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As commonly seen as the nearest equivalent to Paypal in the Chinese market, Alipay, a Chinese online payment processor affiliated with the Alibaba Group, has enjoyed enormous popularity amongst Chinese netizens since its launch in 2004. As of December 2009, Alipay was said to possess over 250 million registered users and to oversee 5 million transactions worth ¥1.2 billion on a daily basis.

In recent years, China’s banking sector has gone through rapid changes, driven by deepening financial reforms, growing presence of foreign banks and quickly evolving customer demand. With intensified competition, there is a new wave of investment in core banking systems among Chinese banks, in a hope to sharpen their technology edge and stay ahead of the competition.

As the world economy recovers from the deep hole of the financial crisis, institutions in Chinese financial markets, like their counterparts in the west, are looking for ways to improve their efficiency through technology. This drive for efficiency is bringing Cloud computing into the spot-light and the idea that computing will increasingly be delivered as a service, over the internet, from the vast warehouses of shared machines – a new way to meet the demand for efficiency improvement.

China, for once, is relatively quiet – well in certain respects. Today, we’re nearly mid-way through the two week celebration of Chinese New Year as we move into the year of the rabbit. The streets for the past week have been somewhat quiet and offices were closed as millions of Chinese returned to their hometowns to celebrate the lunar calendar new year.

Yesterday was the 7th Annual BFTF which was held at the Traders Hotel here in Singapore. The event featured around 20 international speakers, 8 sponsor/vendors and was attended by about 100 delegates. The event, although smaller than in previous years – and smaller than similar events, was excellent. I was expecting the conversations to be thought-provoking, but was genuinely impressed by some of the debates and discussions.

Trade Tech came through Shanghai this week. It's only in the third year that Trade Tech has come to China, but it's clear that interest is growing as evidenced by an increasing number of attendees and exhibitors. Although there are few conferences in China concerning electronic trading, Trade Tech has managed to become one of the top events for sell sides and financial technology providers in China largely based on the claim from the event organizers that it represents one of the largest gatherings of buy-sides in China.

Recently there seems to have been an increased focus on the presence of foreign banks in China and their domestic China businesses. There was an article in the WSJ last week that mentioned the number 86% which represents the increase in foreign banks' lending in China in 2010. A webinar from Celent talks about how JVs/partnerships are still the way to go in China for foreign banks.

On June 8th, China Union Pay (CUP), China’s bankcard association, released two non-card payment products – Union Pay Online Payment and Mobile Payment thus completing the setup of the company’s non-card online payment platform, built on Union Pay’s bankcard transaction settlement system and characterized by its open type, advanced technology, high efficiency and security.

The collapse of Bear Sterns has not only changed the financial industry in the US, but it's also had a number of knock-on effects in Asia.

Although a much younger company than most banks, Google offers a great example of how to keep innovation flowing.

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