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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Grab is going all in on digital banking. In the period of less than a month, Southeast Asia's most valuable unicorn has won a Singapore digital bank license and raised US$300 million in a funding round led by South Korea's Hanhwa Asset Management. That was the first external funding for its fintech arm. Other participating investors included long-time Grab backers GGV Capital and K3 Ventures as well as eBay founder Pierre Omidyar's Flourish Ventures.

Malaysia moves ahead on digital banks

Written by Kapronasia || January 12 2021

Malaysia's digital banking race will be the one to watch now that Singapore's has finally ended. On January 1, Bank Negara Malaysia (BNM) formally invited applications for digital banking licenses. The deadline for submission will be June 30 and BNM will announce up to five winners by the first quarter of 2022. Compared to Singapore's, this should be more of a wide open race. Fewer tech giants will be in the running, although Grab will likely throw its hat into the ring.

The Philippines must act swiftly to implement tougher anti-money laundering (AML) legislation or it will likely be placed on the Financial Action Task Force's (FATF) gray list alongside failed states such as Syria, Yemen and Zimbabwe. Countries on the gray list, which is updated annually in February, are identified as having strategic deficiencies in their anti-money laundering /counterterrorism financing (CFT) regime that pose a risk to the global financial system. Enhanced compliance procedures required for transactions with financial institutions located in gray-list countries could make it harder for the Philippines' many migrant workers to remit money home and reduce the country's attractiveness to investors.

U.S.-China financial tensions flare anew

Written by Kapronasia || January 11 2021

To delist or not to delist: That is the question. The New York Stock Exchange (NYSE) could not seem to make up its mind earlier this month, delisting three Chinese state-owned telecoms stocks (China Mobile, China Telecom and China Unicom Hong Kong), reversing course, and then finally deciding that the three firms should be delisted after all. The professed reason for kicking the companies off the NYSE is they have ties Chinese military and threaten America's national security. The impact on their market capitalization will likely be limited as their trading volume is much higher in Hong Kong than New York. More forced delistings of Chinese firms could occur in the waning days of the Trump administration though.

Asia will be integral to WhatsApp's super app ambitions

Written by Kapronasia || January 05 2021

WhatsApp has something most other would-be super apps do not: the stickiness of an immensely popular messaging service. And unlike China's WeChat, WhatsApp is a global phenomenon, with large user bases in a diverse array of countries: India, Indonesia, Brazil, South Africa and the United States to name a few. Having eschewed advertising, WhatsApp hopes to monetize all those users with digibanking and e-commerce services. If WhatsApp becomes a global one-stop shop for communication, shopping and banking it will be the only app of its kind.

Ant Group's global expansion is at a crossroads

Written by Kapronasia || January 07 2021

Not so long ago, Ant Group looked set to build a digital finance empire in Asia. Ant has a foothold, in one form or another, in every major Asian economy. The company has invested in e-wallets across Southeast Asia. It operates fledgling digital banks in Hong Kong and Singapore, the region's two key financial hubs. It is a major backer of India's largest fintech unicorn, Paytm. Ant even has fintech investments in Bangladesh and Pakistan. Yet in retrospect Ant may have overextended itself internationally, confident that its ascent was insuperable even as regulatory problems mounted at home.

Not all Aussie neobanks are birds of a feather

Written by Kapronasia || January 04 2021

December was an eventful month for Australia's neobanks. Xinja's demise made waves, showing that it does not pay to keep building atop a flimsy foundation. Castles in the air must come down. And yet, some Aussie neobanks are thriving. Shortly after Xinja said it would turn in its banking license, Australian Financial Review reported that Judo Bank was set to raise up to AU$200 million from investors, bringing its valuation to AU$1.65 billion.

How long can Afterpay walk on water?

Written by Kapronasia || December 24 2020

Afterpay has to be feeling pretty good heading into 2021. It has become one of the largest buy now, pay later (BNPL) firms in the world and is growing fast just as the sector hits its stride. BNPL is not a new idea, but Afterpay has repackaged it neatly: four interest-free installments with no fees at all for customers as long as they pay on time. Retailers are willing to take on the risk of late or missed payments because Afterpay is bringing in more business for them. The company's sales grew 112% year-on-year in November to a record US$2.1 billion. Its share prices have risen roughly 270% to A$113.29 from A$30.63 when the year began.

Why did Gojek invest US$160 million in Bank Jago?

Written by Kapronasia || December 23 2020

The Grab-Gojek rivalry is fast becoming the stuff of legend. Barring a merger, those two Southeast Asian decacorns are determined to one-up each other for evermore. The rivalry began with ride hailing and food delivery and has intensified in the fintech sector, the best hope for both firms to reach profitability and provide their deep-pocketed investors with an attractive exit. Following Grab leading a US$100 million funding round in Indonesian e-wallet LinkAja, Gojek spent US$160 million to increase its stake in PT Bank Jago to 22% from 4%. It is Gojek's largest investment yet in financial services.

Taiwan wants to regulate finance more than grow the industry

Written by Kapronasia || December 21 2020

Taiwan has had no shortage of opportunities to become a regional financial center. Most recently, Hong Kong's business environment declined markedly, prompting calls in Taipei to attract financial business from the former British colony. That will not happen though. Taiwan's regulatory environment is too restrictive. The business that leaves Hong Kong will instead go to Singapore and Tokyo.

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