In an interim report released last month Australia's Banking Royal Commission has highlighted the misconduct, greed, and even criminality involved in the Australian financial services industry. Set up in December 2017, the commission has worked through over 700,000 documents to investigate the dealings of some of Australia’s largest financial companies. The commission has heard from victims and cross-examined some of the key figures in the industry. The results are damning and are likely to spark much greater support for tougher regulation on the banks in the future. However, a battered, bruised, and riskless financial system is no good to anyone and may end up causing further disruption to the economy. It’s important that the government finds the right balance.
At the end of last month, another Chinese fintech company Samoyed Holding filed for $80 million IPO on the New York Stock Exchange. The company provides consumer finance services for the Chinese millennials. Its main business is the credit card balance transfer business, counting for 74.7% of its 2017 turnover.
The 20th China-EU high summit was held in Beijing this past week and attracted a lot of attention due to the current global trade tensions. As the speculation on trade war continues, the EU and China decided to stand together against Trump’s attack on the global trade system.
The Financial services sector is integrating AI (artificial intelligence), machine learning and predictive analytics at a remarkable rate for both customer-facing and back-end operations. One element commonly associated with AI, but one that has not yet made a strong impact, are ‘chatbots,’ computer programs designed to simulate conversation with human users. However, this could be about to change, with large financial institutions starting to experiment and launch products leveraging AI technology.
Asia is the heart of the rapidly growing FinTech movement. Singapore is one of the countries in the region vying for the top spot as Asia’s FinTech hub. With Singapore constantly getting closer to being the industry’s hub in Asia, it is not surprising that there is competition from other regions within Asia – particularly Hong Kong.
There is a large financing gap in the Hong Kong market, particularly for SMEs who have become increasingly frustrated with the lack of available financing. Thus, it was not a shock when Alibaba – the Chinese e-commerce conglomerate – invested $2 million into Qupital, a Hong Kong based online platform that allows mainly SMEs raise finance against their receivables by connecting them with professional investors and family offices.
The new US President Donald Trump has made clear his intention to roll back, and possibly repeal, the Dodd-Frank Act of 2010. This will have wide-reaching repercussions for Asia.
As part of our China Fintech initiative, we brought a group of Chinese executives to Singapore for the Fintech Festival and a number of company visits. The 17 fintech executives from some of China's largest P2P lenders, consumer finance groups and digital payments platforms were part of the group.
The Singapore Fintech Festival concluded on Friday November 18th, much like it started, with a bang. At the beginning of the week it was the Monetary Authority of Singapore laying out its vision for the future of fintech, while the closing party consisted of drums, music and a celebratory finish to a hectic week of innovation center visits, conferences, meetings, openings, drinks, awards ceremonies, more drinks and a general celebration of Fintech in Singapore.
Although it was only a week ago, Sibos 2016 already seems like a distant memory with most of the world (with the exception of the Chinese who are still in the midst of the October holiday) back to work. Hosted in Geneva, the conference didn't disappoint. The week was packed with meetings, panels, discussions, and presentations.
Sibos is in full-swing here in Geneva with a record number of delegates and exhibitors on Day One already. Kapronasia is delighted to be part of Sibos 2016 and will be participating in three sessions of the next couple of days. Please join us at one of our sessions to hear our insights on the latest Asia Financial Industry trends and how we can help your business succeed in Asia.
Here are the highlights:
On Tuesday September 27th at 11am Zennon Kapron will be moderating the Payments Market Infrastructure Roundtable. The session is a closed door event with regulators and central banks across the region to discuss the latest trends and challenges in payment infrastructure in Asia.
On Thursday the 29th of September from 12:45-13:45 in the Innotribe space, Zennon Kapron will be guest speaking on Fintech Hubs and more specifically the developments around China Fintech.
Later that same afternoon on Thursday the 29th from 14:00-15:00 in Conference Room 3 (CR3), Zennon will join an expert panel to speak on the topic of Emerging Markets: Mobile money and financial inclusion.
Xiaomi has entered the finance industry, following in the steps of Chinese tech titans Alibaba and Tencent. On June 13th, Xiaomi, whose traditional strength is in the smartphone business, joined hands with Chinese conglomerates New Hope Group and Chengdu Hongqi Chain Co. to establish the New Hope Bank in the Western Chinese province of Sichuan.
On November 18th, Baidu announced that it was finalising its private bank plans and would be setting up a banking venture with China Citic bank called Baixin. This was the last of the 3 BAT (Baidu, Alibaba, Tencent) to setup a private bank and was widely expected, although potentially a bit later than originally thought.