Latest Reports

  • Adapting for Uncertainty - a research brief from Kapronasia and Equinix
    Adapting for Uncertainty - a research brief from Kapronasia and Equinix The recent pandemic has been an extreme example of financial institutions (FIs) finding themselves blindsided by disruptive events. But meeting unexpected demands is a constant across all aspects of an FI’s business. Customer priorities can also shift according to economic and environmental circumstances, necessitating FIs to respond by providing customers…
  • Ecosystems for Success - a report from Kapronasia sponsored by ASX
    Ecosystems for Success - a report from Kapronasia sponsored by ASX The advent of electronic trading in the 1980s in the United States introduced a new era of algorithmic or high frequency trading (HFT) whereby firms tried to get their trading applications as close as possible to an exchange’s matching engine to lower latency and speed up trade execution. By the…
  • State of Regtech in APAC - a report from Kapronasia and Enterprise Ireland
    State of Regtech in APAC - a report from Kapronasia and Enterprise Ireland Asia, with its gleaming skyscrapers dotting some of the world's major financial centers and home to more than half the world's population, is at an inflection point. Facing spiralling compliance costs and a dynamic regulatory environment, financial institutions have turned to regulatory technology (regtech) to help acheive compliance while minimising…

Events

No events
Latest Insight

Asia has room for multiple financial centers

Written by Kapronasia || December 17 2020

Political uncertainty has dulled Hong Kong's edge as a global financial center. That much was clear long before Ant Group's IPO came to a screeching halt. The abortive Ant deal signaled that politics could shake Hong Kong's capital markets too. Still, Hong Kong's IPO market remains red hot - just not for fintechs anymore. As Hong Kong draws closer to China, it will assume the role of the country's offshore financial center. That will provide both Singapore and Japan with the chance to win some new business, which will be for the best. Asia is large enough to have multiple financial centers, each with a different role.

CHAI aims to shake up Korea's payments market

Written by Kapronasia || December 15 2020

South Korea's digital payments market has grown at a brisk clip amid the pandemic. From January to November, contactless payments rose 17% as businesses and consumers shifted to online transactions, according to the Bank of Korea. E-commerce transactions rose 26% during that period. It is against this backdrop that the Korean startup CHAI sees an opportunity for an API that allows online merchants to accept more than 20 payment systems.

Will Asia embrace Revolut's 'global financial super app?'

Written by Kapronasia || December 16 2020

Revolut always thinks big, so it is no surprise that the UK neobank unicorn is now billing itself as a global financial super app. Revolut's CEO Nikolay Storonsky spoke about this topic at Singapore's recent Fintech Festival. It was hard not to see the irony there. While Revolut was talking about its super app dreams, Grab-Singtel, Sea Group and Ant Group were mulling how to best use their newly won Singapore digital bank licenses. Revolut was not even in the running for one. It dropped out of the race more than a year ago due to the stringent capitalization requirements.

Losers of Singapore digital banking race must shift gears

Written by Kapronasia || December 14 2020

Now that Singapore's digital banking race is over, the losers must shift gears. And there were far more failed than successful bids. Of the 14 applicants which made it to the final round, only four were awarded licenses. The Monetary Authority of Singapore (MAS) may issue a fifth license in the future, but none of the remaining 10 applicants will sit around waiting for that day. Instead, they will look for opportunities outside of Singapore.

ShopeePay's Indonesia surge is turning heads

Written by Kapronasia || December 09 2020

E-commerce is an ideal platform from which to launch a digital payments business. Alibaba figured that out early on, launching Alipay back in 2004. Today, it is hard for any e-wallet to become as dominant as Alipay, especially in a market as competitive as Indonesia. Yet Sea Group's ShopeePay is fast becoming one of Indonesia's most popular e-wallets on the back of Shopee's ascension. Shopee was Indonesia's top e-commerce platform by site visits in 2019 and looks set to repeat that feat this year.

Lufax's pivot away from P2P lending pays off

Written by Kapronasia || December 08 2020

Lufax is one of the few prominent Chinese fintechs that foresaw tighter regulation of online lenders, perhaps because the company began as a peer-to-peer lender. As Beijing in 2017 launched what would become a sustained campaign to eradicate the scandal-ridden P2P lending sector in China, Lufax moved to exit the industry. By 2019, Lufax had transformed from a P2P lender into an online provider of credit facilitation and wealth management services. It is thus no surprise that Lufax is weathering the current microlending crackdown well so far. The company's IPO went off without a hitch in New York, raising US$2.4 billion.

The Monetary of Authority of Singapore (MAS) set the bar high for aspiring digital banks to ensure that the licensees would be well capitalized and have a clear path to profitability. The stringent requirements ensured that defiant upstarts like the UK's Revolut opted out of the competition. In the end, the MAS awarded four licenses, two digital full bank (DFB) and two digital wholesale bank (DWB). There were few surprises. The winners were primarily big platform companies long considered leading candidates. The one exception was the consortium made up of Greenland Financial Holdings, Linklogis Hong Kong and Beijing Co-operative Equity Investment Fund Management, which was awarded a DWB license.

Gojek began more than a decade ago as Indonesia's answer to Uber. It since has evolved into a large platform company with super app ambitions. For Gojek, the key to becoming Indonesia's dominant app lies in mass monetization of its e-wallet services. The trouble is, that's easier said than done. Indonesia has a surplus of e-wallets all trying to cash in on the booming segment. User loyalty is shaky.

China is strict about gambling, only permitting it in the special administrative region of Macau. Elsewhere in the country, gambling is illegal. China's restrictions on gambling cover cyberspace too. Yet that ban is hard to enforce, especially as the pandemic has pushed so much economic activity online. According to a recent Caixin report, some of China's largest internet companies have become party to the illegal online gambling ecosystem. The internet giants may not be privy to the illicit transactions, in some cases because of inadequate due diligence.

Chinese tech giants vie for Singapore digital bank licenses

Written by Kapronasia || November 30 2020

Three Chinese tech giants are competing for digital wholesale bank licenses (DWB) in Singapore: Ant Group, Xiaomi and ByteDance. Ant Group applied for the license alone, while Xiaomi (with AMTD) and ByteDance lead respective consortia. Prior to its abortive IPO, Ant had been widely considered one of the top candidates for a DWB. Ant's online banking experience far outstrips that of Xiaomi or ByteDance. However, China's crackdown on microlending could a deal a blow to Ant's prospects.

Page 7 of 63