|May 28, 2019 - May 29, 2019|
Fixed Income Leader's Summit
|July 02, 2019 - Jul 03, 2019|
Moneylive APAC 2019
|September 23, 2019 - Sep 26, 2019|
Sibos 2019 - London
|October 27, 2019 - Oct 30, 2019|
Money 20/20 USA
|November 11, 2019 - Nov 15, 2019|
Singapore Fintech Festival
|December 04, 2019 - Dec 06, 2019|
Money 20/20 China Hangzhou
Ping An is a Chinese holding conglomerate with one of the largest market values in the country. Founded in 1988, it is valued at over $125 billion and is the largest insurer in the world to this date. Ping An is known for its fintech subsidiary, OneConnect which is a cloud-based technology service designed for small to medium-sized financial companies. OneConnect is the largest financial cloud platform across all of China and stretches all the way to Singapore.
Chinese internet giant Alibaba has been trying to go global for years. Yet its core e-commerce business - made in and for China - remains dependent on its home market. The key revenue generators, the online shopping platforms Taobao and Tmall, barely have a footprint outside of Greater China.
Rather than take those platforms overseas, Alibaba hopes to become dominant in China's near abroad by acquiring stakes in local e-commerce champions, like Singapore's Lazada and Indonesia's Tokopedia. Alibaba wants to replicate the ecosystem that has worked so well in its home market of an e-commerce platform, logistics and of course, digital banking.
Singapore's race with Hong Kong to become Asia's fintech hub is heating up as the city-state mulls issuing licenses for virtual banks. Both cities have long been major regional banking centers. With Hong Kong increasingly reliant on business from mainland China, Singapore has a chance to capture more regional business, especially from Asean.
The Philippines is preparing to implement new legislation for mobile payments as it steps up efforts to digitalize its financial system. In a statement, the Philippines' central bank said that the National Payment Systems Act (NPSA) would support the development of a mobile payment system that can serve as the "third pillar of central banking." The Bangko Sentral ng Pilipinas (BSP) sees such as a system as crucial for controlling systemic risk and driving sustainable economic growth.
Manila aims to create a level playing field for incumbents and fintechs under one overarching set of payments regulations, officials say. The Duterte administration believes the NPSA will create the right conditions for healthy competition in the finance sector, they say.
As a near developed country with high financial inclusion, Malaysia is an outlier in Southeast Asia. Like its rich neighbor Singapore, Malaysia's need for fintech is less pressing than poorer underbanked countries like Indonesia, the Philippines, Cambodia or Myanmar. Fintech platforms can facilitate smoother banking for Malaysians, but aren't viewed as a necessity in the country yet. After all, 92% of the population has a bank account and credit cards have a strong foothold.
Axiata Group's Boost digital wallet, established in early 2018, is one of the first Malaysian fintechs to have a demonstrable impact on the country's financial system. Boost's executives say that it is Malaysia's premier digital wallet, with 4 million registered users and 80,000 merchant touchpoints. From January-December 2018, Boost users' average monthly transactions grew fourteenfold, the company says.
The WeChat super app is perhaps the best example of a made-for-China digital ecosystem that struggles beyond the Great Firewall. It's essential in China for communication with colleagues and friends, ride hailing, day-to-day purchases and online banking. WeChat puts all that and more at your fingertips - and it's not like you have a choice anyway. The competition is blocked. But outside the Chinese mainland - where there are lots of other messaging apps - WeChat's only good for one thing: keeping in touch with people back there.
An increasing number of fintechs are entering the Australian market, posing a growing challenge to the country's banking incumbents. In April, Judo became the second Australian challenger bank to receive a license this year after Volt Bank in January. Two additional neo-banks, Xinja and 86 400, have applied for their banking licenses and are awaiting the regulator's decision.
With a banking license, Judo can operate without restrictions and is well poised to compete against incumbents. The four heavyweights that dominate the Australian banking market, Commonwealth Bank of Australia, Westpac Banking Corp, Australia and New Zealand Banking Group and National Australia Bank, have come under increasing criticism following a misconduct probe into the nation's finance industry that revealed occurrences of bribery to win mortgage business and fees charged to deceased account holders, among other malfeasance.
Formerly one of Asia's poorest countries, Bangladesh has made remarkable economic progress in recent years. Today, it has a higher GDP per capita than its neighbor Pakistan as well as Cambodia and Myanmar. This year, it is likely to be Asia's fastest growing economy: The Asian Development Bank forecasts annual GDP growth to reach 8%, while the World Bank expects growth of 7.3%.
Yet the development of Bangladesh's financial sector has not kept pace with that of the overall economy. Among the country's 163 million people, 75% (122 million) are unbanked. Smartphone penetration, meanwhile, is forecast to reach 75% by 2021, while the population is young and open to mobile banking. Cash still accounts for 94% of transactions, according to the United Nations, while no credit or debit card companies have established a significant presence. Therein lies a strong opportunity for fintechs.
Indonesia's super-app Go-Jek has borrowed a page out of both Uber and WeChat's books on its way to hallowed decacorn status - valuation of US$10 billion. Like Uber, Go-Jek began as a humble ride-hailing app. It soon expanded into food delivery, just as Uber did with Uber Eats. Go-Jek then added digital banking services as China's Tencent did with WeChat Pay and WeBank. One of Go-Jek's goals is to gain a strong foothold in internet banking as Tencent has in China. Singapore-based Grab (in the Indonesian market through its stake in Ovo) has a similar plan, and just might be a match for Go-Jek. What about Indonesia's banking incumbents though? They can't just stand by idly while the super apps eat their lunch.
Among Asian countries, Pakistan is a relatively slow adopter of fintech, but it also has great need for easy-to-access digital financial services. Pakistan has a population of more than 210 million people, just 7% who have a bank account. High banking infrastructure costs have excluded most people from the formal financial system.There are several factors that make Pakistan an especially promising future fintech market. First, Pakistan's smartphone penetration is forecast to reach 50% by 2020 - that's more than 105 million potential customers. Second, Pakistan is one of the youngest countries in the world. 64% of the population is younger than 30 and 29% is aged 15-29, according to the United Nations' National Human Development Report. Young people are typically more willing to bank with their smartphones.
South Korea's challenger banks face an increasingly tough competitive and regulatory environment despite having accrued a considerable user base. Kakao Bank, operated by Korean mobile messaging giant Kakao, and K bank, led by telecommunications firm KT, aim to offer a wider array of banking services, but past missteps could prevent them from securing the approval of Korea's Financial Supervisory Commission (FSC). At the same time, several new virtual banks are expected to enter the Korean market later this year.
Foreign banks have a negligible presence in China, the world's largest consumer market. Research by KPMG has found that foreign banks hold about 1.3 % of China's domestic banking assets as of late 2017, compared to roughly 2.4% a decade earlier. Brokerages have not fared better. In 2015, UBS Securities and JPMorgan First Capital ranked 95th and 120th, respectively, among China's 125 brokerages by net income, according to the Securities Association of China.
China's Big Four state-owned banks, renowned for their massive market capitalization and close ties to the Chinese government, have long played a key role in the PRC's traditional financial system. An important challenge they - Bank of China (BOC), Industrial and Commercial Bank of China (ICBC) China Construction Bank (CCB) and Agricultural and Commercial Bank of China (ACBC) - face today is developing a digital-first strategy. Among the four, only CCB has has set up a dedicated fintech unit.
With a young population of more than 100 million, the Philippines is one of the most exciting Asean markets for fintechs. Just 34% of Filipinos have bank accounts, according to the World Bank, which means fintechs can play a leading role in the government's financial inclusion efforts. The Philippines is setting up a digital national identity system which should boost credit access for the underbanked. Once registered, residents will be given a 12-digit PhilSys Number that will be used as a digital identity across different platforms. Authorities plan to sign up 7 million Filipinos in 2019 and an additional 20 million in 2020 once the formal application process starts. By 2023, the government expects to have completed registration for all Filipino citizens and resident aliens.
Malaysia may launch virtual banks by the third quarter of 2020 in a bid to boost its fledgling fintech sector and improve banking services for its people. Observers expect that the launch is imminent now that Bank Negara Malaysia has said that virtual banking license requirements will be announced by year-end.