APAC FinTech Weekly Newsletter powered by Marcel van Oost

Hello FinTech Community!

Welcome back and lovely meeting you! I look forward to the insights and connections we’ll get by interacting here

?? Weekly Takeaway:

Boost and AEON Bank get Bank Negara's nod to start operating as digital banks

??What happened?

• AEON Bank received approval from BNM and MoF to launch its digital banking operations, making it the first Islamic digital bank in Malaysia - under the new digital banking framework. AEON Bank is planning a phased rollout starting with beta testing with AEON Group employees.
• On the same week, Boost Bank, part of a consortium with RHB Banking Group, received approval from BNM and MoF to launch as a digital bank. Go live date is planned for 15th January. The digital bank will start alpha-testing phase with employees, family, friends, and a selected group of customers.
• Raja Teh Maimunah, CEO of AEON Bank, mentioned:

“Our core mission is to advance the promotion of financial inclusion and Islamic banking. As part of one of Malaysia’s most recognised retail household brands, we aim to provide accessible, inclusive, and Shariah-compliant digital banking solutions to our AEON Group of customers as well as to all Malaysians. It is our intent to empower our communities with access to digital financial services which are simplified, safe and secure,”

Fozia Amanulla, CEO of Boost Bank, mentioned:

"Backed by the consortium's combined ecosystem and wealth of data, we are uniquely positioned to offer embedded finance. I would like to thank the regulators for their continuous support and guidance”

?? Why is this relevant?

• The race to getting Digital Banking licenses and launching has been going on for a few years. Now it’s The time. We had GXBank launching in September 2023, and now Boost and AEON.
• Competition will get higher! Which is great from a customer and innovation perspective. Customers will have more choice. I’m assuming all three banks will offer good rewards as part of their proposition, so customers will be able to save some money. It will also put some pressure that could drive innovation. Having an app is not enough, all players will now have to think about how they actually differentiate in a saturated market.
• More competition, more differentiation, and more drive to increase customer acquisition and engagement may also lead to better banking penetration. So hopefully we’ll see an increase in financial inclusion and wellbeing.

?? Read the full Digital News Asia and Business Times articles here and here.

Exciting times,

Monica

Onwards to the news!

?? NEWS HIGHLIGHT

• Thunes expands its leadership to accelerate growth.

Thunes, the global B2B cross-border payment company, is pleased to announce key changes to its executive leadership team.

To further accelerate its growth, Thunes appoints Floris de Kort as its new CEO. Peter De Caluwe has been promoted to Deputy Chairman focusing on strategy, M&A and further expansion into key markets, including China and the Gulf countries.

Thunes has built a unique, in-house network for global, instant and cost-efficient money movement. The company offers Pay and Accept propositions in 133 countries, touching 3+ billion consumers and businesses globally, who can pay and get paid instantly anywhere around the world.?

?? ARTICLE

• How Google Pay defied the odds in India.

According to Watcher Guru, Google Pay has 67 million users in India, by far its largest single market – Google Pay has roughly 150 million users globally.

It has the second-largest market share on the paramount United Payments Interface payments rail and is now pushing into consumer and merchant lending.

In the context of India's digital finance market, Big Tech companies from the U.S. have generally lagged, particularly in FinTech.

Read more

• Hong Kong doubles down on crypto.

Cryptocurrency’s future looks uncertain in many respects, but that is not deterring Hong Kong from doubling down on its digital assets bet.

The erstwhile British crown colony seems determined to transform itself into Asia Pacific’s premier cryptocurrency hub at the soonest and recently launched both stablecoin regulation consultation and signaled its intention to allow retail access to exchange-traded funds (ETFs) that invest directly into cryptocurrencies.

Read more

??INSIGHTS

• Crypto and fintech groups fined $5.8bn in global crackdown on illicit money.

Penalties for lax controls in 2023 exceed those on traditional finance groups for the first time.

Crypto and fintech groups were for the first time fined more for lax controls than the entire traditional financial system last year, as global authorities cracked down on illicit money flows in finance’s new frontiers.?

Data analysed by the Financial Times showed crypto and digital payments companies paid $5.8bn in fines last year for shortcomings in customer checks and anti-money laundering controls, as well as for failing to uphold sanctions and other financial crime issues.

Read full article

NOW, ON TO THE SUMMARY OF LAST WEEK'S?NEWS

?? REGIONAL HIGHLIGHTS

?? Salmon becomes licenced bank in the Philippines.

?? Visa adds more digital wallets to CIBC and Simplii global money transfers, cracks down on surcharge programs.

?? Tyro adopts the Pismo platform to enhance its operations in Australia.

?? Indonesian KoinWorks enhances customer service using Freshdesk.

SINGAPORE ????

YouTrip raises e-wallet limits after MAS rule change; Revolut and Wise to follow suit. Users of multi-currency e-wallets are now able to spend and hold more money in their accounts following recent changes to these regulatory limits.

MALAYSIA ????

GHL offers Mastercard Click to Pay for seamless online checkouts. Adding Click to Pay to GHL’s e-commerce gateway services gives an efortless boost to merchants’ existing payment solutions without further integration.

JAPAN ????

Payroll fintech Zebec debuts in Japan. This strategic move underscores Zebec’s commitment to fostering collaborative financial innovation worldwide.

INDONESIA ????

KOMUNAL gears up for expansion with a US$5.5M funding round. With the fresh funds, KOMUNAL aims to expand its product offerings and develop close partnerships with more rural banks.

PAKISTAN ????

ACE Money Transfer partners with Habib Metro for secure money transfers to Pakistan. This partnership leverages the strengths of both organizations and streamlines the remittance process.

Nanopay partners with the National Bank of Pakistan to streamline money transfers for the Pakistani community in Canada.

MOVERS & SHAKERS

PhonePe appoints Ritesh Pai as CEO of International Payments. At PhonePe, he will lead the firm’s international growth and expansion plans.