What The FinTech #138 - 23 Apr 2023
🚀 Welcome to What The Fintech - your weekly dose of electrifying insights, game-changing breakthroughs, and dazzling trends from the pulse-pounding world of fintech across Hong Kong, Singapore, China, and Asia! As your go-to source for top headlines and industry insights, we're here to keep you updated on the latest innovations revolutionizing the way we think about finance and technology in this dynamic region.
Prepare to embark on a thrilling adventure through the digital landscape as we explore the ground-breaking developments, visionary startups, and trailblazing trends that are shaping the future of finance in Asia and beyond. So buckle up, grab your favorite beverage, and get ready to ignite your curiosity with the latest and greatest from the fintech universe! Let's dive in! 🌊💡💸
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What The FinTech Episode 57 - HEX Trust
We're excited to share our latest episode of What The FinTech, featuring an in-depth conversation with Aaron Baideme, Head of Platform & Infrastructure at #HexTrust. As a fully-licensed digital asset custodian, Hex Trust provides solutions for protocols, foundations, financial institutions, and the Web3 ecosystem. Its mission is to unlock ownership in decentralized markets, with a vision to secure the permissionless future.
💡 In this episode, Aaron shares his insights and experiences at Hex Trust:
🔹 Managing advanced, multi-region Kubernetes workloads both in the cloud and on-premise, along with maintaining High-Security Modules and Key Management Systems for online and offline (cold wallet) signing.
🔹 Coordinating with CIO/CISO for Security Governance, Compliance, and DevSecOps tooling transformations leveraging third-party SaaS toolsets and custom-built in-house solutions.
Don't miss this fascinating discussion about the future of digital asset security, Hex Trust's role in shaping the industry, and Aaron Baideme's journey in the world of fintech. Listen now and be inspired by Aaron'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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#Money2020Tour is making a stop in #Bangkok this month!
Are you aware that Thailand has celebrated #Songkran, which marks the beginning of the Thai New Year? Just as the water festival signifies new beginnings and reconnecting with friends and family, we're bringing an unforgettable splash of invigorating #networking, fresh content, and exciting announcements with the #Money2020Tour 💦 Come join us in Bangkok! bit.ly/3MHbebS
What was the FinTech this week in: 📰
HONG KONG
HSBC urges shareholders to vote against a proposed split
HSBC urges shareholders to vote against a proposed split
Bank giant HSBC reached out to shareholders, urging them to vote down a proposal by its largest stakeholder, Chinese insurer Ping An, to split the business. It comes after Ping An on Tuesday ramped up pressure over its break-up strategy that it claims is necessary to improve performance at London-based HSBC. Responding, the Asia-focused lender wrote in a letter to shareholders that "the board strongly believes that HSBC should focus on executing the current strategy that is delivering". HSBC argued this was "the best and safest way to continue to deliver substantially more value for shareholders over the coming years". It called on shareholders to vote against the proposal at the bank's annual general meeting on May 5.
SINGAPORE
Prudential Singapore launches financial advisory firm offering wealth solutions, general insurance
Digital currency Group-linked crypto firm Luno to exit Singapore, withdraw licence application
Keppel, ExxonMobil to collaborate on low-carbon energy solutions in Singapore
S'pore-based Volopay gets in-principle approval for major payment institution licence from MAS
Grab to raise platform fee from S$0.30 to S$0.70 for S'pore users from May 5
Prudential Singapore launches financial advisory firm offering wealth solutions, general insurance
Prudential Singapore has launched its financial advisory arm, Prudential Financial Advisers (PFA), to offer a wider range of products and services to its customers. This includes wealth solutions such as unit trusts, and general insurance including travel insurance and motor insurance. Customers can also tap the complementary solutions and auxiliary services –including estate planning, family office, and tax advisory –provided by PFA‘s partners. The new firm will add to Prudential ‘s existing distribution ecosystem, which includes its tied-agency network of more than 5,000 financial consultants, bancassurance partners and digital channels such as its digital health and wellness app, Pulse by Prudential.
Digital currency Group-linked crypto firm Luno to exit Singapore, withdraw licence application
Cryptocurrency trading app Luno, whose parent company is crypto venture capitalist Digital Currency Group (DCG), will exit the Singapore market in June and withdraw its licence application. Luno said its services will no longer be available in Singapore from June 20, and that users should withdraw their assets from their Luno wallets by June 19. The move came as part of a regular evaluation of the firm's global strategy and presence.
Keppel, ExxonMobil to collaborate on low-carbon energy solutions in Singapore
Keppel Corp‘s infrastructure arm, Keppel Infrastructure, will partner ExxonMobil Asia Pacific to develop access to low-carbon hydrogen and ammonia solutions for scalable commercial and industrial applications in Singapore. The agreement aligns with the Government‘s national strategy for hydrogen to meet up to half of Singapore‘s power needs by 2050. Currently, natural gas meets most of the nation‘s power generation demand. The companies will collaborate to address the local authorities‘ call to develop low-or zero-carbon power generation and bunkering facilities on Jurong Island. Keppel also aims to use low-carbon hydrogen for Singapore‘s first hydrogen-ready, 600-megawatt advanced combined cycle power plant on Jurong Island. The Keppel Sakra Cogen plant is expected to operate with at least 30 per cent hydrogen and will have the capability of shifting to run entirely on that energy source. The plant is currently under construction and is expected to be completed in the first half of 2026.
S'pore-based Volopay gets in-principle approval for major payment institution licence from MAS
Singapore-based fintech startup Volopay. Co has received an in-principle approval (IPA) for a major payment institution (MPI) licence from the Monetary Authority of Singapore (MAS). The licence will enable Volopay to expand its payment services, including account issuance, e-money, domestic money transfer and cross-border money transfer, and strengthen its position in its home city-state. The company's compliance program includes anti-money laundering and anti-terrorism financing measures, strict privacy controls, risk management, and payment thresholds. It currently offers a range of financial management services, including expense management, invoice handling, accounting integrations, department-specific finance management, reimbursements, and corporate cards.
Grab to raise platform fee from S$0.30 to S$0.70 for S'pore users from May 5
Grab, one of Southeast Asia's largest ride-hailing firms, announced on Friday that it would be increasing its platform fee for each ride from S$0.30 to S$0.70, effective from May 5. The adjustment is in line with the platform fees charged by other ride-hailing services in Singapore. Grab will apply the increased fee to all its transport service types. The company had initially introduced its platform fee of S$0. 30 in 2020 and is now raising it by S$0.40 this year. Gojek also charges a S$0.70 platform fees for every trip made, while TADA charges S$0.55 before GST for fares below S$18 and S$0.75 before GST for fares above S$18. Ryde's platform fee is S$0. 30, while Comfort DelGro's Zig does not charge customers any platform fee.
CHINA
Chinese developer Yuexiu seeks to raise about US$1 billion via rights issue to expand in Greater Bay Area, key cities
China launches interactive digital platform to display Dunhuang culture online
Tencent says its self-developed video transcoding chip enters mass production
Tencent debuts pepped-up computing cluster to help with AI Push
Chinese developer Yuexiu seeks to raise about US$1 billion via rights issue to expand in Greater Bay Area, key cities
Yuexiu Property is looking to raise HK$8.36 billion (US$1. 07 billion) in capital by way of a rights issue to expand in the Greater Bay Area and eastern cities. The Guangzhou government-backed developer plans to use the proceeds on ―further investment in core cities in the Greater Bay Area, the eastern China region, and other key provincial-capital cities, and for working capital as well. Eligible shareholders can subscribe around 929 million rights shares, representing 30 per cent of the company‘s issued shares, for HK$9 each, a 28.3 per cent discount from the previous closing price. Yuexiu‘s management explained that a rights issue to raise long-term funds will avoid ―subjecting itself to interest burden or additional debt. During the first three months of 2023, Yuexiu generated 44 billion yuan (US$6.39 billion) in sales, up 217 per cent year on year. After a particularly strong March, when contracted sales soared 257 per cent year on year to 21.2 billion yuan, the company is on track to meet its 132-billion-yuan target for this year. The strong sales have made the developer more confident about replenishing its land bank. In the first two months of 2023, it increased its spending on land bidding by 359 per cent over the same period last year.
China launches interactive digital platform to display Dunhuang culture online
An interactive digital platform of a virtual duplication of the Library Cave in Mogao Grottoes, a UNESCO World Heritage site in Dunhuang, Northwest China's Gansu province, is accessible to the public from Tuesday. Jointly developed by the Dunhuang Academy and leading Chinese tech firm Tencent, the platform reproduces the historical scenes of the Library Cave over one hundred years ago in the digital world through advanced gaming technologies. Based on the platform, visitors can experience role-play and "time travel" to ancient dynasties and interact with eight historical figures, immersing themselves in the Dunhuang culture. The Library Cave in Mogao Grottoes was discovered in 1900, with more than 60,000 cultural relics dating from the 4th century to the 11th century unearthed. It was one of the most important archaeological discoveries in the 20th century.
Tencent says its self-developed video transcoding chip enters mass production
Chinese tech giant Tencent Holdings said on Monday its self-developed video trans coding chip Canghai has entered mass production and is currently supporting services from cloud gaming to video live streaming. The Canghai chip "focuses on solving the impossible triangle of high image quality, low latency, and low cost in video encoding and decoding. Its AI inference chip Zixiao, which aims to accelerate computing efficiency, has been deployed in handling internal businesses. Meanwhile, its Xuanling chip is now helping the company "build the next generation of high-performance network infrastructure".
Tencent debuts pepped-up computing cluster to help with AI Push
Tencent Holdings unveiled a new high-performance computing cluster to meet the growing need to develop and train artificial intelligence models. The new cluster uses Tencent's self-developed server Star Lake, US chip giant Nvidia's H800 GPU, and 3. 2 terabyte ultra-high communication bandwidth between servers, the Shenzhen-based firm said at a press conference. This means it can provide cluster computing for the training of large AI models, autonomous driving, and scientific computing applications. Computing performance has also been boosted to four times that of the previous generation. Tencent said the new cluster can shorten the training time for its self-developed natural language processing model Hunyuan from 11 days to four days with the same data set. US AI startup OpenAI's ChatGPT bot has proved hugely popular around the world, and Chinese companies are rushing to develop similar products. Tencent previously revealed that it has set up a project team called Hunyuan Aide to research large AI models in sectors including natural language processing and computer vision. The eagerness to develop AI models has also increased the need for scalable high-performance computing power, which needs to be stable.
ASIA
foodpanda partners TADA to offer discounts, loyalty programmes for S'pore and Cambodia users
Grab launches new features and tie-ups to welcome travelers back to the region
UOB and Lazada form strategic partnership to grow digital ecosystem in Southeast Asia with enhanced payments and financial services
Funding Societies partners CGC to launch SME Portfolio Guarantee to improve Malaysian SMEs digital financing access
As India transitions to cashless society QR codes, sound boxes mushroom all over
CBA expands green financing
Australian Payments Firm Waave launches with new 'Pay by Bank' solution
Mastercard collaborates with India's M1xchange to roll out digital invoice discounting for farmers
foodpanda partners TADA to offer discounts, loyalty programmes for S'pore and Cambodia users
foodpanda, the largest food and grocery delivery network in Asia outside of China, has partnered with TADA, a blockchain-based ride-hailing platform, to offer new user benefits for customers in Singapore and Cambodia. The partnership between foodpanda and TADA will allow users of both platforms to enjoy savings, discounted fares, and loyalty programme subscriptions across both ride-hailing and quick-commerce platforms. Starting today, TADA users in Singapore can opt-in to receive a complimentary pandapro subscription, which gives them access to on-demand deliveries at a discounted rate. With this partnership, pandapro subscribers in Singapore will receive 25 per cent discount vouchers (capped at S$4) in their TADA accounts, which can be used for commute to anywhere in the city. Corporate customers of either foodpanda or TADA in Singapore can also benefit from the partnership through joint corporate bundles. foodpanda‘s exclusive service for corporate customers, foodpanda for Business, which provides customizable employee allowances, e-vouchers, employee packages, and access to catering, will now include TADA‘s corporate solution. TADA Corporate is a solution for business transport management that allows companies to easily manage and streamline their teams‘ transportation needs for work trips. TADA‘s Zero-Commission model also allows for greater cost savings.
Grab launches new features and tie-ups to welcome travelers back to the region
Grab, Southeast Asia's leading superapp, today announced new in-app travel innovations and partnerships to give travelers a safe, seamless and hyperlocal experience as Southeast Asia embraces a travel comeback. Grab's enhanced travel experience was designed to give all travelers the assurance and confidence to explore their destination by empowering them to plan ahead, get a smooth ride the moment they touch down, and experience their destination like a local. New app enhancements include: Traveler Homepage: Two-thirds of travellers3 who use Grab, download and register an account with Grab while still in their home country. To help travelers better plan ahead for their trips, the new Traveler Homepage allows overseas travelers to explore a city within the Grab app as if they were at the destination. Available for 33 of the top cities’ tourists visit in Southeast Asia, users can check out the Grab services present in the city, search and save places of interest such as their accommodation address and landmarks they intend to visit ahead of time, and even explore the food options near their destination. The Grab app is also now available in Chinese, Korean and Japanese languages, to deliver a more intuitive experience for travelers from China, Korea and Japan, which are key markets for international tourists visiting Southeast Asia. [Ready by H2 2023] Translated merchant menus: To help travelers explore the best local flavors around them, Grab is working on translating merchant menus in key cities across Indonesia, Vietnam and Thailand into English. Additionally, to serve the wave of returning Chinese travelers, Grab will also provide Chinese menu transitions across key Indonesian cities. A revamped Venues experience: For travelers, finding their way through a busy, unfamiliar airport to get to the right pick-up point and their ride can be a daunting experience. With the latest version of Venues, travelers can look at images of each pick-up point prior to selecting the one they want and get image-based turn-by-turn walking directions to guide them, even before they book their ride. Available at all major airports in Southeast Asia, the Venues feature can also be used at over 4,000 locations such as malls, hotels, office buildings, parks and more across the region, including popular tourist attractions like the Singapore Zoo, the floating market in Pattaya, and the National Monument in Jakarta. [Ready by H2 2023] A currency converter feature that will automatically display fares in travelers’ preferred local currency so that they don't have to do manual conversions.
UOB and Lazada form strategic partnership to grow digital ecosystem in Southeast Asia with enhanced payments and financial services
UOB and Lazada Group have entered a Memorandum of Understanding (MOU) to collaborate on retail products and banking solutions for their combined customer base in five key Southeast Asian markets, namely Singapore, Malaysia, Indonesia, Thailand and Vietnam. This regional strategic partnership will also see the two industry leaders working together to increase access to financing for e-commerce sellers on the Lazada platform. This will be Lazada's first partnership with a bank across a variety of payments and financial services in Southeast Asia, as well as UOB's first regional collaboration with an e-commerce platform. The partnership will tap on Lazada's technology and position as a leading Southeast Asian e-commerce platform and UOB's proven expertise in financial products, best-in-class digital banking services and long-established trust with customers. This will allow both customers and sellers to enjoy better access and enhanced benefits from payment and financial services that best meet their needs. UOB and Lazada customers can look forward to a more rewarding experience when shopping on the e-commerce platform and using lifestyle banking services for their purchases. Singapore customers will be the first to enjoy these benefits. In Singapore, UOB will offer new customers Lazada cashback vouchers worth up to $200 as a welcome gift. With UOB's acquisition of Citigroup's consumer banking businesses in four ASEAN markets, the Bank will be continuing the partnership of the Citi-Lazada co-brand credit cards in Thailand, Malaysia, and Vietnam. In these three markets, the cards will be refreshed as new UOB-Lazada co-brand credit cards later this year with enhanced benefits. UOB and Lazada will look to extend the co-brand credit card partnership to Singapore and Indonesia. Apart from enjoying attractive Lazada rewards all year round, cardholders will gain access to special Lazada deals during mega sale events.
Funding Societies partners CGC to launch SME Portfolio Guarantee to improve Malaysian SMEs digital financing access
Funding Societies, the Singapore-based small and medium-sized enterprise (SME) digital finance platform, and Credit Guarantee Corporation Malaysia Berhad (CGC) have signed an SME Portfolio Guarantee (SME PG) agreement with the mutual objective of propelling the growth of Malaysian SMEs by providing easier access to financing. Through the partnership, Funding Societies and CGC are extending the first tranche of financing up to MYR10 million ($2.27 million) under the SME Portfolio Guarantee Scheme via Funding Societies‟ leading digital financing solutions to benefit the underserved and unserved yet creditworthy micro, small and medium enterprises (MSMEs). The partnership also marks the first strategic collaboration between CGC and an SME digital financing platform. Under this scheme, eligible SMEs can apply for financing between MYR50,000 ($11358) and MYR500,000 ($113,585). SMEs that qualify for the SME PG will have access to longer-term financing and enjoy preferential interest rates, lowest among Funding Societies‟ existing portfolio of financing from similar segments, easing their monthly cash flows as they grow their businesses, particularly in this post-pandemic period.
As India transitions to cashless society QR codes, sound boxes mushroom all over
As India with 1.4 billion people transitions from a cash-first to a cashless society, Quick Response (QR) codes and sound boxes can now be found throughout India. In front of Lohar’s stall is a small box with a speaker and a machine-readable QR code. The codes are part of a home-grown scan-and-pay system that has transformed the way businesses in India operate. Hundreds of millions of people across the country can access this online transaction system, using apps like Paytm and PhonePe. For years, India had been lagging behind other Asian economies such as Singapore, South Korea and China, where QR codes are ubiquitous.
CBA expands green financing
Commonwealth Bank is expanding its range of green financing to support home loan and personal loan customers to enhance the energy efficiency of their homes, and purchase electric and hybrid vehicles. The Green Loan is a low, 10-year secured fixed rate and comparison rate loan at 1. 99% p. a. with no establishment fee, no monthly loan service fee or early repayment fee. Customers with an eligible CommBank home loan or investment loan can buy and install eligible products to make their home more energy efficient. Currently, customers can use the Green Loan to purchase and install small scale renewables like solar panels and battery packs. To support customers making their homes more energy efficient, Commonwealth Bank will increase the maximum loan size for its Green Loan from $20,000 to $30,000 and expand the range of products eligible1 to be funded under the loan from mid-2023. In addition to installing new items, customers can also use the Green Loan to upgrade their existing small-scale renewables by adding products like a battery pack or additional solar panels. Commonwealth Bank also offers Personal Loan discounts of up to 7. 49% p. a. 2 off the representative rate3 for a range of eligible1 sustainable products, including electric or hybrid cars, electric car charging stations, solar panels, battery packs, and solar and heat-pump hot water systems, which meet certain criteria.
Australian Payments Firm Waave launches with new 'Pay by Bank' solution
Waave now becomes the first consumer payments business to use open banking in Australia. Waave is aiming to reinvent the world of payments with its cheaper, more secure way to accept and make payments in Australia. The payments firm explained that its ̳Pay by Bank ̳ product could reduce merchant payment fees by more than 80 per cent. Three Australian payments experts: Ben Zyl, Mark Connolly and Peter Traianou are launching the business. The trio boast decades of experience between them; having spent time at organizations including PayPal, Adyen, AfterPay and NAB.
Mastercard collaborates with India's M1xchange to roll out digital invoice discounting for farmers
Mastercard announced its collaboration with M1xchange to offer a digital invoice discounting solution to farmers, farmer producer organizations (FPOs), and agri-MSMEs through Farm Pass, its cutting-edge agritech platform. Along with enabling easy access to credit and working capital, the solution will allow farmers and FPOs to directly connect with buyers, negotiate the best price for their produce, and get paid faster. Farm Pass is part of Mastercard ‘s broader Community Pass platform. As part of the collaboration, M1xchange, an RBI-approved facilitator for discounting and sale of receivables to banks and non-banking financial companies (NBFCs), will bring on board its vast network of agri-businesses and lenders. The solution jointly developed by the two organizations is the first of its kind for the agriculture sector and will help lenders in underwriting credit offerings through the Trade Receivables Discounting System (TReDS).
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And that's it for this week's "What The Fintech!" 🎉 We hope you've found our selection of Asia's fintech trends, innovations, and insights both informative and valuable. Your feedback and suggestions are important to us, so please share your thoughts to help us curate content that matters most to you. 🌟
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Until next week, keep exploring the future of finance together! ✨
Your Fintech Navigator,
Medhy
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