What The FinTech #106 - 24 Jul 2022
Happy Sunday & Welcome back to What The FinTech, your regular FinTech & Innovation Newsletter focusing on Hong Kong & Asia!
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What you would have missed If you spent the entire week traveling
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Substack Newsletter
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Last week Episodes 10 & 11
I interviewed Eddie Rong, Founding Member of Bloom. Founded in December 2020, the Bloom App is an open promotional platform that works in partnership with Visa. Bloom aims to provide personalized spending rewards from cash rebate to digitalized coupons to consumers by connecting partner brands and card issuers.
I interviewed Ambroise Couissin, CEO & Founder of Mazecare. Mazecare is a digital healthcare platform capable of connecting the patient, the health provider, and the insurer. It covers the full patient journey from appointments, health services, and medical records to billing, claim adjudication and claim settlement.
The previous interviews are available on podcast: Spotify, Apple Podcasts, Google Podcasts.
What The FinTech Episode 12
Next interview with Adrien Barthel, Co-Founder of Sleek.
Join us on Wednesday at 6 p.m. for the live stream of the interview!
Check out the previous videos here: on What The FinTech, Instagram or Youtube.
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What was the FinTech this week in: 📰
HONG KONG
HKMA, Bloomberg launch Greater Bay fintech talent initiative supported by major banks
Airwallex online payments app launches on e-commerce platform Shopify
HKMA, Bloomberg launch Greater Bay fintech talent initiative supported by major banks
Hong Kong Monetary Authority (HKMA), Bloomberg and the Hong Kong United Youth Association (HKUY) have partnered to launch the Greater Bay fintech talent initiative aimed at bridging a potential technology skills gap in the region. Alongside HKMA, in its capacity as the convening partner, and Bloomberg and HKUYA as the organising partners, more than 20 corporations are supporting the initiative by providing students with technical training, networking opportunities and bespoke mentorship. These will also be conducted by the corporate partners to help students prepare for a successful career in financial technology.
Airwallex online payments app launches on e-commerce platform Shopify
Cross border payments firm Airwallex announced the launch of its Airwallex Online Payments App on e-commerce platform Shopify. The Airwallex Online Payments App is a payment gateway plugin that merchants can integrate on their online store to accept payments from their global customers. This new app is offered through Airwallex’s payment acceptance solution that covers a wide range of payment methods. In addition to being able to accept payments globally, Airwallex merchants can also receive settlements in 7+ major currencies including USD, thus avoiding unnecessary currency conversions and related fees. Merchants are also able to accept payments directly into their Airwallex multi-currency wallets and pay out with their borderless cards or transfers.
SINGAPORE
Singapore clinches 6.4% of Q2 fintech deal value despite funding winter: KPMG
MAS to seek views on regulating crypto to protect consumers
Singapore clinches 6.4% of Q2 fintech deal value despite funding winter: KPMG
SINGAPORE has captured a bigger slice of global investments into fintech. The city-state grew its market share by deal value to 6.4 per cent in Q2 2022, up from 3.1 per cent in 2021, according to KPMG’s analysis. KPMG noted that investors invested US$210 billion across fintech segments in 2021 and another US$108 billion in the first half of this year. Singapore has also ramped up its market share in global fintech funding by the number of deals, from 3.4 per cent in 2021 to 5.1 per cent now. Deal sizes have grown 10 per cent to average US$43.9 million, up from US$39.8 million in 2021. Deal activity for H1 was the second highest on record, behind H1 2021.
MAS to seek views on regulating crypto to protect consumers
Monetary Authority of Singapore (MAS) will consult on crypto regulations involving consumer protection around September or October this year, its managing director Ravi Menon said on Tuesday (July 19). The focus of crypto regulation to-date in Singapore, as well as in most major jurisdictions, has thus far been on containing money laundering and terrorist financing risks, Menon said at a media conference in conjunction with the launch of the regulator’s annual report. While most regulatory regimes today do not cover areas such as consumer protection, market conduct, and reserve backing for stablecoins, this is changing.
CHINA
Alipay announces measures to support merchants' digital transformation
Alipay announces measures to support merchants' digital transformation
During the 2022 Alipay Partner Conference held in Hangzhou city on 21 July 2022, Alipay introduced four major product upgrades to further benefit merchants ranging from big brands to small businesses by supporting their digital operations. Alipay also announced to invest resources with a total value of RMB 10 billion to enhance its support for merchants and Independent Software Vendors (“ISVs”). The resources, including traffic incentives, will focus on reducing merchants and ISVs’ costs and increasing their operational efficiency.
ASIA
Indonesia urges tech platforms to sign up to new licensing rules or risk being blocked
Indonesia plans wholesale digital currency to improve transfers
Australian BNPL Zip may take charges on US, Europe units, 'deprioritise' crypto offer
Five Southeast Asian countries to link QR code payment systems by November
Indonesia urges tech platforms to sign up to new licensing rules or risk being blocked
Indonesia urged tech companies on Monday (Jul 18) to register under new licensing rules, or run the risk of having their platforms blocked, with data showing many big tech firms such as Google and Meta had yet to comply days out from Jul 20 deadline. The requirement to register is part of a set of rules, first released in November 2020, that will allow authorities to order platforms to take down content deemed unlawful, or that "disturbs public order" within 4 hours if considered urgent, and 24 hours if not. As of Monday, more than 5,900 domestic companies and 108 foreign companies had registered, including short-video app TikTok and music streaming firm Spotify, according to communications ministry data.
Indonesia plans wholesale digital currency to improve transfers
Bank Indonesia will release the conceptual design of digital rupiah by the end of this year, governor Perry Warjiyo said in a briefing on Thursday (21 July). "The principle of digital rupiah will be the same as paper money which is to be the only legal currency for digital transactions in Indonesia," he said. The central bank has been studying the digital rupiah since last year to get ahead of the global adoption of cryptocurrency as a payment method. Other monetary authorities are looking into blockchain technology to improve transfers and settlements, with the central banks of the Philippines and Australia also considering such wholesale digital currencies.
Australian BNPL Zip may take charges on US, Europe units, 'deprioritise' crypto offer
Australian buy-now-pay-later company Zip Co Ltd said on 21 July, it was weighing an impairment charge on its new U.S. and European businesses, exiting Singapore and "deprioritising" a cryptocurrency offering, citing challenging market conditions. "Reflecting current market conditions, the company has reviewed the goodwill against the Spotii, Twisto and Quadpay assets and is assessing the need to take an impairment charge," the company said in a trading update. Zip also said it was winding down its Zip Business unit, which sells unsecured loans to small businesses.
Five Southeast Asian countries to link QR code payment systems by November
Southeast Asian central banks are targeting to link their payment systems before the year ends to allow for seamless transactions for travellers within the region. This will allow people to make purchases by using their own country’s app instead of the local app to make QR code payments. Specifically, the countries involved in this collaboration are Malaysia, Indonesia, Thailand, Singapore, and the Philippines. It is unknown as of yet if other ASEAN countries will join the fray in the future, with the linkage between the region’s five biggest economies announced by Bank Indonesia Governor Perry Warjiyo during a G20 meeting in Bali. The integration is not yet complete, with a target of November for the five countries to sign a deal that links their payment systems. As of now, Malaysia, Indonesia, and Thailand, are already connected to each other and have enabled cross-border payments using QR codes. Singapore and Malaysia have already signed a deal to link PayNow and DuitNow, with the launch being planned for the upcoming fourth quarter.
BLOCKCHAIN - CRYPTO - DIGITAL ASSETS - DE FI
Singapore-based MetaVerse Green exchange steps up climate action in Southeast Asia with appointment of former Bank of England Senior Advisor
Crypto deal delay casts doubts over Thai bank’s makeover
BNP Paribas Securities Services joins crypto custody market
MetaVerse Green Exchange (MVGX), a digital green exchange licensed and regulated by the Monetary Authority of Singapore (MAS), announced the appointment of former Bank of England Senior Advisor Michael Sheren as President and Chief Strategy Officer (CSO) as the firm strengthens its end-to-end suite of Carbon as a Service (CaaS) products to customers across the globe. In his capacity as President and CSO, Michael will drive the promotion of MVGX’s CaaS offerings internationally amid growing calls for greater climate action. Based in Singapore and Europe, Michael will be responsible for developing MVGX’s new climate and environmental advisory services which will enable the firm to collaborate with businesses, government agencies, and policymakers to drive sustainability initiatives within the Southeast Asian region and beyond.
Crypto deal delay casts doubts over Thai bank’s makeover
Doubts have been raised over Thailand’s SCB X acquisition deal of Bitkub Online Co., a cryptocurrency exchange. Bangkok-listed SCB X in November last year agree to acquire a majority stake in Bitkub Online Co for 17.9 billion baht ($684.9 million) at the peak of crypto craze, with a target to wrap up the deal earlier this year. But SCB last week said there’s still due diligence to be carried out amid discussions with regulators.
BNP Paribas Securities Services joins crypto custody market
BNP Paribas Securities Services (BNPPSS) has become the latest asset servicer to promote its push into the digital assets custody sector. The French firm has forged an agreement with two fintechs – Fireblocks and Metaco – to help develop its digital capability. Fireblocks will provide a digital wallet as well as tokenisation and connectivity infrastructure. BNPPSS will also integrate Metaco’s digital asset custody platform with its own asset servicing infrastructure. Other firms like State Street and Commerzbank have also launched digital or crypto custody businesses in recent months. There are also a number of custody offerings from digital-native newcomers including Bitpanda, Archax and Komainu.
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