Hong Kong has launched a new initiative aimed at combating corruption within its banking sector. The Hong Kong Monetary Authority (HKMA), the Hong Kong Association of Banks (HKAB), and the Independent Commission Against Corruption (ICAC) joined forces to introduce the Banking Industry Integrity Charter. The charter is a collaborative effort to enhance anti-corruption measures and ethical practices across the industry. It will provide tailored anti-corruption recommendations, sharing case studies, and offering thematic training to help banks build robust integrity frameworks. The launch ceremony was attended by senior management from 30 major retail and private wealth management banks, along with representatives…

Wallace Lam, the Head of Institutional Banking for DBS Group Holdings in Hong Kong, is set to leave the bank, according to a Bloomberg report citing a spokesperson from Southeast Asia’s largest lender. Lam, who joined DBS Hong Kong in August 2021, had previously resigned from HSBC Holdings earlier that year to bolster DBS’ Greater China strategy. Boris Chan, who currently heads global transaction services for DBS Hong Kong, will succeed Lam. Chan will continue as a member of the DBS Hong Kong Management Committee, reporting to both DBS Hong Kong CEO Sebastian Paredes and Tan Su Shan, DBS Group’s…

Hong Kong is set to host the ninth edition of Hong Kong Fintech Week (HKFW) from 28 October to 1 November 2024. Themed “Illuminating New Pathways in Fintech,” this year’s event aims to solidify Hong Kong’s position as a leading global financial and fintech hub. The event is organised by InvestHK and the Financial Services and the Treasury Bureau, in collaboration with the Hong Kong Monetary Authority (HKMA), the Securities and Futures Commission (SFC), and the Insurance Authority (IA). HKFW is expected to attract over 30,000 participants from more than 100 economies. The event will feature a main conference at…

Checkout.com has partnered with Octopus to make the widely used Hong Kong payment method available for online transactions. According to Checkout.com, they are the first global payment service provider (PSP) to offer Octopus as an online payment option. With a 98% usage rate among Hong Kong’s 7.5 million residents, Octopus is one of the most popular payment methods in the region. This collaboration is expected to streamline the online checkout process for merchants and cater to the growing demand for digital-first payment solutions. Octopus, which started as a contactless payment system for transportation, has since evolved into a versatile payment…

The Hong Kong Securities and Futures Commission (SFC) is set to license an additional 11 virtual asset platforms before the year ends. Recently, the SFC granted its third license to the Hong Kong Virtual Asset Exchange (HKVAX), joining OSL Exchange and HashKey Exchange. SFC CEO Leung Fung-yee, in an interview with local media HK01, revealed that on-site inspections have already been conducted, and the platforms have been asked to make necessary adjustments to comply with regulatory standards. Those that meet the requirements will be granted licenses in batches before the end of the year, while those that fail to comply…

JCB, the Japanese international payment brand, has announced the availability of Google Pay for its customers. Android smartphone users can now make purchases using Google Pay wherever JCB Contactless is accepted. Currently, only credit and debit cards issued by the JCB Group in Japan can be added to Google Pay. To use this new feature, users need to download the Google Wallet app and add their JCB card to the app. JCB plans to expand Google Pay support to other card issuers in Japan and internationally. Google Pay provides a secure and convenient way to pay with built-in authentication, transaction…

The Hong Kong Monetary Authority (HKMA) and Qatar Central Bank (QCB) are looking to enhance collaboration in areas of sustainable finance and digital assets. The two authorities held a meeting in Doha to discuss ways to strengthen their financial cooperation. The meeting also covered areas such as capital markets connectivity, bond market development, financial infrastructure, and talent development. Both authorities expressed their commitment to working closely together to foster stronger links and increased interaction between the Hong Kong and Qatari financial markets. Featured image: The Chief Executive of the Hong Kong Monetary Authority, Eddie Yue (left), meets with the…

Hong Kong has awarded its third virtual asset trading platform license to Hong Kong Virtual Asset Exchange (HKVAX). This follows previous licenses were issued to OSL Digital Securities and Hash Blockchain (HashKey Exchange). HKVAX has secured Type 1 and Type 7 licenses from the Securities and Futures Commission (SFC), allowing it to deal in securities and provide automated trading services. Additionally, it has obtained a license under the Anti-Money Laundering and Counter-Terrorist Financing Ordinance (AMLO). The platform focuses on over-the-counter (OTC) trading, Security Token Offerings (STOs), and Real-World Asset (RWA) tokenisation, providing a range of virtual asset services. HKVAX offers…

Group Chief Digital Officer Farilla Abdullah shares how she is driven by purpose and the responsibility to champion ethical and sustainable growth, particularly crucial for an Islamic bank. This interview is also available on Spotify: Listen here Apple Podcast: Listen here

Hong Kong bank depositors will now have increased protection for their deposits as the first phase of enhancements to the Deposit Protection Scheme (DPS) takes effect. The changes, effective from 1 October, raise the protection limit from HK$500,000 to HK$800,000 per depositor per bank. The enhancements also include adjustments to the levy system to ensure the DPS Fund reaches its target size within a reasonable timeframe under the increased protection limit. Additionally, there are streamlined disclosure requirements for private banking customers regarding non-protected deposit transactions. The board is also preparing for the second phase of enhancements, which will take effect…

OneDegree Group announced it achieved profitability for the first time in the third quarter of 2024, driven by its digital asset protection and pet insurance products. The company said that its focus on product innovation and technology automation has allowed it to scale and reach profitability while maintaining a stable workforce. OneInfinity, OneDegree’s digital assets division, has worked with regulators in Asia, the Middle East, and Europe to help establish consumer protection standards in key digital asset markets. This collaboration has been ongoing for the past three years. In Hong Kong, OneInfinity insures ten of the thirteen virtual asset trading…

Financial institutions around the world are facing a surge in fraud and cyberattacks. A new report by LexisNexis Risk Solutions explores the state of digital fraud, revealing a 17% increase in digital fraud attacks within the financial services sector in 2023. According to the report, human-initiated attacks in financial services rose to 1.2% last year, up 8% year-over-year (YoY). Notably, North America saw a 30% rise in attack rates, in contrast to declines in Asia-Pacific (APAC) and Europe, the Middle East and Africa (EMEA), where rates dropped by 15% and 24%, respectively. In 2023, the financial services industry continued to…

Rakuten Group announced that its credit card subsidiary, Rakuten Card, and Mizuho Financial Group are in discussions to establish a capital and business alliance. The partnership aims to accelerate growth and enhance collaboration between the two companies, with a focus on pursuing opportunities in both the consumer and corporate sectors. Mizuho’s broad customer base is seen as a significant factor that could help drive this growth. Rakuten Card, a core part of Rakuten’s fintech operations, will remain a crucial subsidiary within the group and continue to play a key role in the Rakuten fintech ecosystem. This alliance will not affect…

The Hong Kong Monetary Authority (HKMA) published the conclusions of its public consultation on a proposal to allow banks to share customer information to combat financial crime. The consultation, which was open for feedback earlier this year, aims to facilitate the sharing of customer account data between authorised institutions to aid in the prevention and detection of fraud, money laundering, and terrorist financing. The HKMA will now move forward with legislative amendments as part of this initiative. The public consultation, launched in January 2024, invited views from the banking sector, professional associations, law enforcement agencies, and the general public. It…

The Hong Kong Monetary Authority (HKMA) and the Securities and Futures Commission (SFC) have released a conclusions paper outlining final steps to enhance the over-the-counter (OTC) derivatives reporting regime in Hong Kong. This follows a consultation held in March 2024, which proposed mandating the use of a Unique Transaction Identifier (UTI), Unique Product Identifier (UPI), and reporting of Critical Data Elements (CDE), along with the adoption of the ISO 20022 message standard for reporting. The proposed changes aim to align Hong Kong’s derivatives reporting framework with international standards, improving regulatory oversight and facilitating global market analysis. Respondents, including financial institutions…

The South Korean Personal Information Protection Commission has fined Worldcoin Foundation and Tools for Humanity Corporation (TFH). The fines total 1.104 billion won (approximately US$790,000) for violations of the Personal Information Protection Act. Worldcoin, a cryptocurrency project developed by Tools for Humanity (TFH), which was founded by Sam Altman, aims to promote digital identification through iris scanning technology. The commission found that the companies collected and transferred sensitive iris data from South Korean users without obtaining proper consent or providing adequate notification. Approximately 93,463 people in South Korea downloaded the World App, and 29,991 of them used iris authentication as…

HSBC is set to introduce a HK$5 billion (US$641 million) financing plan, offering pre-approved loans to SMEs in Hong Kong, as reported by the South China Morning Post. The programme aims to streamline the loan application process, offering pre-approved credit limits to eligible SME customers, with HSBC using its internal data to assess creditworthiness. The initiative comes as businesses anticipate potential changes in interest rates, providing crucial capital for SMEs looking to invest after a long period of rate hikes. HSBC will notify eligible SMEs through digital channels, with credit amounts starting from HK$50,000. These funds will be made available…

ZA Bank, a virtual bank in Hong Kong, has introduced a new ‘Foreign Exchange Time Deposit’ option, allowing customers to place deposits in either USD or CNY with interest rates reaching up to 20% per annum. The service is available through the ZA Bank app and offers time deposit options for periods ranging from 7 days to 3 months. For USD deposits, the 7-day interest rate is 13%, with 6.8% for 1 month and 5% for 3 months. The applicable deposit range is from US$ 5 to US$ 1,000,000. For CNY, the 7-day rate is 20%, with 6.3% for 1…

Banks need to go beyond just being digital, join experts from GFT, AWS, Thought Machine and Malaysia’s top banks to learn why banking needs to be invisible. Speakers: Noor Farilla Abdullah, Group Chief Digital Officer of Bank Islam Melvin Ooi, CEO, YTL-Sea Digital Bank Project Izwan Ismail, Director – Head, Human Centered Design, CIMB Khuan Yew Lee, Executive Director – Head of Product, Save & Spend at GXBank. • Fadrizul Hasani, Chief Technology Officer, GXbank Pai Li Gan, Group Chief Consumer Banking Officer, Alliance Bank Jay Khairil Jeremy Abdullah, Chief Executive, Bank Simpanan Nasional Zee King Lim, Head of UX/UI,…

Three Japanese megabanks are involved in a cross-border payments initiative that aims to use stablecoins and SWIFT’s application programming interface (API) framework to enable fast, cost-effective, and 24/7 international transfers. The initiative, called Project Pax, is a joint effort between Japanese companies Progmat and Datachain. It aims to create a cross-border stablecoin transfer platform that addresses key challenges in international payments, such as high costs, slow processing speeds, limited accessibility, and lack of transparency. Pilot testing for Project Pax is set to commence this fall, and the three Japanese banks, namely Mitsubishi UFJ Bank, Sumitomo Mitsui Banking Corporation, and Mizuho…