CBI member HSBC has introduced a new type of bank account in Hong Kong aimed at serving customers with dementia, a growing public health concern among the city’s rapidly ageing population.
The “HSBC basic banking account with independence” scheme, which was originally tried and tested in the UK, enables customers living with dementia to retain access to a bank account, but one with limited features and additional control by a legal designee.
Greg Hingston, head of retail banking and wealth management in Hong Kong said at the launch of the service yesterday “[HSBC] wants customers with diminished mental capacity to continue to be able to manage their finances safely and with an appropriate degree of independence. […] there is a definitely a need, and when you look at demographics that’s just going to become more material going forward.”
Dementia is an increasing health concern as Hong Kong’s population grows older, with nearly a third of the city’s residents expected to be aged 65 or older in 20 years’ time. According to Hong Kong’s Hospital Authority, in 2017 between 20 to 30% of Hong Kong residents over the age of 80 suffered from dementia disorders such as Alzheimer’s disease.
HSBC’s new scheme is meant to guard against financial mismanagement by customers with impaired mental capacity, who face challenges understanding bank documents, remembering pins, and communicating with bank staff. The new account relies on existing Hong Kong laws enabling third party control of accounts for those with impaired mental capacity, either through enduring power of attorney, or via a guardianship order issued by the courts. Third parties would take control of accounts and top up the basic banking account.
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