Latest Reports

  • Open Banking and APIs in Asia - A paper from Kapronasia and Red Hat
    Open Banking and APIs in Asia - A paper from Kapronasia and Red Hat Both regulatory and competitive forces have been making Open Banking a new reality across the region. Banks are now realizing that if they want tokeep their existing customers, acquire new ones, and play a greater role in their customers’ lives then they must become more customer focused, while offering a…
  • Delivering a Secure Digital Experience - A paper from Kapronasia and Jumio
    Delivering a Secure Digital Experience - A paper from Kapronasia and Jumio With the rise of digital banks and fintechs across the region, the race is on to acquire new customers. Customer experience built on new, innovative product offerings will become a key differentiator. On the other hand, the growing financial crime threats means that regulators will continue to tighten their AML/KYC…
  • 2021 Asia Pacific Fintech Trends
    2021 Asia Pacific Fintech Trends 2021 marks the tenth year that Kapronasia has produced our fintech trends report. In 2011, our focus was completely on the mainland China market, but as our business expanded, today we are present in Shanghai, Singapore, Taipei, Seoul, and Tokyo and our trends report has grown to match our footprint.

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Latest Insight

Digital banking efforts accelerate in the Philippines

Written by Kapronasia || April 15 2021

The Philippines is determined to speed up financial inclusion through digitization. By 2023, the BSP aims to digitize at least 50 percent of total retail transactions and bring 70% of Filipino adults into the formal financial system. To that end, it introduced guidelines for digital banks in December 2020 and has thus far received two applications. The rules require licensees to hold at least 1 billion pesos in capitalization, operate a head office in the Philippines and offer only-only banking services. Licensees are not permitted to set up physical branches. The review process will likely carry on through 2021, with the winners being announced on a rolling basis. Yet some fintechs are determined to enter the market earlier.

Can Razer still become a digital bank?

Written by Kapronasia || April 14 2021

Singapore’s digital banking race had far more losers than winners. Of all the failed bids, Razer’s must have been among the hardest to swallow. The gaming hardware firm was a strong contender and had Sea and Grab not both been in the running, may well have prevailed. The question now is, can Razer still become a digital bank? The answer is maybe in Malaysia and/or the Philippines.

Fintech crackdown slows Shanghai STAR board's momentum

Written by Kapronasia || April 12 2021

Before Ant Group’s IPO was nixed, the Shanghai STAR board was red hot. Since then, it has cooled off considerably. Not only is Ant’s IPO in limbo, but other Chinese tech companies are scuttling their plans to go public, one after the next. Ant is the bellwether for the market, whether it is a bull or bear. Data compiled by Financial Times show that 76 firms suspended their IPO applications in March, more than twice the number in February. Overall, 168 companies have put their plans to go public on ice since November. 

BNPL competition in Southeast Asia heats up

Written by Kapronasia || April 08 2021

The buy now, pay later frenzy is moving from the advanced economies into emerging markets with Southeast Asia a hotspot. Given the rapid growth of fintech in the region and lack of credit card penetration in most countries it is relatively easy for BNPL to make inroads. In fact, BNPL is proving so popular that the segment is growing fast in Singapore too, where credit card penetration is 73%.

Will Thailand issue digital bank licenses?

Written by Kapronasia || April 07 2021

Thailand is one of the few major Southeast Asian economies that has not unveiled a digital banking roadmap. Singapore's digital banks will go live in 2022. Malaysia will accept applications for licenses this year and issue them by early next year. The Philippines recently announced it would issue digital bank licenses. Indonesia plans to clarify digital bank regulations by mid-2021. In contrast, Thailand's central bank has been quiet about the possibility of digital banks for more than a year.

The cross-border challenge for China's CBDC

Written by Kapronasia || April 05 2021

China is leading the world in CBDC development, prompting speculation that DCEP (digital currency, electronic payment) is on its way to becoming the digital equivalent of the U.S. dollar. The reality is more nuanced. To be sure, China's digital fiat currency is at a more advanced stage than any other major country's CBDC, and China has many potential applications for it domestically. When it comes to cross-border use, however, many questions remain about the digital yuan.

Will Australia's neobanks endure?

Written by Kapronasia || March 30 2021

Australia's digital banking honeymoon is winding down. With Xinja and 86 400 both out of the picture - albeit in very different ways - the Australian Prudential Regulatory Authority (APRA) is moving to raise the sector's barrier to entry. It will become harder to get a banking license. Under the revised regulations, neobanks will have to be better capitalized and launch both an income-generating asset product and a deposit product in order to be approved for a full license. 

Airwallex reaches for the stars

Written by Kapronasia || March 29 2021

Nobody can accuse Airwallex of having modest ambitions. The Australia-founded and Hong Kong-based unicorn just raised another US$100 million in an extended Series D round at a valuation of US$2.6 billion. The U.S.'s Greenoaks was the lead investor. The cross-border payments upstart plans to use the capital injection to expand across four continents - Australia, North America, Europe and Asia.

Can buy now, pay later (BNPL) get any hotter in Australia? Judging by Commonwealth Bank of Australia's (CBA) foray into the market, yes, it can. CBA's move comes less than two weeks after PayPal announced it would enter the market. CBA is the first of Australia's big four banks to roll out a BNPL product, and it likely will not be the last. The product, CommBank BNPL, will be available to four million of the bank's retail customers for transactions up to AU$1000 from mid-2021.

WeLab teams up with Allianz Group

Written by Kapronasia || March 18 2021

Hong Kong's virtual banking field is crowded with eight neobanks that have similar value propositions. In their fledging stage, the digibanks have focused on quickly bringing customers onboard, highlighting their digital agility and offering high deposit interest rates for a limited time. The unicorn WeLab, the only native Hong Kong virtual bank, is one of the first to signal it has a broader strategy. WeLab in early March received an undisclosed investment from Allianz Group's digital investment unit as part of its Series C-1 fundraising and plans to collaborate with Allianz's asset management arm to develop wealth management products.

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