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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So we’ve just come out of the October holiday here in China and are headed in the final frantic few months before Chinese New Year. The difference this year is the early November once in a decade leadership transition where nearly every Chinese leader and politician will be replaced and/or shifted around in China’s Communist Party. It was never in doubt that the transition would happen towards the end of this year, but it was only in the last few weeks that it became clear it would happen in early November.

This is an important transition for the government and only the second peaceful transition of power in recent China’s recent history. The transition is even more important because of the critical social and economic challenges that the country is facing right now. A slow/stagnant world economy and increased but still limited domestic consumption is limiting China’s economy as a whole which is exacerbating the internal challenges it is facing – one of the most critical being the increasing delta between the haves and have nots. If you have been reading international media recently, we’re starting to see more and more of this discrepancy being uncovered and it does nothing to help the government in the eyes of the people.

More specifically to the financial industry however, the transition means increased change. We’ve seen this already this year especially in the capital markets as the new chief regulators have done quite a bit to open the capital markets this year with increased rumours that regulation on the RFQLP programme should be announced shortly, adding yet another channel for off-shore RMB to come back into China’s mainland markets.

The shift in policy is also indicative of China’s increased awareness of money leaving China. With reports of both wealthy individuals and corporations legally and illegally sending money abroad, the issue which used to be too much hot money coming in, is now too much hot money going out. To a certain extent, this is a bit of a blessing in disguise for China as it will allow regulators to further open the market without risking the hot money inflows – which was viewed as a challenge in the past.

With the party congress set for November of this year, we’re unlikely to see too much more change until after Chinese New Year (Feb 2013). What we should be able to quickly determine though is how open the new leaders are to change and modernization of all industries, not just the financial services industry. As we’ve discussed on our blog before, this will largely depend on how quickly the new leaders can consolidate their power to be able to effect change and in which direction they decide to go.

Regardless, 2013 will be a new watershed for China’s financial services industry. Stay tuned early next year for our 2013 top financial technology trends report to see how we see things changing.

Mobile Banking in China continues to grow

Written by Kapronasia || September 13 2012

According to the latest semiannual reports issued by China’s commercial banks, e-banking continues to grow in importance as a part of banks’ business. For most of banks, e-banking channels has already contributed to over 60% of total transaction volume with the 5 large commercial banks’ total e-banking transactions showing a 35% growth rate year on year. Benefiting from the advancement of IT and the proliferation of smart mobile phone in China, mobile banking has become increasingly convenient for users and important for banks. 

In order to meet the strong demand for mobile banking, banks continue to update their mobile banking applications and launch new functions to enhance the user experience. For instance, Agricultural Bank released its new iPhone-enabled mobile banking app which not only supports banking transactions but also integrates online shopping. Bank of China launched the first Windows-enabled mobile banking application recently. We expect that in the future banks will offer more value-added services on their mobile banking products through innovations and ensure safe and reliable systems.

Luxury Spending in China – are the wealthy disappearing?

Written by Kapronasia || September 12 2012

Earlier this week, Burberry announced lower than expected earnings which largely disappointed and somewhat scared markets. Their slowdown is global, but a key challenge was declining luxury spend from Chinese consumers – which is seen by many as a bellwether for the rest of a general industry slowdown. We’ve talked about luxury spending in China in the past, but it’s worth considering the implications of a potential slowdown in the luxury industry and the implications if the slowdown is indeed an indicator of a shift in the habits of China’s wealthy.

China’s banking IT spend will continue to grow strongly

Written by Kapronasia || August 23 2012

In 2013, China will take over Japan as the biggest consumer of IT products in Asia. According to IDC, China's total IT market size in 2012 is projected to reach 155 billion US dollars, with 20% growth rate YOY, and in 2013, this number will reach 170 billion dollars, 4% more than that of Japan. During China's Five Year Plan period (from 2011 to 2015), companies must invest more in their IT infrastructure to meet the demands of stable growth and innovations.

In the banking industry,  total IT spending (software and services) in 2011 exceeded 15 billion US dollars, with a 19% growth rate compared to 2010, and, according to IDC, China's banking IT spending will keep a 20% CAGR (Compound Average Growth Rate), hitting 39 billion dollars in 2016. We expect that the new generation of core banking systems, risk control, big data analysis and mobile payment will be the main driving forces behind the IT spend.  

3rd Party Online Payments Webinar Recording now available

Written by Kapronasia || August 09 2012

Kapronasia's 3rd Party Online Payment Industry webinar recording is now available in the webinar section of kapronasia.com. Thank you to everyone who attended. We hope you found it useful.

Please keep an eye out for Kapronasia's Q3 and Q4 webinars. 

Kapronasia's latest report looking at the state of China's 3rd Party Online Payments Industry is now available on Kapronasia.com under the research report section.

If you are a subscriber to Kapronasia's Banking Advisory Service, the report can be downloaded after you have logged into your account. If you are not a subscriber, but are interested in purchasing the report, please contact This email address is being protected from spambots. You need JavaScript enabled to view it.. The recording of the 3rd Party Online Payment webinar is also available in the webinar section of the website.

The Banking on China report is now available on the Kapronasia website in the research reports section. The report from Oracle and Kapronasia looks at the key challenges and opportunities for international banks in China and is based on numerous interviews with both larger and smaller banks in China. The complimentary report is available for download after you have logged into your Kapronasia.com user account. If you do not have an account, register today for free. 

Kapronasia's latest report looking at the state of China's Prepaid Card Industry is now available on Kapronasia.com under the research report section.

If you are a subscriber to Kapronasia's Banking Advisory Service, the report can be downloaded after you have logged into your account. If you are not a subscriber, but are interested in purchasing the report, please contact This email address is being protected from spambots. You need JavaScript enabled to view it.. The recording of the Prepaid Card webinar is also available in the webinar section.

On 27th July 2012, Shanghai Stock Exchange announced a guideline on measures for terminating the listings of poorly performing companies or “special treatment” (ST) companies.

According to the guideline, companies will be traded on a soon to be created new board for 30 trading days before being completely removed from the bourse. During their remaining days on the exchange, shares must trade within a required price range. The upper limit of the daily price movement is 1% while the lower limit is 5%. In addition, an investor can only buy up to 500,000 ST shares each trading day, the guideline suggested.

The new stock-delisting rules are part of broader financial reforms to China’s capital markets, in line with CSRC’s recent statement to launch an efficient system to delisted companies on the foundation of an investor-protection system. It is believed that the introduction of a delisting mechanism will lower volatility, preventing speculators from betting on dramatic fluctuations of underperforming stocks and therefore enhancing the soundness of the market.

Upcoming Kapronasia webinar on Online Payments in China

Written by Kapronasia || July 30 2012

Kapronasia will be hosting a webinar on August 8th, 2012 looking at China's Online Payments market. 

For more information on the webinar, please see the webinar description here or to register directly, go here.

The webinar is complimentary and will be looking at aspects of Kapronasia's soon to be released Online Payments Market in China report.

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