Banking
Digital Transformation

TM ONE Plays Host to UK Artificial Intelligence Trade Mission

									by Fintech News Malaysia
November 8, 2018
1 comment

Telekom Malaysia Berhad,  through its business solutions arm, TM ONE, recently hosted an Artificial Intelligence Trade Mission from the UK at the TM ONE Experience Centre, in collaboration with the Department for International Trade (DIT) of British High Commissioner(BHC).
9 UK-based technology companies with various expertise in Artificial Intelligence (AI), Cybersecurity, Data Analytics and Predictive Technology were part of the delegation.
The companies are looking to expand their reach to the Malaysian market by establishing collaborative engagements with Malaysian enterprises and government agencies.

By leveraging on TM’s  business rapport in the Enterprise and Public Sector, the collaborations to be established would then further support and accelerate the growth of Malaysia’s digital economy.
Commenting on the trade mission, Datuk Bazlan Osman, Acting Group Chief Executive Officer, TM said,
 “The digital economy needs a robust support structure and ecosystem to thrive. As businesses in Malaysia leverage on Industry 4.0 to transform and uplift the efficiency of their business operations, the success lies in integrating the myriad of technology trends that suit their requirements. These technologies include Internet of Things (IoT), Big Data Analytics (BDA), AI, Cybersecurity and Cloud Computing.
At TM, we are constantly looking at ways and opportunities to bring more innovation to our customers’ to drive their digital transformation. This can be achieved through TM’s integrated business solutions that will fulfil their business needs and boost their business growth, true to TM’s vision of “Making Life and Business Easier, for a Better Malaysia”.
The trade mission aimed to drive opportunities and explore avenues to grow businesses in Malaysia’s digital economy. It served as a platform for TM to meet, listen and collaborate with delegates from some of the most successful and fastest growing UK technology companies focusing on five (5) main verticals namely Banking, Financial Services and Insurance (BFSI), Oil & Gas, Healthcare, Education and Real Estate.
During the trade mission, the participating UK companies showcased their expertise in advanced technologies and provided better understanding of the UK current technology landscape while evaluating the multiple collaboration prospects here in Malaysia.
“In collaboration with the DIT, the trade mission undoubtedly provides valuable opportunities for us both to build relationships that will be mutually beneficial. At the same time, it hopes to create a dynamic ecosystem to drive Malaysia’s digital transformation. We are indeed very pleased with the potential of collaborative partnerships with the delegation of innovative companies and their tech
offerings,” Datuk Bazlan added.
The Trade Mission was led by Natalie Black, the recently appointed Her Majesty’s Trade Commissioner for Asia Pacific, on her first visit to Malaysia. Black, who has vast experience in the technology and cyber security sectors, said,

The UK has an impressive track record in the development and deployment of AI and our nine participating companies exemplify British expertise. Businesses worldwide, including in Malaysia and ASEAN, are demanding cutting-edge technology solutions for the modern world. We are ready to deliver.”

Her Excellency Vicki Treadell, British High Commissioner to Malaysia, said,
“Collaboration is absolutely central to the Malaysia-UK relationship and our partnership in the technology arena has gone from strength to strength in recent years. A Malaysian Tech delegation heads to the UK immediately after this Trade Mission and the UK remains committed to supporting Malaysia as it develops its digital economy.”

The bilateral trade mission between BHC and TM is set to transform the traditional method of collaboration through technologies like AI and Cybersecurity. It will enable more businesses and government agencies to embark on their journey in digitalisation with agile technology,
infrastructure and capabilities as well as to help them achieve wider market reach via multiple channels.
This engagement with 9 UK-based technology companies which offer cutting-edge technologies will also bring opportunities for TM ONE to build its capacity and capability in both AI and Analytics through technology transfer and sharing of best practices.
Companies on this mission not only recognise the economic development and industry growth in Malaysia but crucially, see vast opportunities to apply such technology – with the growth of Smart Cities, as Big Data transforms citizen/government interactions and even global cybersecurity challenges – all are areas that demand tech that pushes the boundaries of innovation.

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Crowdfunding

Singaporean Fintech Fundnel Becomes 7th ECF Platform Approved in Malaysia

									by Fintech News Malaysia
November 9, 2018
1 comment

Singapore-based equity crowdfunding platform Fundnel has expanded to Malaysia. The announcement follows Fundnel’s appointment as a Recognised Market Operator by the Securities Commission Malaysia.
Fundnel Malaysia aims to provide a comprehensive suite of capital raising services, targeted at local unlisted growth companies that form the backbone of the economy.
This will include everyday businesses from the mom and pop cafés and retail stores to larger companies in the fields of education and wellness. The company claims to adopt a technology and data driven approach to connect quality businesses with growth capital,

“The global economy is increasingly being shaped by SMEs, who often face challenges obtaining growth capital,” said Kelvin Lee, CEO and co-founder of Fundnel. “Crossing the borders is a big stride towards our goal of creating access to capital for everyday companies.
We believe that funding good-quality private businesses will create jobs and in turn spur economic growth. As a newly minted operator, we are excited to commence work and make a difference to the local market.”

“Fundnel’s entry into Malaysia is a testament to the country’s attractiveness as an investment destination and we are excited to welcome the region’s largest private investment platform into our market,” said Norhizam Abdul Kadir, Vice President of Growth Ecosystem Development of Malaysia Digital Economy Corporation (MDEC).
“As a government agency, MDEC works closely with industry players, regulators, start-ups, and accelerators in nurturing the nation’s Fintech ecosystem. We look forward to partner up with Fundnel and other investment platforms to create a more vibrant environment and benefit businesses in Malaysia.”
MisterTyre, a homegrown on-demand mobile car care services, will be one of the first companies to be launched on Fundnel Malaysia. The Klang Valley-based startup plans to use proceeds from this round of fundraise to launch its affiliate program across Malaysia and to initiate licensing of its SAAS automotive solution in the United States.
As of June 2018, the Recognised Market Operators authorised by the SC have collectively raised a total of RM118 million in capital for more than 300 micro, small, and medium enterprises, demonstrating the potential of alternative financing platforms. There are currently 6 P2P lending players and 7 ECF players including Fundnel’s inclusion currently approved by the regulator.
In anticipation of its launch, Fundnel has forged a strategic partnership with local investment firm, Midana Capital. Both Fundnel and Midana Capital will assist each other in deal origination with the common ambition of supporting Malaysian companies.

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Blockchain/Bitcoin

CIMB Becomes the First Malaysian Bank to Join Ripple’s Network

									by Fintech News Malaysia
November 15, 2018
6 comments

CIMB Group and Ripple have entered into a strategic collaboration to enable instant cross border payments across its various markets. On the back of this partnership, CIMB will join Ripple’s network RippleNet, which will facilitate access to other RippleNet members and allow CIMB to grow its cross-border payments business.
This news follows MoneyMatch’s earlier completion of their first cross-border blockchain transaction via Ripple.
Ripple’s blockchain-based solution has been deployed to enhance Speedsend, CIMB’s proprietary remittance product. This will expand CIMB’s SpeedSend network and open new payment corridors to improve consumer access to cross-border remittances, both inbound into ASEAN and outbound to other countries. The solution is now live on Speedsend, enabling remittances via corridors such as Australia, USA, UK and Hong Kong.

“We are delighted to be part of RippleNet and look forward to a fruitful partnership with Ripple by leveraging each other’s strengths and capabilities. This innovative blockchain solution will revolutionise international cross-border remittances, and is a testament to CIMB’s ongoing efforts to enhance its digital banking proposition by providing speedy and cost-efficient solutions to our customers across ASEAN,” said Tengku Dato’ Sri Zafrul Aziz, CEO, CIMB Group.

As part of the overall partnership roadmap, CIMB intends to extend the solution to other use cases across the Group. There is a growing demand for cross-border payment solutions, with the World Bank projecting that remittances to Southeast Asia will grow to USD120 billion by the end of 2018.
“We’re seeing banks and financial institutions from across the world lean into blockchain solutions because it enables a more transparent, quicker and lower cost payments experience,” said Brad Garlinghouse, Ripple CEO. “CIMB’s network already spans 15 countries, nearly 800 branches and offers Speedsend – one of the best solutions in the ASEAN region. Now, by integrating Ripple’s blockchain technology, they will enable their customers to send vital funds to family, friends and loved ones more efficiently. With its focus on innovation, CIMB will continue to be a dominant force in the region for years to come.”

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Blockchain/Bitcoin

6 Crucial Things You Should Know About Country Heights’ Coming ICO

									by Fintech News Malaysia
November 29, 2018
1 comment

Earlier this month, Country Heights received the green light from their investors to pursue an ICO, which for now is tentatively named the Horse Coin. This cryptocurrency—if launched—will mainly be a utility or reward token, and be backed by actual physical assets owned by Country Heights
Country Heights is a known developer in Malaysia with properties located mainly in the Kajang area, and responsible for known names like the Palace of Golden Horses. The properties in the area are often high value, and the company seemingly has aspirations towards being the “Beverly Hills of Malaysia”.
The group has similarly ambitious aspirations towards its upcoming token.

“The founder is confident that Country Heights can be the first company to turn something which is not so credible into something that is credible,” said Country Heights. With the purpose of raising cash for Country Heights, the group hopes to ride the blockchain wave to raise capital for expansion of the company.
Whether they will succeed will remain to be seen, but here are some important key facts to know about the company’s upcoming Horse Currency.
1. The Horse Coin is A Rewards Programme
Image Credit: Palace of The Golden Horses
Executive chairman and founder Tan Sri Lee Kim Yew has stated that its investors approve of issuing one billion Horse Currency, backed by RM2 billion worth of assets (though the exact nature of these assets has yet to be disclosed).
An initial 300 million Horse Currency will be offered to the public out of the 2 billion.
According to reports released, the proposed RM2 billion cryptocurrency will function as a utility token, or more specifically a royalty programme for activities like stays at the Palace of Golden Horses, golf club memberships, private jet trips, medical treatments at the Golden Horses Health Sanctuary among other rewards that could potentially be doled out.
More crucially though, the group is considering the potential of Horse Currency as legal tender in purchasing and leasing its properties schemes, particularly things like resort properties.
Country Heights have stated however, that they could be using their status as a public-listed company to clear the confusion among those who may not comprehend blockchain technology and the many cryptocurrencies in the world today. This indicates, at least, a passing interest in legitimising the nascent scene.
Tony Fernandes of Air Asia had similar considerations for their own cryptocurrency, which would convert the airline’s frequent flyer miles into tokens—though of course, Country Heights is playing with bigger fish.
2. The Company is Going ICO to Cut Costs
According to a report by The Star, the company chose ICOs over traditional fundraising because blockchain technology, to the company, cuts down costs.
“It is an open ledger and I feel that going forward this is an inevitable trend that when you use blockchain and cryptocurrency it can also be a way to raise funds: many countries have regulated it as well,” said Tan Sri.
But he would still like to engage with investment bankers with the belief that they can still make money from this ICO.
2. It’s a Notable Shift from The Global Trend Towards STOs
Tan Sri Lee Kim Yew (Image Credit: Screenshot of Melvin Foong’s video on YouTube)
STOs, or Securities Token Offering here means fundraising tokens that are sold in exchange for a stake in the company, much like the more familiar stocks—except this time, it’s backed by blockchain.
The rise of STOs was the industry’s answer for when everyone realised that ICOs were not the cash cow that investors hoped for. Between slow development cycles that make investors anxious about their potential returns, to companies outright diluting the value of utility tokens and accepting fiat currencies to keep business afloat, one has to ask—are ICOs as we know them a failure?
Instead, an issued STO has to follow the procedures previously established in the IPO processes, and even falls under existing IPO regulations. This makes issuing an STO more difficult and its breadth more limited, but companies have a heightened responsibility to its investors. Not to mention, the fact that IPOs can only be issued by more established companies throws much of the startup investment risk out of the window.
While there is still a certain measure of risk in investors joining an STO, it’s a far cry from the wild wild west of a more conventional ICO.
With all of this in mind, it is interesting that Country Heights is seemingly hankering back to 2017-ian sentiments and considering a utility coin instead.
3. The Project Cost Country Heights RM5 Million (So Far)
Of Tan Sri Lee Kim Yew’s statements after the Country Heights’ annual general meeting as reported by News Straits Times, one thing stood out.

“We also have set up a task force comprising 20 people including advisor and technology partner to continue engaging with relevant authorities and regulators such as Bursa Malaysia and the Securities Commission (SC) as well as Bank Negara Malaysia to oversee the acquisition and investment of the blockchain technology and the setting up the infrastructure.”
The task force would also be responsible in engaging with legal firms, iand investment banker as well as the Malaysia Blockchain Association to facilitate the rollout of the Horse Currency.
Beyond the aforementioned task force that makes up 20 people, the RM5 million that the company has spent on this project has gone into the talent pool, software and hardware development of the token. The value implies that the group already has a framework in mind for the cryptocurrency, and yet:
4. Investors May Have Given The Nod, but Regulators Not Quite

Tan Sri Lee Kim Yew told The Edge that:
“We have talked to the SC, sometime last month [October]. During our engagement, they asked us some questions but did not ask us to submit anything yet. They said they are coming up with a regulatory framework.”
The Securities Commission’s stance on ICOs previously was a passive observatory one, where it would not take an active hand in regulating the sphere, but required that companies registered themselves for observation with the regulator. With the exception of a few cases like the LaVida coin, the regulator mostly let the public steward their own investment decisions, for better or for worse.
However, regulations will be coming sometime in Q1 of 2019 with the key goals of ensuring fair and orderly development for this nascent market.
5. Similar Ventures Exist Overseas
Y Venture Group in Singapore (Image Credit: Y Venture Group)
While Country Heights aims to be the first publicly listed company to launch an ICO in Malaysia, they will be following in the footsteps of quite a few countries overseas.
E-commerce platform operator Y Ventures Group was Singapore’s first public firm to hold an ICO, called AORA, to fund the creation of a blockchain-based e-commerce system, and even at the time, other publicly listed firms already expressed similar interest.
In Singapore, similarly to Country Heights, most companies have erred towards issuing utility tokens rather than securities tokens in fear of crackdown by the Monetary Authority of Singapore (MAS). Singapore has a very clear stance on securities-based ICO trading: it’s frowned upon, based on crackdowns on 8 exchanges operating in the island nation.
With that being said, it seems like MAS has relaxed those standards somewhat in more recent months, with a recent list of expectations published by the Singapore Exchange (SGX) acknowledging the potential sale of securities tokens, only that they comply with additional regulations set up by MAS.
Meanwhile, Wyrify based in Stockholm claims that it was the first publicly listed company to issue an ICO in October last year, offering a securities token to its business that was already blockchain-based. In this case, it’s clear that regulations in Stockholm at the time are more permissive of such activities.
6. Country Heights is Known to Engage in Risky Fundraising Activities
Image Credit: Wikimedia Commons
“The market has got every reason to tread with caution here because in the past, Country Heights has raised funds with methods that have not been the most above board,” said Khoo Hsu Chuang said, reflecting on Country Heights’ previous endeavours in this BFM podcast.
The presenters bring up Country Heights’ Growers Scheme, which refers to investors putting their money into palm oil plantations as a form of investment. It allows for cashflow from the harvest of oil palms and possible appreciation of the plantation itself.
The appeal here is that growers schemes are relatively easy to manage, though it comes with the caveat of heavy upfront capital for purchasing land to plant palm trees.
For a while, it was a popular alternative investment avenue before the rise of bitcoin and its like.
Usually, growers schemes have been able to consistently reward their investors with good annual returns for at least the first five years, but according to this The Star report, cracks begin to form with similar types of investment when scheme operators tend to abruptly terminate the scheme when they are of prime age (8 to 10 years), which is when yields start to increase.
Similarly, Country Heights’ Growers Scheme went defunct in 2013 and caused an uproar.
A Potentially Landmark Case
While the company states that they are working closely with the SC and other regulators for their horse token, and are seemingly issuing this coin for its business front rather than its consumer front, investors should exercise caution. Perhaps the company has learned since its foray into the growers scheme many years ago, but nevertheless, we always caution investors to be thoughtful of their investments, regardless of a company’s track record or phase in development.
What is increasingly clear though, is that Country Heights’ Horse Cryptocurrency may just be a landmark case for the future of ICOs in Malaysia. Their plans of launch are even tallying closely with the Securities Commission’s launch of their framework. Success in Malaysia could potentially invigorate the ICO scene like Jay Mart Plc’s subsidiary, J Ventures Limited, did in Thailand, with their ICO Jfin Coin.
However, we feel like the company will be put under a microscope in the meantime, and no small mistakes will be tolerated.
Featured image via Country Heights

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Lending

Mudah.my Will Be Offering Personalised Loans On Its Marketplace Soon

									by Fintech News Malaysia
November 23, 2018
0 comments

Between insurance to credit card comparison sites, the realms of e-commerce have long gone beyond just Singles Day sales and ventured into avenues that used to require an agent and hidden fees.
It seems like Mudah.my is attempting to jump onto this bandwagon. The online marketplace has inked a partnership with Lendela, a Singapore-based loan comparison company, to offer their services on the Mudah.my platform. With the partnership, customers are able to apply for loans directly on Mudah.
Lendela uses a combination of customer details and direct integration with different lending sources as part of its algorithm. The goal is to bring more transparency and ease-of-use to borrowers while reducing risk and cost for lenders. The loan aggregator also strives to offer a seamless personal loan application process, with all loan applications, inquiries and issues relating to the loan managed by the platform itself.

Borrowers are able to apply for a personal loan with multiple lenders through a single application, or view relevant offers tailored to their specific demographic and financial situation.
This partnership with Mudah.my also marks Lendela’s expansion into the Malaysian market, following a US$942 thousand seed round led by Cocoon Capital and IMO Ventures in September. The expansion will allow them to tap into Mudah.my’s 8 million unique monthly visitors, at least according to the marketplace platform.
Lendela is hardly the first loan comparison company entering Malaysia, the heavily funded Bbaazar has also entered the market earlier this June. The company is also up against strong local competition from the likes of Jirnexu who is currently the top funded fintech company in Malaysia.

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Lending

The Home Buying Process is Broken, Here’s How a Malaysian Fintech is Trying to Solve it

									by Fintech News Malaysia
November 26, 2018
0 comments

The current property buying process in Malaysia is broken. Let’s say you want to purchase a property, you usually begin the process by looking at areas that you like or developers that you trust.
After what is likely several months of finding that one home that is perfect for you, you go through the process of applying for a mortgage loan. Chances are many first-home buyers will either have their loans rejected or offered loan rates that are not favourable to them.
This is problematic because, you’ll have restart the entire process again. Beyond just being a huge disappointment for the prospective buyer this also poses a huge challenge for the industry especially for new projects.

Jared Lim, Managing Director, Finology told Fintech News Malaysia that booking cancellations can go as high as 60%. As recent as August, Guocoland incurred a net loss of RM 20.49 Million that is attributed to cancellations of sales purchase agreements.
Reversing the Broken Process
Finology a locally based fintech company intends to solve this issue by reversing the process and they are starting by partnering IQI Group, a real estate agency with over 1,000 agents.

Through this partnership they aim to provide visibility to both the buyer and the seller visibility of their prospective buyer’s loan eligibility at the early stages for the buying process.
According to Jared, the loan eligibility accuracy is roughly 95%, which equips the potential home buyer with the knowledge of whether he or she qualifies for the loans and the loan rates they will likely receive.
To receive the loan eligibility report users will will key in the same information as they would when applying for a mortgage loan with a bank. Using the data received and data extracted from local credit bureaus the system will generate report and send it to the user within 10 minutes.

Should the rates be unfavourable, the report will also provide remedial steps for the user to improve their credit score.
To kickstart, they begin with Millerz Square project located at Old Klang Road. Interested buyers will be able to check on-the-spot across 17 different banks for their loan eligibility.
On the sidelines of their press conference, Jared also shared with Fintech News Malaysia that they will also be seeking partnership with online property marketplace to provide this service to potential home buyers.

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Blockchain/Bitcoin

This is Project Castor, Securities Commission Malaysia’s New Blockchain Blueprint

									by Vincent Fong
November 28, 2018
3 comments

One year ago , Securities Commission Malaysia embarked on their blockchain pilot project in the unlisted and Over-the-Counter (OTC) markets. Having completed the pilot the regulator unveiled the blueprint today at the SCxSC Fintech Conference.
Before diving into what the project entails and what it solves it’s worthwhile to take a look at what is an OTC market for the benefit for those who are unfamiliar.
What is an OTC?
OTC refers to securities that’s traded outside of a formal exchange like Bursa Malaysia, this includes but is not limited ; bonds, derivatives and the recently introduced equity crowdfunding.

Knowing that not all our readers are investment bankers we’ve included hyperlinks some helpful resources above if you are interested to find out more about these asset classes.
What is Project Castor?
Dubbed as Project Castor, the pilot simulated the Equity Crowdfunding environment. The project was lead by Securities Commission Malaysia with Neuroware, a home grown blockchain company as their technology partner.
While the pilot is built on Ethereum with the ERC20 and ERC721 standards, Securities Commission considers the blueprint as a general guidance and it should serve as a jumping-off point for further and more in-depth considerations on specific implementation details.
It is also important to note that operators dont necessarily need to have blockchain technology, they just need to be able to interface to the architecture.

What does it aim to Solve?
In the next segment of this article we look at are some the issues in the OTC space and how Project Castor demonstrates that some of these issues can be solved through blockchain.
Information Asymmetry and Transparency Issues
Chief among the challenges in the OTC market is the lack of transparency. Access to such markets is often gatekept by intermediaries which can often lead to information asymmetry which puts smaller players and retail investors at a disadvantage .
The features to build a decentralised, yet private network means buyers and sellers can connect directly with each other without the need for intermediaries.
When the transactions are performed on the blockchain, with the right permissions, a participant on the network can view the entire transaction history of the particular instrument. This will lead to better price discovery and matching.
Inefficiencies in Regulatory Reporting
Market operators often have to regularly submit data to the regulator be it for regulatory filing, reporting purposes or supervision. This method is deemed inefficient as not only it’s time consuming it also does not provide regulator with real-time data.
Based on the architecture of Project Castor, the regulatory node (pictured in the 2nd diagram above) will enable regulators to have a read-only access to view all transactions in real time. Which in turn will enable the regulator to better perform its duties and reduce the regulatory reporting burden on the industry.
OTC Instruments are Often Bespoke and Complex
The instruments traded in these markets are often bespoke and tailored. Due to the bilateral nature of such deals, the process of settlement is often complex, having to rely on intermediaries such as brokers, custodian banks, escrows, etc to maintain trust between both parties
“Smart Contracts” on the blockchain can be used to codify any tailored or bespoke form of products, and are self-executing based on pre-defined criteria.
Take for example Equity Crowdfunding, where only when a campaign is fully funded can funds be disbursed to the issuers. In this scenario the code can be conditioned to disburse to the issuers once it meets the fund raising requirement or to return the money to all the investors should the target not be met.
An Increasingly Progressive Regulator
Securities Commission Malaysia is firmly planting its position as a progressive regulator with forward looking initiatives from recent years ranging from equity crowdfunding, peer to peer financing, robo-advisory and finally Project Castor.
On the ICOs front they have also shifted from the stance of buyers beware to coming up with a framework for ICO for Q1 of 2019.

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Payments

Western Union Expands International Money Transfer Services to Malaysia

									by Fintech News Malaysia
November 28, 2018
0 comments

Western Union has launched online money transfers in Malaysia, where recipients can opt to cash out digitally,  or at cashout agents at one of Western Union’s international retail network. This expansion is part of Western Union’s bid to expand its digital footprint across the world. Malaysia was one of 50 countries and territories that Western Union launched in.
Customers can send up to RM3,000 per day and fund their transactions online from their local internet banking accounts with FPX (Financial Process Exchange) participating banks.
The services are available to Malaysians around the clock, and also offers functions like estimating fees and foreign exchange rates for online money transfers, view payout options in the receiver’s country, and track their transfers online.

Western Union said in a press release that Malaysia’s economy makes it a notable destination for labor migrants from neighboring countries. Malaysia’s economy continues to perform strongly, and the country is on a path to getting its high-income status.
Malaysia has a high smartphone penetration at 98%, and there is an estimated US$10 billion that will be entering Malaysia’s GDP, which Western Union thinks underscores the need for digital channels for cross-border money transfers.
Featured image via David Weekly on flickr

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E-Wallets
Payments

Petronas Customers Can Now “Setel” Petrol Payments With The Tap of an App

									by Fintech News Malaysia
November 28, 2018
3 comments

Petronas just announced the launch of Setel, an e-payment solution geared towards fuel purchases directly from mobile devices. The app is designed to integrate directly with the fuel pumps, which would allow customers to purchase fuel with a few taps.
Iskandar Ezzahuddin, Head of Setel said:
“Pumping fuel shouldn’t be a chore. Currently, the payment process involves walking to cashier, waiting in line, a RM200-hold on your cards, and having to use a separate card to earn loyalty points. Setel eradicates these pain points and integrates payment and loyalty benefits in a seamless, frictionless experience.”
At the Setel launch (Image Credit: Petronas)
Setel is an end-to-end solution and is part of Petronas’ initiatives to engage the startup communities in co-creating solutions to enhance customer experience.

We were curious about the safety aspect regarding the use of one’s phone by a petrol pump, which is usually frowned upon. To answer our concerns, a Setel representative informed us that “customers are required to be seated inside the vehicle during the transaction period, following all the safety instructions provided. Once the transaction is completed, the pump will be activated and you are required to leave your smartphone in the vehicle until the fueling process is completed.”
The fuel giant had a beta launch in July 2018, with over 10,000 users in their pool providing feedback. The company claims that they also received “overwhelming response” from visitors at the  Kuala Lumpur International Motor Show 2018 held last week.
Setel can now be used at more than 40 stations within the Klang Valley with the company aiming for 600 sites by June 2019. The service is expectd to go nationwide by the end of 2019.
Customers can also purchase items at the Mesra stores starting from January 2019.
While this is something that isn’t mentioned by the company, we think that this platform could be a positive addition for female drivers who may need to fill up their tanks in seedier locations or times. As long as the petrol station is staffed with attendees who can fill up one’s gas for them, there should be no need for drivers to exit their vehicle to fill up their petrol, and thus dramatically reducing the risk of undesirable occurrences.
Featured image via Petronas

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Blockchain/Bitcoin

Securities Commission and Bank Negara Working to Bring ICOs Under Securities Law

									by Fintech News Malaysia
December 6, 2018
1 comment

To implement the regulatory framework on digital assets—be it tokens or cryptocurrency—the Bank Negara (BNM) and the Securities Commission Malaysia (SC) will enter into coordination arrangements to ensure compliance with laws and regulations under the purview of both regulators.
The SC is currently working on regulations to bring digital assets within the remit of securities law, in a bid to promote fair and orderly trading and ensure investor protection. This effectively means that the SC will regulate issuances of digital assets via initial coin offerings (ICO) and the trading of digital assets at digital asset exchanges in Malaysia.
In addition, ICO issuers and digital asset exchanges are subject to the SC’s Guidelines on Prevention of Money Laundering and Terrorism Financing.

ICO issuers and digital asset exchanges that are involved in the issuance or dealing of digital assets with a payment function will also still need to comply with relevant BNM laws and regulations relating to payments and currency matters.
As of now, digital assets are still not legal tender in Malaysia as far as BNM is concerned, and the central bank advises the public to carefully evaluate risks associated in dealings with digital assets—stock advice that BNM often gives out regarding cryptocurrency and tokens at this juncture.

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Banking
Digital Transformation

OCBC’s Fintech Innovation Arm The Open Vault Now Opens in Malaysia

									by Fintech News Malaysia
December 13, 2018
0 comments

The Open Vault, the FinTech and Innovation unit of OCBC Bank has been officially unveiled in Malaysia. Back in its home ground, its Singaporean counterpart has been known to launch several initiatives such as their mortgage loan chatbot EMMA, a dedicated unit for Artificial Intelligence and robo-investment services.
It is unclear whether The Open Vault in Malaysia will pursue similar strategies or the team will focus on issues that are more specific to market conditions in Malaysia. What seems to be clear is however, the launch of OCBC Malaysia’s fintech innovation arm will see the bank forging more partnerships with fintech players locally.
Also present at the launch was Norhizam Kadir, Vice President of Growth Ecosystem Development of MDEC. Commenting on the creation of The Open Vault, he said,

“We are pleased to see OCBC Bank committing itself to an initiative that seeks to engage more deeply with FinTech companies globally,” he said. The move is expected to act as a catalyst for the burgeoning FinTech segment.’

According to OCBC Bank Chief Executive Officer Dato’ Ong Eng Bin, partnership with FinTechs is growing to become an invaluable part of the bank’s problem-solving approach, and the setting up of the physical office will lend impetus to realising its objectives.
“Digitalisation and innovation are not new to us at OCBC Bank. In fact, we have been deepening our digitalisation efforts significantly over the past few years. The Open Vault will be dedicated to activities that engage the expertise of the FinTech community,” he said.
“The Open Vault is now our very own hub for experimentation. It will serve to validate new ideas and shape the Bank of the future with a focus on offering seamless customer experience, harnessing the power of data and establishing an enriched journey for our customers.” he added.
Earlier this year, The Open Vault partnered with two US-based FinTech companies, Ondot Systems Inc and EZMCOM Inc, to explore innovative approaches to tackling two long-standing banking challenges.
OCBC Bank had before that announced it is embarking on a year-long regulatory sandbox testing of a Secure Chat Banking Mobile Application following approval to do so from BNM under the Financial Technology Regulatory Sandbox Framework.
If successful, the OCBC Secure Chat Banking Mobile App will become the country’s first banking solution to enable premier banking customers to communicate with, and give financial transaction instructions to, their relationship managers securely via a mobile app.

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Banking
Digital Transformation

5 Key Trends That Have Emerged in Malaysia’s Banking Scene in 2018

									by Vincent Fong
December 14, 2018
0 comments

Renowned cosmologist Carl Sagan once said, “You have to know the past to understand the present.”
A statement that rings true across all facets of life, as we approach the end of 2018, it’s worthwhile for us to look some of the key trends that have emerged in the local banking scene this year to help us navigate the tumultuous new world of 2019.
In 2018 and even years before it Malaysian consumers are rapidly adopting the digital lifestyle in almost all aspects of their daily life activities.

This inevitable change in consumer behavior is forcing banks to digitise their business operations swiftly.  In order to stay competitive and relevant, banks need to quickly digitalise their front end and backend IT systems to meet the expected experience of consumers today.
Discussions with bank executives are commonly centered on how they can smoothly transform their legacy internal IT infrastructure to the latest and advanced business/operation models which will enable them to outsource some of the non-core IT platform and processes.
Most aspects of the banking and financial sector landscape globally are already undergoing digital transformation to enhance their customers’ experience and to remain relevant in the competitive edge. Malaysia being part of the world economy is catching up rapidly with these changing trends as well.
In a report published by Ernst & Young recently, 66% of banks in Malaysia will reach digital maturity by 2020.
With much of the Malaysian banks under its illustrious list of clientele, we spoke to, Nizam Arshad Chief Technology Officer and Wan Ahmad Kamal Wan Halim, Executive Vice President, Enterprise Sales, of TM ONE, the business solutions arm of Telekom Malaysia Berhad (TM), to get a sense of what they feel would be the five (5) key trends that Malaysia banks should look out for and share some of their insights.
Moving Beyond Chatbots When Investing in AI

Image Credit: Freepik
Nizam observed that in 2017- 2018, many of the Artificial Intelligence (AI) projects within the banking space in Malaysia were largely focused on chatbots functionalities.
He stressed that while there are clear value propositions to deploying chatbots such as ease of use and increase in customer satisfaction, many banks in Malaysia have yet to scratch the surface of AI’s true transformational potential.
He highlighted an area that AI will excel at providing value for the banking segment is in fraud prevention. With continuous and rapid evaluation or large amount of data, AI can enable banks to detect irregular behavioral patterns and alert their customers immediately.
Nizam also pointed out that credit risk is another key area in which bankers should consider deploying AI. By analysing customer data such as payment patterns, outstanding balances, data from credit agencies like CCRIS and CTOS along with alternative data sources like social media – banks can more accurately assess the credit worthiness of its customers.
He predicts that in 2018-2019, we will observe more instances of banks embarking on various AI projects other than just chatbots. Nizam also added that TM ONE is currently building on its existing expertise in this area; and is ready to be commercialised very soon.
As the World Goes Digital, So Must the Workforce

Image Credit: Freepik
Malaysia’s shifting customer expectations affect not only the way banks serve their customers, but also how they equip their employees with the relevant skills to face the increasingly digitalised working environment.
Many traditional roles within banks will soon need to evolve because of digitisation. Wan Ahmad Kamal stressed that banks need to reform their workforce management strategy and explore new ways to increase productivity.
While some roles will evolve slightly, some he opined, will be changed drastically. Indeed, digital technologies will bring a great deal of convenience for everyone. However, Wan Ahmad Kamal believes that human touch and empathy are irreplaceable and will still have an active role to play in the future.
In Europe, it is becoming more common for relationship managers to have video banking as their main channel of contact with their customers. He believes that this form of converged solution is the perfect combination of convenience and human element in banking.
The increasing investment on Cybersecurity

A recent study by Frost & Sullivan indicated that the potential economic loss in Malaysia due to cyber-security incidents can reach up to 4% of Malaysia’s Gross Domestic Product (GDP).
This situation is made worse by the fact that due to shortage of cyber-security professionals in Malaysia, banks may soon find that it will become increasingly difficult and expensive to fully manage cybersecurity in-house.
Nizam believes that besides training and up-skilling their employees, the option of combining their in-house professional security practices with a managed services provider will become more appealing to banks.
In keeping with this view, he added that TM ONE is continuously enhancing its capabilities on cybersecurity services. Existing services include managed on-premise cybersecurity services, cloud security services and cybersecurity professional services such as security posture assessment (SPA).
As a trusted digital infrastructure provider, Nizam is confident that TM ONE is able to provide network cyber security protection with services like Managed Network Security and Managed Application Security equipped with Advanced Threat Protection capabilities. All these services will be managed by TM ONE through its Cyber Security Operations Centre (SOC).
Data Residency Challenges Will Be a Thing of the Past

When dealing with personal data, Malaysian companies, including banks, are subject to the Personal Data Protection Act (PDPA). The PDPA states that personal data cannot be processed outside of Malaysia.
While this law serves to protect Malaysian consumers, it also greatly limits a bank’s ability to choose its cloud computing provider.
Nizam said this is precisely why TM ONE has proactively invested heavily in its Tier III Twin Core Data Centre. The Iskandar Puteri Data Centre (IPDC), has connectivity to four (4) cable landing stations in Malaysia as well as to TM’s Point of Presence (PoP) in Singapore.
With virtual hybrid cloud facilities like IPDC built in the country, he believes that data residency rules will no longer be a hindrance to achieving greater agility, scalability, efficiency and flexibility.
Collaboration is the Future

Image Credit: Freepik
Banks in Malaysia are increasingly warming up to the idea of collaborating with both local and international fintech companies. Wan Ahmad Kamal said, through observations with much of his conversations with major banks, almost all banks have varying degrees of initiatives to engage the fintech community.
He commented that while banks are eager to innovate, his customers often share with him their struggles with being encumbered by legacy systems and processes.
He also shared that in recognising the need for fintech and banks to work together, TM ONE is actively engaging fintech companies to look at potentially building customised innovative solutions together in efforts to strengthen their offerings to the banks.
But Wait, What About Blockchain?
Nizam was quick to point out that it would be difficult to have a conversation about the outlook of the banking space without bringing up the word blockchain.
While he recognises the technology’s potential to revolutionise many aspects of banking that enable reduced time of transaction, operational cost in banking operations, banks should definitely look into it. He feels the outlook for blockchain to move beyond pilot projects in banking is geared more towards medium to long term.
With the main objective of deploying internal valuable resources on strategic projects to create higher value to the business and satisfy the needs of new digital lifestyle consumers with an advanced digital banking services, Nizam believes that local banks can now rely on trusted partners with complete suite of digital services offerings like TM ONE to provide “non-core” IT business systems.
Moving Forward
What should banks anticipate for 2019? With the speed of things nowadays, it’s difficult to pinpoint exactly what the trends will be seeing as how none of have a crystal ball readily available.
However taking a stab at it is always a worthwhile endeavor compared to staying passive.
TM ONE tells Fintech News Malaysia that they will be planning a webinar next year outlining some key trends they should observe

Featured Image Credit: © CEphoto, Uwe Aranas via Wikimedia Commons

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DuitNow Now Available to 17 More Banks

E-Wallets
Payments

DuitNow Now Available to 17 More Banks

									by Fintech News Malaysia
December 17, 2018
0 comments

An additional 17 banks and non-banks will soon launch the DuitNow service as well.
Customers wishing to receive DuitNow fund transfers using their mobile number need only perform a simple one-time registration to link their mobile number with their account number at their bank. Customers may also link their MyKad or MyPR Identity Card numbers, Army or Police numbers, Passport numbers or Business Registration numbers to their bank accounts in order to receive money.
Peter Schiesser
“It is extremely heartening that millions of Malaysians have already registered for DuitNow to receive funds using their mobile number and MyKad numbers”
said Mr Peter Schiesser, the Group Chief Executive Officer of PayNet, the operator of DuitNow.

Bank customers can now view, modify or transfer their DuitNow registrations via 14 bank’s Internet or Mobile Banking channels.  To ensure customer convenience, banks in Malaysia collaborated so that customers can view their registrations across all banks by visiting the Internet or Mobile banking of any one of their banks.
Making fund transfers up to RM5,000 is free for consumers and SMEs, and customers can make transfer by accessing the DuitNow tab under the ‘Funds Transfer’ menu of their respective banks’ Internet or Mobile banking channels.  Some banks are also waiving DuitNow transaction fees for fund transfers above RM5,000.
“DuitNow is the first phase of a multi-year effort by the banking industry to modernise Malaysia’s retail payments infrastructure, ensuring a cost-effective, agile and flexible platform that supports innovative and new e-payment products that deliver a superior customer proposition”
added Mr Schiesser.

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Payments

Students in Malaysia can Pay Tuition Fees now via MOLPay in 7-Eleven Outlets

									by Fintech News Malaysia
December 18, 2018
0 comments

The success of digital payments at local 7-Eleven stores via MOLPay has proven that such transactions may soon be a lot more commonplace.
There are currently over 2,000 7-Eleven stores across Malaysia, making it a more convenient payment solution for all segments of users. MOLPay is not limited to students only but also open to all bank account holders, credit and debit card users, as well as those who only make payments with cash.
Sheng Guan Eng
“UKM realized their students required convenience and flexibility when making payments for their tuition fees and miscellaneous expenses,”
said Eng Sheng Guan, Chief Executive Officer of MOLPay.

“MOLPay’s partnership with 7-Eleven Malaysia since 2014 has made cash payment more accessible to students at any 7-Eleven outlet across the country. We offer a practical method for UKM to securely receive funds and bolster payment collection.”
Digital Payments Brought Offline
In 2014, MOLPay and 7-Eleven Malaysia announced MOLPay Cash, a new payment option for e-commerce merchants that allows customers without bank accounts or credit cards to make cash payments for online transactions. Online stores that offer the MOLPay Cash logo at the checkout would provide a transaction ID, which could be screencapped or printed by customers and then paid at 7-Eleven stores within 48 hours to complete the transaction.
On the same year that it was launched, UKM was among the pioneering Malaysian universities to embrace digital payments in the country through MOLPay. Upon connecting UKM ePayment service to MOLPay, the university reportedly saw a steady boost of online payment collection by 60% each year. The university credited the improvement in funds to increased awareness of the service availability among the general public and students.
Mokhsin Tumin, Finance Manager of UKM said,
Mokshin bin Tumin
“Thanks to the partnership between UKM and MOLPay, our payment system is now updated in real-time which helps to ease payment updates upon receiving notice of payment. Students are also more assured that digital payment updates are immediate, so they won’t have to worry about any potential disruptions or delays to their education.”
Eng added,
“MOLPay offers an easy and convenient alternative payment option to Malaysian consumers who still prefer to pay with cash. At the same time, online retailers and service providers are able to reach a wider range of customers who might not have access to credit cards and online banking.”
“This new payment option helps to simplify and create convenience for its students and we look to implement this new payment system through our partnership with other educational institutions.”

Featured image credit: 7-eleven

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Banking
Cyber Security
Digital Transformation

Why an Overhaul in Cyber Security Mindset is Crucial for Banking

									by Vincent Fong
January 8, 2019
2 comments

In an increasingly connected world the need for a robust cyber-security in the banking sector is more important today than it has ever been.
While banks of the past defended themselves from malicious actors with better vaults, exploding dye packs and armed guards — banks of today face a very different breed of criminals.
A study conducted by Cisco indicated that In Asia Pacific, many companies receive up to 10,000 threats a day which equates 6 threats are received every minute.

Against the backdrop for the need of increased security, is also the need for digital transformation to meet the evolving expectation of consumers, which is often viewed as two opposing forces. Increased security often viewed as increased friction that affects the user experience.
In a trade mission hosted by TM ONE in collaboration with the Department for International Trade of British High Commissioner, the Fintech News Malaysia team was invited to a closed door session where we were joined by senior representatives from TM ONE, Digital Shadow and Trustonic to deep dive into the state of things in cyber security, banking and fintech.
Cyber Security is Not Just a Necessary Evil
L-R (Ben Cade, CEO, Trustonics, James Chappell, Founder and Chief Innovation Officer, Digital Shadow, Mahmoud Dasser, Chief Marketing and Partnership Officer, TM ONE)
Ben Cade CEO, Trustonics, expressed that cyber security should not just be viewed as a necessary evil — far from it, he feels we need to re-frame cyber security as a means of delivering faster and simpler experience to customers.
His views on the perception of cyber security holds water, a study conduced by Microsoft and Frost & Sullivan reveals that majority of their respondents sees cyber security only as a means to safeguard an organisation against malicious actors.
The limited scope in which we view security is often reflected in marketing messages by cyber security vendors and consultants who often tout potential economic losses and opportunity costs at the front and center of their messaging.
And who could blame them, saying 1/4 of every breach cost between US$1 million – US$2.4 million is definitely a compelling message that demands the attention of prospective customers.
L-R: (Mahmoud Dasser, Chief Marketing and Partnership Officer, TM ONE, Carol Wang, GM BFSI, TM ONE,  Mohd Rafiq , Head of Information Security, TM ONE)
Carol who leads the BFSI team for TM ONE observed that this frame of thinking is one of the factors that creates dissonances between the innovation team and cyber security team in bank.
She added that this could often lead to security features being an afterthought instead of being baked in into the product design to enable a seamless and secure experience for their customers.
Shifting Mindsets: Cyber Security as an Enabler

James Chappell, Founder and Chief Innovation Officer, Digital Shadows echos Ben’s views, he opines that the industry has got it wrong. He expressed that a prosperous digital economy can only happen when you are able to trust the services you use.
Trust is indeed a factor that is waning, in light of international bigtech firms like Facebook leaking 6.8 Million user’s private photos and Google’s data leak that is said to affect 500,000 users. Whereas back home Malaysia made international headlines which saw 46 million phone numbers leaked.
Incidents as such depletes user confidence is participating in digital economy, which is particularly true when it involves money. Take e-wallets for instance, despite an aggressive push from the industry, a study from VMWare reveals 46% of users in Malaysia felt insecure about security measures implemented by e-wallets.
In contrast 70% of them prefer more traditional channels of interbank transfers, which was attributed to their trust in the security of these systems.
Realising that security is a feature rather than a costs can do a great deal in improve the state of things, when an item is viewed as a cost investing it in seems secondary. However when it is viewed as an enabler to drive revenue or user acquisition, the budget owners are likely more inclined to invest into cyber security.

Mohd Rafiq, Head of Information Security TM ONE commented that the best kind of security are the ones that are invisible and transparent to the users. However achieving such seamless and secure experience requires for the cyber security team, product team and digital team to work cohesively together. Only when the cyber security team is involved with the entire product development cycle can they then understand and design cyber security with user experience in mind.
As we usher in this new year, let 2019 be the year in which the industry breaks away from this outdated of viewing cyber security. The best way to view cyber security is to think of like the brakes of a Formula One car, a mechanical marvel that’s not there to hinder the car but rather as an enabler that allows the very car to go as fast as it needs to without losing control.

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E-Wallets
Payments

After Blockchain, MyEG Diversifies into E-Wallets

									by Fintech News Malaysia
January 3, 2019
1 comment

Following their recent announcement of launching PayMe a blockchain based payroll solution, MyEG revealed that they will be unveiling a new e-wallet by September 2019 dubbed as iPayEasy.
The company received their e-money license from Bank Negara Malaysia early 2018 with the maximum wallet limit of RM 1,500.Currently in its early access phase, iPayEasy is available for download in Google Play Store and doesnt seem to be available to Apple users just yet.
The board of directors of MyEG expressed confidence that the e-wallet will contribute positively to the performance of the Group from financial year ending 30 September 2019 onwards, though plans on how the company will navigate Malaysia’s already crowded market is not made clear yet.

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E-Wallets
Payments

Digi and Mastercard Working Together on Digital Payments Card for Launch Early 2019

									by Fintech News Malaysia
January 3, 2019
2 comments

Digi, with Mastercard serving as the technology partner will offer a digital prepaid card—to be released for public use sometime in the first half of the year. The card is also developed with ManagePay  (MPay).
According to a press release, the digital card was designed for online shopping where customers can sign-up, activate and use the card all within a single mobile app. The goal is to provide an intuitive, end-to-end digital experience that is more secure.
Image Credit: Digi
The announcement is a tad lax on details; but is likely that they will model the digital app after Mastercard’s upcoming Happy prepaid card. Online shoppers or those that sign up for online subscription services could provide their Happy card details instead of giving these websites access to their primary credit card information.

The idea is that users would protect their actual card information, and the prepaid nature of the platform would ensure that users do not end up spending more money than they have.
Mastercard’s country manager in Malaysia, Perry Ong opines that it is essential to meet the needs of the unbanked populations in Malaysia, implying that the digital card could help solve that issue for the unbanked segment. His assertion hints to the possibility of cash topups, and the logical conclusion is that this will doable in Digi’s physical kiosks—though of course this is all just conjecture.
Debit card ownership in Malaysia has a relatively high 74% penetration, though only 21% of Malaysia’s population owns a credit card. The lower numbers could owe to strict credit card issuing standards, but it is also likely that Malaysians are reticent about getting a credit card in fear of spending more than they actually have.
Allowing Malaysians to tap into the global Mastercard network while also eschewing the cumbersome physical card when online shopping could be the more convenient solution that caters to an increasingly online lifestyle, though it will remain to be seen if this will be enough for the product to gain traction.
However, we are curious as to why Digi did not launch this service as an extension of their existing wallet, vcash. Air Asia’s BigPay was launched with Mastercard too, and it is also an e-wallet.
Praveen Rajan, Digi’s CEO said:

“We have observed that the majority of e-commerce transactions still occur with cash. We want to play our part in assisting people to go cashless, and more importantly, offer them the convenience to do what they want on their devices.”

MPay Group’s Dato’ Chjew Chee Seng further elaborates on the retailer side of this equation.
“Our focus will be to acquire retailers and e-tailers to provide them the ability to accept digital card payments and unlock the benefits of going cashless. This includes having access to a suite of merchant tools for improved customer retention, which will translate into a more engaging and efficient in-app cashless experience for card holders.”

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Blockchain/Bitcoin
Payments

Alipay Powers Blockchain Remittance Service Between Malaysia and Pakistan

									by Fintech News Malaysia
January 9, 2019
1 comment

Telenor Microfinance Bank, in partnership with Valyou Malaysia, has introduced a blockchain-based cross-border remittance service, developed by Alipay, the online payment platform operated by Ant Financial.
The blockchain remittance service is provided by Telenor’s Easypaisa and Valyou, a financial technology company that provides remittances to underbanked communities.
Both Valyou and Telenor Microfinance Bank which operates EasyPaisa are subsidiaries of the Telenor Group, which also operates Digi, one of the major telco players in Malaysia.

Parties involved with the project claims that blockchain technology will significantly boost the speed and efficiency of remittances from Malaysia to Pakistan.

Eric Jing Chairman and CEO of Ant Financial who was also present at the launch stressed that this is a prime example of how emerging technologies like blockchain can help countries meet their digital and financial inclusion goals.
The blockchain-powered remittance service will make round-the-clock, real-time money transfers between the two countries possible at a competitive exchange rate, with Alipay’s transaction fees waived during the one-year trial period.
This news follows an earlier story of local fintech player MoneyMatch and CIMB Bank who embraced Ripple to enable their cross-border remittance.

Featured Image Credit: Freepik

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Blockchain/Bitcoin

After Horse Currency, Now Country Heights’ New Project Is the Unicorn Wallet for Crypto

									by Fintech News Malaysia
January 10, 2019
0 comments

Following the announcement of Dato’ Lee Kim Yew’s Horse Currency meant to serve as something of a rewards programme for Country Height’s various properties, the tycoon returns to fintech headlines with a related venture—a crypto-wallet.
Named the Unicorn Wallet, Lee Kim Yew claims the wallet will be the first of its kind in the country, though little information has been released on why he opines as so. The tycoon has spent about US$10 million on the Unicorn Wallet’s development, which will undergo a six-month testing period before the company will release the wallet to the public.
The Unicorn Wallet is reportedly developed with the goal of turning it into the AliPay of blockchain, and will store and transfer cryptocurrency among subscribers and merchants as an alternative means of payment. The wallet would support real-time payments of online purchases, hotel bookings, bills, peer-to-peer transactions and serve as a digital asset exchange.

Lee Kim Yew has also confirmed that the wallet will trade in cryptocurrency exclusively.
These reports seem to indicate that the Unicorn Wallet will serve as something of a digital cryptocurrency debit card, and since it will trade in cryptocurrency exclusively, perhaps require merchants to accept the contentious currency as payment. We would question the efficacy of this idea, considering that the cryptocurrency boat has sailed sometime in early last year, and prices of cryptocurrency remains volatile to this day—which would be significant inhibiting factors for merchants.
As a matter of personal opinion, it seems like Country Hills is a year too late to truly capitalise on this idea.
There is also the possibility that the Unicorn Wallet could function like the recently embattled TenX where cryptocurrencies are immediately converted into fiat currency in-app and allow for instant use. However, as Lee Kim Yew indicated that the platform will handle cryptocurrency exclusively, this does not seem likely.
This development comes after Mines 567 Sdn Bhd, owned by Lee Kim Yew, invested 19.99% equity into Crypto S11 Digital Pte Ltd. The digital company is now developing the wallet and will serve as its operator as well. While Crypto S11 Digital was incorporated in Hong Kong, certain reports indicate that they have since moved their core company to the Virgin Islands, perhaps owning to their relationship with cryptocurrency and the uncertain legal footing cryptocurrency has in most nations.
The official launch date for the platform would be announced later.
In general, Fintech News sees this development by Country Heights with curiosity. With such a big developer like Country Heights backing a large-scale cryptocurrency wallet project, it could go a long way into promoting cryptocurrency application beyond just HODLing. But if it all goes south, then Country Heights could take public trust in blockchain and cryptocurrency down with it. Country Heights is also known to dabble in controversial financial activity before despite their property success.
Featred image via Lee Kim Yew

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E-Wallets
Payments

4 Big New Features You Can Expect from Your E-Wallets in 2019

									by Fintech News Malaysia
January 15, 2019
3 comments

PayNet Malaysia handles much of the underlying network for payments and banking in Malaysia. Owned by both Bank Negara Malaysia and a consortium of banks.
The once controversial DuitNow launched by many Malaysian banks is one facet of the relationship between PayNet and payments in Malaysia; the option was made available to Malaysia once PayNet enabled that functionality in their own systems.
In fact, DuitNow is just one factor of what PayNet in a larger framework known as the ICTF. In line with what’s outlined in the framework here are some features you can expect from your e-wallets very soon

1. QR Code Interoperability
Slated for an approximately June release, this infrastructure under the Real-Time Payments Programme allows consumers to scan the QR code of one operator to pay using another e-wallet. There is a possibility that PayNet would compel a payments player to join the interoperable network once they grow to a certain size.
The other entries on this list, unlike the QR code interoperability, does not yet have a clearer approximate release date. However, PayNet has confirmed that they are all currently in in the works behind the scenes.
2. Request-to-Pay
Request-to-pay would be a secure messaging service seemingly similar to a UK-based function of the same name. It would allow users, from businesses to friends splitting a bill at lunch, to send a request for payments to another account owner. This would open a dialogue with the recipient.
3. E-Mandate
An e-mandate is designed for Malaysians that makes recurring payments for services, or even for business purpose. If they decide that they trust the business that would be collecting on the payments, they can agree to an e-mandate that allows these companies to automatically collect recurring payments from your accounts, on a periodic basis.
E-mandates could reduce instances of rejected automatic payments due to unmatched signatures, among other issues, and said to be suitable for recurring payments such as insurance, utilities and large regular payments.
To what extent will e-mandates differ from signing up for subscription services like Spotify or Netflix will remain to be seen.
Beyond these functions, PayNet’s partnership with ACI in the development of the RPP should ideally also allow the company to remain agile in these transformative times in payments and fintech.
4. Real Time Debit
Real-Time Debit would allow customers to make online purchases without giving third-party merchants access to their sensitive banking information. Customers can select the Real-Time Payment option upon checkout.
This function seems similar to the currently established FPX functionality also by PayNet, but the RPP option could be incorporating DuitNow’s identifying number-based function, make the process more simple and intuitive, or even remove the need for third-party vendors altogether.
Future-Proofing Malaysia’s Payments
According to Peter Schiesser, CEO of PayNet:

“While we can predict in the short-term functionality in needed, it’s hard to predict beyond a few years as to what is going to turn up.”
“So when we built a central infrastructure for the nation like the RPP, one of our deciding choices was about finding [something] that is really agile, and that’s why we turned to ACI.”

ACI is mainly known to have been used by financial institutions to access the UK Faster Payments scheme since its launch in 2008, where more than 70% of the current direct participants of the UK scheme use ACI’s solutions. ACI also has an Up Immediate Payments solution to give access to Singapore’s FAST and the Australian New Payments Platform—both similar to RPP.

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Blockchain/Bitcoin

LGE: RM10 Mil Fine & 10-Year Jail Time for Crypto-Exchanges Operating Without License

									by Fintech News Malaysia
January 14, 2019
9 comments

Finance Minister Lim Guan Eng announced that Order 2019 would be effective starting from Tuesday (15th January 2019). This means that anyone caught operating unauthorised initial coin offerings (ICOs) or digital asset exchanges face a 10-year jail sentence and an RM10 million fine.
Cryptocurrencies, tokens and other digital assets will be categorised as securities henceforth, and fall under the regulation of the Securities Commission — an ongoing effort between Bank Negara Malaysia and the Securities Commission that has apparently been finalised.
As such, Lim Guan Eng said that “such instruments and their associated activities must be first approved by the SC”, and comply with the associated securities laws and regulations. This development tallies with the SC’s assertion that ICO regulations will come into effect in Q1 of 2019.

In the same announcement, Lim Guan Eng asserted that digital assets, to the Ministry of Finance, has a role to play as an alternative fundraising avenue for entrepreneurs and new businesses, and deems it as an alternate asset class for investors.
Update: Securities Commission Malaysia has issued an official statement which can be found here
Featured image via Lim Guan Eng

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Blockchain/Bitcoin

SC Provides Update on LGE’s Digital Currencies and Tokens Announcement

									by Vincent Fong
January 14, 2019
2 comments

 Following the statement by the Minister of Finance YB Lim Guan Eng on the coming into force of the Capital Markets and Services (Prescription of Securities) (Digital Currency and Digital Token) Order 2019, the Securities Commission Malaysia (SC) clarified that they will put in place guidelines to regulate offering and trading of digital assets.
According to the regulator, the guidelines will among others, establish criteria for determining fit and properness of issuers and exchange operators, disclosure standards and best practices in price discovery, trading rules and client asset protection.
Those dealing in digital assets will be required to put in place anti-money laundering and counter-terrorism financing (AML / CFT) rules, cyber security and business continuity measures.

With the coming into force of the Prescription Order, the offering of digital assets, as well as its associated activities, will require authorisation from the SC and compliance with relevant securities laws and regulations.
In order to implement the regulatory framework on digital assets, the SC and BNM will enter into coordination arrangements to ensure compliance with laws and regulations under the purview of both regulators. The relevant regulatory framework is expected to be launched by end-Q1 2019.
For those interested in a more detailed read, the gazette can be found here

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Crowdfunding

PitchIN Owns 75% of The Equity Crowdfunding Market in 2018

									by Fintech News Malaysia
January 15, 2019
4 comments

At the pitchIN ECF Report 2018, CEO Sam Shafie revealed that the company has retained their position as the leading equity crowdfunding operator in 2018, in terms of successful campaigns raised.
The number of successful deals done by the entire ECF industry dipped from 22 campaigns in 2017 to 14 campaigns in 2018, which pitchIN attributes to the public attention turning to the high-stakes election that captured Malaysia’s attention since the beginning of the year.
In fact, Sam Shafie, CEO of pitchIN, told Fintech News that the platform purposefully avoided listing companies before May as they waited for the tension of GE14 to die down; a decision which Sam opines, proved effective.

Perhaps in parts thanks to this decision to step back, pitchIN was able to maintain a 100% success record, and their first successful company to raise funds on their platform last year did it to the tune of RM5 million. pitchIN also saw another 8 deals run successfully on its platform, which according to them, represents 75% of the market share for ECF deals in 2018.
By the end of 2018, pitchIN saw 1,200 investments on its platform, 55% of them done by retail investors, and a significant number coming from repeat investors.
pitchIN was also the platform hosted the successful funding of the P2P financing platform Fundaztic, which made headlines for being fully funded in just 38 minutes.
Sam hopes that companies will think of pitchIN as the go-to platform when they think about equity crowdfunding, and added that:

“Once the RM50 million [co-investment] fund that the government wants to set up is up and running, the 7 platforms licensed by the Securities Commission will now have a chance to attract some of those funds into their platform. You’ll see much more activity in terms of fundraising.”
“So for us, it’s all about attracting good companies because in the end, be it the government or regular investors, it’s all about companies.”

Kashminder Singh, Chiefs Strategy Officer of pitchIN opines that:

“The challenge now is to continue to expand the investor base. We need to get more people to get interested in investing into companies [on equity crowdfunding]. Yes, we’ve got 1,200 investments last year. One guy has done 15 investments, but there will always be a limit as to how much they can do at one time.”
“It’s fair for someone who has done 2 to 3 investments to wait for a while, to build up a bit more capital, so we have to grow our investor base, and that’s why we’re looking to reach out to as many markets as possible, speaking as many languages as possible and also those outside of Klang Valley.”
“We also welcome competition. No industry can survive with only one player, and there needs to be competition to grow the market. I hope that other ECF platforms do well so that there’s a genuine industry, and I look forward to them also launching deals. But we’re also quietly confident that we’ll do well.
The company is also looking to launch a Secondary market for ECF once the Securities Commission releases its secondary market framework, in a bid to provide their investors with liquidity, and perhaps even attract more traditional investors into the space.

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Insurtech

Zurich Partners up with Malaysian Startup to Provide Afterlife Planning to Customers

									by Fintech News Malaysia
January 17, 2019
0 comments

Zurich Malaysia just partnered up with Malaysian startup Bereev, an online legacy platform aiming to help Malaysians plan for their inevitable death. The team up makes a lot of sense since insurance and afterlife planning definitely go hand-in-hand.
Bereev’s web-based application allows users to plan and store crucial information on various aspects of estate planning—from wills to insurance policies, possessions, outstanding loans and personalised wishes that can be executed after one’s demise in a channel that is designed with security in mind, and all-inclusivity. Bereev works on a freemium model where more functionalities can be unlocked when users sign up for a Plus account to the tune of RM10 a month.
In their partnership, Zurich will provide complimentary Plus accounts to customers who sign up for a new life insurance or family takaful plan with a minimum annual premium/contribution of RM1,800 between 9th of January to 28th of February 2019.

Bereev was launched in early 2018 by founder and CEO Izumi Inoue, and has been gaining a number of private and corporate clients. Beyond just after-death planning, Bereev also allows users to record their wishes concerning elderly care, along with storing important documents like their will and insurance policies in one place to allow surviving family an easier time sorting through the bureaucratic side of one’s death.
Account holders could also record last words and messages to be sent out after their demise. Information about one’s Bereev account can be shared with loved ones, lawyers or financial planners, depending on privacy levels they set themselves.
Featured image via Bereev

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Banking
E-Wallets
Payments

The Dark Side of Malaysia’s Quest into a Cashless Society

									by Fintech News Malaysia
February 1, 2019
4 comments

It’s no secret that Malaysia is gung-ho about cashlessness. Bank Negara Malaysia itself expressed as much, within the policies and guidelines outlined in their Interoperable Credit Transfer Framework (ICTF), and which PayNet, the system underlying much of payments and banking in Malaysia, has embarked on recently with the Real-Time Retail Payments system.
We certainly see the rationale. A cashless society is one that is more easily governed. Data of our spending habits are more easily accessible by regulators, and illegal activities, like terrorist funding can be more easily thwarted.
All of the benefits of cashlessness to a regular consumer have been well-documented as well, but hold your horses. Before we continue on our relentless march down this cashless road, here are some important things we should consider:

Let’s Face it: Cash is Just More Stable
Image credit: UpSticksNGo Crew on flickr
Think about a very typical problem: if your phone runs out of battery, would you suddenly find yourself completely penniless, despite actually being loaded? What if it was an emergency situation?
Meanwhile a bill that is worth RM50 will still be RM50, regardless of whether someone breaks into Bank Negara or if the internet happens to be offline that day.
The unreliability of intangible cash can have more far-reaching effects too.
In October last year, a cashless restaurant in Hollywood suffered a payment system crash, and forced the store to give away free lunches for everyone in line. Ironically, the lunch que that day would probably have gone quicker for that crowd had the restaurant accepted cash.
Now, imagine a similar crash, but on a bigger scale—what if WeChat Pay went down for a day in China? Or heaven forbid, if a whole nation’s payments system is down and out of the count. What would happen to Malaysia’s economy if our cashless systems were down for even 24 hours?
You’d Be a Glitch Away from Losing Everything
Image Credit: Pixabay
Sometimes, even existing and trusted systems have bad days. Take a look at our e-commerce history if you’re wanting for a local example.
During mega-sales periods on e-commerce websites, there have been numerous records of glitches and errors with payments that could take months to rectify. During a Black Friday surge in payments, Maybank’s customers suffered double-charge errors on their debit transactions that drained their money pointlessly. Lazada in 2017 attempted to upgrade their system in preparation of 11.11 sales—a process that caused massive glitches which led to missing orders, missing deliveries, unprocessed refunds, among other issues.
We don’t mean to specifically call out these two institutions, or imply that cashlessness equates to e-commerce; but only to say that mistakes like this can and have happened in Malaysia before. And in a cashless society, we would be left more vulnerable when those situations occur.
The risks with financial institutions though, run deeper than that.
Do We Trust These Institutions With Our Financial Data?

Data breaches: for every system in existence out there, there are approximately a hundred hackers ready to pounce gaps or weaknesses to line their pockets. I don’t know about you, but Malaysian institutions haven’t had the most stellar reputation when it comes to safeguarding our data.
An exposé from Lowyat revealed personal data of regular Malaysians that were up for sale, belonging  to Jobstreet.com, the Malaysian Medical Council, the Malaysian Medical Association, Academy of Medicine Malaysia, the Malaysian Housing Loan Applications, the Malaysian Dental Association and the National Specialist Register of Malaysia.
The mother load to Lowyat though, were swaths of customer data from Malaysian telcos—Altel, Celcom, DiGi, Enabling Asia, Friendimobile, Maxis, MerchantTrade, PLDT, RedTone, TuneTalk, Umobile and XOX.
Now all of these hacks could lead to identity theft, which is no small web to untangle if you happen to fall victim. But when it comes to a cashless society, you’d be entrusting arguably, your more sensitive finances to various institutions. And with many of them expanding into unfamiliar financial territories, consumers should keep in mind that these institutions may not have the capabilities to steward that sensitive data in a satisfactory way.
It’s Also Just Unfair

The obvious downside of going cashless is that not everyone will be able to afford the instruments to store their digital money. A 75.9% smartphone penetration is certainly impressive, and while that gap may have closed somewhat this year, that’s still leaving swaths of people in Malaysia without the ability to access cashless payment methods just to live their lives.
This is not to mention individuals with the means of buying a phone, but for various other reasons dislike the notion of going cashless (age, disability, concerned about data security, dislike of specific apps) who could be virtually forced into a system that refuses to cater to them.
This isn’t just a hypothetical either.
Image Credit: Linus Sundahl-Djerf from The New York Times files
Similar signs have become commonplace in Sweden, which is considerered a cashless haven. Apparently the cash declines in 2016 and 2017 were the biggest on record for them. 2017 saw the lowest amount of cash in circulation since 1990, and is more than 40 per cent below its 2007 peak.
We were able to speak to PayNet’s Group CEO Peter Schiesser, to ask; would people be compelled to get off financial services that are deemed outdated, like cash seems to be heading?
To Peter, it is still a long way before cash is not accepted. And by the time it does arrive he dispels the notion that the situation will be as abrupt as described.
“The problem with the question is that it tends to be an all or nothing question; how do we get to this nirvana state? The reality is that any transition is a curve.”

Peter Schiesser
“So there’s a ramp-up, you get a bulk movement and there’s a long tail. If you come from it to that point of view, you shouldn’t get too hung up on[ whether] we getting everyone there in the right time frame, because that doesn’t happen anywhere.”
When a financial service gets phased out, one would see some great media headlines about someone from the older generation not being able to leave their homes, or other such difficulties of being left behind by technology.

“The thing you’re faced with any deprecating system is that you will have a tail, and you’ve got to be compassionate and understanding [about the fact] that you’ve got to support that.”
But Peter does concede that “there will come a point when you’ve got to make those hard choices.”
Clarifying that this opinion is his own and does not reflect the company’s Peter said that:
“[Those left behind] come in when they’re ready, don’t get over-fixated on that. But from a payments perspective I don’t think it creates a real big disadvantage. I think the financial literacy and access to credit is where they can really be taken advantage of, so to me, it’s more important to do something about that.”
In fairness, it seems like regulators in cashless regions do push back when they see situations like the above occur. In response to ‘no cash accepted’ signs, Sweden’s central bank is forcing major banks to carry certain amounts of cash, and afford “reasonable access” to cashpoints for 99% of Swedes. Meanwhile, the regulator is still trying to figure out the impact of going cashless on consumers, both young and old.
China has also decreed that rejecting cash is illegal following some complaints of merchant’s behaviours.
But then that raises the issue of implementation. After all, it’s supposedly illegal in Malaysia for merchants to impose a minimum purchase for card transactions, and yet you can’t find one Malaysian that hasn’t come across that exact scenario.
I don’t want to imply that Malaysia should wholesale reject going cashless at all. It’s just that these are some very important considerations that we should take into account before we hit a point of no return on our track towards phasing out cash.
While we advocate for cashlessness, perhaps it is not the worst idea to take our time in this case, and ensure that its implementation is not a half-baked measure, and that it accounts for all of the rakyat’s wellbeing.
Luckily for us, there have been various countries that serve as great case studies for us, whether to emulate, or to approach a different way. Now it is all up to us whether we heed them or not.

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Blockchain/Bitcoin

SC Imposes Deadline For Crypto Exchanges Before They are Deemed Illegal

									by Fintech News Malaysia
January 17, 2019
3 comments

The issue of digital currency and assets regulation came into mainstream focus when Finance Minister Lim Guan Eng announced that Order 2019 will activate starting from the 15th January 2019. Soon after, the Securities Commission (SC) issued their own statement about the matter to furnish the public with further details.
And now the SC has released another statement to address another set of queries regarding the implementation of the Capital Markets and Services (Prescription of Securities) (Digital Currency and Digital Token) Order 2019.
According to the regulator, they have invited and engaged with existing digital asset platform operators, and arrangements have been put in place to facilitate the operations of these platforms. A grace period will also be given to these operators to comply, up until the 1st of March 2019.

During this period, these crypto exchanges may not accept new investors and will only be allowed to facilitate the withdrawal or transfer of client assets with the written instruction of the investor.
Existing platform operators who failed to or did not attend the engagement with the SC on 17 January 2019 are advised to contact the SC before the 25 January 2019. Failure to do so means that the SC will deem them to be operating a market in breach of the securities laws which could lead to RM 10 Million in fines or 10 years imprisonment.
Once the relevant guidelines have been issued, existing platform operators will be required to apply with the SC for authorisation if they intend to operate beyond the 1st of March. Prospective operators can also apply to the SC for authorisation once the guidelines are issued. The SC will evaluate all applications and will only authorise market operators that fulfil the relevant requirements.
The SC also covered initial coin offerings (ICOs) in their announcement; no one can conduct an ICO without authorisation from the SC first. The regulator also confirmed that guidelines for ICOs will be issued by the end of Q1 2019. To that end, the SC ordered ongoing ICOs to cease all activities and return all the money or assets collected from investors.

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Blockchain/Bitcoin

SC Malaysia Clarifies: A Crypto-Asset is Only A Security if Used in Specific Ways

									by Fintech News Malaysia
January 23, 2019
4 comments

Due to confusion that has come out regarding cryptocurrency within the past few weeks, the Securities Commission Malaysia has invited Fintech News Malaysia over to clarify on certain positions it holds regarding digital assets.
One of the biggest revelations is that the Securities Commission refutes the blanket consideration of crypto-assets as securities.

“One of the questions we get asked the most [following last week’s announcement] is: is everything securities?” stated Chin Wei Min, Executive Director at the Securities Commission Malaysia yesterday.

“But actually if you read the prescription order, this is not so. It only becomes securities if it meets or fulfills those characteristics, or display those characteristics. Then only is the token considered part of securities. It’s not a blanket [prescription for all digital assets].”
A Digital Asset’s Status Is Based on How It’s Used
Image Credit: Unsplash
The same cryptocurrency, for example Bitcoin, could be captured as a securities based on how it’s used. If it’s being traded, then it falls under the purview of securities laws. Whereas, if the same Bitcoin is used to pay for a packet of nasi lemak, then it is not captured under the prescription order and not considered securities.
The prescription is activity-based. So if it’s being traded, then it’s a security. When it’s being used as a payment, then it’s not, and would require a license from Bank Negara instead.
Wei Min said added on that:
“Through the evolution of time, [digital assets] can take on many forms. It can start off as just a fundraising method, but later on the issuer can use it differently. Then, it can take on different meanings, and that’s why it’s activity-based. If it starts performing different activities, then it gets caught under different regulations.”
So When are Digital Assets Considered Securities?
According to the prescription order as provided by the Federal Gazette website, a digital asset is prescribed as securities when:
Situation 1:

it is traded in a place or on a facility where offers to sell, purchase, or exchange of, the digital currency are regularly made or accepted;
a person expects a return in any form from the trading, conversion or redemption of the digital currency or the appreciation in the value of the digital currency; and
is not issued or guaranteed by any government body or central banks as may be specified by the Commission,

Situation 2, for digital tokens which represent the right or interest of a person in a particular arrangement where:

 the person receives the digital token in exchange for a consideration;
the consideration or contribution from the person, and the income or returns, are pooled;
the income or returns of the arrangement are generated from the acquisition, holding, management or disposal of any property or assets or business activities;
the person expects a return in any form from the trading, conversion or redemption of the digital token or the appreciation in the value of the digital token;
the person does not have day-to-day control over the management of the property, assets or business of the arrangement; and
the digital token is not issued or guaranteed by any government body or central banks as may be specified by the Commission,

What About Utility Tokens?
“If a person expects any returns in any form from trading, [be it]  conversion or redemption of the token, or an appreciation in value; if a person is expecting returns from exchanging the token itself, then it would come under us,” (means classified as security and not utility token), said Wei Min.
Even if the token is intended as a utility token, most of them are issued in order for a company to raise funds, and therefore at least at that stage, fall under securities laws.
“I think it’s no different from an AEON Voucher. If you pay RM50 for an AEON voucher, three months from now if you go back to AEON, it’s still RM50; that voucher itself should not appreciate in value.”
Throughout the session, the regulator repeatedly expressed that their main intention in drafting these laws is to protect regular investors in Malaysia. With the prescription of digital assets as securities in place, we’ll be waiting for regulations on how they should conduct themselves, presumably coming in a few weeks.
In the meantime, those interested in operating in the crypto-space should reach out to the Securities Commission to ensure that their business will be kosher by the time the 1st of March 2019 deadline kicks in. The grace period was also provided in order to ensure that the market remains orderly if a crypto-exchange does decide to exit Malaysia due to the upcoming regulations, and winnow down their operations.

Featured image via screenshot of a Securities Commission Malaysia video

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Payments

Suprisingly, Malaysia Outperforms China in Government E-Payment Adoption

									by Vincent Fong
January 28, 2019
1 comment

When one thinks about the most advanced countries in the world in the payments space, countries like China, Sweden and Australia often comes to mind.
Malaysia is not among the countries that would typically occupy the mindshare of most. However, in a recently published study by the Economist and Visa, Malaysia surprisingly outranks China, with the former coming in at 19th place and the latter at 42nd place.
It noted that though China’s mobile payments is 50 times greater in value that the US, it still lags behind in the availability of government e-payment services.

The study suggests that China could do more to digitalise payments processes related to — renewal of ID, private and public transit transactions, unemployment benefits and monetary assistance in emergencies.

The objective of the study is to measure government’s effort to enable e-payments adoption, it is approached in two overall dimensions — the availability of government e-payment services and the underlying mechanisms that support digitisation of transactions.
The geographic scope of the study included 73 countries which make up 88% of the global population and more than 90% of the world’s GDP. It looks at 45 indicators and 7 categories to determine a country’s rank and score

The report indicates that Malaysia excels in the following areas of payments — citizen to government, government to citizen, and business to government. All of these are well above the global median performance of all the other 73 countries that were studied.
It also pointed out that Malaysia’s enabling infrastructure still leaves much to be desired, the two key areas that are still falling in this category are specifically — Wi-Fi avaibility and the existence of a national digital identification system.

One of the future trends that the report highlight was an increased enthusiasm towards central bank backed digital currencies (CDBC) a statement that was echoed by IMF Chief, Christine Lagarde during the Singapore Fintech Festival last year.
For those of you who are interested in a deeper read, the full link to the report can be found here
Featured Image Edited from : Freepik

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