What The FinTech #142 - 29 May 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 59 - Bitkub
Join us on a captivating journey with our distinguished guest, Topp Jirayut Srupsrisopa™, the visionary Founder and Group CEO of Bitkub. We'll navigate through the labyrinth of Thai crypto regulations, dive into the depths of addressing the issue of the unbanked population, and illuminate how Bitkub is rewriting the rules for financial inclusion, all at an impressively low cost.
You'll discover how Bitkub, weathering the crypto winter storm, became the first to secure a crypto exchange license in Thailand and remained profitable. We'll also unmask their ingenious customer acquisition strategies, discuss their local monopoly model, and unveil the company's ambitious expansion plans as Southeast Asia steps into its golden fintech era.
🎧 Tune in for a treasure trove of fintech insights!
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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
HK regulator to issue crypto trading licenses with retail investor guard rails
HSBC Hong Kong Debuts POS Financing for B2B Sales
BitMEX announces launch of Tailored App for HK users
HK regulator to issue crypto trading licenses with retail investor guard rails
Hong Kong‘s securities regulator said its crypto licensing regime will include measures to protect retail investors as it brings in tougher rules for digital asset companies from June 1.The new regime requires all trading platforms and exchanges to apply for a license, failing which fines and jail terms would result. Operators should also perform client checks to ensure that retail traders from China, where crypto trading is banned, will not be accepted.
HSBC Hong Kong Debuts POS Financing for B2B Sales
The Hong Kong arm of banking giant HSBC has launched a B2B transaction financing tool. The new offering lets B2B sellers on online platforms offer customers extended payment terms. The tool uses application programming interfaces (APIs) to create a financing option on the checkout page of a client’s B2B eCommerce platform, according to the report. HSBC will pay its commercial customers in one business day once they’ve received a purchase order. HSBC is launching this tool at a time when several financial institutions (FIs) and platforms are introducing products focused on trade finance and working capital to help small- to medium-sized businesses (SMBs), which generally have trouble getting funding. Santander announced in January, for example, a B2B buy now, pay later (BNPL) product for multinational corporations. Developed in partnership with Allianz Trade and Oslo-based BNPL FinTech Two, the solution lets companies offer business clients a consumer-style BNPL option with near-instant approval. There’s also trade credit insurance as provided by the Tepfin X platform developed by Hyperion X, which lets banks and their brokers get quotes from throughout the structured credit insurance market, helping insurance buyers obtain risk coverage at reduced costs.
BitMEX announces launch of Tailored App for HK users
Hong Kong users of the cryptocurrency exchange BitMEX will soon have access to a new dedicated platform. With the implementation of the Hong Kong Anti-Money Laundering and Counter-Terrorist Financing (Amendment) Statute 2022 on June 1, 2023, the company intends to apply for a Virtual Asset Service Provider (VASP) license. BitMEX‘s new mobile app will provide verified Hong Kong users with a secure and convenient way to buy, trade, and convert between cryptocurrencies and more than 30 fiat currencies in a flash through 11 spot pairings. BitMEX Hong Kong was designed to work with the Hong Kong VASP transitional regime. Portfolios may be managed, wallet balances checked, and deposits and withdrawals made in real-time. Keeping tabs on the market is a breeze with the help of modern tools like watchlists and real-time data feeds.
SINGAPORE
Google offers 15,000 scholarships to 300 local SMEs for training in digitalization
Singapore, Kazakhstan sign four agreements, including one to boost economic cooperation
MAS launches AI and data analytics talent program The Monetary Authority of Singapore (MAS) launched the Financial Sector Artificial Intelligence and Data Analytics (AIDA)
Atome partners with Amazon to offer deferred payment option during checkout in Singapore
SGX to launch depository receipts for Airports of Thailand, CP All, PTT E&P
Google offers 15,000 scholarships to 300 local SMEs for training in digitalization
Google Singapore is offering 15,000 scholarships to 300 small and medium-sized enterprises (SMEs) for digitalization-related courses, at its first ―Grow with Google for SMEs event in Singapore. Offered in partnership with Enterprise Singapore (Enterprise SG) and SGTech, the scholarships are for three- to six-month Google Career Certificate courses. These part-time online programs are in areas such as digital marketing, e[1]commerce, data analytics, IT support and UX (user experience) design.
Singapore, Kazakhstan sign four agreements, including one to boost economic cooperation
Singapore and Kazakhstan inked four agreements, including one that will give Singapore companies greater access into Kazakhstan‘s services sectors and protect investors‘ interests. The legally binding agreement offers mutual benefits for businesses from both countries, which in turn will generate opportunities in a range of sectors. It will allow Singapore companies seamless access into more than 15 services sectors in Kazakhstan such as specialized medical services, dental, interior design, urban planning, and engineering. The agreement will also protect Singapore investors and companies in Kazakhstan from discriminatory treatment and illegal expropriation, among other things.
MAS launches AI and data analytics talent program The Monetary Authority of Singapore (MAS) launched the Financial Sector Artificial Intelligence and Data Analytics (AIDA)
Talent Development Program. The initiative, which is part of the National AI Program in Finance. The is a joint effort by MAS and the Smart Nation and Digital Government Group. It aims to develop Singapore as a global hub for financial institutions to research, develop, and deploy AI solutions., aims to increase the supply of AIDA talent to build deep AI capabilities in the financial sector. An AIDA Talent Consortium (please refer to Annex A for the Consortium members) has been set up for key financial institutions (FIs) and training institutions to collaborate on the talent development program. Aggregate: Through the Consortium, MAS will aggregate FIs‘ talent demands across various AIDA roles, based on their stage of AIDA adoption. MAS will work with the Institute of Banking and Finance, Institutes of Higher Learnings (IHLs) and training providers to develop programs to meet the needs of FIs. Collaborate: MAS will work with FIs, established training providers, and educational institutions to co-curate training programs and modules which incorporate the latest developments and trends in AIDA, with strong financial sector application. This includes developing case studies to promote sharing of good use cases and industry relevant data resources.
Atome partners with Amazon to offer deferred payment option during checkout in Singapore
Atome, Southeast Asia‘s leading buy-now-pay-later (BNPL) platform, has announced that its flexible buy now pay later payment option is now available for Amazon customers in Singapore during checkout.Amazon.sg customers can now pay using Atome‘s pay-in-three, zero interest payment option. They first have to bind their Atome account before selecting the pay-in[1]three easy payments, zero interest option (screenshots here). If they don‘t has an Atome account, they can download and register for an account on Atome Singapore's mobile app on Apple‘s App Store or Google Play.
SGX to launch depository receipts for Airports of Thailand, CP All, PTT E&P
The Singapore Exchange (SGX) launches three SDRs under a Thailand-Singapore DR Linkage on May 30. The three Thai stocks are airport operator Airports of Thailand, food retailer CP All and energy play PTT Exploration & Production (PTT E&P). All are constituents of the benchmark SET50 Index. Airports of Thailand has a weightage of 8 per cent of the SET50, while CP All and PTT E&P each have a weightage of 5 per cent.
CHINA
China cracks down on AI amid rise in Deepfake Scams
Tencent launches palm payments in Beijing, allowing metro passengers to pay with the wave of a hand
China cracks down on AI amid rise in Deepfake Scams
China has reportedly heightened scrutiny of ―deepfake tech amid a rise in artificial intelligence (AI)-driven fraud. Worries about the potential for AI to assist in financial crimes have grown following a case in which a man was scammed into giving money to a fraudster posing as a friend. the scammer, with the help of AI[1]powered face-swapping technology, masqueraded as a friend of the victim‘s during a video call to get his hands on a 4.3-million-yuan (about $612,000) transfer. The victim only realized he had been tricked when his friend didn‘t know what he was talking about. Authorities had recovered most of the stolen money and were working to track down the rest. The case prompted discussion on the social media platform Weibo, where the trending topic ―#AI scams are exploding across the country racked up more than 120 million views Monday.
Tencent launches palm payments in Beijing, allowing metro passengers to pay with the wave of a hand
Chinese social media giant Tencent Holdings is allowing Beijing metro passengers to pay for rides using only their palms in a new service launched in China‘s capital city through its WeChat Pay service, referred to as Weixin Pay domestically. Users who enroll in the palm-recognition service can pay for rides on the Daxing Airport Express Line by holding their hands over a scanner at metro station turnstiles. Recognition of a unique palm print triggers an automatic payment through the user‘s WeChat recognition of both surface[1]level palm prints and the hand‘s veins.
ASIA
BetterPlace forays into Financial Services, launches BetterPlace Money to make 10mn global frontline workers credit worthy
Indonesia’s Skorlife gets funding to give Indonesians power over their credit scores
CCAvenue partners with PayPal to enable MENA businesses make global payments
Paytm takes mobile payments a notch higher with Paytm UPI Lite
Paytm, SBI Card, and NPCI to launch co-branded RuPay credit cards
Sequoia India’s Surge backs AI-powered video creation platform Gan.ai in $5.2M funding
Australia announces plans to regulate BNPL as a credit lending offering
Marubeni launches real estate security tokens with MUFG’s Progmat
Small industries development Bank Of India pilots tokenized collateral network on Blockchain
BetterPlace forays into Financial Services, launches BetterPlace Money to make 10mn global frontline workers credit worthy
BetterPlace, Asia‘s largest frontline workforce management SaaS platform, has announced its foray into the financial services sector with the launch of BetterPlace Money. With this comprehensive suite of financial services and offerings, BetterPlace Money aims to make more than 10mn global frontline workers credit worthy by 2025. At the onset, BetterPlace Money will enable enterprises to provide short-term loans for their frontline workers via its SaaS platform. The vertical will benefit more than 4 million workers immediately and will expand to serve BetterPlace‘ s frontline workforce base across APAC and GCC in the next few months. BetterPlace Money aims to solve these problems by leveraging the data and distribution strength of BetterPlace’ s full-stack platform. With more than 4mn workers already reaping benefits from the platform every year, BetterPlace Money will enable frontline workers to get easy access to short-term loans at low interest rates, in a simple and hassle-free manner. Moreover, with customizable repayment plans which include EMI and installment plans that suit their needs, borrowers will be able to build and manage a healthy credit score and therefore be eligible to access formal sources of credit and benefits.
Indonesia’s Skorlife gets funding to give Indonesians power over their credit scores
Skorlife, the fintech that wants to give Indonesians more transparency into their credit scores, has raised $4 million in seed funding. Skorlife‘s app shows users their credit scores and reports from Indonesia‘s credit bureaus and gives personalized advice on how they can improve their credit and keep safe from identity theft. For example, it will remind them to pay bills on them, improve their credit mix and watch the age of their credit. It also provides an Identity Monitoring feature, which alerts users when someone tries to use their identity to apply for a loan.
CCAvenue partners with PayPal to enable MENA businesses make global payments
The payment aggregator CCAvenue announced its partnership with PayPal, the global fintech and payments services provider to offer international payment acceptance services in the Middle East and Northern Africa (MENA) region. PayPal will now be available as an additional option on CCAvenue, allowing businesses in the MENA region to settle and receive payments from their cross-border customers and vendors. In addition to PayPal, the payment aggregator also supports other payment gateways such as major Mastercard/Visa credit cards, debit cards, UnionPay, Samsung Pay, Apple Pay, Payit Wallet and net banking facilities. With this partnership, businesses in the MENA region will have access to the global network of 435 million active PayPal accounts across 200-plus countries, eliminating the need of having a US bank account.
Paytm takes mobile payments a notch higher with Paytm UPI Lite
India‘s leading payments and financial services company, Paytm, has taken mobile payments to one notch higher with Paytm UPI Lite that aims to further drive this revolution across the country. The company has seen the acceptance of UPI growing dramatically which made everyday payments hassle-free, quick, and seamless for users. Following which Paytm Payments Bank launched Paytm UPI Lite, which is one of the biggest innovations that will propel UPI to the next level. More than 50% of total India‘s UPI payments are of less than ₹200 in value, and for these small value payments, users have a huge scope to use Paytm UPI Lite, which has so far proved to be a game changer in the mobile payments industry. The Bank has enabled UPI Lite for about 60 lakh users since its launch in February 2023, as these payments never fail even when banks have success rate issues during peak transaction hours.
Paytm, SBI Card, and NPCI to launch co-branded RuPay credit cards
India-based payments company Paytm has partnered with SBI Card to launch the Paytm SBI Card on the RuPay network. The Paytm and SBI Card partnership is now expanding with the addition of National Payments Corporation of India‘s RuPay, as all three home-grown brands join forces to further drive the growth of inclusive, digital-first financial services in the country. PPBL has got the final approval from RBI to operate as Bharat Bill Payment Operating Unit (BBPOU) under the Payment and Settlement Systems Act, 2007. As an entity under Bharat Bill Payment System (BBPS), PPBL has got the final authorization to conduct bill payment and aggregation business as a BBPOU.
Sequoia India’s Surge backs AI-powered video creation platform Gan.ai in $5.2M funding
San Francisco-headquartered startup called Gan.ai has also attracted the attention of investors. The outfit — which helps brands create tailored videos for their customers with an AI powered video creation platform — just closed on $5.2 million in seed funding led by Surge, Sequoia Capital‘s rapid scale-up program. Gan.ai‘s video personalization software enables brands to record with an actor, add keywords to a script and send personalized videos to their customers in one click. Gan.ai allows users to create landing pages and shopping and payment options by integrating with Shopify, Calendly, Stripe, HubSpot and Salesforce. Gan.ai has two types of clients. The first is corporations with large marketing teams like mobile manufacturers and consumer goods like food delivery companies, sports teams, and mobile gaming companies. The second type of user is business professionals like realtors, mortgage agents, insurance agents and enterprise SaaS sales representatives.
Australia announces plans to regulate BNPL as a credit lending offering
The BNPL sector in Australia just got a revamp after the local government announced new rules to curb consumer debt from mounting up. In an effort to mitigate the ―growing dangers of customers spending more than they can afford, government officials will begin to look at BNPL schemes as credit products. It is expected that the shift in BNPL policies will require all providers of relevant services to become credit license holders, as they will need to comply with local credit lending laws and inherit all current restrictions on credit-related marketing. Several BNPL providers operating on Australian soil have already come out with statements welcoming the change, including Zip, Humm, and Frollo. One of the biggest trade bodies in the country, Fintech Australia, has also commented on the topic, with General Manager Rehan D‘Almeida sharing: ―Measured regulation is crucial in ensuring trust in Australia‘s fintech industry, which is essential for its growth.
Marubeni launches real estate security tokens with MUFG’s Progmat
MUFG announced that Marubeni Asset Management (MAM) is launching its first security token issuance for real estate and will use MUFG‘s Progmat blockchain platform. The public offering of tokens will be sold via SBI Securities. MAM is a significant real estate investment trust (REIT) manager and has a total of Yen 508.8 billion ($3.7bn) assets under management. According to the announcement, MAM is looking to diversify its funding sources. The initial security is for Granair Komagome, a Tokyo building mainly targeting small residential units with a total issue price of Yen 836 million ($6 million) and a minimum investment of Yen 100,000 ($725).
Small industries development Bank Of India pilots tokenized collateral network on Blockchain
SIDBI and Infosys have now partnered to develop a blockchain based platform for the MSME sector in India. The use of blockchain technology in banking, while not a panacea and still in its infancy, can potentially remove vulnerabilities and reduce credit risk. The iterative trail of information on the blockchain, along with the ease of comparability, streamlines data requests and reviews and helps to combat fraud. The Infosys blockchain practice has a strong track record, with extensive advisory and implementation experience across multiple industries. In particular, Infosys has a significant presence in the financial services sector, and is an industry leader in Blockchain implementations in Capital Markets. The initial use case for SIDBI was the security interest information exchange on blockchain. The platform is a multi-party platform, where the security interest details flow from the borrower to the lender, and the credit bureau furnishes the credit check details. The project aims to create a gold standard in institutional lending by establishing a single source of truth for collateral information among borrowers like non-banking financial companies (NBFCs), institutional lenders and credit bureaus. After storing the security interest information on the blockchain, it becomes tamper-proof and unchangeable. Asset tokenization may also bring increased transparency for transactional data, issuer information and asset characteristics thanks to enhanced information recording and sharing. The SIDBI approach has been to conduct a modest pilot, create a basic blockchain infrastructure and generate interest and support from institutions and regulators
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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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