What The FinTech #79: 9 Jan 2022
Happy New Year 2022 and Welcome back to What The FinTech, your regular FinTech & Innovation Newsletter focusing on Hong Kong & Asia ! Here are the selection and the top headlines for this week.
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What was the FinTech this week in: 📰
BLOCKCHAIN - CRYPTO - DIGITAL ASSETS - DE FI
Tencent divests mature tech stocks to focus on metaverse, new industries
Commercial Bank of Dubai to launch an NFT collection
SETL to work with SWIFT on asset tokenisation pilot
Tencent divests mature tech stocks to focus on metaverse, new industries
Tencent has announced that it would sell its stake in Singapore-based e-commerce giant Sea Limited, Southeast Asia’s most valuable internet company that operates e-commerce platform Shopee and gaming arm Garena. Tencent has also announced that it would sell its stake in JD.com, China’s second-largest e-commerce company after Alibaba Group Holding. This move could reduce their influence in China’s internet industry, which complements the government’s antitrust measures. However, there are incentives to selling these stakes beyond regulatory concerns. Bloomberg analyst suggests that this could be a way to signal to the market that it can harvest value from successful investments and reinvest in the next wave of technologies. Tencent has pivoted to investing in the metaverse and non-fungible tokens (NFTs).
Commercial Bank of Dubai to launch an NFT collection
Commercial Bank of Dubai, is hosting an NFT art exhibition at its Digital Lab. The exhibition is presented in partnership with Amrita Sethi, a leading NFT artist from the UAE. By scanning the QR code embedded in the artwork, the Augmented Reality is activated, allowing observers to enjoy and “see sound” through the art. Each physical limited-edition artwork will come with its own digital twin NFT, making CBD one of the first Banks in the world to have its own NFT.
SETL to work with SWIFT on asset tokenisation pilot
SETL has announced that it will be working with SWIFT and other market participants to explore the issuance, delivery versus payment (DVP), and redemption processes to support a frictionless and seamless tokenised asset market. The experiments will use both established forms of payment and central bank digital currencies (CBDCs). The market for tokenised assets is expected to reach US$24 trillion by 2027. For SETL, this experiment could lay the foundation for better interoperability between participants and systems during the transactional lifecycle of tokenised assets. These experiments also have the potential to create broader accessibility and interoperability between the emerging networks.
HONG KONG
HK’s WeLab to launch a digital bank in Indonesia
HK’s WeLab to launch a digital bank in Indonesia
WeLab, a fintech unicorn startup based in Hong Kong, is planning to launch a digital bank in Indonesia in the second half of this year, following its $240 million deal to buy a controlling stake in Bank Jasa Jakarta. WeLab prefers to enter a new market where there are multiple players already in operation. Despite the tougher competition, it makes educating the consumers easier and more efficient as many players are doing the same thing. In 2020, WeLab launched its first digital bank in Hong Kong, WeLab Bank, that currently has around 150,000 customers. The bank’s most popular product is the GoSave time deposit, where interest will be higher if more customers joined the batch of deposit. The company will offers similar products for the upcoming digital bank in Indonesia. WeLab is also eyeing to go public later this year after it completes the acquisition and consolidation, a move that was also postponed in the wake of market volatility.
SINGAPORE
DBS is advocating riding investment opportunities in healthcare and Metaverse
Fintech startup Brankas raises US$20m Series B funds led by Insignia
Singapore-licensed crypto firm Sygnum crosses $1 billion valuation with latest fund raising
DBS is advocating riding investment opportunities in healthcare and Metaverse
DBS is advocating for portfolios to stay invested amid divergent markets and the Fed's policy tightening, in its CIO Insights for Q1 2022, titled «A Divergent World,» published this week. The report highlighted the health care sector's strong long-term fundamentals, solid earnings and share price performance, particularly big pharma. And while the pandemic has put the health care sector under the spotlight, DBS said that there are several structural tailwinds underpinning health care's sectoral dynamics beyond the pandemic, namely:
Ageing population and longer life expectancy,
Rising disposable income and medical expenditure, and
Continuous R&D to drive medical and technological advances.
Unlike cyclical industries, health care demonstrates a consistent trajectory of revenue and earnings uptrend over economic cycles. DBS called the rise of the metaverse a «transformational shift» and said Big Tech, game engines, and semiconductor companies are geared beneficiaries when the mass migration to the metaverse takes place. The Virtual Reality (VR)/Augmented Reality (AR) market represents only a tip of the iceberg. With commerce, social and work set to be revolutionised, there are «significant implications» on companies in the years to come, DBS noted, highlighting digital advertising, the rise of «phygital» retail, which blends physical and digital experiences, as well as remote work moving beyond Zoom calls. As such, game engines and developers – the «architects of the metaverse,» Big Tech (FAANG companies), as well as infrastructure providers and hardware manufacturers are expected to outperform with the evolution of ther metaverse.
Fintech startup Brankas raises US$20m Series B funds led by Insignia
Brankas, a Singapore-based start-up providing financial institutions, fintech and online businesses with API-based solutions, has raised US$20 million in Series B funding led by early-stage investor Insignia Ventures Partners. Other investors include payments giant Visa. Brankas specialises in enabling access to financial and identity data, payments initiation and other developer tools. It has worked with non-bank players like remittance companies and e-wallets to offer open finance solutions. Use cases include digital banking, online credit scoring, e-commerce and gig economy payments. Brankas was a participant in Visa’s 2021 Accelerator Programme.
Singapore-licensed crypto firm Sygnum crosses $1 billion valuation with latest fund raising
Digital asset bank Sygnum, licensed in Singapore and Switzerland, has raised $120 million in a Series B funding round led by Sun Hung Kai & Co. Sygnum uses distributed ledger technology (DLT) to embed digital assets into regulated banking and aims to “empower everyone everywhere to own digital assets with complete trust”. Proceeds will boost Sygnum’s development of new, institutional-grade services in Web 3.0, which is characterised by a decentralised internet and artificial intelligence-driven services. Some of Sygnum’s new offerings include additional yield-generating products, like white-listed decentralised finance pools and expanded staking services, asset management solutions and new commercial partnerships with blockchain ecosystems.
CHINA
China digital currency: e-CNY wallet lands in app stores ahead of Winter Olympics 2022
Paysend-Tencent partnership enables Weixin transfers
China steps up crackdown on financial products promoted on social media, requires industry licence
China rolls out new regulation to rein in algorithms used on apps as Beijing continues to clip wings of Big Tech firms
Alibaba bets on virtual meetings in the metaverse with DingTalk AR glasses
China digital currency: e-CNY wallet lands in app stores ahead of Winter Olympics 2022
China has made a key step forward in its ambitious push to develop a sovereign digital currency by opening its e-CNY wallet app for public download in the country’s iOS and Android app stores. The digital yuan, developed by the Digital Currency Research Institute under the People’s Bank of China, is meant to replace Chinese Banknotes and coins in circulation. About 140 million Chinese residents had opened a digital yuan account as of October 2021, with accumulated transactions reaching 62 billion yuan since launch. The currency is also accessible through electronic wallets of various banks in China.
Paysend-Tencent partnership enables Weixin transfers
The UK-based payment ecosystem, Paysend, has just announced a partnership with the fintech arm of internet and technology company, Tencent. The joint venture allows people to receive money through China’s domestic version of WeChat. This allows for cross border transfers via licensed banks in China, with funds reaching the bank account linked to the Weixin application. This strategic partnership expands acceptance of Paysend transfers to Weixin users. It also promotes openness and interoperability among the digital payment industry to increase the convenience for customers by allowing them to send and receive money in the way that makes the most sense to them. Paysend aims to used advanced technology to make payments faster and easier for millions around the world and increase financial inclusion.
China steps up crackdown on financial products promoted on social media, requires industry licence
China’s finance regulators have proposed new curbs on online marketing for financial products and services in Beijing’s latest efforts to set boundaries between the financial sector and internet platforms. A draft regulation in China would bar unlicensed sales of banking, insurance and securities services through live-streaming and social media. The booming live-streaming e-commerce market has led to influencers selling all kinds of products, including highly regulated financial services like loans. The draft comes as Beijing has been seeking to slow technological disruptions to the financial system amid growing concerns about systemic risk.
China is rolling out a new regulation to rein in algorithms used on apps to recommend what consumers would like to read, watch, play and buy online, making Beijing’s latest effort to bring the country’s Big Tech sector firmly in line with state policies. App operators who extensively use algorithm recommendation in their platforms- including Alibaba Group Holdings, Tencent Holdings, Tiktok owner ByteDance are directed to allow consumers to decline personalised recommendations generated by their services. The new regulations seek to address “algorithmic discrimination”, which has led to differentiated pricing of products and services.
Alibaba bets on virtual meetings in the metaverse with DingTalk AR glasses
Dingtalk, the workplace app developed by Alibaba Group Holdings, plans to launch new augmented reality (AR) glasses so users can conduct virtual meetings, in the tech giant’s latest move to stake out a claim in the metaverse. The AR glasses will feature self-adjusted optical functions, saving near-sighted users the trouble of wearing additional glasses. This aims to make the workspace more “immersive”, which is the platform’s approach to developing the metaverse. Over the past year, Alibaba has increased its investment in AR and VR-related start-ups over the past few years.
ASIA
India's shadow lenders build super apps as competition heats
YC, Alpha JWC pour $5.2m into influencer-focused fintech firm
India's shadow lenders build super apps as competition heats
Indian shadow lender Shriram City Union Finance is building a super app to offer various financial products on a single digital platform, joining other major non-bank finance companies in taking on growing competition from fintech firms. The move follows another major shadow lender Bajaj Finance, which has also been working on its consumer app, as the sector tries to play catch up after undergoing a crisis that saw a number of finance companies fold up. Several Indian fintechs, including One 97 Communications, already offer most financial products on their apps, luring in customers in the country that is traditionally under banked but is increasingly turning to digital forms of transactions.
YC, Alpha JWC pour $5.2m into influencer-focused fintech firm
UpBanx is an Indonesia-based fintech startup that aims to help content creators, artists, and freelance workers get discovered and manage their workflow and finances. The fintech startup has raised US$5.2 million pre-seed round let by Y Combinator, Alpha JWC Ventures, and other investors. Currently, it is an invite-only platform that allows users to open a business account to store their earnings. More features such as discoverability, workflow management and financing features will be released in the near future. The platform aims to be a combination of creator-focused credit card, Karat, and creator management platform, Grin, in a single place.
FUNDRAISING IN ASIA
Indian neobank Jupiter raises $86 million to launch lending and wealth management services => here
Vietnam based fintech Anfin raises US$ 1.2 million in seed funding => here
Vietnam's Timo digital bank raises USD 20 million => here
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