessment processes for SMEs.

CDI integrates data from both public and private data sources, assisting banks in leveraging alternative data to streamline processes such as onboarding, credit approval, and ongoing credit monitoring. By March 2026, it had partnered with 27 banks and 17 data providers, facilitated over 95,000 loan applications and reviews, with an estimated credit approval amount exceeding HK$76.7 billion.

Transformation of SME Financing

SMEs often struggle with financing due to the fragmentation of trusted and timely business data, hindering banks’ ability to effectively assess SMEs’ creditworthiness. By facilitating seamless data sharing, CDI supports SME lending by narrowing the information gap facing banks, resulting in more favourable loan terms to SME borrowers. According to the HKMA’s Half-Yearly Monetary and Financial Stability Report published in March 2026, an empirical study was conducted with a focus on around 80,000 SME loans between January 2022 and March 2025. It is found that banks that more actively use CDI, on average, charge interest rates 36 basis points lower and require fewer collaterals. Overall, CDI helps shorten loan approval times, reduce documentation and collateral burdens, and free SMEs’ capital for business growth.

Building Economic Resilience through Data Integration

CDI addresses a complex coordination challenge by enabling secure, standardised data sharing across institutions, while aligning incentives for banks, SMEs, and data providers, driving market-based adoption. By enhancing banks’ risk assessment and SME financing terms, CDI supports more efficient capital allocation, fosters SME growth, and strengthens economic resilience.

Building on CDI, the HKMA is advancing trade finance digitalisation through the multi-year Project Cargo^x launched in April 2025. 20 recommendations under the Data, Infrastructure and Connectivity pillars were set out in the “Project Cargo^x Recommendation Report” published in January 2026. The HKMA is taking forward the recommendations including collaboration with the Digital Policy Office to promote the use of Digital Corporate Identity (CorpID) to enable trusted trade and cargo documents sharing. More broadly, through Cargo^x, the HKMA aims to better serve the real economy, and further strengthen Hong Kong's position as a leading trade finance hub.

Reimagining Financial Infrastructure for the Digital Age

CDI shows that successful digital transformation is about redesigning information architecture to solve real business problems, not just adopting new technology. Its consent-based, standardised, and interoperable design builds trust, reduces information asymmetry, and unlocks business value. As it continues to evolve, CDI exemplifies how digital infrastructure can strengthen Hong Kong’s competitiveness, financial inclusion, and economic resilience.

Please click here for success stories of SMEs applying bank loans using alternative data exchanged on CDI.

[Acknowledgement to the HKMA for providing material for the story.]