eMPF Platform :A Transformation of the MPF Eco-System

Cheng Yan-cheeChief Corporate Affairs Officer and Executive Director

Mandatory Provident Fund Schemes Authority27 November 2019

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A Snapshot of MPF System

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EVERY YEAR :

Some More Statistics

Investment Management

Scheme Administration

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02 03

Safekeeping of Assets

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3 Elements of MPF Scheme

Digital Users39% Employers (on average)

Diverse distribution; less than 10% for some trustees

Manual Users61% Employers (on average)

By Post

Hundreds ofservice outlets,

e.g. bank branches

~30,000 MPF

Intermediaries

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Current State of MPF Administration

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Current State of MPF Administration

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Future of MPF Administration

eMPF Platform

Transform and enhance the MPF System

Paperless MPF experience to over 4 million members and 300,000 ERs

Benefit ERs,EEs, MPF industry and MPFA

Create room for reducing MPF management fees

Pave way for future reforms – e.g. full portability

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Vision of eMPF Platfrom

Objectives of eMPF Platform

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Scheme administration

One-stop handling of all MPF administrative tasks

Users can issue instructions through the Platform

Standardized operational standards allowing fully automated operation in the industry

Operate over the internet or mobile app anytime, anywhere

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Features of eMPF Platform

• Enrolment• Contribution• Submission of

documents

• Contribution calculation

• Reminder of contribution due date

• Online access transaction records and reports, etc.

• Employer can assign access rights to employees

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Functions of eMPF Platform - Employer

• Viewing details of all MPF accounts

• Scheme switching

• Fund switching• Withdrawal• Change of

contact details

Subscription to Notification:• Contribution

received• Latest Annual

Benefit Statement

• Account management tips

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Functions of eMPF Platform - Employee

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Current User Behavior

39% employers as digital users

(Diverse distribution: less than 10% for some trustees)

65% of transactions are still paper-based

Most scheme members don’t

actively manage their MPF accounts via electronic means

Current system delivers generally

satisfactory services

High Degree of User Diversity

Diverse cohorts in the MPF System

Diverse degrees of digital literacy and

experience

Complexity of eMPF Platform

More than just an IT project

A change management

process (to overcome a 20-year-

old inertia)

MPFA and MPF industry to promote

digital take-up

Practical Application

Digital transformation and

transition

100% accuracy

Challenges

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(1) Faster (2) Simpler (3) Better (4) Cheaper

Advantages

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Instant notificationto ERs, EEs after contributions are properly made

Massive time saving for the contribution process and transfer of benefits

Enhance enforcement efficiency for better members

protection

Shorten enrolment process

(1) Faster

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24/7 Payment Systems for making

contributions

Single log-onwith the support of various AI tools

Easy access to the

contribution reports

Consolidation of personal accounts

(2) Simpler

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Reduce non-compliance e.g. 5% surcharge due to late payment of contribution

Easier management for holders of multiple accounts

(3) Better

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Reduce MPF management fees

Market openness and seamless platform to drive MPF management fees down through open competition

Paperless administration process

(4) Cheaper

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Development Roadmap

2019 • RFP exercise has been kicked off

Parties interested in submitting proposals are requested to enrol in advance with the MPFA starting from 11 Nov

RFP package will be released to enrolled tenderers by email in Dec (tentative date)

Enrolled tenderers have to submit the proposal before the deadline which will be further announced

2020 • Tender award

• System design and development

2021 • Submission of legislative amendment proposal to LegCo to streamline

administration workflows and reduce regulatory burden, etc.

2022 • Target completion date of system design and development

Thank you

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