What The FinTech #136 - 9 Apr 2023
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What The FinTech Episode 56 - OSL
🎙️🚀 Thrilled to share our latest episode of What The FinTech, featuring an insightful conversation with Dave Chapman, Co-founder of OSL, a trusted digital asset platform. Backed by BC Technology Group (stock code: 863 HK), OSL is the world’s only listed, SFC-licensed, and 'Big-four'-audited digital asset and fintech company.
OSL caters to institutional clients and professional investors by providing a comprehensive suite of services, including markets business (brokerage, exchange, custody), and SaaS solutions.
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🔹 OTC, RFQ/RFS, and electronic trading services, granting traders access to one of the world's deepest liquidity pools.
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🔹 OSL's commitment to being the trusted gateway to the digital asset economy.
Don't miss this fascinating discussion about the future of digital assets, the role of OSL in shaping the industry, and Dave Chapman's journey as a fintech entrepreneur. Listen now and be inspired by Dave's insights and experiences! 🎧
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Remember to subscribe, like, give a 5⭐ and share our podcast with fellow fintech and digital asset enthusiasts, and let us know your thoughts in the comments or on social media.
Stay tuned for more engaging conversations right here on "What The Fintech!" 🔥
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What was the FinTech this week in: 📰
HONG KONG
1. HK is charting its own Web3 path despite China’s anti-crypto stance
2. HK fund aims to bet $100M, thanks to city‟s crypto push
HK is charting its own web3 path despite China’s anti-crypto stance
Hong Kong is again welcoming crypto businesses, only this time with more regulatory clarity. During its government-backed fintech week late last year, Hong Kong indicated its intention to legalize crypto retail trading and introduce a licensing regime for digital asset providers. The plan took more shape in February when the city published draft rules that would allow individual investors to trade certain major cryptocurrencies starting June 1. Companies are already responding to the city’s shift in attitude. As of February, the department for foreign direct investment had received ―expressions of interest from over 80 virtual asset-related companies from both mainland China and abroad in establishing a presence in Hong Kong. KuCoin, one of the world’s largest crypto exchanges, already said last year that it would open an office in the city. While these developments are encouraging signs to some, others question whether the semi-autonomous region has the right conditions for building all forms of Web3 organizations and businesses to thrive. The early consensus is that crypto-trading-related firms will probably be the first to reap the fruit of the policy change.
HK fund aims to bet $100M, thanks to city‟s crypto push
Hong Kong is ramping up its efforts to become a regional fintech hub, with a new fund aiming to raise $100 million this year to invest in digital assets. The ProDigital Future Fund has already secured $30 million in funding commitments from the likes of Sunwah Kingsway Capital Holdings Ltd. and Golin International Group Ltd. The fund expects to raise $100 million by the end of 2023. The fund will target early-stage and developing ventures, particularly tech companies with ties to China transitioning into Web3. To date, the fund has invested in six digital-asset projects, including Hong Kong-based metaverse outfit GigaSpace and Australia-based digital sports club One Future Football. A number of investors in Hong Kong are reportedly interested in participating in the digital economy, in addition to some Chinese family offices investing in Australia and Singapore, which are also looking to get involved. Hong Kong‘s support for crypto exchanges contrasts with sharp U. S. regulatory scrutiny in the wake of FTX‘s stunning collapse last year, and fears linger that Hong Kong could one day reverse course.
SINGAPORE
1. Singapore, Britain launch negotiations on new investment treaty
2. Singapore Savings Bonds see stronger demand with 10-year average return at 3. 15%
Singapore, Britain launch negotiations on new investment treaty
Britain and Singapore have started talks on a new treaty that will improve the flow of investments between the two countries. The new treaty will include robust and up-to-date rules on the treatment of investments and investors from Singapore and Britain. Britain is Singapore‘s largest European investor, with close to $130 billion worth of investment stock in Singapore. In turn, Singapore is Britain‘s third-largest Asian investor, with almost $65 billion invested in the country. The launch of the negotiations was announced after a virtual meeting between Singapore Minister-in-charge of Trade Relations S. Iswaran and British Secretary of State for Business and Trade Kemi Badenoch.
Singapore Savings Bonds see stronger demand with 10-year average return at 3. 15%
The latest Singapore Savings Bonds (SSBs) saw a rise in the number of applications, exceeding the amount on offer, after months of falling demand due to declining yields. The April tranche of the Singapore Government-backed bonds received a total of $758. 1 million in applications, compared with the total of $261. 1 million in applications for the March issuance. A maximum of $700 million in SSBs were offered and allotted through the quantity ceiling format. Applicants who applied for $68,500 or lower were fully allotted. Around 83. 4 percent of the applications who applied for $69,000 or higher were allotted $69,000 at random. The remaining applicants were allotted $68,500. Those successful in their applications will be issued the notes, which have a 10-year tenor.
CHINA
1. Chinese officials call for stronger global regulation of Crypto
2. Alibaba, JD. com Awaken China Tech‟s long-dormant IPO machine
3. Alipay records rebound in outbound Chinese tourists spending amid tourism recovery
Chinese officials call for stronger global regulation of Crypto
Two Chinese officials have called for stronger regulation of cryptocurrency around the world. Xuan Changneng, a deputy governor at the People’s Bank of China, said that while regulators should allow room for innovation, they should also respect the existing rules and test the new technologies. Speaking at the Boao Forum, Changneng pointed to examples of risks and fraud associated with crypto, including the failures of two U. S. banks that had provided financial services for crypto-related firms. During the same event, Liao Min, a vice finance minister of China, said that China needs to get ―deeply involved in international cooperation and coordination of standards. In addition, U. S. regulators, including the Federal Reserve, have told financial institutions to be wary of ―potential heightened liquidity risks presented by certain sources of funding from crypto-related entities, while the Securities and Exchange Commission (SEC) is keeping up its full-court press on the digital asset industry by telling investment advisers to be wary of cryptocurrency trading and lending platforms, emphasizing that they cannot be relied upon as qualified custodians.
Alibaba, JD. com Awaken China Tech‟s long-dormant IPO machine
Alibaba Group Holding Ltd. and JD. com Inc. have begun preparations for a trio of the year‘s biggest Chinese debuts, heralding a wave of initial public offerings that promise to breathe new life into the struggling technology industry and Hong Kong‘s stock market. Cainiao Network Technology Co., Alibaba‘s logistics arm, has kicked off discussions with banks for what may become the first of several IPOs by units of the e-commerce giant. Two JD subsidiaries filed for first-time share sales in the city. Those three listings could raise about $5 billion between them.
Alipay records rebound in outbound Chinese tourists spending amid tourism recovery
Amid global cross-border tourism recovery, the average spending of Chinese tourists using Alipay overseas doubled in the first quarter of 2023 compared with pre-pandemic levels in the same period in 2019. Outbound Chinese tourists on average made more transactions in the first quarter of 2023, with an increase of 20% compared with the same period in 2019. The number of inbound and outbound tourist visits is expected to exceed 90 million times, equivalent to 31. 5% of the pre-pandemic level. The top 5 shopping destinations by transaction volume for Chinese mainland Alipay users traveling cross-border are Macao SAR, Hong Kong SAR, Japan, Thailand, and France, while the top 5 tourist destinations by number of transactions are Hong Kong SAR, Macao SAR, Japan, Thailand, and Malaysia. Over 90% of merchants in Hong Kong, from street-side food stands to major retailers, have adopted Alipay to serve Chinese mainland tourists, and ―transportation QR code is the most popular search term on Alipay for these tourists in the first quarter of 2023.
ASIA
1. Mizuho and Line ditch mobile bank plan
2. ICICI to double wealth bankers, eyes $60 billion of assets
3. Will UPI payments now attract charges? Decoding NPCI‟s interchange fee on UPI transactions via prepaid payment instruments
4. XRP trading volumes surges to billions of dollars on South Korean crypto exchanges
5. Shopee survey shows new generation of Malaysians shop value-based online
6. Launch of cross-border QR Code payments connectivity between Singapore and Malaysia
7. India’s national contactless transit card rolls out in Bengaluru
8. Walmart-owned PhonePe drops acquisition of fintech startup ZestMoney
9. JCB rolls out Vietcombank JCB platinum credit card in Vietnam
10. DBS Bank India launches 'digiPortfolio' for seamless investment portfolio management
Mizuho and Line ditch mobile bank plan
Mizuho Financial and messaging app Line have scrapped plans to launch a mobile bank, citing investment and time constraints. The digital bank was designed to combine Mizuho's banking heritage with Line's millennial-friendly UX chops to reach a younger generation of customers. The joint venture was to be squarely aimed at Line's 94 million-strong customer base. The launch was delayed by technology issues and efforts to strengthen anti-money laundering efforts. Meanwhile, Mizuho was hit by a series of its own systems failures. The delay also enabled rivals to get a jump on the venture, with one, Rakuten Bank, quickly snapping up 13 million customers. However, the pair will continue working together on the already launched Line personal loan service.
ICICI to double wealth bankers, eyes $60 billion of assets
ICICI Securities Ltd. aims to double its wealth managers and boost the assets from rich clients to $60 billion in the next two years, as competition ramps up in India‘s rapidly growing wealth industry. The current crisis at Credit Suisse Group AG and the uncertainty around its wealth business in India could provide some hiring opportunities.
Will UPI payments now attract charges? Decoding NPCI‟s interchange fee on UPI transactions via prepaid payment instruments
The National Payments Corporation of India (NPCI) has introduced an interchange fee of up to 1. 1% on UPI transactions done via prepaid payment instruments (PPI) from April 1. The charge will be applicable on payments of over ₹2,000, but it has caused confusion amongst users as to who will be charged for these transactions and which payment modes will be chargeable. Payments made via UPI to friends, family or any other individual or a merchant‘s bank account will not be affected by this interchange fee. Essentially, peer-to-peer (P2P), and peer-to-peer-merchant (P2PM) transactions remain unaffected. You will be able to send money from your bank account to another person or merchant‘s bank account via UPI without any charges. Interchange fee is a fee that is charged by the receiver bank/payment service provider to the merchant.
XRP trading volumes surges to billions of dollars on South Korean crypto exchanges
The South Korean crypto trading mania has seemingly returned, fueled by a surge in XRP tokens. Trading volume for XRP spiked to billions of dollars on UpBit, Bithumb and Korbit, three of Korea's top exchanges by volume, on the back of the token's 26% rise in the past week. In the past 24 hours, XRP trading made up 37% of all volume on Bithumb, 18%of volume on UpBit and a staggering 50% of all volume on Korbit, data from CoinGecko and CoinMarketCap shows. These volumes were against the U. S. dollar on UpBit and against the Korean won on Bithumb and Korbit. Bitcoin (BTC) and ether (ETH) usually account for the majority of the trading activity on these exchanges, which makes the XRP volume surge an anomaly. UpBit led global XRP trading volumes with over $790 million worth of tokens traded in the past 24 hours. Crypto exchange Binance, in comparison, traded a relatively smaller $720 million. n crypto circles, South Korean traders are infamous for pushing euphoric rallies on tokens. The so-called Kimchi Premium originates from the region –where prices of bitcoin on local exchanges can trade at a premium of as much as 30% compared to international counterparts, driven by local demand.
Shopee survey shows new generation of Malaysians shop value-based online
New generations of Malaysians are shopping with purpose online as Shopee ̳s marketplace data shows online consumers are three times more likely to buy products that promote smarter consumption in 2023 than in 2020. Malaysians are increasingly searching for keywords such as pre-loved, pre-owned‘, warehouse clearance‘, demo unit‘ and thrift‘ over new‘. Over the last three years, Shopee marketplace saw consumers putting value-based shopping into practice with a total 1.4 million items sold that were demo units, warehouse clearance items with minor defects, bundled goods, and also pre-owned products. 50 percent of these were fast-moving consumer goods (FMCG) categories baby and toys, groceries and pets, and health and beauty, 27 percent were pre-owned fashion, 17 percent lifestyle items (home and living, outdoor sports, hobbies, games, and books) and the remainder used electronics. These shoppers are exercising their purchasing power in a very deliberate way, and it‘s humbling to be able to meet the needs of this group of consumers by connecting them to sellers who are aligned with their values.
Launch of cross-border QR Code payments connectivity between Singapore and Malaysia
The Monetary Authority of Singapore (MAS) and Bank Negara Malaysia (BNM) launched a cross-border QR code payment linkage between Singapore and Malaysia. This payment linkage will allow customers of participating financial institutions to make retail payments by scanning NETS QR and DuitNow QR codes. It will support in-person payments through the scanning of physical QR codes displayed by merchants, and online cross-border e-commerce transactions. The NETS-DuitNow QR code payment linkage is a key milestone in the ongoing collaboration between Singapore and Malaysia to enhance cross-border payments connectivity. With pre-pandemic annual traffic between the two countries averaging 12 million visitors, the payment linkage will provide merchants and consumers with a more seamless and efficient means to make and receive payments. This initiative is a testament to both countries’ commitment to improve the cost, speed, access, and transparency of cross-border payments, in line with the ASEAN Payment Connectivity Initiative and the G20 Roadmap for Enhancing Cross-border Payments. This cross-border QR code payment linkage is made possible through the strong collaboration of various industry players from both countries, including Network for Electronic Transfers (Singapore) Pte. Ltd (NETS), the Association of Banks in Singapore, Payments Network Malaysia Sdn. Bhd. (PayNet), and participating financial institutions from both countries. In the next phase, MAS and BNM plan to expand the payment linkage to enable cross-border account-to-account fund transfers and remittances. This will allow users to make real-time fund transfers between Singapore and Malaysia conveniently using just the recipient’s mobile phone number via PayNow and DuitNow. This service is expected to go live by end-2023.
India’s national contactless transit card rolls out in Bengaluru
Passengers travelling on Bangalore Metro services in the Indian city of Bengaluru can now make contactless fare payments with the RuPay-enabled National Common Mobility Card (NCMC) that can also be used to pay for fuel, parking, tolls and in-store purchases. The interoperable prepaid card is being introduced in the city by Bangalore Metro with support from RBL Bank, enabling holders to use it in Bengaluru as well as on transport networks and at merchants in Delhi, Goa, Lucknow, Mumbai, and other cities across India that already support NCMC payments. NCMC’s stored value balance can be updated at ticket office or card top-up terminals located in metro stations. RBL Bank will also provide POS machines at stations for accepting and loading cards, with recharging available on RBL Bank’s MoBank app as well. Apart from travel, the card can be used for fuel payments, shopping, dining, parking, toll payments etc. It can also be used for offline contactless transactions for low-value payments.
Walmart-owned PhonePe drops acquisition of fintech startup ZestMoney
Fintech platform PhonePe has halted its proposed acquisition of India-based Buy Now, Pay Later startup ZestMoney. The deal, which was poised to fetch anywhere between USD 150-USD 200 million and USD 300 million, has hit a snag over lapses in due diligence, disagreements over valuation, sustainability of the business, and the shareholding structure of ZestMoney. The collapse of the deal is also being attributed to a slowdown in the financial technology (fintech) sector in the midst of a funding winter, a difficult regulatory environment, and macroeconomic uncertainty, informed other sources. The acquisition was expected to help PhonePe strengthen its lending services and compete with Google Pay, Paytm, and Amazon Pay in Indian fintech, expected to be purportedly worth USD 350 billion by 2026.
JCB rolls out Vietcombank JCB platinum credit card in Vietnam
Japan-based payment brand JCB has partnered with the Joint Stock Commercial Bank for Foreign Trade of Vietnam to launch the Vietcombank JCB platinum credit card. The new Vietcombank JCB Platinum card is launched to celebrate Vietcombank's 60th anniversary. The cardholders have access the JCB acceptance network of approximately 41 million merchants around the world. From the launch date, Vietcombank implements many promotion programs and benefits for cardholders to meet the needs of this special target segment. The cardholders could enjoy the attractive cashback feature including 5% cash back for spending in F&B and supermarkets, and 0. 2% for other spending. The total cashback amount is up to USD 306/year. Besides, the Vietcombank JCB Platinum cardholder is entitled to a number of special privileges for JCB Platinum cardholders such as the access to over 70 airport lounges in Japan, China, Singapore, Korea, Thailand, and Vietnam; and other premium privileges for golf service, hotels and resorts, and Diamond dining in Vietnam.
DBS Bank India launches 'digiPortfolio' for seamless investment portfolio management
DBS Bank India has announced an innovative investment solution, 'digiPortfolio', on its digibank platform. digiPortfolio uses both technology and human expertise to create a set of investment options curated by Morningstar that match the risk preferences of different investors. The platform is an easy, one-stop solution for users to invest money with ready-made baskets of mutual funds. DBS Bank India is one of the first banks in India to offer this type of digital solution. DBS Bank aims to redefine the customer experience and make it more seamless by using data, AI, and advanced technologies. The offering includes different types of investment options, such as domestic equity, debt, and money market instruments, to ensure there are diverse portfolios to cater to different risk profiles of investors. The digiPortfolio platform is run by Quantifeed and is automated, making it easy to use.
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