Last year, Visa collaborated with HSBC and Hang Seng Bank to pilot tokenisation projects as part of the Hong Kong Monetary Authority (HKMA)’s e-HKD Pilot Programme. In a report, Visa presents collective learnings on these efforts, highlighting the potential value of tokenisation, including higher payment efficiency, reduced settlement risk, enhanced transaction transparency and 24/7 availability. The pilot projects focused on using tokenized deposits, which are digital representation of bank deposits minted on a bank’s blockchain ledger, backed by the institution’s balance sheet. Visa provided technical and engineering expertise for this pilot, including creation of a simulated central bank ledger, while…

The Hong Kong Mortgage Corporation Limited (HKMC) has announced the appointment of Colin Pou Hak Wan as Chief Executive Officer (CEO), effective 26 December 2024. Colin will succeed Raymond LC Li, retiring from the mortgage corporation. Paul Chan, Chairman of the HKMC, expressed gratitude for Raymond’s 11 years of dedication and significant contributions, particularly the successful launch of various new measures benefiting society and the business community. “I look forward to Colin continuing to lead the healthy development of the Corporation after he takes up office, so as to serve the society and business community of Hong Kong,” said Paul…

ZA Bank has introduced its new payroll offer, “Salary+,” effective 1 August 2024. Users receiving their monthly salary via ZA Bank can benefit from a welcome offer of up to 8.8 percent p.a. HKD savings rate without needing a separate payroll account. From now until 31 October 2024, new payroll users who receive their first eligible salary of HK$ 8,000 via their account within 90 days of successful registration will receive a 3.59 percent p.a. HKD savings rate-up coupon. Combined with the current basic interest rate of 0.01 percent p.a., users can enjoy a total of 3.6 percent p.a. HKD…

The Hong Kong government announced that WeBank, a digital bank based in Shenzhen, has set up its technology company headquarters in Hong Kong. This initiative, supported by the Financial Services and the Treasury Bureau (FSTB) and Invest Hong Kong (InvestHK), represents a significant investment of up to US$150 million and aims to create high-skilled technology jobs in the city. The establishment of WeBank’s operation in Hong Kong has been the result of extensive coordination between the FSTB and InvestHK to ensure that the company is well positioned for success upon commencing its activities in our city,” said the Director-General of…

Asia Pacific’s regulators have been experimenting with digital banking licenses in the past decade, paving the way for a new breed of banks but has it panned out and what does the future hold for it? Special thanks to the following thought leaders for sharing their views: Jessica Lam, Group Chief Strategy Officer, WeLab Simon Beitz, Managing Director and Chief Executive Officer, Alex Bank Nick Woodruff, Chief of Staff, Trust Bank Sheyantha Abeykoon, Group CEO, Boost Manu Panda, COO, Maya Bank

Octopus has announced a permanent waiver of service fees for over 46,000 micro, small, and medium-sized enterprises (MSMEs) and 25,000 taxi drivers on the first HK$10,000 transactions made through the Octopus App for Business. This initiative, effective from 1 August, aims to support the city’s small businesses by easing fiscal pressure and enhancing their competitiveness in a rapidly evolving market. According to Rita Li Yuk-yi, Octopus’s Sales and Marketing Director, the measure is designed to help micro and small merchants expand their customer base and stay competitive. “Micro and small businesses are the backbone of Hong Kong’s economy. This series…

The Hong Kong Monetary Authority (HKMA) and the Insurance Authority (IA) recently co-hosted the Insurtech Seminar: Unlocking Bancassurance Potential with Insurtech. The event brought together around 400 professionals from the insurance, banking, and financial technology sectors to explore the potential of Fintech in enhancing bancassurance services. Carmen Chu, the HKMA’s Executive Director (Banking Supervision), emphasised the significant untapped potential in bancassurance and the synergy between banking and insurance. Banks’ vast customer bases, extensive distribution networks, and insurance companies’ expertise in risk diversification and product offerings can deliver integrated and comprehensive financial solutions to meet diverse customer needs. “Data is a…

The Securities and Futures Commission (SFC) will launch an online application and submission system named e-IP for investment products administered by the Investment Products Division on 29 July 2024. e-IP is developed on the existing WINGS portal and will serve as a one-stop online platform specifically for e-IP users to submit new product applications and post-authorisation or registration submissions, track application progress, maintain information profiles of investment products, and settle fee payments. New product applications and post-authorisation or registration submissions can be submitted through e-IP once the new system is launched. The launch will accompany a three-month parallel run of…

KPMG has released its annual selection of China’s leading fintech companies, showcasing the top 100 companies that are spearheading innovation within the Chinese financial services sector. The China Leading Fintech 50 and Emerging 50 list showcases the top 100 fintech companies in the country that excel in leveraging technology and data, demonstrating ingenuity, garnering recognition in capital markets, showcasing promising industry development prospects, and achieving notable traction for their products and services. These 100 companies fall into two distinct categories: the Leading Fintech 50, which recognizes the larger and more established fintech enterprises, and the Emerging 50, which features rapidly…

The Hong Kong ETF market has shown significant growth since its launch in April 2024, with substantial trading volumes and expanding assets under management (AUM). The spot Bitcoin (BTC) ETF recorded a turnover of HK$ 1.14 billion. In contrast, the spot Ethereum (ETH) ETF achieved a turnover of HK$ 33.76 million, highlighting the increasing investor interest in digital asset ETFs in Hong Kong. OSL Digital Securities has played a pivotal role in this growth. OSL partner issuers account for 93 percent of the turnover in spot BTC ETFs and 70 percent of the turnover in spot ETH ETFs. Overall, OSL…

The Hong Kong Monetary Authority (HKMA) has concluded an investigation and imposed a HK$10 million penalty on DBS Bank (Hong Kong) Limited (DBSHK) for breaches of the Anti-Money Laundering and Counter-Terrorist Financing Ordinance (AMLO). The investigation by HKMA revealed deficiencies in DBS Bank (Hong Kong)’s systems and controls for AMLO compliance. Specifically, DBSHK failed to continuously monitor business relationships, conduct enhanced due diligence in high-risk situations between April 2012 and April 2019, and maintain proper records for some customers. The bank also did not have effective procedures to fulfill its duties under the AMLO. In deciding the disciplinary action, the…

In Japan, the adoption of fintech has been slow compared to regional peers, despite recent advancements in digital payments and digital assets. In 2023, the usage rate of online financial services in Japan stood at about 17%, behind the global average of 27% and a far cry from 30% in South Korea, a new technical note by the International Monetary Fund (IMF) says. Cash still dominates transactions, making up for about 65% of all transactions. This is despite an increase in cashless payments, which rose from 21.3% in 2017 to 36% by the end of 2022, and an increase in…

WeLab has announced that Ernest Leung has been promoted to President and Group Chief Operating Officer, effective 1 July 2024. This follows WeLab’s recent achievements, including the corporate reorganisation in Hong Kong and the performance of the Indonesian digital bank Bank Saqu. The digital bank, developed through a strategic partnership between WeLab and Astra Financial, has achieved a milestone of one million customers within six months of its launch. Ernest has been with WeLab for five years and has contributed significantly to the company’s growth. He has led various strategic projects, including establishing and operating Bank Saqu, B2B partnerships, and…

Ant Group and Mastercard, along with 12 overseas payment partners of Alipay+ and other major international card organisations, have extended the International Consumer Friendly Zones programme to Chengdu and Chongqing. This expansion aims to accommodate the rising influx of international tourists and traders. Chengdu and Chongqing have emerged as prominent destinations, ranking among the top ten for inbound tourism in the first quarter of 2024. With local government support, the programme by Ant Group and Mastercard will roll out over 60 primary shopping areas, tourist attractions, and key transport hubs, including international airports and high-speed railway stations. Participating merchants will…

HashKey has announced the launch of the HSK token airdrop, distributing 10 million HSK tokens to participants via the DejenDog Telegram bot. This initiative precedes the planned listing of the HSK token in Q3 2024. Participants can access the airdrop by logging into DejenDog and will receive a base amount of Eligible HSK. Additional HSK can be earned by inviting three friends, subscribing to the designated channel, logging in via community partner links, and connecting their wallet while passing an eligibility check. Participants can play the Tap-to-Earn “DejenDog” mini-game to earn more HSK. Tapping on the Husky-themed dog character yields…

On June 26, 2024, a webinar featuring Cameron Church, Director of Market Planning for Asia-Pacific (APAC) at LexisNexis Risk Solutions, presented insights into the rising costs and complexity of fraud in the APAC region, highlighting how heightened digitalization has amplified fraudulent activities and emphasizing that fraudsters are leveraging sophisticated tools and tactics to deceive individuals. The webinar detailed findings from a study conducted by Forrester Consulting between July and August 2023, surveying over 1,800 senior decision-makers globally, with more than 380 respondents from Australia, Hong Kong, India, Indonesia, and Japan. The study revealed that the true cost of fraud in…

CTBC Bank, a privately owned bank in Taiwan with an international presence, has successfully implemented the Avaloq Core Platform to digitally transform its private banking business in Hong Kong and Singapore. This strategic move enables CTBC Bank to offer specialised private banking products and services, enhancing its client offerings and operational efficiency. With 219 banking service outlets in 14 countries across Asia and North America, CTBC Bank is committed to leveraging advanced technology to support its expansion. The Avaloq Core Platform optimises and automates essential functions such as client relationship management, accounting, and compliance, streamlining workflows across the bank’s front,…

Sony Group, one of Japan’s largest corporations, has reportedly acquired Amber Japan, marking its official entry into the cryptocurrency exchange market. This was revealed in an exclusive report by Chinese crypto journalist and market analyst Wu Blockchain. Sony, with a diverse portfolio including gaming, music, and cameras, has a market value exceeding US$100 billion. Amber Japan originated from Singapore-based Amber Group, which closed a US$300 million Series C round led by Fenbushi Capital US in December 2022. This Series C round was the largest investment the firm received, following a US$200 million Series B+ round earlier that year. In early…

WeBank, a Chinese neobank backed by Tencent Holdings, has received regulatory approval from mainland China to establish a fintech subsidiary in Hong Kong. The approval allows WeBank to set up the wholly-owned unit in Hong Kong with a capitalisation of US$150 million, according to an announcement by the Shenzhen bureau of the National Financial Regulatory Administration (NFRA). Additionally, NFRA approved WeBank president Li Nanqing to lead the new unit. The Hong Kong subsidiary will manage the bank’s international business and offer services to regions involved in the Belt and Road Initiative, aligning with national policies, WeBank stated to the South…

The Hong Kong Monetary Authority (HKMA) and the Banque de France (BDF) have announced their collaboration on wholesale central bank digital currency (CBDC). The HKMA and BDF have long partnered to promote financial innovation. Their latest effort involves the HKMA’s participation in Wave 2 of the European Central Bank (ECB)’s Eurosystem exploratory work, which explores new technologies for wholesale central bank money settlement through trials and experiments. This marks a significant milestone as a major non-Eurosystem central banking institution joins the initiative. The two institutions recently signed a Memorandum of Understanding (MoU) to advance their cooperation on wholesale CBDC and…