What The FinTech #112 - 25 Sep 2022
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What was the FinTech this week in: 📰
HONG KONG
BIS, HKMA to explore use of DeFi tools to improve SME financing
HK regulators supportive of compliant security tokens
HK to lay the foundations for e-HKD
WeLab and Astra complete acquisition of Indonesian bank for US$510m
BIS, HKMA to explore use of DeFi tools to improve SME financing
The BIS Innovation Hub’s Hong Kong Centre and the Hong Kong Monetary Authority (HKMA) will look into the use of decentralised finance (DeFi) tools to improve access to finance for unfunded and underfunded small and medium enterprises (SMEs). The launch of Project Dynamo aims to deliver a prototype for the compliant use of DeFi tools such as blockchain and smart contracts for this purpose. According to a joint statement by BIS and HKMA, the intention is to enable policymakers and the financial services industry to develop a deeper understanding of whether and how these technologies can reduce transaction and borrowing costs, facilitate productive financing and promote financial inclusion. In addition to Project Dynamo, the research will extend into related topics such as decentralised identifiers and the interoperability of digital payment methods such as stablecoins and central bank digital currencies.
BIS, HKMA to Explore Use of DeFi Tools to Improve SME Financing | Fintech Hong Kong (fintechnews.hk)
HK regulators supportive of compliant security tokens
Hong Kong regulators jointly met with operators in the security token sector to encourage Hong Kong as a fintech destination for compliant security token offerings (STOs). To date, just one platform has been licensed, OSL, which issued its own security token in July. The regulators learned that there’s a pipeline of ten issuers interested in proceeding with blockchain-based securities issuances. The joint regulatory move was by the Hong Kong treasury department, the Securities and Futures Commission (SFC) and Invest Hong Kong (InvestHK). Fintechs interested in getting involved in security token offerings (STOs) were encouraged to engage with the SFC. For securities, Hong Kong has two licenses, one for dealing in securities and the other for automated trading services. New anti-money laundering rules are creating a mandatory licensing regime from March 2023 for cryptocurrency-focused virtual asset exchanges. The Hong Kong Monetary Authority is also exploring tokenized green bonds.
HK to lay the foundations for e-HKD
The Hong Kong Monetary Authority has committed to rolling out a retail central bank digital currency (CBDC) after a positive response to consultations scoping out the technical and policy perspectives. As part of its 'Fintech 2025' strategy to future-proof Hong Kong in terms of CBDC readiness, the HKMA has examined the prospect of issuing an e-HKD via two rounds of market consultation, one on high-level technical design and one on key policy and design issues. In total, 75 responses were received during the consultation. Overall, respondents were found to be supportive of the initiative and believe that e-HKD has the potential to make payments more effective in a future digital economy. At the same time, respondents also pointed out the need to further examine issues such as privacy protection, legal considerations, and use cases. Taking into account the findings, the HKMA has outlined a three-rail approach, which will pave the way for possible implementation of e-HKD in the future. Rnunning in parallel, the first two rails will lay the technology and legal foundations, and take a deep dive into use cases as well as application, implementation, and design issues. The HKMA says it will also conduct a series of pilots in close collaboration with various stakeholders to gain actual experience. Rail three will set the timeline for lunching e-HKD, consolidating the outcomes of the earlier preparatory wok.
https://www.finextra.com/newsarticle/40978/hong-kong-to-lay-the-foundations-for-e-hkd/payments
WeLab and Astra complete acquisition of Indonesian bank for US$510m
Hong Kong fintech company WeLab and Indonesian conglomerate Astra International, controlled by Jardine Matheson, have completed their acquisition of Indonesian commercial bank Bank Jasa Jakarta (BJJ), with plans to transform it into a digital bank. The deal was worth US$510 million, the South China Morning Post reported. WeLab led a consortium through WeLab Sky, together with Astra subsidiary PT Sedaya Multi Investama, or Astra Financial. The consortium is backed by existing and new investors including Allianz X, Boyu Capital, Horizons Ventures, SCBX Group and TFB (Taipei Fubon Bank) Capital, according to a WeLab statement. The parties are targeting a rising sector that aims to serve the 77 per cent of Indonesia’s 270 million population that remains underbanked or unbanked.
WeLab and Astra complete acquisition of Indonesian bank for US$510m, Garage - THE BUSINESS TIMES
SINGAPORE
Fintechs eye partnerships with digital banks, expect to retain competitive edge with specialised offerings
Singapore-based fintech platform #dltledgers raises S$8.5m in Series B
MAS grants Capital Markets Services licence to SBI Digital Markets
Singapore’s KNN3 wants to enable social discovery for decentralized apps
DBS partners with FinLync to accelerate digitalisation of corporate treasury functions with plug-and-play bank API solutions
Fintechs eye partnerships with digital banks, expect to retain competitive edge with specialised offerings
Digital banks have landed in Singapore, dangling higher interest rates, a free bag of rice and bonus NTUC LinkPoints in an effort to lure customers from incumbents. But fintech startups claim the lack of wealth management products and credit lines make these digital newcomers less of an immediate threat. Atome, for one, said the arrival of digital banks isn’t going to sway the buy-now-pay-later (BNPL) player’s focus on providing financial services. Rather than competition, fintechs may see potential for partnerships. Zennon Kapron, founder of consultancy Kapronasia, said digital banks might end up as partners for robo-advisers as the latter would benefit from having access to a wider customer base of a licensed digital bank, while the digital banks would be able to quickly expand their product set.
Singapore-based fintech platform #dltledgers raises S$8.5m in Series B
Singapore-Headquartered fintech firm #dltledgers on Tuesday (Sep 20) announced that it has raised S$8.5 million led by the family office of the Tata group as well as Centrum in the latest Series B funding round. The firm, which touts itself as a “blockchain based multi enterprise supply-chain business network”, has plans to use the funds for business expansion in North America as well as scale its engineering teams and growth teams further. #dltledgers’ primary business lies in helping companies build on a connected supply chain and enable multi-party transactions across enterprises. Examples of the platform’s functions include helping its clients run end to end contract compliance as well authenticate commercial documents.
Singapore-based fintech platform #dltledgers raises S$8.5m in Series B, Garage - THE BUSINESS TIMES
MAS grants Capital Markets Services licence to SBI Digital Markets
SBI Digital Markets (SBI DM), a subsidiary of Tokyo-based SBI Digital Asset Holdings (DAH), has just been awarded the Monetary Authority of Singapore’s (MAS) Capital Markets Services (CMS) Licence. SBI DM received In-Principle Approval for its CMS licence from the MAS back in early May 2022. SBI DM will be conducting regulated activities across advising on corporate finance, dealing in capital markets products, and providing custodial services. SBI DM will be leading the way in capital markets digital assets, building an ecosystem targeted directly at the growing demand for public and private institutional digital assets. SBI DM plans to launch its proprietary digital asset securities platform, providing an end-to-end solution to help traditional financial service operators capture growth opportunities fuelled by the advent of digital assets.
MAS grants Capital Markets Services licence to SBI Digital Markets (finextra.com)
Singapore’s KNN3 wants to enable social discovery for decentralized apps
VC recognition is KNN3, a Singapore-based startup working to help developers make sense of relational data across blockchains. KNN3 wants to do the same in web3 by building graph databases that analyze users’ relationships, status, memberships and other on-chain actions. Set out to build KNN3, a permissionless (hence decentralized) tool for developers to draw insight from cross-blockchain user data. One of KNN3’s better-known customers is Mask Network, which enables users to send cryptocurrencies on Web 2.0 services and is now building a decentralized identity system using KNN3’s tech. In the U.S., in contrast, KNN3 plans to go after enterprise-facing organizations like Chainlink, which feeds real-life data called “oracles” into smart contracts and where Yu used to work. KNN3 is weighing a new product that would provide cloud services built on top of Chainlink’s oracles, which, eventually, will allow developers to build and run decentralized apps and smart contracts without worrying about the “fundamental data layer.” KNN3 currently employs a team of 24 across Singapore, China, Europe and the U.S. With the funding, it looks to attract more tech talent from Silicon Valley.
Singapore’s KNN3 wants to enable social discovery for decentralized apps | TechCrunch
DBS partners with FinLync to accelerate digitalisation of corporate treasury functions with plug-and-play bank API solutions
DBS has partnered with FinLync, a privately-held, global fintech company transforming corporate finance and treasury offices by aggregating global banking APIs to deliver embedded real-time payments and cash management. This will provide a simpler and more efficient way for corporates to digitalise their corporate treasury functions by leveraging DBS' extensive API (Application Programming Interface) suite RAPID. The DBS-FinLync partnership will enable corporates to experience greater ease of integration, eliminating the need for complex implementation projects, which are often tedious and costly. With plug-and-play capabilities to integrate banking services through the bank's APIs into their workflows, corporates can now directly connect to and leverage DBS' extensive suite of cash management, workflow, trade, information and foreign exchange (FX) services in real-time.
CHINA
Alibaba’s Metaverse project enables guiding avatars through virtual shops
Alibaba Cloud unveils suite of financial services solutions
Alibaba’s Metaverse project enables guiding avatars through virtual shops
Alibaba Group revealed that its marketing technology platform Alimama has plans to launch an immersive meta space called “Metaverse” for this year’s Double 11 festival. Within the digital establishment, consumers will be able to browse virtual shops and engage in exclusive entertainment experiences. As of now, the project is said to have resonated with a number of brands across the country, whose names are yet to be disclosed, suggesting many are gearing up to show their cooperation and involvement with the campaign. For example, Alibaba’s luxury platform, Tmall Luxury Pavilion, recently announced that it will host an AR fashion show and introduce a Meta Pass, which grants priority access to brands’ product, later this month.
Alibaba’s Latest Web3 Project Proves A New Era Of Retail Is Officially Here | Jing Daily
Alibaba Cloud unveils suite of financial services solutions
Alibaba Cloud, the digital technology and intelligence backbone of Alibaba Group, launched its suite of Alibaba Cloud for Financial Services solutions, comprising over 70 products designed to help financial services institutions (FSIs) of all sizes across banking, insurance, securities, and FinTech digitalise their operations. These solutions are designed to support every stage of a FSI’s digital journey and provide easy access to cloud-native technology. Together, they deliver five core capabilities covering over 20 business scenarios to improve FSIs’ operational efficiency, customer experience, security and compliance.
Alibaba Cloud unveils suite of financial services solutions (ibsintelligence.com)
ASIA
Indian fintech Zaggle launches AP, credit card payments platform
MAS and Indian regulator to collaborate on fintech innovations
Airasia rewards partners MiL.k to give app users with blockchain-based loyalty programme offerings
SoftBank rolls out used-car subscriptions with Singapore's Carro
Indian fintech Zaggle launches AP, credit card payments platform
Indian FinTech company Zaggle has reportedly launched a product called Zoyer that brings accounts payable (AP) and credit card payments together on a single platform. The platform simplifies and automates B2B payments for small to medium sized businesses (SMBs) and enterprises, streamlining B2B payables and enabling effective management of operating cash flows and business performance. By embedding Zaggle branded card products directly into AP workflows for seamless payments, Zoyer enables businesses to securely and efficiently manage vendor payments, utility payments and tax payments. It also offers earned rebates and cash back to help businesses optimize processing costs, and it provides access to immediate credit so businesses can meet their working capital needs. Zoyer is the latest addition to the company’s product line of integrated card products bundled with Software-as-a-Service (SaaS)-based business spend solutions.
Indian FinTech Zaggle Launches AP, Card Platform (pymnts.com)
MAS and Indian regulator to collaborate on fintech innovations
The Monetary Authority of Singapore (MAS) and India’s International Financial Services Centres Authority (IFSCA) have signed a co-operation agreement to facilitate regulatory collaboration and partnership in fintech. The agreement will promote regulatory sandbox collaboration and the sharing of information, according to a joint statement by the MAS and IFSCA on Sunday (Sep 18). Under the regulatory sandbox collaboration, the 2 regulators will leverage existing regulatory sandboxes in their respective jurisdictions to support experimentation of technology innovations. This includes referral of companies to each other’s regulatory sandboxes and enables innovative cross-border experiments in both jurisdictions. The agreement will also allow the 2 parties to evaluate the suitability of use cases which could benefit from collaboration across multiple jurisdictions and invite relevant jurisdictions to participate in a global regulatory sandbox.
Airasia rewards partners MiL.k to give app users with blockchain-based loyalty programme offerings
Members of Asean’s award-winning lifestyle rewards programme, airasia rewards, will now be able to enjoy blockchain-based loyalty offerings through a collaboration between BIGLIFE and blockchain-based loyalty platform MiL.k. BIGLIFE is the operator and manager of airasia rewards, the loyalty programme for the airasia Super App that boasts over 51 million members across Asia and the Pacific. At the same time, MiL.k is South Korea’s top blockchain-based loyalty programme with 1.1 million users. The two companies aim to integrate the airasia rewards loyalty programme with MiL.k platform and its token, Milk Coin (MLK). With the integration, airasia Super App’s loyalty points, also known as airasia points, will be connected with MiL.k’s point ecosystem, and various joint marketing activities will be held targeting global users of airasia rewards and MiL.k. airasia rewards’ latest collaboration with MiL.K underlines the company’s commitment to provide airasia members holistic ways to be rewarded through borderless earn and burn opportunities across Asean and beyond.
SoftBank rolls out used-car subscriptions with Singapore's Carro
Japanese mobile carrier SoftBank Corp. has launched a service that lets users drive preowned cars in Japan for a flat fee in collaboration with Carro, a Singapore startup backed by the SoftBank Vision Fund. Carro's artificial intelligence program quotes subscription rates based on vehicles' pricing histories and other factors. Customers will pay about 20% less than they would for new-car subscriptions. Carro Japan will begin with a business-to-business service, but it will consider rolling out a version for ordinary drivers. Wait times for new vehicle deliveries in Japan have stretched to half a year or more, owing to a global chip shortage and supply chain disruptions from Shanghai's lockdown.
SoftBank rolls out used-car subscriptions with Singapore's Carro - Nikkei Asia
BLOCKCHAIN - CRYPTO - DIGITAL ASSETS - DE FI
Nasdaq launches crypto custody service
Nasdaq launches crypto custody service
Stock market operator Nasdaq is making a push into crypto, launching a digital asset custody service for institutional investors. Led by former Gemini executive Ira Auerbach, Nasdaq Digital Assets will initially offer bitcoin and ether custody services to financial institutions, taking on the likes of Coinbase and Anchorage Digital. The unit - which still requires regulatory approval - is promising a custody solution that will incorporate liquidity and execution services to "address industry challenges around connectivity, availability, and efficiency". The proprietary offering will "bring together the best attributes of hot and cold crypto wallets" providing a high degree of accessibility and scalability without compromising security.
Nasdaq launches crypto custody service (finextra.com)
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