Asia-Pacific's virtual banking market, May 18th, 2020

Stay updated on Asia-pacific’s virtual banking market.

1. Sunway Group acquires 51% stake in Credit Guarantee Corporation Malaysia Berhad to strengthen its ambition to secure digital banking license

This acquisition will enable Sunway to advance its ambition of building a fintech ecosystem. In addition, helps in securing a digital banking license to promote financial inclusion for people of Malaysia and SMEs. SMEs are the major catalysts in economic growth by contributing around 40% in the GDP of the nation.

2. Malaysia moving toward banking digitalization

After 20 years, Malaysia is moving toward banking digitalization with the regulatory intent to grant 5 virtual banking licenses. Malaysia’s virtual banking push comes to keep in-line with its regional peers like Korea, Taiwan, and Hong Kong.

3. Niyo, a neobank in India, starts ‘Niyo Pathshala’ initiative to drive financial literacy for India’s labor force

This digital initiative helps NiYO in educating thousands of shop-floor workers on the benefits & features of branchless banking. In addition, Niyo Pathshala provides information on how people can manage their finances during the lockdown phase. This will help people to foster their saving habits and prevent frauds that have become prevalent in recent times.

4. Amidst the Covid-19 pandemic, India’s fintech market attracted venture capital funding of over US$ 400 million

The innovation-led Indian fintech industry is expected to expand its base in the post-pandemic period through contactless payment systems. In the first quarter of 2020, India surpassed China in fintech funding activity amounting to $421 million.

5. Neobank RazorPayX plans to recruit additional staff to support the increasing demand during Covid-19 in digital payments in India

With the Covid-19 spread, the physical transactions have almost crashed, creating exponential growth for digital transactions in India. The digital payments platforms see a surge in its downloads and the number of transactions.

6. The Monetary Authority of Singapore along with a consortium of companies launch a S$6 million MAS-SFA-AMTD FinTech Solidarity Grant to support fintech firms during Covid-19

The Grant will aid the FinTech companies to maintain their operations and will also enable them to continue its growth and innovation. Moreover, The Grant complements the S$125 million support package announced by MAS during April to sustain and strengthen the capabilities in the financial services and FinTech sectors. The grant comprises of two components- (a) S$1.5 million Business Sustenance Grant (BSG)  (b) S$4.5 million Business Growth Grant (BGG)

7. Thailand’s central bank approves 6 incumbents to onboard customers for online deposit accounts through e-KYC technology

This will enable consumers and the unbanked population easier access to financial services. System stability, data collection system, and consumer protection will be major considerations. The six banks under the first module are Kasikornbank, Siam Commercial Bank, Bangkok Bank, Bank of Ayudhya, TMB Bank, and CIMB Thai Bank.

8. TONIK gears up security with V-key for its banking platform

 TONIK, Philippines’ virtual bank, chooses V-Key as its mobile security partner, which includes in-App protection residing on V-Key’s Cloud platform for strengthening TONIK’s mobile retail banking platform. The ability to provide a trusted and secure environment for its customers to perform their banking transactions is important to the customer experience for its services. Most importantly, V-OS secures sensitive data and processing, ensuring application integrity when it is used and safeguarding user privacy even when the device is lost.

9. Double interest rate cut by Reserve Bank of Australia compels Xinja, Australia’s neobank, to slash its interest rates on Stash account from 2.25% to 1.8%

The interest rates offered by Xinja are still higher than the majority of banks’ but is now topped by its neobank competitors such as 86 400 and UP, which are offering a rate of 1.85%. Sacrificing its unique selling proposition is likely a necessary step for Xinja to survive the current conditions. Xinja stopped new account opening in March to keep its Stash interest rate high. In conclusion, Xinja and the Australian competitors have been attempting to forge the paths to profitability, but short-term sustainability is likely to be a matter of importance now.

10. Judo Bank becomes Australia’s fintech unicorn during the Covid-19 pandemic with its latest funding round of AUD$ 230 million, valuing the bank at over AUD$ 1 billion.

The lender to small- and medium-sized, licensed just over a year ago to take deposits Judo has now raised total amount of $770 million in equity over three rounds. During the COVID this now has added to the result of helping businesses stay afloat during the global pandemic.

11. Neobanks become  the first time entrants in the Australian Banking Brand and Trust index with Up Bank securing 7th rank followed by 86 400 at 21st and Xinja at 27Th

Topic:

The Future of Banking

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