What The FinTech #115 - 16 Oct 2022
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What The FinTech Video & Podcast - Season 5 Episode 4
Last Wednesday, I was joined by Miles and Christy from Fano Labs, for an enthralling interview about their AI specializing in speech and natural language processing technologies to help enterprises with their customer services, compliance, and other lines of businesses.
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WTF- Season 5 Episode 4
On Wednesday, I'll be in an interesting interview with Caroline York from Gusto Collective. Please join us and let me know if you have any questions.
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What was the FinTech this week in: 📰
HONG KONG
HSBC launches trade finance platform in UK and Hong Kong
HK seeks suitable use case to sell public on retail CBDC
HSBC launches trade finance platform in UK and Hong Kong
Developed in partnership with CGI, the new platform allows clients to originate and manage all their trade finance products online. HTS leverages an API-native, modular design and flexible tech-stack that will form
the backbone of HSBC’s market-leading trade offering - supporting USD800bn of global trade per year. Against a landscape of ongoing transformation through new technologies, improving supply chain resiliency and ESG imperatives, HTS will enable the bank to embrace future change faster and more efficiently.
HK seeks suitable use case to sell public on retail CBDC
• The HKMA will launch a series of trials of its central bank digital currency (CBDC) in testing, the e-HKD, in the fourth quarter this year with banks and technology firms. The trials seek to determine the most suitable use case for the digital Hong Kong dollar. Electronic retail payments in Hong Kong are quite well established.
• HKMA updated the CBDC launching roadmap in September, showing that it plans to first launch a wholesale e-HKD platform for testing and exploring use cases before the final launch to the public.
• Allowing payments with smart devices like watches, easier cross-border payments, and balance between data privacy and control can be factors to support the Hong Kong retail CBDC.
SINGAPORE
Singapore eyes blockchain-based payment systems for faster cross-border transactions
Crypto exchange Coinbase secures Singapore digital-asset permit
DBS runs fintech apprecenticeship programme with local polytechnics
Behind Citibank SG's multi-million dollar marketing push for its digital wealth solution
Singapore eyes blockchain-based payment systems for faster cross-border transactions
The Monetary Authority of Singapore is exploring blockchain-based payments solution to solve the challenges in cross-border transactions.The current state of cross-border payments “is slow, costly, opaque, and inefficient, relying on an archaic network of correspondent banks. Cross-border payments can be improved by connecting faster payment systems, a multi-central bank digital currency (CBDC) platform and through the expansion of private sector blockchain-based payments networks. Tokenized bank deposits issued by the private sector or securely-backed stablecoins, can also be used for cheaper and faster cross-border payments and settlements. Wholesale CBDCs can be used on distributed ledgers to support simultaneous settlements. The central bank is more in favor of wholesale CBDCs, or those restricted to use by financial institutions.
Crypto exchange Coinbase secures Singapore digital-asset permit
The Monetary Authority of Singapore (MAS) has granted Coinbase Singapore in-principle approval under the Payment Services Act to provide regulated services in the city-state, the company said Tuesday. About 15 firms have received such permits since Singapore launched the licencing regime in 2019, including rival Crypto.com. Singapore will be a “beachhead” for Coinbase’s planned expansion in the Asia-Pacific region, where markets like Indonesia and Vietnam are attractive, said Hassan Ahmed, chief executive of its local unit. Coinbase this month unveiled a revamp of its operations in Australia, part of efforts to bolster growth overseas.
DBS runs fintech apprecenticeship programme with local polytechnics
As part of efforts under the Techskills Accelerator (TeSA) forITE and Polytechnics Alliance (“TIP Alliance”), set up by the Infocomm Media Development Authority (IMDA) together with industry partners, DBS announced is launching a structured three-year apprenticeship program to prepare polytechnic students for technology roles in the bank. Developed in collaboration with Temasek Polytechnic and Nanyang Polytechnic, the DBS FinTech Apprenticeship Programme will take in 20 students this year for a start, with plans to scale the program up to benefit more students across all five polytechnics in Singapore. The new programme also contributes to Singapore’s plans to build a robust pipeline of local fintech talent as outlined in the national Financial Services Industry Transformation Map 2025. Students on the DBSFinTechApprenticeship Programme will acquire practical knowledge and industry experience throughout their three years of polytechnic education to prepare them for technology roles in the financial sector: Year 1 to 3 -each year, students will attend masterclasses delivered by the bank’s senior engineers to gain exposure to how technology is being deployed in the banking and financial sector. uctured learning and certification courses on the DBS Tech Academy, the bank’s in-house technology training institute.
Behind Citibank SG's multi-million dollar marketing push for its digital wealth solution
Citibank Singapore has launched Citi Plus, an all-in-one digital wealth solution, in Singapore. Catered mainly to the growing emerging affluent population in Singapore, Citi Plus is a wealth proposition delivered through the Citi Mobile App.The ads delivered the message that there were no shortcuts to wealth, but that there is a way to do it -with the bank that knows wealth. They included Xiao Ming from SGAG, Aiken Chia, Cheryl Wee, Christabel Chua, and Joanna Lim who helped amplify its theme of getting ahead in wealth with the bank that knows wealth. Following the launch, Citibank rolled out a "Get Ahead With The Bank That Knows Wealth" campaign which included a brand film and high visibility and high impact buys which included bus wraps, OOH placements, and digital channels takeover sites to introduce Citi Plus and showcase the key propositions. The bank believes in the power of starting early with proper wealth management and making available the right kind of resources and insights to help people manage their wealth holistically and get ahead in their wealth journey.
CHINA
China says No to speculative all-virtual metaverse
Alipay+ partners with over 1 million merchants in Japan to create seamless travel experiences for international tourists
China sets sights on greater yuan use in Asean, takes pragmatic approach combating US dollar hegemony
China says No to speculative all-virtual metaverse
China’s metaverse operates on many unique characteristics and follows a distinct development trajectory from the rest of the world. The “Chinaverse,” as it is sometimes called, largely runs on consortium blockchains developed by Chinese tech giants where NFT resale, flipping and speculation are banned there, as is most cryptocurrency trading. In recent weeks, China has been emphasising a relatively new metaverse concept with a focus on prioritising the application of metaverse technologies in a broad range of industries to enhance its national power. In particular, aerospace, biomedicine, autonomous vehicles, nuclear power plants, and forestry protection were cited as promising areas.
Alipay+ partners with over 1 million merchants in Japan to create seamless travel experiences for international tourists
Ant Group announced that Alipay+ has expanded its enablement of seamless travel experiences to Japan, where over 1 million local merchants are now connected to global cross-border digital payments and marketing capabilities to better serve consumers across the world. Under a joint agreement, the Universal Studios Japan theme park in Osaka will introduce Alipay+’s QR code cross-border digital payments solution, which accepts some of the region’s most popular e-wallets, providing a convenient and smooth travel experience to international visitors. (Photo: Business Wire) Universal Studios Japan is the latest partner with Alipay+. Under a joint agreement, the Universal Studios Japan theme park in Osaka will introduce Alipay+’s QR code cross-border digital payments solution, which accepts some of the region’s most popular e-wallets, providing a convenient and smooth travel experience to international visitors. Under the collaboration, tourists from countries including China, Singapore, South Korea, the Philippines, Malaysia, and Thailand can now enjoy the park –and elsewhere in Japan –with their phone only, using their preferred payment app just the way they do at home. Alipay+ payment solution will be accessible at ticket booths, retail shops and restaurants within the park. In addition, Universal Studios Japan will tap into the Alipay+ marketing solutions to conduct campaigns, such as coupon promotions to attract overseas visitors who are increasingly digital savvy and prefer more customized interactions
China sets sights on greater yuan use in Asean, takes pragmatic approach combating US dollar hegemony
China will place emphasis on yuan currency settlements with neighbouring countries and the development of offshore centers as its next steps to promote the greater use of the Chinese currency overseas.The down to earth assessment from the People’s Bank of China (PBOC) comes as the yuan’s international acceptance remains too small to challenge US dollar hegemony. The US Federal Reserve’s aggressive interest rate increases this year, which have lifted benchmark levels to their highest since 2008, have also weighed heavily on China in terms of capital outflows after further widening the monetary policy gap between the world’s two largest economies.The PBOC will explore the possibility of yuan currency settlements with Association of Southeast Asian Nations (Asean) member countries, as well as China’s neighbours. It also plans to promote direct trading of the yuan with other currencies, while supporting overseas economies in developing yuan foreign exchange markets. The Asean has surpassed the European Union and the United States to become China’s largest trading partner, and it is seen as the most likely region where yuan can become an anchor currency. The PBOC will continue to simplify the process for overseas investors to channel funds into the Chinese market and enrich the range of assets available for investment, easing the allocation and holding of yuan assets by global central banks, among other institutions.
ASIA
Securing payments in Asia with latest 3-D Secure technology
HSBC turns to Trade Ledger for digital receivables finance capability
EasyCard lets consumers top up their stored value card via NFC
NPCI to join hands with fintechs to co-create newer digital payments solutions
India preps digital rupee pilot
Securing payments in Asia with latest 3-D Secure technology
The payment service provider Omise has implemented the Netcetera 3-D Secure Server to secure online payment transactions in the APAC region. Netcetera, a market leader for digital payment solutions, offers certified products for 3DS payment processing and promotes secure and frictionless authentication so consumers can shop online with ease. Omise is among the first PSP customers to implement the EMV 3DS 2.2 protocol, enabling them to increase transaction approval rates and reduce fraud. PSPs, merchants, and acquirers need to reduce the risk for non-authenticated transactions, associated refunds, and lost revenue, while at the same time establishing a frictionless flow and improving the cardholder experience during online shopping. Finding the right balance of serving both security and convenience is a challenge. To successfully address this challenge, Omise decided to implement the network-certified and PCI-ready Netcetera 3-D Secure Server on premise solution. They are among the first PSPs to implement the 3DS server with the latest protocol EMV 3DS 2.2.
HSBC turns to Trade Ledger for digital receivables finance capability
HSBC has cut the approval process for new receivables finance (RF) customers from one to two months to under 48 hours thanks to its new technology platform –Digital RF –co-created with Trade Ledger. Customers can now transfer data directly through an API from their accounting software package “with a few clicks”, and they also have the option to upload their data through a user interface (UI). Digital RF automatically generates a survey and risk report using a rule-based decision engine which is then submitted to the underwriters “within hours” of the application being received. The client is kept updated on the status of their application and a final decision is typically received within two days, including an indicative offer. The Digital RF application process is now available in eight countries and territories including the UK, Hong Kong, India, and the US. HSBC plans its go-lives in three more countries by the end of the year.
EasyCard lets consumers top up their stored value card via NFC
Consumers in Taiwan can now purchase an upgraded version of the EasyCard stored value smart payments and transit card that they can top up directly from their NFC smartphone without needing to use a reload or top-up machine at a metro station or convenience store. Users add funds to the special edition SuperCard by scanning it with their NFC mobile device and transferring a minimum of NT$100 (US$3.17) from their EasyWallet app. They can then use those funds to make in-store purchases and fare payments up to a transaction limit of NT$10,000 (US$317) compared with the original EasyCard limit of just NT$1,500 (US$48). The rollout follows EasyCard’s recent announcement that Taiwan’s Taichung metro service has added support for mobile fare payments made directly from the EasyWallet app, enabling passengers to pay their fares by tapping their Android NFC smartphone at station ticketing gates as well as with their physical smart card.
NPCI to join hands with fintechs to co-create newer digital payments solutions
The National Payments Corporation of India (NPCI) has launched a collaborative initiative called “the NPCI Partner Program (NPP)”, to scale up strategic partnerships with payments-oriented fintech players. The NPCI Partner Program (NPP), initiative will see the payments corporation work with technological service providers (TSPs) and application service providers (ASPs) to build new offerings. The initiative has been envisaged as a ‘knowledge-sharing platform’ that will enable the selected fintech startups to participate in NPCI pilot projects and to build a marketplace through community engagement. Under the program, the payments body will also conduct exclusive workshops on NPCI products and services that, in turn, will accelerate strategic partnerships within the ecosystem. As part of the shortlisting process, the applicants will first be evaluated on parameters such as compliance. Subsequently, the selectees will be allowed to apply for pre-certification of their tech stack on NPCI platforms.
India preps digital rupee pilot
The Reserve Bank of India is preparing to launch a limited pilot testing a digital rupee for specific use cases. The pilot will begin soon as the central bank prepares for a "watershed moment in the evolution of currency that will decisively change the very nature of money and its functions".The RBI is working towards a phased implementation strategy for a digital rupee, planning various pilots before a final launch "with minimal or no disruption to the financial system. The bank is considering both wholesale and retail CBDCs, arguing that the former can improve settlement systems while the latter can offer direct access to safe money for payment and settlement. The motivations for introducing a CBDC include reducing costs associated with physical cash management, boosting financial inclusion, improving efficiency, and encouraging innovation in cross-border payments. The paper also flags the potential importance of an offline feature in a digital rupee as a way of reaching people in remote locations and guarding against power and mobile network outages.
BLOCKCHAIN - CRYPTO - DIGITAL ASSETS - DE FI
Google selects Coinbase to take cloud payments with cryptocurrencies and will use its custody tool
Sibos 2022: Are fractionalised digital assets red herrings?
BNY Mellon launches crypto custody services
Bitcoin's Calm Amid Soaring Bond Market Volatility Points to 'HODLer'-Dominated Crypto Market
OECD Finalizes Global Crypto Contours
Google selects Coinbase to take cloud payments with cryptocurrencies and will use its custody tool
Google said that it will rely on Coinbase to start letting some customers pay for cloud services with cryptocurrencies early in 2023, while Coinbase said it would draw on Google’s cloud infrastructure. The Google Cloud Platform infrastructure service will initially accept cryptocurrency payments from a handful of customers in the Web3 world who want to pay with cryptocurrency, thanks to an integration with the Coinbase Commerce service. Google is also exploring how it can use Coinbase Prime, a service that securely stores organizations’ cryptocurrencies and allows them to execute trades.
Sibos 2022: Are fractionalised digital assets red herrings?
Fractional digital assets are taken and locked into a smart contract, where they can be broken into fungible ERC-20 tokens of equal value. From there, a person can buy as many shares of a digital asset as they like. A major benefit is that an individual can completely own a unique item. For some assets, however, this has meant that prices – and associated costs - have skyrocketed.
BNY Mellon launches crypto custody services
BNY Mellon’s digital asset custody platform is now live in the US. The platform will allow select clients to hold and transfer bitcoin and ether. This marks the latest milestone for the bank’s entry into the crypto market, after forming a Digital Assets Unit in 2021 to develop related solutions including plans to launch a multi-asset platform to bridge digital and traditional asset custody. It has also worked with specialists like Fireblocks and Chainalysis to integrate technology to meet clients’ security and compliance needs.
Bitcoin's Calm Amid Soaring Bond Market Volatility Points to 'HODLer'-Dominated Crypto Market
With the Federal Reserve hell-bent on raising interest rates to control inflation, the ICE Bank of America Merrill Lynch U.S. bond market options volatility index jumped to 160 last week, the highest since the coronavirus-induced crash of March 2020. One explanation for bitcoin's relative calm is that most macro traders sensitive to the Fed policy and traditional market volatility left the crypto market early this year. And the crypto market is now dominated by "HODLers" – investors intending to hold BTC for the long term in hopes that the cryptocurrency will eventually evolve as digital gold and a medium of exchange.
OECD Finalizes Global Crypto Contours
The OECD released the global framework around how countries can monitor and report crypto currency transactions and at the core of it rests an automatic exchange of information between the countries and the mandatory customer identification. The two measures would be considered a part of the due diligence process for crypto currencies. The initiative “comes against the backdrop of a rapid adoption of the use of crypto assets for a wide range of investment and financial uses,” the OECD said, warning that the crypto assets market “poses a significant risk that recent gains in global tax transparency will be gradually eroded”.
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