|September 17, 2019 - Sep 19, 2019|
Fixed Income & FX Leaders Summit APAC 2019
|September 23, 2019 - Sep 26, 2019|
Sibos 2019 - London
|October 14, 2019 - Oct 15, 2019|
|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
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.
China’s Transsion Holdings, one of the major mobile phone manufacturers in the world and second largest smartphone vendor in Africa is known for owning mobile phone brands TECNO, itel and Infinix. It was the first Chinese smartphone manufacturer to explore the African market and have a smartphone plant in Africa.
Today, its mobile phone brands have experienced tremendous success with itel being the second largest handset vendor in India with approximately 8 million sold handsets within only 8 months of its launch. Whilst, Infinix is successfully winning over the Nigerian and Kenya smartphone market through 'Infinix Mobility' which reported that it sold over 4 million devices in Africa within a 16-month period.
Ant Financial is well established as the largest fintech in China. These past two years have been excellent for the company as they reached 450 million users with an average expenditure of 16,000 RMB through the Alipay platform. They recently started to make use of Alibaba’s acquired controlling stake of company Lazada in Singapore, which has given them access to most of the SEA market. In addition, Ant bid for Moneygram in the United States, and funded bike sharing service Gobee.bike’s launch in Hong Kong (being the first bike sharing company of the kind launched in HK). However, the important question here is: what awaits the company in the near future? Three words. Diversification, internationalisation and experimentation.
Opening a completely private commercial bank with no government ownership is not a suitable choice in every country. In some countries, like the US, private commercial banks play an important role in their economy and provide loans to small and medium enterprises. However, in Indonesia, the government allowed private commercial banks in the 1980s and it turned out to be a failure. Founders used the banks as a tool to collect money, and invested in real estate in order to profit, at the cost of a serious economic bubble.
In August this year, WeBank announced that its lending product “Wei Li Dai” (WeChat Loan) has exceeded RMB100 billion (USD14.7 billion).
QR-codes have been a boon for China's 3rd Party Payment providers, but due to QR-Code standardization and the launch of China's Online Settlement Platform for Non-Bank Payment Institutions, more colloquially known just as Wanglian, QR-codes could now be the payment giants' biggest challenge.
An efficient credit checking system is critical for the development of retail financial services. But in China, the individual credit system is not as advanced as the ones in US or Europe with the People's Bank of China (PBOC) credit system covering only about 25% of the entire Chinese population. The lack of credit investigation system creates a major issue for the risk control process of the financial services, especially on the inclusive finance side.
China has been at the vanguard lately when it comes to p2p lending, and even though there has been new-found focus on the risk of p2p and the creation of the Fintech Committee meant to regulate Fintech in China, companies keep developing and implementing new models that are cutting edge and in process of revitalizing markets that have barely been touched due to their inherent risk, and in the process of doing so, they have come up with successful business models that have excellent prospects of development.
China Fintech has been developing rapidly. According to an EY report, in 2016, China's fintech industry attracted US$8.58 billion in investment, the highest in the world. However, while the UK's fintech regulatory sandbox became a case-study for governments globally including Singapore and Australia, there is still a big blank in China. For example, China's P2P industry developed without any regulation since it started in 2007. The government only started monitoring the industry in 2016, after serious criminal cases which caused social panic happened.
Recently, there has been a rise in Chinese internet giants investing or collaborating with banks. This year alone, some of China’s largest internet companies – Baidu, Ant Financial, Jingdong Finance, and Tencent – formed strategic partnerships with some of China’s biggest banks. All these companies, while being competitors, have risen to be at the forefront of the FinTech movement in China in recent years. Therefore, collaborating and partnering with these powerful banks give the companies a head-start in this developing market.
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.
While no official steps have yet been taken, the People’s Bank of China (PBOC) in Beijing has raised the possibility of a regulatory sandbox environment for future ICOs as the government works through its options for potential regulations, focusing on providing a legal framework for Initial Coin Offerings in China (ICOs) moving forward. In addition, options such as investor education, project review, and increased information disclosure have been mentioned as targets for a new framework. The PBOC’s previous emphasis on Anti-Money Laundering (AML) and Know Your Customer (KYC) protocols are also expected to continue with ICO regulations. Other potential regulatory possibilities include requiring companies to have a working product before their ICO, requiring more information disclosure including risk and investor assessments, and reducing speculative investments.
As China's FinTech industry, led by Tencent and Alibaba, has exploded in recent years, regulators have been watching the industry’s growth carefully, in order to manage risk and protect consumers while still encouraging growth and innovation. In May 2017, The People’s Bank of China (PBOC), the country’s central bank and main regulator, announced the creation of a FinTech committee under the PBOC’s Technology Department to research the impact of the sector on financial markets and China’s monetary policy. In addition, the committee will also act as a coordinating body for the PBOC, as well as research and promote the implementation of regulatory technology (RegTech).
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.