By 2025, virtual banks could be serving a total of 1.9 million customers, or 24.9% of the Hong Kong population, and hold a combined revenue market share of 19.3%, estimates Quinlan and Associates. Though not insignificant, the consulting firm forecasts industry consolidation in the years to come with only a handful of players truly thriving. These estimates were shared in a new report titled Branching Off: The Outlook for Hong Kong’s Virtual Banks, which looks in detail at the outlook for the Hong Kong virtual bank ecosystem in coming years. According to the analysis, by 2025, there will be a…

The Hong Kong Monetary Authority (HKMA) announced today the launch of its Global Regtech challenge which they described as a competition designed to raise the Hong Kong banking industry’s awareness of the potential of Regtech adoption and to further grow the Hong Kong Regtech ecosystem. The contest is one of the key highlights in the HKMA’s two-year roadmap to promote Regtech adoption in Hong Kong, as laid out in a White Paper entitled “Transforming Risk Management and Compliance: Harnessing the Power of Regtech” published in November 2020. Regtech providers from around the world are invited to take part to showcase how…

Hong Kong digital tech park Cyberport had organised a two-day WealthTech Demo Day in partnership with the Chinese Financial Association of Hong Kong (HCFA) and the Hong Kong Securities and Investment Institute (HKSI Institute) on the 22nd and 23rd March 2021. Seven of Cyberport’s wealthtech startups had showcased their latest solutions for the securities sector to help financial institutions identify solutions that can enhance their competitiveness. These startups’ solutions encompasses virtual assistant for investment, algorithm-driven wealth management platform, AI trading platform for securities company, AI IPO document review and verification system. Eric Chan, Chief Public Mission Officer of Cyberport said,…

In Asia Pacific (APAC), digital wealth management is poised for strong growth. Driving this momentum is the region’s rapidly growing affluent and middle-class populations, the high levels of access to mobile technology, and rising demand for sophisticated-yet-easy-to-use digital wealth management offerings. In a new analysis, global consulting firm KPMG shares major trends driving digital wealth management in APAC, citing rising adoption of big data analytics, opportunities brought by open banking, and a fast-growing population of ultra-high-net-worth individuals (UHNWIs), among other trends to watch for. Affordable, digital wealth products for Asia’s hyper-connected populations High rates of Internet penetration in Asia have…

Continuing the momentum of its hypergrowth in 2020, Airwallex today announced that the company’s valuation has increased to US$2.6 billion with a capital raising of US$100 million in a further Series D extension. Lifting Airwallex’s Series D funding to US$300 million, this latest tranche followed its initial Series D round in April 2020 during the pandemic, and the extension round in September 2020. To date, Airwallex has achieved nearly US$500 million in equity funds raised. The round has been led by Greenoaks, a US-based global investment firm that has backed industry-leading technology and fintech companies including Deliveroo, Discord, Stripe, Brex…

Against the backdrop of the cacophony of noise and emerging trends in Asia, it’s difficult even for the keenest of observers to determine what trends will shape the future of fintech in Asia. On the 6th episode of Fintech Fireside Asia, we were joined by Brett King, an inductee of CB Insights’ Fintech Hall of Fame and ardent futurist to shed some light on the matter. The following is a summary of the conversation between Brett and Vincent Fong, Chief Editor of Fintech News Malaysia. Is it True That Challenger Banks are Struggling? Xinja, a digital bank in Australia had…

ZA Bank announced the launch of their business banking which they say leverages “ZME Revolving Loan”, an unsecured business revolving loan, to help small and medium-sized enterprises (SMEs) of various industries overcome business constraints. In their media statement, they said it features convenient, flexible and customised offerings. ZA Bank Business Banking has aspirations to boost Hong Kong’s economy by becoming a business partner of SMEs. The launch sees ZA Bank further expand its footprint with a comprehensive set of services covering retail deposits, loans, card, and Business Banking. ZA Bank Business Banking focuses on servicing companies established or incorporated in…

We are experiencing more change in the payments space than we have over the past thirty years. This is an exciting time to be involved in payments. As we begin 2021, Accuity’s payments specialists look ahead to identify four digital payment trends that will drive change this year. Accuity’s new whitepaper identifies these four digital payment trends for 2021. Trend 1: The point of online purchase will become increasingly crowded for payment service providers When a customer arrives at the payment setup point on a merchant’s website, they are asked to select a payment option. In 2021, customers will be presented with more…

ZA Bank, one of Hong Kong’s eight virtual banks, announced that it has now gained 300,000 users in time for its upcoming first year anniversary. ZA Bank was the first to have a soft launch of its virtual banking services in December 2019 and went on to being fully operational with the launch of their ZA Go savings product in March 2020. The bank said in a statement that it has recorded more than 220,000 users and paid interest on over HKD 6 billion of personal savings, as of 31 December 2020. ZA Bank has also disbursed more than HKD…

ZA Tech, the technology venture founded by ZhongAn Online and backed by Softbank’s Vision Fund, has partnered with PFI Mega Life (PML), Prudential Financial Inc’s joint venture in Indonesia to promote financial inclusion in Southeast Asia. ZA Tech will leverage its business know-how and its proprietary core insurance system named Graphene, to help PFI Mega Life create a seamless digital experience for its customers and ecosystem partners. This will enable PFI Mega Life to create instant and affordable protection that can be tailor-made for each customer and ecosystem partner. Additionally, ZA Tech will also join forces with PFI Mega Life…

OSL Digital Securities Limited (OSL DS), a SFC-licensed digital asset platform and member of BC Technology Group, announced that it has officially gone live with the execution of the first customer trades via its licensed trading desk. OSL DS holds a license for Type-1 (dealing in securities) and Type 7 (automated trading service) regulated activities related to virtual assets from the Hong Kong Securities and Futures Commission (SFC). The OSL platform utilises a modular interface where institutional and professional investors can buy, sell and securely store digital assets, such as Bitcoin, Ethereum and selected security tokens. The ‘go-live’ for trading…

Ant Group announced it will become carbon neutral by 2030, and pledged its support to bring down emissions through technological innovations, joining the urgent global efforts to curb climate change and its devastating effects. The company will also set up a carbon neutrality fund to support the research and development of renewable energy and other green technologies, and work with industry partners to promote green finance. Ant Group said in a statement that it has detailed a roadmap to neutralise direct and indirect emissions associated with the purchase of electricity from this year. By 2030, Ant Group aims to fully…

At Regtech Demo Day on March 3 and 4, seven of Cyberport’s fast-growing regulatory technology (regtech) startups showcased their latest fintech solutions to hundreds of industry stakeholders. The two-day event, organized by Cyberport and the Hong Kong Institute of Bankers (HKIB), sought to provide a platform for young, promising regtech startups to connect with potential prospects, and showcase the latest technologies out there to help banks and financial institutions manage compliance in an ever-changing regulatory landscape, Cyberport’s Chief Public Mission Officer Eric Chan told Fintech News Hong Kong in a statement. Regulatory expectations have consistently increased over the years, and…

Hong Kong-based virtual bank WeLab announced that it has completed the initial close of Series C-1 funding led by Allianz X for US$ 75 million. Allianz X is the digital investment unit of the Germany-based Allianz Group, one of the world’s largest insurers and asset managers. Existing investors also participated in this Series C-1 round which remains ongoing with the final close expected in the coming months. With this round of investment and new partnership, WeLab looks to combine its advanced digital banking technology capabilities and market know-how with Allianz’s expertise in insurance and asset management where the two partners…

If you are selling internationally then you need a method of accepting and making payments that works and doesn’t cost the earth. There are so many difficulties in accepting cross-border payments that getting it right is super-important. Having an efficient payment processor is only half of the battle, you need a system that provides all of the features you need and of course, at a reasonable price. So which solution wins the comparison between Payoneer and Wise? In this review, we’re looking at the major features and giving you the lowdown. Payoneer Payoneer is by no means a new kid…

China’s Ping An started out as a property and casualty insurance company but rapidly grew into becoming what we know today as one of the world’s biggest tech giants. A new case study published by the International Institute of Management Development (IMD) in Switzerland looks at the evolution of Ping An and identifies key lessons from the firm’s successful journey into becoming a tech disruptor. Ping An’s rise is something that’s apparent to most industry observers, KPMG once wrote a guest piece in Fintech News Singapore outlining 3 key lessons that insurers can learn from Ping An. According to the…

Airwallex, a cross border payment company, announced that it has completed the acquisition of UniCard Solution Limited following the regulatory approvals from the Hong Kong Monetary Authority (HKMA) to become a shareholder controller. Airwallex said that through its wholly owned subsidiary UniCard, it aims to launch various card payment products that will support multi-currency, cross-border transactions in a safe, convenient, compliant and cost-effective way in the coming year. Airwallex will continue to support UniCard’s prepaid card product, while also providing Hong Kong businesses with access to new payment and collection solutions. UniCard is a Hong Kong incorporated business and Stored…

Hong Kong-based cryptocurrency platform Crypto.com announced a global partnership with the Aston Martin Cognizant Formula One™ Team ahead of its 2021 Formula One car launch. Aston Martin Cognizant Formula One™ Team has signed a multi-year deal with the cryptocurrency platform which serves more than 10 million global customers. Some of the offerings of Crypto.com include a Crypto.com Visa card, the Crypto.com Exchange and the Crypto.com DeFi Wallet. Over the course of the multi-year deal, the brands said that they will collaborate to bring exclusive experiences and opportunities to traders and fans of the sport. Kris Marszalek, Co-founder and CEO of…

livi bank, one of Hong Kong’s eight virtual banks, and Mastercard collaborated to unveil a new virtual debit card. livi said that the virtual debit card expands livi’s product line with a goal to support customers’ everyday living anytime, anywhere, especially under the “new normal” where customers are now shopping more online. livi customers will be able to get instant access to their digital Mastercard debit card after signing up through their liviSave account. It gives them the card information necessary to make secure online transactions right away, and a one-tap option also enables them to add their new virtual…

KPMG report found that fintech companies in Asia Pacific attracted USD 11.6 billion across 565 deals from venture capital, private equity and M&A in 2020, compared to USD 16.8 billion in 2019, reaching a six-year low. The pandemic saw a decline in investment into emerging markets like Southeast Asia, particularly in the second half of the year. Global fintech funding was USD 105 billion in 2020, the third highest fintech investment on record despite a significant drop compared to USD 165 billion in 2019, according to KPMG’s Pulse of Fintech H2’20 report. Total fintech investment in China was soft in…