What The FinTech #81: 23 Jan 2022
Medhy Souidi
?? AI, FinTech & Digital Banking Strategist | Gen AI, Payments & Web3 Innovation | Ecosystem & Partnerships Leader | ??? Industry Speaker & Podcast Host
Happy New Year 2022 and Welcome back to?What The FinTech,?your regular FinTech & Innovation Newsletter focusing on Hong Kong & Asia ! Here are the selection and the top headlines for this week.
To stay fully updated with all the latest HK & Asia FinTech & banking news, insights & intelligence impacting the sector - click on the button "subscribe" next to the Title.
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Videos! ??
?? I am very excited to interview Anuruk (Art) Karoonyavanich, CEO of DBS Asia Capital and Regional Head of Equity Syndicate, to share about opportunities and challenges to DBS and our customers with the establishment of DBS Securities in China. He also shares his insights on the trends in Asian stock markets in 2022.
Check out the previous videos here:?on?What The FinTech,?Instagram?or?Youtube.
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What was the FinTech this week in:???
BLOCKCHAIN - CRYPTO - DIGITAL ASSETS - DE FI
Walmart is preparing to create its own cryptcurrency and collection of non-fungible tokens (NFTs), setting the stage for meeting its customers in the emerging metaverse. It intends to make and sell virtual goods such as electronics, décor, toys, sporting goods and personal-care products. The company is continuously exploring how emerging technologies may shape future shopping experiences. It has also started a pilot programme in which shoppers can buy Bitcoin at Coinstar kiosks in some of its US stores. Coinstar is known for the machines that let customers exchange US coins for paper bills of gift cards.
Switzerland’s National Bank (SNB) has approved a wide swath of transactions involving central bank digital currency (CBDC). In the second phase of Project Helvetia, digital tokens were integrated into back-office systems and processes for five commercial banks. This is a multi-phase initiative by the SNB, the BIS Innovation Hub whose mission is to identify trends in technology affecting central banking, and SIX, the financial infrastructure operator, was created to explore how central banks could offer settlement in central bank money with tokenised financial assets based on distributed ledger technology (DLT) focusing on operational, legal and policy questions.
Mastercard is joining forces with Coinbase to enable people to buy NFTs with their debit and credit cards.??Coinbase recently outlined plans to build a decentralised marketplace where users can mint, collect and trade non-fungible tokens. However, the firm acknowledges that the process of buying an NFT can be daunting for novices, requiring them to open a crypto wallet, buy crypto, then use it to purchase the NFT in an online marketplace. The firm is working with Mastercard to classify NFTs as “digital goods” and unlock a new way to pay using cards.
Robinhood Markets is rolling out crypto wallets, allowing them to send and receive cryptocurrencies through their brokerage accounts. The Menlo Park-based online brokerage had laid out plans to begin testing cryptocurrency wallets last year, with the aim of a broader rollout in 2022. Users can now exchange their crypto from Robinhood with external crypto wallets. The new feature also connects holders of the digital asset to the blockchain ecosystem.?
Twitter has debuted an official verification protocol for non-fungible token (NFT) profile pictures. The feature is currently only available to Twitter Blue users on iOS, who can now link their ethereum wallets with their Twitter accounts to see a list of the NFTs they own. Users can then choose one of those images and select it for a profile picture, which will come with a new hexagonal border. While other users can still right-click or otherwise save the image, only the NFT owner will have access to a new hexagonal border that identifies the owner. The CoinDesk report says Twitter’s new NFT verification process will help endear the platform to crypto enthusiasts.?
HONG KONG
Edmond Lau, Deputy Chief Executive of the Hong Kong Monetary Authority (HKMA), said the Cross-boundary Wealth Management Connect scheme has been operating smoothly since its launch. The scheme attracted over 22,000 investors to open an account as of end-2021, recording more than 5,000 cross-border remittances worth over RMB 400 million over the same period. He pointed out that mainland residents have a saving rate of 35%, while their allocation to financial assets is still low at 20%. He believes the scheme could enable Hong Kong’s financial service providers to expand their customer base by more than tenfold. Separately, the Financial Services Development Council released a research report. Many respondents suggested that, in order to solidify Hong Kong’s position as an international financial centre, Hong Kong should keep up with international standards in ESG reporting so as to establish its proposition of a regional ESG hub; develop a competitive position in Fintech by providing a conducive ecosystem for the industry to grow; and create a niche role in the Greater Bay Area.
Nearly 10 million people have registered for the Faster Payment System (FPS) launched by the Hong Kong Monetary Authority (HKMA) over the past three years since the introduction of the system. The HKMA invited TV and film artists Michael Ning, Yeung Wai Lun, and Florica Lin to shoot a short video to promote the FPS in fun. In the video, Michael Ning introduced the FPS in a number of scenarios such as workplace and dating.
SINGAPORE
Crypto.com CEO Kris Marszalek said around 400 customer accounts have been compromised in a hack. His confirmation of the breach comes after multiple Crypto.com users alleged their funds had been stolen – complaints that had until now been met with vague responses from the company. The company said that it has not received any "outreach" from regulators, but is prepared to share information on the hack if any relevant inquiries come. The company became the latest crypto exchange to be hit by online thieves on Tuesday (Jan 18) after users reported that Ethereum and other cryptocurrencies were wiped from their accounts. The losses may amount to $15 million worth of ETH, blockchain security provider PeckShield tweeted. The firm, which moved its headquarters from Hong Kong to Singapore last year, is currently awaiting licence approval from the Monetary Authority of Singapore (MAS).
领英推荐
The Monetary Authority of Singapore (MAS) issued new guidelines on Digital Payment Tokens (DPTs), commonly known as cryptocurrency, in which service providers are not allowed to promote their services to the general public in Singapore. They “should not” engage in marketing or advertising of DPT services: in public areas in Singapore such as through advertisements on public transport, public transport venues, public websites, social media platforms, broadcast and print media, or provision of physical ATMs; or through the engagement of third parties, such as social media influencers, to promote DPT services to the general public in Singapore. DPT service providers can only market or advertise on their own corporate websites, mobile applications or official social media accounts. DPT services include the buying or selling of DPTs, or facilitating the exchange of DPTs. DPT service providers include payment institutions, banks and other financial institutions, as well as applicants under the Act.
The Monetary Authority of Singapore published guidelines on how cryptocurrencies can be promoted to the public. Essentially, all cryptocurrency providers may only promote crypto on their own websites and social media channels. They aren’taren’t allowed to target the public through online or offline advertisements, nor should they partner with social media influencers. Physical cryptocurrency ATMs are also a no-no.
Data, analytics and artificial intelligence (AI) provider Just Analytics will be acquired by Nasdaq-listed technology solutions company Rackspace Technology. The acquisition, which was completed for an undisclosed fee, is set to increase the US company's presence in the Asia-Pacific region. Just Analytics' proprietary data platform, Guzzle, deploys predictive solutions and analyse data from critical business and operational functions for business end-users.?
CHINA
China’s digital yuan trials captured $8.3 billion of the country’s payments market in the past six months and $13.68 billion in the past two years, just a sliver of the trillions in payments processed in the country annually. The number of China’s digital yuan users went up at a quicker pace than transaction volume, with 261 million users by the end of last year, an increase of 240.13 million from the end of June. A limited number of businesses accept the digital yuan — or e-CNY — and there is not a clear advantage people should use the currency instead of Alipay or WeChat Pay. Roughly 10 million businesses had digital yuan wallets as of October 2021. Comparatively, Alipay reported in June 2020 that it had over 80 million monthly active merchants.
One of the fastest-growing apps in China right now is the central bank’s digital yuan wallet: 261 million individual users, about one-fifth of the population, have set up e-CNY wallets so far. In total, 87.5 billion yuan worth of transactions has been made using the digital fiat currency.?Over the past two years, China has been piloting the use of digital yuan in several major cities, including Shenzhen. People needed to enter a draw and apply to be early users in the beginning. Then at the start of 2022, in a clear sign of accelerating the trial, the PBOC made the e-CNY wallet available on the iOS and Android stores in China.??The e-CNY is issued by the central bank, and serves as the statutory, digital version of China’s cash in circulation, or “M0”. The regulator eventually intends to make e-yuan payments work even without the internet, using NFC technology.?
Shopify has partnered with Chinese e-commerce giant JD.com to help U.S. merchants sell their goods in the world’s second-largest economy. The deal marks a significant step up in Shopify’s China expansion and is another step in JD’s internationalization efforts. JD will open an “accelerated channel” for brands on Shopify to begin selling via its cross-border e-commerce site in China. Merchants can set up shop in three-to-four weeks rather than the typical 12 months that it takes foreign brands to begin selling in China. JD will handle the price conversion as well as logistics from U.S. to China. JD has its own logistics arm with a vast network of delivery workers and warehouses which the company sees as a competitive advantage over its rival Alibaba. Shopify and JD will also “collaborate to simplify access and compliance for Chinese brands and merchants looking to reach consumers in Western markets.
China-based bankcard scheme finance giant UnionPay has partnered with UK-based payments provider FMPay to accept UnionPay affiliated cards starting Q1 of 2022. FMPay is authorised and regulated by the Financial Conduct Authority (FCA) of the UK and is a provider of an acquiring platform dedicated to merchants around the globe. It offers acquiring in 63 currencies and the most popular card issuers, including Mastercard and Visa. At the same time, UnionPay provides qualitative, cost-effective, and secure cross-border payments services in China and abroad. Its cards are accepted in 180 countries globally and are also supported by some of the most popular digital wallet providers, including Samsung Pay, Apple Pay, and Huawai Pay. UnionPay offers secure payments through different levels of security and risk monitoring and its app can be used outside mainland China, with a customer base exceeding 400 million users. Its complete mobile payment services – UnionPay mobile, Quick Pass, and UnionPay QR code payment are available in 94 countries and regions.
ASIA
Digital exchange Fusang has received the go-ahead from its securities regulator in Labuan, Malaysia, to list itself in a fully digital format, with its stock to issue, trade, and settle as a token and with no paper or PDFs involved. If successful, the deal will represent a breakthrough in the development of securities tokens – the idea of issuing stocks, bonds, or other licensed instruments in purely digital form via blockchain infrastructure.
Labuan Financial Services Authority approved Fusang’s IPO of FSC equity tokens, which directly represent shares in Fusang Corp. The company will issue 2.5 million equity tokens valued at $10 million to both institutional and retail investors. This represents shares in Fusang Corp., which operates Fusang Exchange, a stock exchange regulated for security tokens with ambitions to host a range of other IPOs in digital form. FSC tokens are due to complete listing by the end of the first quarter of 2022. The tokens represent legal equities, but recorded on the Ethereum blockchain rather than on a traditional share register.
UnionBank of the Philippines plans to offer trading and custodial services for cryptocurrencies to capitalise on fast adoption of digital tokens in the Asian nation. The bank estimates that about 5 per cent of the local population have dabbled in cryptocurrencies. The bank's custodial services for digital assets will also be capable of covering tokenised bonds. In 2019, UnionBank became the first Philippine lender to launch its own stablecoin - called PHX - providing rural banks in its network easier access to remittances and payments.?
OCBC Bank adopts Poseidon Principles to accelerate decarbonisation of shipping sector
OCBC Bank has joined leading global banks to become the first in Southeast Asia to adopt the Poseidon Principles. The Poseidon Principles are a globally recognised framework that guides how the Bank determines, assesses and manages the climate alignment of its ship finance portfolio to support the shipping industry’s targets of reducing carbon emissions by at least 50% by 2050. The Poseidon Principles provide a common, global baseline for financial institutions to quantitatively measure the carbon footprint of their shipping customers and disclose whether their lending portfolios are tracking the adopted climate goals by the International Maritime Organisation.
Consent-driven data sharing underpins open finance, so that startups like Brankas can develop APIs for tech firms or financial institutions to access user data, and most importantly, build a variety of fintech-related products that may cater to anyone, including unbanked and underbanked consumers. Brankas, which landed USD 20 million in a Series B round led by Insignia Ventures Partners on January 5, is one of the fintech upstarts that makes the sharing of financial data easier. Founded in 2016, one of the firm’s unique value propositions is its partnerships with banks across the region. With the fresh capital, the firm is set to deepen its market reach by linking up with digital banks and fintech firms in Vietnam and Bangladesh. So far, the firm has worked with more than 40 financial institutions and 100 tech firms, with operations in Indonesia, the Philippines, and Thailand.
FUNDRAISING IN ASIA
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Executive Project Manager & Private Sector Member Board
1 年Dear All As i have been working for more than one decade in payment industry and?investigating?regarding PCI-DSS?requirements it would be appreciated if you could provide me feedback for the below queries 1- China Union Pay has mandated all authorized domestic merchants (merchants are located in China) to be compliant with PCIDSS or just Union Pay Account data security standards certification is?adequate? 2- Domestic POS terminals that accept Union Pay products (Debit-Credit-Wallet,,,) must be PCI-PTS compliance? Are there?any other related certifications mandated?by Union Pay?
Thank you for sharing! :)
Human Resource Manager at Fourstone Consultancy
3 年Thanks for sharing
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3 年Nice new video Medhy
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3 年The video about the china securities and the trends in asian capital markets is very interesting, thanks for sharing !