Author: Johanan Devanesan

The recent collapse of a major bank affiliated with financing tech companies, and the subsequent failures of two other American banks in under two months, has sent shockwaves through the global economy, with effects felt as far as Europe and Asia.  The unexpected downfall of Silicon Valley Bank, once the 16th largest lender in the US, prompted a rush of customers withdrawing billions of dollars in a matter of hours, concerned for their financial safety. This unease led to American regulators taking control of two medium-sized banks, Signature Bank and First Republic, while European authorities were forced to intervene with…

Singapore, renowned as a financial hub and the prominent digital economy in Southeast Asia, is spearheading digital transformation in financial services, including its incumbent banks. While traditional banks have been sluggish to modernise in the past, this recent digital transformation push has been further exarcebated by the Monetary Authority of Singapore (MAS)’s endorsement of fintech startups and digital-only banks. The award of digital full bank licenses in December 2020 to GXS Bank, Sea Limited’s Mari Bank, and Trust Bank has sparked a digital revolution among Singapore’s three major banks: the Development Bank of Singapore (DBS), Oversea-Chinese Banking Corporation (OCBC) and…

Singapore’s sovereign wealth fund, GIC Pte Ltd, remains optimistic about the growth potential within the fintech sector, even in the face of a downturn that has seen startup valuations tumble as investors become increasingly wary of riskier ventures. Chris Emanuel, who leads GIC’s technology investment group, expressed enthusiasm for the innovative strides being made in financial product distribution, which present global scaling opportunities. Fintech offers the prospect of financial inclusion for millions of unbanked or underbanked individuals worldwide, and presents opportunities to democratise access to financial services for small and micro companies, a mission in which GIC is actively participating.…

In the face of a gloomy international economic forecast and a dwindling liquidity pool, profitability has become a pressing concern for the chief executive of any digital bank emerging in the ASEAN region. Digital banking is in its nascent stages within ASEAN, with fledgling digital banks in Singapore, Indonesia, Malaysia, and the Philippines having either launched in the recent past or are in the process of preparing for live launches in the near term. Whilst gaining a foothold amongst the underbanked or unbanked populace is a primary objective, it has become apparent that lending could be the golden ticket to…

Singapore’s sovereign wealth fund, Temasek, has refuted claims that it made an investment in Array, a firm specialising in algorithmic cryptocurrency development. In response to recent news articles and a tweet from Array regarding an alleged investment by Temasek, the investment firm issued a statement clarifying, “This news is incorrect. Temasek has not invested in Array and we have no relationship with them.” Array is known for its algorithmic currency system, which utilises smart contracts and artificial intelligence. On Monday, the developer announced in a press release that it had secured a US$10 million investment from Temasek, raising its valuation…

The US Department of the Treasury (Treasury) and the Monetary Authority of Singapore (MAS) recently concluded a cross-border cybersecurity exercise, which took place between 25 and 27 April. The exercise aimed to assess and fortify existing information exchange and incident response coordination protocols in the event of cyber incidents impacting banks operating in both countries. In light of increasing cyber threats to financial services and the interdependence of the United States and Singapore’s financial ecosystems, prompt and effective collaboration during a cross-border cyber incident is crucial for a swift response and successful recovery of affected operations. The exercise was conducted…

Payment titan Visa is actively seeking senior software engineers to support its “ambitious” plans for a crypto product roadmap, with the goal of driving mainstream adoption of public blockchain networks and stablecoin payments. Cuy Sheffield, Head of Crypto at Visa, took to Twitter to share the news of the job openings, expressing a keen interest in candidates possessing experience with Github Copilot and other AI-assisted engineering tools for writing and debugging smart contracts. We have an ambitious crypto product roadmap @Visa and just opened a few reqs for senior software engineers to help us drive mainstream adoption of public blockchain…

Alipay, the Ant Group-owned digital payment and service platform, revealed that Chinese tourists in Singapore nearly doubled their total transaction value via its app in Q1 2023, compared to Q4 2022. This surge in growth was attributed to China reopening its borders for international travel and resuming group tours to Singapore during the first quarter of the year. The average transaction value also rose by over 40%, with luxury brands LVMH and Hermes as well as premium shopping centres like Marina Bay Sands and Takashimaya witnessing the highest number of Alipay transactions in the first three months of 2023. Furthermore,…

Since the term ‘fintech’ was first coined in the early 2010s, the financial technology sector and the ecosystem around it has undergone a massive evolution. A fluctuating economic climate has seen some startups go public, while others have gone under – meanwhile, the pace of innovation has witnessed new technology, business models, and the requisite regulatory modifications to contend with this swiftly-changing environment. To uncover more on where the fintech sector is heading and what trends are developing in different territories around Asia, Fintech News Malaysia Chief Editor Vincent Fong hosted a virtual webinar with Terry Chan, the Finance and…

Central Bank Digital Currencies (CBDCs) represent a transformative development in the financial industry, as a growing number of countries rapidly progress from theoretical considerations to focused research and pilot programs. The compelling advantages of CBDCs have garnered the attention of even those nations initially unconvinced of their immediate necessity, prompting them to invest in the infrastructure needed for CBDC issuance.  The advent of CBDCs could have significant implications for monetary policy, according to a new working paper. While many central banks are exploring the benefits of CBDCs, few studies have examined their impact on monetary policy in depth.  A number…

The payments industry is undergoing a massive shift globally, and for some time now  Southeast Asia has been emerging as a significant regional player pushing innovation and adoption in this lucrative fintech space. Payments in Southeast Asia is evolving at an unprecedented pace, with a tremendous amount of energy at all levels of the ecosystem.  Payments represent the most well-funded segment within fintech, not just in Southeast Asia but globally. Payment startups raised US$32 billion in 2021 alone, with 52 payments startups unlocking unicorn status in the same year – showcasing a flourishing industry while other sectors are pulling back.…

The collapse of Silicon Valley Bank (SVB) has sent shockwaves throughout the global economy. SVB was the parent bank that focused on tech startups, and its failure announced on Friday, 10 March is the biggest since the 2008 financial crisis. Just over a year ago, Silicon Valley Bank held over US$200 billion in assets and was being hailed as the leading bank of the venture capital industry. But what are the reasons behind the collapse of SVB, and will they trigger a domino effect on the global economy? Surging VC Funding & Net Interest Margin The levels of venture capital…

Rural banks fulfil different roles in different countries, but across the board they help to promote financial inclusion efforts to move the local population – many who have never possessed a bank account – to participate in the regional economy. In Laos, village banks and credit unions could be a vital lifeline to connect poverty-stricken rural folks with microfinancing programs and pull themselves out of economic doldrums. Landlocked and economically stifled, Laos has at least 40 licensed financial institutions including Banque Pour le Commerce Extérieur Lao (BCEL) and a handful of foreign lenders, with the most prominent being Chinese foreign…

One of the big talking points gripping business leaders since the COP26 and COP27 climate summits in Scotland and Egypt, respectively, has been the role the fintech industry can play in creating a more sustainable business environment. The United Nations and other bodies lamented the lack of clear action from corporations and industries, not to mention the “litany of broken climate promises”, according to UN Secretary-General António Guterres.  The COVID-19 pandemic, supply chain constraints and a subsequent war in the Ukraine have all been derided for causing corporations to pull back on their environmental commitments such as targeting to reach…

Singapore-based DBS Bank has become a top-ranked bank globally driven by its successful digital transformation initiatives, focus on sustainability, and high-quality customer service. DBS has managed to maintain its competitive edge by embracing digital innovation and staying at the forefront of the rapidly changing financial landscape.  DBS kicked off a purpose-driven digital adoption agenda in 2014, laying out a five-year roadmap that coincided with the rise of fintech and the earnest start of digitalisation for financial services. DBS Group CEO and Director, Piyush Gupta, set the lofty aim of being named the best bank in the world on the back…

Partior is a blockchain-based exchange platform, a fintech company operating within the exciting Web3 space that is being hailed as the future of the internet. Blockchain technology provides a secure and decentralised ledger that can be used to record and track financial transactions, including the exchange of digital assets.  Partior spun out from Project Ubin, a collaborative effort between the Monetary Authority of Singapore (MAS) and the fintech industry based in the island state. The recently concluded five-phase project helped regulators like MAS and the industry at large better understand the use of blockchain and distributed ledger technology (DLT) in…

Even as much of the world experienced recessionary economic winds, the Vietnamese economy continued to be robust, even recording growth out of a dour 2022. Part of that resurgence in Vietnam was a strong import-export boom, and now positive digital trends are lending a helping hand to the country’s small and medium-sized enterprises (SMEs) to boost their abilities to sustain growth. Encouraging economic outlook for Vietnam trade The turnover of import-export goods in Vietnam reached US$616 billion for the first 10 months of 2022, up 14% over the same period the previous year. The export value alone recorded in that…

As any crypto industry observer surely knows, 2022 was one of the most turbulent years since Bitcoin hit mainstream notoriety and digital asset markets became a sphere of interest for fintech companies and private investors alike.  The early part of 2022 saw the cryptocurrency markets turning bearish as the global economy soured. It was not just the crypto industry either, as CoinGecko’s 2022 Annual Crypto Industry Report highlighted how poorly traditionally major assets like crude oil and the US Dollar had performed by the end of 2022.  Still, the single worst-performing asset in 2022 was Bitcoin, shedding 64.2% of its…

Climate change and sustainable development efforts are becoming a global movement for financial companies like they have for many businesses. This includes pressure on the banking sector to set carbon goals, and for fintech companies to introduce green features in their offerings. According to data and analytics firm GlobalData, green banking is becoming established as a concept, and is one of the areas to watch under the broader umbrella of sustainable finance.  “With the global transition towards the creation of a low-carbon, climate-resilient, and circular economy, banks are reeling under pressure surrounded by customers demanding transparency and accountability as well…

Heading into 2023, it is a time of uncertainty for financial institutions offering payments. There is strong economic pressure on companies dealing in finance and technology globally, including in the ASEAN region due to a variety of macroeconomic factors. It’s worth noting that traditional finance business models, including banking with its monolithic legacy infrastructure, are not equipped for the highly digital economies and consumer behaviour they face in 2023. Technology will be key in shaping the evolution of payments in ASEAN and elsewhere, heading deeper into the 21st century. That is the opinion of industry leaders across fintech and financial…