Author: Rebecca Oi

The advent of ISO 20022 signifies a monumental shift in the financial world, a transition that promises unprecedented transparency, efficiency, and improved risk management.  This financial standard elevates transaction data richness to a new level by offering up to ten times more data elements per transaction.  Its global adoption across the banking industry, regulators, and other financial players significantly transforms the once fragmented landscape into a unified field of standardized transactions. ISO 20022 comes with the potential of yielding higher quality data and thereby enhancing reconciliation rates. It could enable real-time and frictionless payments. Moreover, this new standard compels banking…

In today’s interconnected world, the financial industry is constantly in flux, driven by the ever-increasing pace of technological advancement. This rapid change brings with it challenges that require solutions of an equally transformative nature. Primarily driven by the need to enhance user experience, service resilience and service security, this digital transition faces challenges from various aspects, including performance, availability, security, operations and maintenance (O&M), and energy consumption. In response, Huawei, an ICT technology company, has laid out four strategic directions to navigate this complex landscape. These directions encompass the following objectives: constructing a resilient infrastructure, expediting application modernization, fostering scenario…

The global insurtech market is rapidly changing as startups and new technologies revolutionise the traditional insurance industry. The ASEAN region is a fertile ground for insurtech companies, driving advancements and reshaping insurance delivery. Projections suggest the global insurtech market will reach US$114 billion by 2030, with a CAGR of 46.10 percent. ASEAN is crucial in this growth, with many startups leveraging the region’s market potential and technology. However, insurtech funding in 2023 has declined compared to the previous year. From January to May 2023, insurtech companies raised US$1.05 billion in equity funding across 67 rounds, a 76.29 percent drop from…

In the ever-evolving digital technology landscape, the Asia-Pacific (APAC) region has emerged as a hotbed for Web 3.0, the next wave of transformative advancement. Over the last few years, this dynamic region, renowned for its economic diversity and tech-savvy population, has been pioneering advances in this revolutionary Internet paradigm, fostering an ecosystem of developers, entrepreneurs, and companies dedicated to shaping the future of the web. According to Emergen Research, Web 3.0 is projected to reach a global market value of US$81.5 billion (SG$110.33 billion) by 2030. This exponential growth is fueled mainly by industries such as banking, financial services, and…

The banking sector has undergone a significant transformation thanks to the introduction of cloud and open-source technologies. Previously, banks relied on legacy systems and proprietary software, resulting in operations being siloed, scalability being limited, and high costs. However, with the advent of cloud and open-source technologies, banks can adopt a more agile and collaborative approach to innovation. In an interview, Jimmy Ng, Chief Information Officer and Group Head of Technology and Operations at DBS, and Marjet Andriesse, Senior Vice President (SVP) and General Manager of Asia Pacific Japan and China at Red Hat, delved into the role of cloud and…

In today’s rapidly evolving world, technological advancements not only create commercial value but also have the power to bring about significant positive changes in society. However, there are still 1.7 billion people worldwide who lack access to financial services. Embracing the ethos of “Tech for All,” Huawei, an ICT technology company, has made great strides in promoting financial inclusion and digital transformation. With its solutions, the company has already served 380 million people across more than 60 countries, empowering individuals with access to essential financial services. Huawei’s Experience and Global Practices in the financial industry Huawei has been actively involved…

Leaders of the Association of Southeast Asian Nations (ASEAN) recently declared to advance regional payment connectivity and promote local currency transactions. Recognizing the potential benefits of using local currencies, they emphasized the importance of strengthening financial resilience, deepening regional financial integration, and bolstering regional value chains. To achieve these goals, ASEAN leaders pledged to leverage emerging opportunities brought by innovation to facilitate seamless and secure cross-border payments, taking into account the unique circumstances of each country. Role of technology and digital currencies Technology is pivotal in advancing regional payment connectivity within ASEAN by enabling faster, cheaper, safer, transparent, and inclusive…

As the world undergoes rapid changes, businesses in the banking, financial services, and insurance (BFSI) sectors are also expected to adapt to new norms. Environmental, social, and governance (ESG) principles have become more than an option and are now essential for businesses to survive in this era. This shift in demand is driven by various stakeholders, including employees, shareholders, governments, and regulators. According to a recent study by Finastra, 79 percent of APAC banks plan to increase their exposure to green lending in the next 12-18 months Similarly, investment-fund companies across the US, United Kingdom, Germany, and France have stated…

The rising popularity of Buy Now, Pay Later (BNPL) services among Millennials and Gen Zs in Singapore underscores a gap in financial literacy within these demographics.  Many young Singaporeans are drawn to the convenience of BNPL services, often overlooking the potential pitfalls associated with them. Although these services address immediate financial needs, focusing on long-term financial planning is crucial for managing budgets according to one’s lifestyle. The challenge of financial management is further exacerbated for these age groups by increasing living costs and the pressure to keep up with their peers. However, there is a silver lining as digital wealth tools become more accessible…

In a progressively digital world, the essence of open banking has found its way to the heart of Singapore’s financial ecosystem with the introduction of the Singapore Financial Data Exchange (SGFinDEx). This innovative data-sharing platform serves as a transformative tool, enabling consumers to have a comprehensive, consolidated view of their financial portfolio across different platforms. This approach not only empowers consumers with a deeper understanding of their financial health, but also heralds a new era of digital transformation in the financial services sector. By enabling data-driven solutions, it caters to a broad spectrum of consumer needs and preferences, paving the…

In recent years, the Asia-Pacific (APAC) region has been at the forefront of the FinTech revolution, with many innovative companies disrupting traditional financial services. For APAC FinTech founders and their investors, the decision to raise capital through an initial public offering (IPO) is a significant milestone in their journey toward growth and expansion. The London Stock Exchange (LSE) remains a popular option for international companies looking to access global capital markets. Approximately 40 percent of the companies listed in London are international in nature.  A listing on the LSE can be an option for growth companies seeking to raise capital…

Indonesia’s financial services industry (FSI) is set for considerable growth and innovation as it adapts to the rapidly evolving global business environment. The robust growth of the Indonesian financial sector is exemplified by the 27.96 percent year-on-year increase in the country’s digital banking transaction value, which reached Rp4,900.6 trillion as of January 2023. The rapid growth is fueled by the convenience of digital payment systems, the ever-expanding digital economy, and the swift emergence of digital banking. To fully realise the potential of Indonesia’s financial services industry, embracing value chain innovation throughout the entire sector is imperative.  Value chain innovation, which…

In the bustling nation of Bangladesh, home to a vast population, a digital transformation has taken the nation by storm as the mobile financial services (MFS) sector experiences unprecedented growth. Recent data from the central bank reveals that a staggering 194 million users have adopted MFS providers like bKash. In 2022, the total transaction value exceeded US$114 billion. This meteoric rise can be attributed to the growing versatility of digital payments, cutting-edge technological advancements, and an unwavering commitment to fostering financial inclusivity throughout the country. From Humble Beginnings to Becoming the Most Loved Brand in the Country Since its inception in 2011,…

Mastercard has partnered with Web3 players on an on-chain identity and verification framework, focusing on payments, remittances, ticketing, and NFTs. The Mastercard Crypto Credential is designed to help companies, developers, and individuals to unlock the full potential of powering payments, commerce, and economic value on-chain and across borders. The initiative includes Bit2Me, Lirium, Mercado Bitcoin, and Uphold, which will work on a pilot project to enable transfers between the US and Latin America and the Caribbean corridors. The company also partners with Aptos Labs, Ava Labs, Polygon, and The Solana Foundation. Aptos says it is among the shortlist of blockchains…

As the world increasingly relies on digital technology, financial service institutions (FSIs) are constantly adapting to meet the changing needs of their customers. FSIs must reimagine their digital experiences to stay competitive and provide a more seamless and efficient customer journey. This requires a fundamental shift in how they approach customer service and investments in technology that can support these new approaches. In a recent Fintech Fireside Asia webinar titled “How the FSIs of the Future Are Reimagining Digital Experiences,” moderated by Fintech News Chief Editor Vincent Fong; practitioners from leading digital-first organisations shared their observations and insights on the…

Financial inclusion and credit access are essential for driving economic growth and improving livelihoods in numerous emerging markets, including South Asia. However, extending credit to underbanked and unbanked populations comes with inherent risks, especially when dealing with new-to-credit customers who lack a credit history. Addressing Lenders’ Challenges in Emerging Markets In order to provide quick and trustworthy lending decisions while minimizing risk, lenders need to explore alternative approaches to enhance their understanding of new-to-credit applicants and optimize loan decisions without jeopardizing overall defaults. This is where LendBetter, a Mobilewalla solution, becomes a crucial tool. Mobilewalla LendBetter offers over 200 highly…

In recent years, Bangladesh has seen rapid growth in its fintech sector, fueled by the widespread adoption of mobile technology. This has enabled financial services to reach millions of previously unbanked citizens, leading to a remarkable rise in financial inclusion over the last five years. According to the SDG Cell at the Bangladesh Bureau of Statistics, 79 percent of adults in the country now have access to formal financial services, and one of every five financial transactions is conducted digitally.  Not only has the fintech sector in Bangladesh experienced growth in the mobile payments industry, but the personal finance and remittance segments…

Singapore is well-known for its proactive approach toward technology adoption and innovation. However, the country’s central bank, the Monetary Authority of Singapore (MAS), has taken a cautious approach to crypto or cryptocurrencies. The MAS views cryptocurrencies as inherently risky due to their volatile nature, and potential for illicit activities such as fraud and money laundering.  As a result, the central bank has consistently warned investors about the risks associated with cryptocurrencies, including their susceptibility to market volatility. MAS has stressed that investors should not anticipate the same level of safeguarding with cryptocurrencies as they would with traditional investments like stocks and…

Financial services firms across the Asia Pacific are facing an ever-increasing array of data and technology challenges stemming from both the growth in the volume of customer and business data being generated and the proliferation of data siloes across different applications and platforms.  This has led to an urgent need for financial organisations to access, manage, and leverage their data effectively to improve operational efficiency, enhance decision-making, and, ultimately, better serve their customers. In a recent survey by InterSystems, a provider of data management solutions involving 176 leaders in the APAC region, several vital data and technology challenges were identified…

It’s been a tough year for the fintech and crypto industry, and it has been under fire for various reasons. Among other pressures, perhaps the single most damaging aspect to come out of this year has been widespread suspicious activity perpetrated by alleged fraudsters in the industry.  Names like Sam Bankman-Fried and Gerald Cotten have unfortunately become synonymous with suspected fraudulent practices and deception. The two accused fraudsters have been alleged to have milked investors out of millions of dollars, and their stories have cast a shadow of doubt over the entire industry.  With technology and crypto space’s reputation at…