What The FinTech #95: 8 May 2022
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DBS Foundation’s flagship grant programme is now open for applications!
Since 2014, DBS Foundation has been supporting social enterprises (SEs) grow their businesses and create positive impact. With our grant funding and access to the bank’s resources, which include skills- and capacity-building, networking and business opportunities, many SEs have deepened their social and environmental impact.
Recognising that small to medium-sized enterprises (SMEs) are crucial engines of growth in many economies, we are extending our DBS Foundation Grant Programme to help SMEs transform their existing businesses into sustainable and inclusive models to drive impact.
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What was the FinTech this week in: 📰
HONG KONG
PayMe and BOC Pay to join next phase of consumption voucher scheme
U.S. banks are looking for a new kind of generalist in Hong Kong
PayMe and BOC Pay to join next phase of consumption voucher scheme
The Hong Kong government has added HSBC's PayMe and Bank of China (Hong Kong)'s BoC Pay in implementing the second phase of the consumption voucher scheme this year. There will be a total of six stored value facility (SVF) operators participating in the next phase, including AlipayHK, BoC Pay, Octopus, PayMe from HSBC, Tap & Go and WeChat Pay HK. In a statement, the Hong Kong government said it is discussing with the relevant operators on the detailed arrangements, including system design and detailed procedures. HSBC is planning to roll out new measures to help SMBs benefit from the scheme. Boasting more than 2.7 million users in Hong Kong, PayMe has emerged from a P2P payment app to become a widely adopted P2M payment solution through "PayMe for Business", which has built a presence at more than 34,000 online and physical outlets across the city.
U.S. banks are looking for a new kind of generalist in Hong Kong
US banks are on the hunt for bankers to lead advisory teams specialising in environmental, social and governance (ESG) as they play catch up with European peers. US banks want senior bankers with ESG expertise, with at least one big international bank looking to hire a head of ESG advisory for the Asia-Pacific region. ESG advisory is a new area of expertise, so it’s not easy to find seasoned experts. bankers with experience in energy, technology and industrials will find themselves in demand. European banks been quicker than many of their US rivals by staffing up ESG-focused teams globally and now they are rolling them out on a regional basis. In February, UBS appointed Brendan Tu to the newly-created role as head of ESG advisory for APAC, based in Hong Kong.
SINGAPORE
UOB’s FinLab shines focus on ESG with the Greentech Accelerator
Revolut, Luno latest to receive in-principle approval from MAS to offer crypto services
UOB’s FinLab shines focus on ESG with the Greentech Accelerator
UOB’s innovation accelerator The FinLab has unveiled The Greentech Accelerator, a new global programme aimed at supporting innovative greentech solution providers regionally and globally to drive their company’s sustainable mission forward. As part of the first cohort, the programme will focus on greentech solutions including energy efficiency; zero-waste supply chain; carbon management and reporting. The Greentech Accelerator is open to all innovative greentech startups and SMEs with a Technology Readiness Level (TRL) of six and above. The first Greentech Accelerator programme will accept ten companies for its pioneer cohort, with the goal of commercialising their solutions in order to help SMEs adopt green practices and technology.
Revolut, Luno latest to receive in-principle approval from MAS to offer crypto services
The Monetary Authority of Singapore (MAS) granted “in-principle approval” to fintech firms Revolut and Luno Singapore to offer digital payment token services under the Payment Services Act. Revolut in particular, is allowed to operate a fully regulated cryptocurrency service, along with merchant acquiring services. Revolut Technologies Singapore Pte Ltd (RTS) is already licensed as a Major Payment Institution in Singapore. With this latest approval, RTS will be able to provide digital payment token, or cryptocurrency, services in Singapore. Meanwhile, Luno Singapore — which is already regulated by the Securities Commission of Malaysia and registered with Indonesian authorities — said that it will be better positioned to help accelerate Singapore’s growth as a crypto hub and help investors better identify opportunities that are able to meet their digital asset needs. Beside Revolut and Luno, other companies that have received in-principle approval from MAS include Paxos, Sygnum, Coinhako, Hodlnaut and Digital Treasures Center (DTC).
ASIA
GXS Bank to receive banking licence in Malaysia
Indian neobank Open hits unicorn status
Cybersecurity unicorn Acronis to invest $50m in Vietnam
Etiqa PH partners with insurtech company Igloo to bring simplified mobile insurance
ICICI Bank introduces digital ecosystem for MSMEs
GXS Bank to receive banking licence in Malaysia
Grab and Singtel have announced that GXS Bank, their digital bank joint venture, has been selected to receive a full digital banking licence in Malaysia. Subject to regulatory approvals, the digital bank joint venture will hold a 55.45% stake in the proposed Malaysia digital bank. The bank to be established by the Malaysia digital bank consortium is expected to allow local micro-SMEs and other financially underserved segments such as gig economy workers to access a suite of financial services that will serve them through their lifecycle. In particular, small and medium-sized enterprises (SMEs) are expected to be key beneficiaries of digital banking. Moving forward, the Malaysia digital bank consortium will work closely with Bank Negara Malaysia to meet all of its requirements in order to be awarded the Malaysia digital bank licence. The digital bank joint venture between Grab and Singtel was formed in 2020 and selected to be awarded a full digital banking licence in Singapore.
Indian neobank Open hits unicorn status
Indian neobank Open has become a unicorn after securing $50 million in a Series D funding round led by investment firm IIFL. Tiger Global, Temasek and 3one4 Capital joined the round, which sees Open's valuation double from $500 million at its Series C seven months ago. Open partners regulated banks to offers SMEs and startups a business account designed to automate the way they run their finances by helping with things like payments and bookkeeping. The firm is used by more than 2.3 billion SMEs and process more than $30 billion in transactions a year. With the new funding in place, Open is set to add revenue-based financing product for e-commerce firms, an early credit offering, and a working capital lending product.
Cybersecurity unicorn Acronis to invest $50m in Vietnam
Acronis would focus on hiring not just engineers but also talent across verticals such as sales, marketing, data operations, and cybersecurity in Vietnam. The Vietnam office will work in close collaboration with the company’s R&D centers in Bulgaria and Singapore to develop “cutting-edge cyber protection solutions” for Acronis. Acronis specializes in backup, protection, disaster recovery, and enterprise file syncing and sharing solutions. It offers its products through 50,000 partners and service providers in over 150 countries and has raised more than US$400 million at a valuation of about US$2.5 billion.
Etiqa PH partners with insurtech company Igloo to bring simplified mobile insurance
Unified insurer Etiqa Philippines and Insurtech company Igloo collaborated to launch the gadget insurance for every Filipino. Etiqa Philippines has been in the insurance industry for more than 40 years and takes pride in being one of the few players in the market with comprehensive insurance solutions for health, protection, investment and non-life insurance. The new plans are now available online. New products like Cracked Screen Protection and Electronics Protection Plans can now be accessed through Shopee. Once a client purchases a mobile device or accessory through Shopee, they can easily top up or purchase the insurance before check out. The policy may then be activated via Igloo Portal.
ICICI Bank introduces digital ecosystem for MSMEs
India-based ICICI Bank has introduced a digital ecosystem for all MSMEs in the country, including customers of other banks. The ecosystem, which offers an array of solutions, brings forth a shift from the existing industry practice where banks offer services only to their customers. anyone can avail of the benefits of ICICI Bank’s digital solutions by simply downloading the new version of the InstaBIZ app. Based on these insights, the firm has launched a digital ecosystem with open architecture by bundling banking services with offerings to help MSMEs. MSMEs, who are customers of other banks, can avail of a host of services from the bank’s digital ecosystem by logging in as a ‘Guest’ in the new version of InstaBIZ.
BLOCKCHAIN - CRYPTO - DIGITAL ASSETS - DE FI
Coinbase's NFT marketplace opens to all, but users don't show up
Vatican announces metaverse plans
Binance to drive crypto and blockchain awareness among Indian investors
Coinbase is on other side of Goldman's first Bitcoin-backed loan
Virtual Land Grab raises $320M in crypto for developers of bored Ape metaverse
Coinbase's NFT marketplace opens to all, but users don't show up
Coinbase Global's new marketplace for non-fungible tokens (NFT) is now officially open to all - and it's getting off to a very slow start. After letting in a select number of users from its waiting list in the last few weeks, the US's biggest crypto exchange opened the marketplace to everyone as of noon on Wednesday. The site - which Coinbase says is still in testing - recorded fewer than 110 transactions as of about 5.15 pm, representing less than US$60,000 in sales, according to tracker Dune Analytics. That compares with US$124 million in transaction volume for No 1 NFT marketplace OpenSea on May 3, the most recent day available, per Dune. The result is hardly the mad rush expected by some on Wall Street after Coinbase's NFT project attracted several million signups to its waiting list when it first announced the marketplace last fall. The new site is part of efforts by Coinbase to diversify its revenue and fuel growth, which is expected to turn negative this year.
Vatican announces metaverse plans
The Vatican has announced its plans to enter the metaverse through a strategic partnership with tech company Sensorium. The aim of this public-private partnership is the development of an NFT-gallery accessible through VR and desktop of the Vatican’s collection, which currently averages six million in-person visitors a year. Works in the collection include those from Michelangelo, Raphael, Marc Chagall, Salvador Dalí, Paul Gauguin, Wassily Kandinsky, Vincent van Gogh, and Pablo Picasso. Humanity 2.0, a non-profit Vatican affiliated organisation, has reportedly made this connection with Sensorium as part of its aim to tackling obstacles to humanity's socio-economic and cultural development through leadership, media, and technology.
Binance to drive crypto and blockchain awareness among Indian investors
Crypto exchange Binance announced the parallel launch of three key educational initiatives to fast-track educating Indian investors and students about the cryptocurrency and blockchain ecosystem. While recognizing the importance of investors’ awareness of crypto and blockchain, Binance highlighted that Indian regulators and policymakers cite the lack of education as an area of concern, which currently hinders the widespread adoption of crypto. Primarily targeting the student demographic in India, one of the three educational initiatives launched by Binance involves the initiation of the “Blockchain for Good” ideathon, a platform for college students to come up with solutions for making crypto more accessible and inclusive.
Coinbase is on other side of Goldman's first Bitcoin-backed loan
Goldman Sachs Group's first ever lending facility backed by Bitcoin is the latest effort by crypto exchange Coinbase Global to bring money from the Wall Street to the digital-asset space. Bitcoin-backed loans are not new in the digital-currency sector, though for Wall Street they are novel. Some "crypto-native" lenders such as Babel Finance even allow Bitcoin mining firms to put up their machines as loan collateral to borrow cash. Such borrowers usually post Bitcoin at loan-to-value in the 40 per cent to 60 per cent range. The collateral is held by a qualified custodian, and borrowers receive US dollars from the lender at an agreed-upon interest rate.
Virtual Land Grab raises $320M in crypto for developers of bored Ape metaverse
Yuga Labs, which makes the non-fungible tokens (NFTs) of the popular Bored Apes Yacht Club collection, is selling virtual land for its metaverse project Otherside. The company has raised around $320 million in crypto — the biggest offering of its kind. The demand was strong enough that activity for the event was all around the Ethereum blockchain, to the extent that it disrupted activity and sent transaction fees soaring. Those who held the ApeCoin token who verified their identity were fighting for deeds of 55,000 parcels of virtual land in Otherside. In addition, there were 45,000 other parcels allocated for holders of Bored Ape Yacht Club and Mutant Ape NFTs, along with Yuga Labs and other project developers. Another 100,000 tokens will be awarded later to certain Otherdeed NFT holders.
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