What The FinTech #154 - 8 Oct 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 PODCAST & YOUTUBE CHANNEL
Hope you all had a fantastic summer. While our latest podcast episode and video are in the works and set to resume later this month, why not revisit some of our past gems?
🎙️🎧 Dive into previous sessions for a mix of insights and exciting discussions. 🎥🚀 Stay tuned for what's coming, and as always, your likes, give a 5⭐, shares, and subscribes mean the world! Keep the fintech vibes strong! 💪🎉
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Money20/20 Hong Kong World Tour
1 November 2023 | 6pm – 8pm | Ozone Bar
It’s time for a get-together, because the Money20/20 World Tour is heading to the neon city of Hong Kong on 1 November! Did we mention we’re also a partner event for Hong Kong FinTech Week?
Get excited 'cos we’re talking high-impact, high-reward conversations filled with inspiration, innovation, and information over drinks and canapes. Curious about what we're all about? Check out the buzz from the recent Singapore World Tour back in July.
Come mingle with Hong Kong’s most influential players and talk collaborations to propel the fintech industry in the region. Plus, listen to Stratford Finance CEO Angelina Kwan, OSL Co-founder Dave Chapman, and Money20/20 Senior Advisor Medhy Souidi as they discuss what the new Hong Kong Virtual Asset Service Provider (VASP) licensing regime means for virtual asset businesses in the city, as well as the opportunities and challenges out there.
It’s free to join but hurry, seats are limited. See you as we kick off the most exciting week in Hong Kong’s fintech calendar.
When: Wednesday, 1 November 2023
Time: 6pm – 8pm
Where: Ozone Bar @The Ritz-Carlton, 1 Austin Rd W, Tsim Sha Tsui
Cost: Free but limited seating. RSVP today!
P.S. Spread the love and pass this email along to your fintech friends who'd also enjoy a night full of connections and conversations. See you in Hong Kong!
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What was the FinTech this week in: 📰
HONG KONG
Payment Asia becomes official payment partner for Hong Kong FinTech Week 2023
Payment Asia, APAC’s leading payment solutions provider, is glad to announce the official exclusive payment partnership for Hong Kong FinTech Week 2023. This collaboration aims to support and enhance the seamless payment experience within Hong Kong’s dynamic fintech industry. Hong Kong FinTech Week has established itself as a premier event in the global fintech calendar, attracting more than 30,000 industry leaders, entrepreneurs, investors, and innovators worldwide every year. Payment Asia will provide its expertise and advanced payment solutions as the payment partner to ensure a frictionless online payment experience for attendees throughout the Hong Kong FinTech Week 2023. By leveraging its comprehensive range of secure and innovative payment options, Payment Asia aims to facilitate swift and convenient transactions during the event. New business models are being created, rules for a new world are being shaped, and new opportunities are emerging, which facilitate the growth of Hong Kong’s vibrant fintech ecosystem. The event will take place between October 30 to November 5 at the Hong Kong Convention and Exhibition Centre, and provide a platform for industry leaders to discuss emerging trends, explore potential collaborations, and showcase their innovative products to the world.
US crackdown on crypto boosts Asian blockchain ventures: Hong Kong VC unveils $100M Titan Fund
Hong Kong-based crypto venture capital firm, CMCC Global, has unveiled its fourth crypto fund, emphasizing equity investments in budding blockchain startups with a primary focus on Hong Kong. CMCC Global raised $100 million in a crypto fund named Titan Fund, to support Asian blockchain startups. The fund is entrusted to State Street as the fund administrator, and EY as auditor. Titan Fund closed its inaugural funding round on Oct. 4 after seeing participation from 30 investors, including blockchain company Block.one who is the fund’s lead investor. The fund looks to focus on investments in areas like blockchain infrastructure, consumer applications like gaming and NFTs, and financial services. The fund has started with five investment rounds, two of which are directed to Hong Kong-based startups – an NFT project, Mocaverse, and a Web3 data infrastructure startup named Terminal 3. Among international names, the fund also invested in the San Francisco-based Y-combinator team and NFT-focused e-commerce platform KickzMeta and its affiliated project, Mooncourt.
Hong Kong Stock Exchange launches settlement platform powered by smart contracts
Dubbed “Synapse,” the platform will utilize smart contracts in the DAML programming language to streamline post-trade flows and enhance operational efficiencies. Synapse will be deployed on Stock Connect, an HKEX channel that enables international investors to access more than 1,000 mainland Chinese stocks through routing in Hong Kong. HKEX will be linked to Hong Kong’s Depository Trust and Clearing Corporation through its Institutional Trade Processing service, allowing for the central matching of cross-border transactions. Settlement instructions are then automatically generated and sent back to the Synapse platform, thus enhancing the trade confirmation workflow.
SINGAPORE
Singapore secures its position as Asia’s leading fintech hub, ranking fourth globally
Singapore has solidified its status as the premier fintech hub in Asia, claiming the fourth spot globally in the 2023. Singapore’s fintech sector attracted a staggering $34 billion in venture capital investments from 2019 to 2022, making it the leader in the Asia-Pacific region. Additionally, the city hosts the world’s largest fintech festival, further cementing its reputation. Singapore’s regulatory environment also played a crucial role in its ranking. The Monetary Authority of Singapore has forged agreements with regulators worldwide, ensuring global regulatory stability for fintech companies operating within its borders. On the global stage, Singapore secured the fourth position in the index, trailing only New York, San Francisco, and London. New York was commended for its robust demand for fintech innovation, substantial capital resources for investors, and a deep talent pool. London, named Europe’s top fintech hub, boasts the largest number of fintech companies globally and witnessed the highest number of VC deals between 2019 and 2022. San Francisco and Silicon Valley, occupying the third and fifth positions, respectively, are renowned tech hubs housing influential fintech startups such as PayPal, Stripe, Credit Karma, and others that have been labeled as “revolutionary” by Savills.
Global Payments partners with Visa for Mobile Tap payment acceptance solution in Singapore
Payment tech and software solutions provider Global Payments has announced the launch of its Mobile Tap payment acceptance solution in Singapore in partnership with Visa. The collaboration seeks to help revolutionise the payment landscape by enabling sellers to facilitate payments seamlessly leveraging their smartphones, free of the need for additional hardware investments. Global Payments’ Mobile Tap solution, which makes use of Visa’s Tap to Phone (TTP) technology, allows merchants with Android devices that are equipped with Near Field Communication (NFC) tech to accept contactless payments by simply downloading a dedicated app. This approach helps eliminate the need for traditional point-of-sale (POS) terminals and can help facilitate an improved consumer payment experience. Amongst the key advantages of Mobile Tap is its ability to provide small and medium-sized enterprises (SMEs) with the option of digital payment acceptance at a lower cost, paving the way for greater participation in the digital economy. Furthermore, Mobile Tap offers merchants and customers alike increased convenience and flexibility in conducting transactions.
Singapore firm to launch crypto wallet in PH
Singapore-based firm Account Labs will launch its crypto wallet in the Philippines next week, marking their financial product’s first venture outside Singapore as it aims to expand in Southeast Asia. Account Labs will roll out the UniPass Wallet in the Philippines on Oct 12, to be followed by the launch in Vietnam, Malaysia, and Indonesia. Account labs touts UniPass as a smart contract wallet, with users able to use their Google accounts to set up and log into their Web3 wallet. This eliminates the required complex 12-word seed phrases upon signing in crypto wallets. UniPass users can also reload their wallets with Mastercard or Visa cards, or other digital wallets like GCash or Maya. Further, it said users can directly send stablecoins to other wallets, without the need to move assets across different exchanges.
Ripple cements Singapore presence with MPI License
Ripple, a San Fransisco-based blockchain company, has cemented its position in Southeast Asia by securing a Major Payments Institution (MPI) license from the Monetary Authority of Singapore (MAS). The license has been granted to the local subsidiary of the US-headquartered company, Ripple Markets APAC Pte Ltd. Earlier in June, Ripple received an in-principle approval from the Singapore regulator for the MPI license. Singapore, with its clear rules around digital currencies, has become a preserved jurisdiction for crypto companies. The positioning of Singapore makes it ideal for companies looking to expand their services in the broader and lucrative Southeast Asia region. Recently, Coinbase, a cryptocurrency exchange, and Sygnum, a Swiss crypto bank, both received MPI licenses to offer regulated services in Singapore. Similar to Ripple, both these companies received in-principal approval before acquiring the full license. Other companies that secured this license include Payoneer, Blockchain.com, and TerraPay.
Coinbase gains payment institution licence in Singapore
Coinbase Singapore is pleased to announce that we have obtained a Major Payment Institution (MPI) licence from the Monetary Authority of Singapore. This development, amplifies our commitment to the Singapore market, enabling us to expand our provision of Digital Payment Token services to both individuals and institutions in Singapore. Beyond simply offering products, our commitment stretches to the broader Web3 ecosystem in Singapore. This includes training and hiring initiatives at our Singapore tech hub, fostering strong relationships with industry associations such as ACCESS, the Singapore Fintech Association, and the Blockchain Association of Singapore, and making region-specific investments through Coinbase Ventures. Notably, over 15 of these investments are rooted in Singapore. Our ongoing collaborations with the local developer community and key partners, such as Nansen.ai, Blockdaemon, and Infura, have been instrumental, particularly when supplemented with innovative solutions like our Base blockchain and Wallet-as-a-Service. Moreover, our active community involvement is evident through initiatives like sponsoring Ethereum Singapore and conducting workshops at prestigious universities including the National University of Singapore, Singapore Management University, and Nanyang Technological University.
UBS Asset Management launches blockchain VCC fund pilot in Singapore
UBS Asset Management has rolled out a tokenized Variable Capital Company fund to bring ‘real-world assets’ on-chain as part of Project Guardian, a collaborative industry initiative by MAS. UBS Asset Management has launched its first live pilot of a tokenized Variable Capital Company (VCC) fund. This fund is part of a bigger effort called Project Guardian, led by the Monetary Authority of Singapore (MAS), which aims to put real-world assets on the blockchain. The fund operates as a smart contract on the Ethereum blockchain, allowing UBS Asset Management to handle tasks like accepting investments and processing withdrawals. This is a key milestone in understanding the tokenization of funds, building on UBS’s expertise in tokenizing bonds and structured products. Through this exploratory initiative, they will work with traditional financial institutions and fintech providers to help understand how to improve market liquidity and market access for their clients.
Sygnum Singapore gains full license for crypto brokerage services
Sygnum’s Singapore arm has been granted a full license by the Monetary Authority of Singapore (MAS) to offer digital payment token (DPT) brokerage services. This step allows Sygnum to introduce its DPT brokerage platform to accredited investors and institutions. The full license enables Sygnum Singapore to integrate DPT brokerage services into its broad digital asset financial offerings. These services include asset management, corporate finance advisory, capital market product trading, and custodial solutions. Singapore’s regulatory framework and rules governing cryptocurrency operations have made it attractive for established crypto companies. Sygnum joins a growing list of firms that have obtained licenses from the MAS, including Circle, Crypto.com, Blockchain.com, Coinbase, and Paxos.
CHINA
Chinese authorities are signaling a softer stance on once-stringent data rules, among recent moves to ease regulation for business, especially foreign ones. But foreign businesses have found it difficult to comply — if not operate — due to vague wording on terms such as “important data.” Now, in a proposed update, the Cyberspace Administration of China (CAC) has said no government oversight is needed for data exports if regulators haven’t stipulated that it qualifies as “important.” The draft regulation relieves companies of some of the difficulties with cross-border data transfer and personal information protection partly by specifying a list of exemptions to relevant obligations and partly by providing more clarity on how data handlers can verify what is qualified by authorities as ‘important data. The cybersecurity regulator’s draft rules also said data generated during international trade, academic cooperation, manufacturing and marketing can be sent overseas without government oversight — as long as they don’t include personal information or “important data.” When economic times were good, Beijing felt confident in asserting a stringent data security regime in the footsteps of the EU and with the US lagging behind in this regulatory realm (for example, heavy state oversight of cross-border data flows and strict data localization requirements. The U.S.-China Business Council’s latest annual survey found the second-biggest challenge for members this year was around data, personal information and cybersecurity rules.
Apple fights to preserve major App Store loophole in China
Apple is looking for ways to circumvent incoming legislation in China that would prevent the company from listing foreign apps on the iPhone App Store in the region unless they’ve been given government approval. In August earlier this year, China’s Ministry of Industry and Information Technology (MIIT) announced that all mobile app providers in the country would be required to file business details with the government. The change would effectively close a prominent loophole in China’s Great Firewall that allowed developers to publish their apps through Apple’s App Store without disclosing their business details to the Chinese government. This would likely also require them to comply with the country’s strict data transfer and censorship requirements. Apple that it must strictly implement rules that ban unregistered foreign apps from the App Store. Android-based app stores operated by Tencent, Huawei, Xiaomi, and more have already started to demand that apps listed on their platforms comply with the new rules, but Apple was noticeably missing from a recent list of 26 app stores that have completed filing business details.
ASIA
Southeast Asian startups attract multi-million investments in September
Automera US$16 million in a Series A round of investment co-led by Accelerator Life Science Partners and Temasek-backed ClavystBio. Other investors are EDBI and Xora Innovation.
Kiddocare offers the potential for weekly earnings of up to RM1,500 (US$318), affording women the flexibility to navigate motherhood and education. The startup secured an undisclosed sum from Artem Ventures, Gobi Partners, MSW Ventures Asia Fund X, and ScaleUp Malaysia.
NexMind received an undisclosed seed funding from 500 Global.
Funding Societies has achieved over US$3.2 billion in business financing, processing over 5 million transactions and serving about 100,000 SMEs across the region. It scored US$27 million in debt funding led by AlteriQ Global, with participation from Aument Capital Partners and Orange Bloom.
CrossFund secured US$1.5M from undisclosed investors at a US$47 million valuation.
Gene Solutions secured US$21M from Mekong Capital.
Evo Commerce banked US$2.8M in equity and debt financing from IJK Capital, Carousell Co-Founder and CEO Quek Siu Rui, Fave Co-Founder Joel Neoh, and Tipsy Collective.
Kora bagged US$400,000 in a pre-seed funding round from Antler and eFishery founder and CEO Gibran Huzaifah.
Novelship raised US$9.5M in funding from East Ventures, iGlobe Partners, and GSR Ventures.
Parallax netted US$4.5M from Dragonfly Capital, Circle Ventures, General Catalyst, gumi Cryptos Capital, and others
Manuva received US$8M from Tin Men Capital and undisclosed investors.
ERTH secured funding from Gobi Partners and L8 Ventures.
Saladin closed its Series A funding round led by Monk’s Hill Ventures, with participation from Peak XV Partners, Venturra Capital, and Patamar Capital.
SLEEK EV secured an undisclosed Pre-Series A funding round led by ORZON Ventures, a VC firm backed by OR and 500 TukTuks.
DELOS announced the completion of an undisclosed Series A funding round led by Monk’s Hill Ventures.
WhiteCoat closed a tranche of its Series B fundraising round to fuel its regional expansion.
TANGGapp closed a US$2.5M seed round from TEN13, Goodwater Capital, North Fifth Asia, Foxmont Capital, and angels from the Manila Angel Investors’ Network (MAIN).
Grouu secured an undisclosed amount in additional investments from Singapore-based VC firm Teja Ventures.
Southeast Asian used-car marketplace Carsome sees path to profitability in 2024
Ericc Cheng drove Carsome to become Malaysia’s first tech unicorn during the funding boom in 2021. Now, amid higher interest rates and worries about an impending recession, the cofounder and CEO of Carsome is shifting gears to focus on profitability in an effort to adjust to the lower-risk environment after more than eight years of breakneck growth. Carsome’s profit engine is its retail business that offers refurbished cars, as well as related offerings such as auto financing, insurance and after-sale services. Carsome, which operates in Malaysia, Indonesia, Thailand, Singapore and most recently in the Philippines, claims to be the region’s largest online used-car platform by revenue and transaction volume. Last year, the company sold more than 150,000 vehicles, equivalent to a 3% market share of Southeast Asia’s used-car e-commerce market, said Cheng. Carro, which claims to be the most profitable online secondhand car marketplace in Southeast Asia, said its revenue surpassed $800 million in the financial year ended March with over 120,000 vehicles sold. While Cheng is boosting Carsome’s bottom line, he is making sure that expanding market share won’t take a backseat. These include expanding the auto financing, insurance and after-sale services outside of Malaysia to other markets that Carsome operates.
Shopee braces for e-commerce battle in Southeast Asia as competitors close in
Shopee enjoyed a meteoric rise in the region amidst rapid e-commerce growth and has maintained a largely consistent lead over its peers. The total gross merchandise volume (GMV) of Southeast Asia’s market was USD 99.5 billion in 2022. Shopee ranked first with a GMV of USD 47.9 billion, nearly half of the total. Lazada, which followed behind, had only half of Shopee’s GMV. Newcomer TikTok Shop’s GMV was only one-tenth of Shopee’s. This battle between the likes of Shopee and other e-commerce companies in Southeast Asia began earlier than one might imagine. E-commerce platforms focusing on specific markets started to emerge as early as 2009. For example, Tokopedia, primarily focused on the Indonesian market, was founded in 2009 and has received investments from Alibaba and Google. According to a financial report recently released by its parent company, Tokopedia’s total revenue in 2022 was IDR 8.6 trillion (USD 560 million). Other regional e-commerce players targeting specific regions include Bach Hoa Xanh in Vietnam, Carousell in Singapore, and PGMall in Malaysia. Regional e-commerce platforms such as Shopee and Lazada appeared in 2012. The next generation of platforms, including TikTok shop, Shein, and Temu, may present more modest GMVs, but their speed and determination to penetrate the market have proved sufficient to make the established players nervous. Temu entered the Southeast Asian e-commerce market in mid-2023, launching in the Philippines on August 27. Less than half a month later, Temu unveiled a site targeting the Malaysian market. Southeast Asia remains the fastest-growing e-commerce region in 2023, ranking at the top globally for the third consecutive year. Among the countries in the region, the Philippines, Indonesia, Malaysia, Thailand, and Vietnam are all in the top ten in terms of e-commerce market growth rate, with growth rates exceeding 12%.
Ribbit Capital sees fintech opportunities in Vietnam, Thailand, the Philippines, Indonesia
Ribbit Capital sees fintech opportunities around the world. Aside from being a market unto itself, Singapore is a hub for doing business in Vietnam, Thailand, the Philippines, Indonesia and other countries, says Nick Huber, a partner at Ribbit Capital. He sees opportunities in payment services, remittance, insurance, wealth management and investment management. These markets will be home to “at least a handful of very good fintech outcomes in the coming decade,” he predicts. India is especially important to Ribbit Capital, he adds, describing it as “a hotbed of fintech activity.” One area in the United States where Huber holds out hope for growth and opportunity is in fintechs serving commercial customers. “There are many opportunities in categories that just didn’t get as much attention because they were harder for a whole bunch of reasons,” Huber says. Huber believes founders and investors will start digging into more of those opportunities now. Ribbit Capital has already done a lot of spadework. “We have spent a lot more time in the last few years on B2B opportunities in the U.S.,” Huber says.
Bijlipay unveils GeeNee POS+ a payments device for Indian retailers
Bijlipay, an offline payment solution provider in the Indian market has announced the launch of “GeeNee POS+”, a point of sale (POS) device poised to transform how businesses and consumers engage in seamless cashless transactions. GeeNee POS+ is a pocket-friendly device that works with 4G and Wi-Fi and provides voice alerts in multiple languages. The redefines the boundaries of payment technology with its remarkable features: Card Payments: GeeNee POS+ seamlessly accepts card payments, providing customers with swift and hassle-free transactions. Whether it’s credit, debit, or contactless payments, this device has you covered. Dynamic QR Transactions: This device effortlessly processes dynamic QR transactions, simplifying the payment process for consumers using QR codes generated on mobile apps while eliminating transaction fraud. Voice Alerts for Static QR Transactions: GeeNee POS+ offers loud and crisp voice alerts for static QR code transactions. Customers can simply scan their mobile devices with a static QR code to complete a UPI transaction and merchants will receive Voice alerts on payment confirmation on GeeNee POS+.
Cambodia sees significant increase in digital payments with e -wallets exceeding 20.2 million
Cambodia has recorded a sharp rise in mobile payments as more and more people have turned from cash-based to digital transaction options. The number of registered e-wallet accounts increased to 20.2 million as of June this year. The total number of transactions jumped to 333.7 million in the first half of this year from 211.2 million in the same period in 2022 with a total amount of US $ 58.2 billion, a year-on-year increase of 98.3 percent, it pointed out. Cambodia’s payment system has been modernized by incorporating a series of new technologies aimed at enhancing payment efficiency and security to facilitate the exchange of goods and services more easily and quickly, improve the financial environment and support the integration of payment systems into the region.
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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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