|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
In early August, Australian challenger bank Judo announced it had completed a second round of equity fundraising that brought in a record $400 million, double the original target of $200 million. In this new round of fundraising, the largest ever for an Australian startup, Bain Capital Credit and Tikehau Capital joined existing shareholders OPTrust, the Abu Dhabi Capital Group, Ironbridge and SPF Investment Management.
On July 20th, Chinese State Council announced 11 measures to advance the further opening-up of Chinese financial industry to the world. 8 of the 11 policies are related to bond, asset management, and currency brokerage. The momentum of increasing foreign investment will not cease in the foreseeable future but be boosted with the newly released policies.
The Chinese gambling hub of Macau has a well deserved reputation for illicit activity. Although the territory has prospered in the two decades since returning to Chinese rule, overtaking Las Vegas to become the top gaming destination globally, the sources of its riches have sometimes been questionable. Corrupt officals and businessmen as well as criminal organizations launder money through the territory, taking advantage of its lax regulatory environment. Macau has no currency or exchange controls, while its threshold for reporting transactions in casinos is more than US$62,000, compared to an international standard of US$3,000.
The Philippines is steadily adopting digital payments as part of a state-led drive to boost financial inclusion. The number of active e-wallet accounts in the country rose 22% annually in 2018 to reach 33 million, according to data compiled by Bangko Sentral ng Pilipinas (BSP), the Philippines' Central Bank. E-wallet growth last year edged out credit card growth, which rose 18% to 9.4 million users compared to a year earlier.
The Philippines is poised to reduce its dependency on cash - which accounted for 99% of transactions in 2018 - thanks to high smartphone penetration, strong demand from a large unbanked population and consumer willingness to bank digitally. Additionally, with their low barriers to entry, digital wallets are a good way to support financial inclusion.
For Indonesian ride-hailing giant Go-Jek, the more funding rounds the merrier. As it seeks to gain a leg up on its arch-rival Grab, Go-Jek is tapping a wide variety of investors bullish on the Indonesian decacorn's digital banking prospects. In its latest funding round, the second half of Series F, Go-Jek attracted an estimated $3 billion (the company has not disclosed the actual figure) from investors including top Thai lender Siam Commercial Bank, Visa and three Mitsubishi firms: Mitsubishi Motors, Mitsubishi Corp. and Mitsubishi UFJ Lease & Finance.
In the emerging world of super apps, Japan's Line is something of an anomaly. It is neither a wholly domestic phenomenon like China's WeChat nor global like the U.S.'s WhatsApp. It is not a ride-hailing app like Singapore's Grab or Indonesia's Go-Jek. Rather, Line is a quirky messaging app beloved in its home market of Japan as well as in Taiwan and Thailand, where Japanese culture has enduring appeal, and to a lesser extent in Indonesia. Outside of those markets, it is virtually unknown.
WeChat has proven that a messaging app can become a digital wallet and that the road to monetization runs through fintech. Line aims to show that such a platform is viable regionally in Asia. Because Japan remains attached to cash, Line cannot rely on its home market alone. “Fintech itself is a proven monetized model, the only problem is how fast we can secure a meaningful size of users,” Line co-CEO Shin Jung-ho told Bloomberg in a June interview.
Virtual banks are coming to Singapore, but the biggest incumbents have little to fear. Singapore's top three lenders, DBS, UOB and OCBC, have plenty of cash to invest in fintech innovation. What they cannot build independently they can access through tie-ups with startups. For smaller lenders who lack the heavyweights' resources, the virtual banks could pose a tougher challenge. The scope of the challenge will depend on how much freedom the Monetary Authority of Singapore (MAS) gives the new entrants.
At a time where China’s financial institutions face increased competition from rising fintech companies, banks in China have been battling with fintechs for market share. The surge of fintech companies have facilitated the process of acquiring loans by providing consumers with an alternative to credit cards. They also do not exclude the unbanked population of the country which is a further competitive advantage for fintech companies. Therefore, banking segments efforts to outdo fintech has forced them to take riskier measures by expanding their lending platform to unsecured loans. Creating incentives for increased consumption has consequently resulted in a higher issuance of credit cards.
Taiwan has a fairly well developed financial industry. This small island has a population of only 24 million in total, but has access to more than 5,000 physical financial institutions. Customers, therefore, are able to enjoy all the banking services provided with ease. Plus, the interest rates on loans in Taiwan are extremely low with only 2.63% APR. The application for a fiduciary loan becomes relatively easy for office workers. Thus, FinTech derivatives such as P2P lending are not previously widely considered.
Imagine you are sick at midnight. You lay in the bed comfortably and consult your private doctor through your smart phone at home. They know your medical history perfectly and give you a personalized prescription online. You don’t need to go to the pharmacy. With a few clicks on an app you purchase drugs and they arrive at your doorstep within an hour and everything is seamless. This is not necessarily a futuristic movie, but rather - reality made possible by PingAn Good Doctor - the largest and artificial intelligence powered mobile medical platform in China.
In April, the Hong Kong-based fintech startup WeLab quietly won the former British colony's fourth virtual-banking license. Founded in 2013 by ex-Citibank executive Simon Loong and two other partners, the company has steadily grown over the last six years. It now has 30 million customers in Hong Kong and mainland China as well as a staff 600 strong. The company expects to launch its virtual bank - named WeLab Digital - between October and January.
Hong Kong banking giant HSBC can no longer rest on its laurels: The virtual banks are coming. With its deep local roots and wealthy customer base, HSBC has long been the dominant retail bank in the city. With the arrival of internet-only banks backed by the likes of tech giants such as Alibaba and Tencent, HSBC faces serious native digital competition for the first time.
KoinWorks, Indonesia's largest P2P lending platform, has raised US$16.5 million in its Series B funding round, signaling strong interest for alternative lending sources in Southeast Asia's largest economy. Established in 2016, KoinWorks caters to the underbanked and unbanked alike in Indonesia, whose scant credit profiles do not sit well with traditional lenders.
The Vietnamese mobile wallet Vimo and point-of-sale provider mPOS are merging to form a new entity called NextPay, which will seek to raise US$30 million to expand domestically and elsewhere in Southeast Asia. NextPay's objective is to combine online and offline solutions into one with Vimo as the online channel and mPOS as the offline one.
Korea's would-be challenger banks received a stern rebuke from the nation's Financial Supervisory Commission in May as the top financial regulator rejected applications for a virtual-banking license from Viva Republica-backed Toss Bank and Kiwoom Securities-backed Kiwoom Bank. The regulator found Toss's capital situation problematic and Kiwoom's plan unfeasible. Both Toss Bank and Kiwoom Bank could re-apply for internet-banking licenses later in the year.