2013 will remembered as an incredibly dynamic year for China’s financial services industry. From the increasing number of hedge funds in the market to the emergence and regulation of Bitcoin, industry observers, investors, participants and regulators have had their work cut out for them keeping up with the market.
Few initiatives in the past couple of years have captured the attention of China’s financial services community more than the recently opened Shanghai Free Trade Zone. Situated in the eastern part of Shanghai and encompassing 29km2 of land which, like the rest of Pudong, was predominantly farmland as little as ten years ago.
What happens when you combine one of the most promising virtual currencies in the world with the largest country in the world? When consumers in a country are able to shift the price of gold in a matter of a few days through increased demand, what could they do to a virtual currency like Bitcoin? As the Chinese Yuan is a capital controlled currency that needs approvals to move in and out of the country, what are the potential regulatory impacts?
Although Chinese banks have in the past not focused tremendously on risk management in the past, recent events and comments from regulators indicate that risk management will be more of a focus for banks. In the second of our series of webinars on risk management in China, we look at credit risk management in chinese banks to understand more about what it is, how things are different in China and what will happen in the near future. This webinar will give you an in-depth look at the opportunities and challenges for banks as well as the potential implications for vendors and vendor solution offerings.
Although Chinese banks have in the past not focused tremendously on risk management, recent events and comments from regulators indicate that risk management will be more of a focus for banks. In the first of our series of webinars on risk management in China, we look at operational risk management in chinese banks to understand more about what it is, how things are different in China and what will happen in the near future.
After a dynamic 2012, China's financial industry faces new challenges and opportunities as we move into 2013 and the upcoming year of the Snake. In our annual look at the Top 10 China Financial Technology trends, we'll examine the key industry trends and how those will affect the technology spend of banks and financial institutions.
China traditionally has been a very cash based society. When credit cards first started to appear on the market, uptake was slow and banks struggled to find a business model that worked. Several years later, the market has changed dramatically. Now as an increasingly popular payment tool, the credit card has played a pivotal role in the stimulation of domestic consumption, with total card circulation exceeding 280 million and transaction value accounting for 42% of China’s total retail spending value.
With online commerce booming in China, consumers are able to order just about anything online and have it delivered cheaply and efficiently. Traditionally these transactions were conducted as 'cash on delivery', but this is rapidly changing as online payment providers start to fill the gap.
As many of you know, prepaid, or stored value cards are an important part of the payments market in China. Before 2011, prepaid cards were largely unregulated products and were thriving all over China. Not only did they provide a significant way for companies to minimize their taxation requirements, they also offered a convenient substitute for cash by individuals.
The Chinese mobile payment market is virtually doubling in size every year and is expected to be worth more than US$80 billion with 441 million active users by 2015, according to the latest report from Kapronasia. China has already overtaken the US as the largest smartphone market in the world; the number of mobile payment users will dwarf other markets worldwide.
The on-going streamlining and de-siloing of technology, trading and operations across various business lines has brought with it new challenges, new opportunities and a competitive advantage for early adopters. Competitive pressures and anemic economic growth continue to compress fees and drive institutions to seek out further reductions in costs and greater working capital efficiency.
While the rest of the world struggles with a lingering financial crisis, Chinese Financial institutions will continue investing in financial technology innovation in 2012. New technologies such as EMV and mobile near-field payments will drive significant investment as financial institutions continue to modernize and expand both the breadth and depth of their product offerings. This webinar from Kapronasia will look at some of the key insights from Kapronasia’s “China Financial Technology 2012 – Top 10 Trends Shaping the Industry" report, a comprehensive look at the key issues and challenges and how banks are overcoming them.