What The FinTech #99: 5 Jun 2022
Happy Sunday & Welcome back to What The FinTech, your regular FinTech & Innovation Newsletter focusing on Hong Kong & Asia!
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What The FinTech Season 4 ! 📺
I am thrilled to announce that What The FinTech is back for a fourth season.
I changed the format of those interviews to bring you longer and more engaging discussions, every week, with various Asian Tech Figures about entrepreneurship, emerging technologies, customer engagement, and partnerships.
The Third Episode,with Neil Tan - CEO of Neptune Digital, will be live streamed on Wednesday at 6:00pm HKT.
The previous interviews, and the next one, are available on podcast: Spotify, Apple Podcasts, Google Podcasts.
Interview with Dennis Shi - CEO of Mojodomo - Video on Linkedin / Youtube
Interview with Jessica Liu - Co-founder of Planto - Video on Linkedin / Youtube
Interview with Neil Tan - CEO of Neptune Digital
Check out the previous videos here: on What The FinTech, Instagram or Youtube.
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What was the FinTech this week in: 📰
HONG KONG
Hong Kong still a regional tech hub for AI and big data but more work needed to provide solid regulatory framework: survey
Visa adds Tap to Phone contactless payment acceptance for taxi drivers in Hong Kong
Hong Kong is seen as a top regional hub for technology set for further expansion, according to a large number of local and global artificial intelligence and big data companies surveyed by the FinTech Association of Hong Kong (FTAHK), an industry advisory group. The city is considered an attractive location to build an AI or big data business because of its role as a financial hub and well-developed tech ecosystem, according to the Artificial Intelligence and Big Data report by the FTAHK, which surveyed 88 tech companies, including IBM, KPMG, and the Hong Kong Science and Technology Parks Corp.However, the city still needs to address regulatory challenges and provide more government support to bolster the sector’s development, according to the survey.
Visa adds Tap to Phone contactless payment acceptance for taxi drivers in Hong Kong
Taxi drivers in Hong Kong can now accept contactless payments on a standard Android NFC smartphone using Visa’s Tap to Phone software point of sale (sPOS) solution. Visa has made the solution available for taxi drivers in the region, enabling passengers to pay their fares by tapping their contactless card on a driver’s Android smartphone, choose to add a tip and opt to receive a digital receipt for the transaction. To date, about 100 drivers from Chung Sing Taxi have registered to use the service “with a few hundred more to follow in the coming months but [Visa] said it aimed to woo the city’s 18,163 taxis with the cashless payment service. Visa is making Tap to Phone available to Hong Kong taxi drivers in partnership with payment services provider Global Payments Asia-Pacific, and now aims to “reach out to minibuses and ferries to allow passengers to pay for small ticket items via its contactless scheme, which is already available on more than 6,000 franchised buses and would be put in place at MTR stations next year.
SINGAPORE
Stripe Terminal comes to Singapore
S’pore pilots world’s first AI governance testing to reinforce transparencies among companies
Digital banks will soon launch in S’pore
MAS launches 2022 global fintech 'Hackcelerator' on Web 3.0 and green finance
Stripe Terminal comes to Singapore
Stripe, a global financial infrastructure platform, today announced that Stripe Terminal is now available in Singapore, making it easy for businesses to build custom checkout experiences for accepting in-person payments, as well as unifying both customer experience and data across online and in-person transactions. Stripe Terminal’s omnichannel payments solution will provide its set of developer solutions (APIs and SDKs) as well as pre-certified card readers. In addition, Stripe Terminal offers businesses across industries various reader options and features such as tipping.
S’pore pilots world’s first AI governance testing to reinforce transparencies among companies
Singapore recently launched AI Verify, the world’s first AI governance testing pilot framework and toolkit. Developed by the Infocomm Media Authority of Singapore (IMDA) and Personal Data Protection Commission (PDPC), the toolkit was considered a step towards creating a global standard for governance of AI. The initial raw toolkit sounds promising. It packages a set of open-source testing solutions — inclusive of process checks — into a singular toolkit for efficient self-testing. AI Verify delivers technical testing against three principles: fairness, explainability and robustness. Essentially a one-stop-shop, the toolkit offers a common platform for AI systems developers to showcase test results, and conduct self-assessment to maintain its product’s commercial requirements. It is a no-hassle process, with the end result generating a complete report for developers and business partners, detailing the areas which could affect their AI performance. The toolkit is currently available as a Minimum Viable Product (MVP), offering just enough features for early adopters to test and provide feedback for further product development.
Digital banks will soon launch in S’pore
Together, Grab and Singtel have embarked on a joint venture called GXS Bank, which aims to support young PMETs, gig workers, and micro-SMEs to have access to transparent and convenient financial services for their daily activities. Grab is targeting the public launch of its Singapore digital bank in the second half of 2022. Grab accelerated its hiring plans when it announced in February 2021 that it was partnering with the Infocomm Media Authority of Singapore (IMDA) and Digital Industry Singapore (DIS) to create 350 new jobs to support its growth plans, which includes the development of the upcoming digital bank consortium. Currently, only over 20 digibank jobs are available at Grab, including internship positions. Some roles include lead UX writer, head operational risk, lead data engineer and senior data scientist.
MAS launches 2022 global fintech 'Hackcelerator' on Web 3.0 and green finance
The Monetary Authority of Singapore (MAS) announced the launch of the 7th edition of the Global FinTech Hackcelerator, with the theme “Accelerating A Greener Digital Future”. The competition, powered by Oliver Wyman, seeks to leverage the potential of FinTech in accelerating the development of Web 3.0 and Green Finance, in Singapore and the region. FinTech firms and solution providers around the world are invited to submit innovative solutions to address over 50 problem statements that have been collected from financial institutions and industry players.
The Web 3.0 problem statements focus on embedding blockchain technology to overcome scalability and implementation challenges, as well as expanding decentralised finance to enable the development of real-world use cases.
The Green Finance problem statements focus on enhancing investor and financial institution’s ease of monitoring commitments and measuring impact of loans and investments against their sustainability goals.
CHINA
City of Shenzhen airdrops 30M in free digital yuan to stimulate consumer spending
China’s StepVR readies immersive VR experience that goes beyond Meta’s Oculus ‘toy’ headsets, founder says
China's draft cybersecurity rules pose risks for financial firms, lobby group warns
City of Shenzhen airdrops 30M in free digital yuan to stimulate consumer spending
The city of Shenzhen will airdrop 30 million digital Chinese yuan (e-CNY) to local residents in an attempt to revitalize consumer spending. The airdrop is a joint effort between the city of Shenzhen and Meituan Dianping, China's leading food delivery app. As per instructions, users would need to first login to the Meituan app, sign up for the incentive, and then potentially receive the e-CNY rewards as part of a lottery draw. If chosen, the e-CNY is then dispensed to users and can be spent at more than 15,000 in-app merchant terminals that accept the state-owned digital currency. Previously, the People's Bank of China had identified the e-CNY as a potential tool for advancing regional economies and improving the efficiency of select financial services.
Chinese virtual reality (VR) hardware maker StepVR is gearing up to launch a fully immersive product that founder and CEO Guo Cheng said goes beyond the Oculus headset from Mark Zuckerberg’s Meta, which he called a “small toy”. The VR Gates01 is a large, open-air box that provide a differentiated experience in the virtual world. The product – which includes its own VR headset along with a vibrating vest, motion capture gloves and an omnidirectional treadmill – is set to launch in July. The company plans to start selling the current version of the product in Japan, South Korea, the Middle East, North America and Europe next year.
China's draft cybersecurity rules pose risks for financial firms, lobby group warns
The China Securities Regulatory Commission (CSRC) released the draft Administrative Measures for the Management of Network Security in the Securities and Futures Industry on Apr 29 and offered a month-long public consultation on the proposals of cybersecurity rules for financial firms. The draft rules seek to make it mandatory for investment banks, asset managers, and futures companies with operations in China to share data with CSRC, allow regulator-led testing, and help set up a centralised data backup centre. The draft rules also stipulates that the CSRC could conduct penetration-testing -- a simulated cyber-attack against the operational system -- and system scanning on securities, futures and fund firms. It also introduces the requirement to introduce a sector-wide data backup centre.
ASIA
Bolttech Expands Its Vietnam Footprint With Viettel Telecom Partnership
Smart ring that acts as wallet and key gets backing from big Japanese firms: sources
Bolttech Expands Its Vietnam Footprint With Viettel Telecom Partnership
Insurtech unicorn Bolttech announced that it has partnered with Vietnam’s telecommunications network operator Viettel Telecom. The partnership will launch insurance offerings that is powered by Bolttech’s insurance exchange platform, on Viettel’s customer app MyViettel. The offerings include health, travel, home, car, and motorbike insurance products. Bolttech has also cooperated with other insurers to create an insurance ecosystem that offers a range of product options to meet the different needs of Viettel’s customers.
Smart ring that acts as wallet and key gets backing from big Japanese firms: sources
Itochu, Mitsubishi UFJ Financial Group and other companies are investing in Evering, a chip-embedded smart ring that can act as a wallet and a key. Evering is backed by MTG, a listed Japanese health and beauty company. MTG struck a contract with Visa last year and began selling rings in Japan, which cost about 20,000 yen (S$213.69) apiece, including tax. As retailers around the world seek ways to make it easier for consumers to shop seamlessly without touching anything, Evering and MTG are betting that their smart ring will resonate with early adopters. Made from zirconia, the finger-worn gadget lets people do things such as lock and unlock doors, as well as pay for drinks in stores.
BLOCKCHAIN - CRYPTO - DIGITAL ASSETS - DE FI
India to roll out CBDC using a graded approach: RBI Annual Report
SBI invests in Digital Asset for 'smart yen' joint venture project
South Korea is betting on the metaverse — and it could provide a blueprint for others
Basel Committee progresses work on climate risk and crypto asset regulation
DeFi crypto wallet aims to decentralize inheritance of crypto and NFTs
Investors dumping on Terra as LUNA 2 tanks 70% in two days
India to roll out CBDC using a graded approach: RBI Annual Report
To further cement India’s decision to introduce an in-house central bank digital currency (CBDC) in 2022-23, the Reserve Bank of India (RBI) proposed a three-step graded approach for rolling out CBDC “with little or no disruption” to the traditional financial system. RBI stressed the need for India’s CBDC to conform to India’s objectives related to “monetary policy, financial stability and efficient operations of currency and payment systems.” Based on this need, RBI is currently examining the various design elements of a CBDC that can co-exist within the existing fiat system without causing disruptions.
SBI invests in Digital Asset for 'smart yen' joint venture project
SBI Holdings, a Japanese financial conglomerate has invested in Digital Asset - a global developer of blockchain and digital currency initiatives - with the aim of creating a joint venture company in Japan for programmable money. Expected to launch in 2022 the newly created 'smart yen' programme will utilise Digital Asset's cross-blockchain smart contracts to programmable money. The technology is implemented as an overlay to the existing payment infrastructure, enabling the execution of condition-based payments or reward programmes automatically.
South Korea is betting on the metaverse — and it could provide a blueprint for others
South Korea earmarked around $177.1 million in a cautious first step into Metaverse being among the first investments in the nascent industry to be made by a national government. On a city level, Seoul’s metropolitan government is building a 3.9 billion-won metaverse platform to allow citizens to access public services virtually. It signals an interest in a technology that could take center stage in the coming years — and it could provide a blueprint for others to follow. It has attracted the attention of other government bodies in Asia. Shanghai’s authorities have been encouraging public services to be built with the metaverse in mind.
Basel Committee progresses work on climate risk and crypto asset regulation
The Basel Committee on 27 May and approved a finalised set of principles for the effective management and supervision of climate-related financial risks and specifying prudential treatment of crypto assets. It agreed on a way forward to reflect developments in the European banking union (EBU) on the assessment methodology for global systemically important banks (G-SIBs). On climate-related financial risk, the principles, which will be published in the coming weeks, forms part of the broader assessment of potential measures - spanning disclosure, supervisory and regulatory measures - to address climate-related financial risks to the global banking system. On the crypto asset front, the committee will issue a second consultation on the prudential treatment of banks' crypto asset exposures highlighting the importance of having a global minimum prudential framework to mitigate risks.
DeFi crypto wallet aims to decentralize inheritance of crypto and NFTs
Israeli crypto software provider, Kirobo’s new inheritance solution allows users to generate and execute an automated last will without the need for lawyers, government authorities or any other centralized entity. Kirobo is moving to tackle a major void in the DeFi industry by providing crypto investors with an opportunity to pass private keys or transfer funds according to their last will. The launch of an inheritance feature on its decentralized crypto wallet Liquid Vault will allow users to designate crypto wallets to inherit their funds.
Investors dumping on Terra as LUNA 2 tanks 70% in two days
The price of Terra (LUNA) has tanked around 70% since the re-launch of the Terra ecosystem via Terra 2.0 on May 28. Under the revival plan of Terraform Labs founder Do Kwon, new LUNA tokens, also referred to as LUNA 2, are being airdropped to investors that previously held Luna Classic (LUNC), TerraUSD Classic (USTC) and Anchor Protocol UST (aUST). Binance is set to begin a multi-year distribution of LUNA to eligible users starting from May 31, along with listing the token for trading via its Innovation Zone, a dedicated trading zone for volatile and high-risk assets.
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