Payments

Industry Leaders Weigh In on the Future of Digital Payments

									by Johanan Devanesan
May 25, 2023
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The digital payments industry has witnessed significant growth and transformation in recent years, driven by technological advancements, changing consumer behaviour, and evolving regulatory landscapes.
To explore the path forward, a panel discussion was held during the Everything Payments Summit as a part of PayNet Digital Payments Week 2023, featuring notable industry leaders Qaiser Iskandar Anwarudin, Director of the Payments Services Policy Department at Bank Negara Malaysia; Dr. Siew Chan Cheong, Group Chief Strategy Officer at Maybank; Lai Pei Si, the CEO Designate of Grab Malaysia digital bank; and Shankar Kanabiran, Deputy Consulting Leader & FS Consulting Leader at EY Malaysia.
Moderated by Fintech News Malaysia Chief Editor Vincent Fong, the panellists shared their insights on the industry’s progress, the necessary collaboration between stakeholders, and the shared vision required to shape the future of digital payments.

Contributions to the digital payments industry
Qaiser said the exciting growth of domestic payments in Malaysia, citing increased consumer confidence in e-payments and improved accessibility for merchants. He highlighted the entry of new players and the forthcoming digital banks, which will fuel competitiveness and benefit consumers. He also mentioned the importance of cross-border payments and how bodies like ASEAN can facilitate seamless integration and collaboration among regional economies.
The Everything Payments Summit at PayNet Digital Payments Week 2023
Dr. Siew pointed out the need to deepen the penetration of digital payments, especially in non-urban areas. He highlighted the role of Maybank’s extensive physical footprint and branch network in guiding customers toward digital payment adoption. Dr. Siew also mentioned the emergence of embedded finance and collaboration with governments to foster innovative solutions for inclusive digital payment ecosystems.
GXS Grab’s Pei Si discussed the advancements in fraud detection and security measures within digital payment systems. She emphasised the importance of maintaining robust data security standards and compliance with standards like PCI DSS. Pei Si also stressed the significance of customer support and a proactive approach to fraud detection to ensure a seamless and secure payment experience for users.
Shankar focused on the evolving business models in the digital payments industry. He highlighted the increasing diversity of payment models, such as peer-to-peer transactions and bank loans, which present new opportunities for growth. Shankar also emphasised the role of research and development in driving innovation and adapting to evolving customer needs.
Collaboration and education
To propel the digital payments industry forward, collaboration among stakeholders is crucial. The panellists emphasised the need for cooperation between regulatory bodies, financial institutions, fintech companies, and other industry players. By working together, they can establish common standards, foster innovation, and address challenges related to security, interoperability, and customer experience.
A shared vision is essential to guide the industry’s development, the panellists agreed, pointing to several key building blocks required including robust security and compliance, innovation and research, as well as collaborations and partnerships between industry players and the rest of the digital payments ecosystem.
Shankar Kanabiran
The panellists stressed the importance of education in combating social engineering and raising awareness about the risks associated with digital payments. By educating users about best practices and potential threats, the industry can empower individuals to make informed decisions and protect themselves from fraud.
Shankar Kanabiran emphasised the critical role of education in fostering awareness at all levels, starting from primary education. By instilling digital literacy from a young age, individuals can develop a better understanding of digital payment systems and security measures.
Shankar added that organisations should adopt a “secure by design” approach, ensuring that security measures are integrated into every aspect of the customer journey. Moreover, maintaining a strong partnership with reputable suppliers and treating them as an extension of the organisation’s security efforts is essential.
BNM’s approach to CBDCs
The discussion also touched upon the role of central bank digital currencies (CBDCs) in the future of payments. The panellists acknowledged that CBDC experiments are taking place globally, with over 114 countries exploring or piloting CBDC initiatives. However, the use cases and value proposition of CBDCs, particularly in the retail space, are still being evaluated.
Shankar highlighted that the value proposition of CBDCs is more apparent in wholesale payments, where inefficiencies exist in trade settlements and cross-border transactions. While retail CBDCs may not offer significant differentiation in the current landscape, the panellists agreed that continuous monitoring and assessment of CBDC developments are necessary to identify potential opportunities and adapt to emerging trends.
Qaiser Iskandar Anwarudin
Bank Negara Malaysia has embarked on a multi-year CBDC exploration project, initially focusing on wholesale CBDC in the context of cross-border payments, according to BNM director Qaiser. However, challenges related to access, governance, commercial viability, and regulatory harmonisation remain important considerations.
Moving forward, BNM is exploring the application of wholesale CBDC for domestic settlement. This phase aims to understand how distributed ledger technology (DLT) underlying CBDCs can future-proof the country’s financial market infrastructure. Collaboration between the public and private sectors is crucial, as partnerships will drive innovation and determine the potential use cases of CBDCs.
The role of digital banks
Moderator Vincent Fong directed a question to the panelists about the entry of digital banks and its impact on the payment space. Dr. Siew from Maybank highlighted that rather than seeing other banks as competitors, they view them as partners and institutions to learn from. He placed importance on technology innovation and leveraging the latest advancements to build resilient platforms, enhance client experiences, and streamline operations.
Lai Pei Si
Pei Si outlined three key areas where digital banks can make an impact. Firstly, technology innovation allows digital banks to adopt the best and latest tech solutions, unencumbered by legacy systems, resulting in improved resilience and enhanced user experiences. Secondly, by targeting specific customer segments, particularly those that are underserved or have unique needs, digital banks can design tailored processes and utilise the right technology to meet their requirements effectively.
Lastly, Pei Si emphasised the significance of data. Digital banks have the advantage of starting from scratch and building data-driven strategies, enabling them to leverage both internal and ecosystem data to enhance customer experiences and drive innovation. The flexibility provided by the licensing framework allows digital banks to test and learn, which can potentially lead to new and improved offerings.
Consumer benefits and regulatory focus
Vincent acknowledged that at the end of the day, the consumer is the ultimate winner in the evolving digital payments landscape. He cited the example of Hong Kong, where the entry of new digital banks led to increased competition and higher interest rates for customers. The competition between incumbents and challengers ultimately benefits the Malaysian population by providing more options and improved services.
Regarding the regulatory focus, Qaiser highlighted the importance of effective management of fraud and scams as a priority for BNM. The regulatory framework aims to preserve confidence in the financial system, and efforts will be made to detect and address fraudulent activities proactively. Additionally, there will be a continued focus on raising awareness and promoting financial education among the public.
Looking ahead, the central bank will continue to refine its regulatory framework to support innovation while managing potential risks. Measures such as enhancing the regulatory sandbox and E-KYC guidelines are part of ongoing efforts to foster responsible innovation. The focus on financial market infrastructures will also ensure that the payment systems can effectively support the economy and the financial sector.
The role of ESG and open payments
During the Q&A session, the panellists addressed questions about the role of ESG (Environmental, Social, and Governance) principles in the digital payments landscape. Pei Si from GXS Grab Digital Bank highlighted the concept of ethical banking, where principles of sustainability and social responsibility are integrated into product design and customer offerings. Dr. Siew Chan Cheong of Maybank also emphasised the importance of ESG and ethical considerations in their approach to banking.
Dr. Siew Chan Cheong
During the Q&A session, a question was raised regarding the implementation of open payments on highways, allowing customers to use their debit and credit cards at toll plazas. The panellists shared their thoughts on this development, considering both the customer experience and operational aspects.
Dr. Siew acknowledged the importance of open payments, highlighting the benefits for consumers in terms of choice and convenience. He stressed the need for industry collaboration to support the government’s initiatives in promoting open payments. The panellists agreed that giving customers more options for payment methods is a positive step forward.
Shankar added that from a consumer perspective, open payments provide greater choice and flexibility. However, she noted that the industry will need to react to this change and ensure that the necessary infrastructure is in place to support seamless transactions. While there may be initial concerns about transaction speed, Shankar expressed confidence that the industry will work towards upgrading the infrastructure to provide a smooth and efficient experience for customers.
The introduction of open payments on highways will not only benefit consumers but also create opportunities for financial institutions to better serve their customers. As the industry adapts to this shift, they will strive to enhance the value proposition and offer a seamless payment experience.

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Lending

Upcoming SCxSC Fintech Event Focuses on Innovative Finance in Agriculture

									by Fintech News Malaysia
May 29, 2023
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This year’s SCxSC Fintech Conference on 31 May 2023 aims to explore and harness the role of alternative financing avenues for the agriculture sector.
This free conference is organised by the Securities Commission Malaysia (SC) in partnership with the Ministry of Agriculture and Food Security (KPKM), Agrobank and Malaysia Digital Economy Corporation (MDEC).
Themed “GROW – Fostering Innovative Finance in Agriculture”, the event aims to connect investors, agri-preneurs, agri-tech startups, agri-fintech, and relevant agencies agribusinesses, and ecosystem builders, to network, collaborate and foster innovative financing solutions to boost agriculture development.

The SC X SC GROW’s lineup of local and international speakers will share their insights on the trends, challenges and opportunities in agriculture financing.
The afternoon session consists of three breakout sessions. The first session will showcase high-growth agribusinesses from the Equity Crowdfunding (ECF) and Peer-to-Peer financing deal pipeline and Sunway iLab’s Net Zero Lab.
The second session will provide local agribusinesses with insights into various financing options beyond grants and bank loans. This includes a FinTank Forum which is specially curated to shape a multi-stakeholder conversation around revolutionising agri-finance.
This breakout session will showcase fintech that cater to the needs of agribusinesses, in areas such as financing, insurance and budgeting. There will be a total of six demos, including three foreign fintech players from Indonesia and Kenya.
Register here for any of the talks, workshops or discussions.

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Islamic Fintech
Lending
WealthTech

Funding Societies Rolls Out Islamic Financing Products For Malaysian MSMEs

									by Fintech News Malaysia
May 30, 2023
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Digital financing platform Funding Societies has rolled out a suite of Shariah-compliant financing solutions for creditworthy and underserved Malaysian micro, small and medium enterprises (MSMEs) seeking to grow their business.
These Islamic financing solutions include Business Term Financing-i, Micro Financing-i, and Invoice Financing-i.
Funding Societies’ Islamic financing products
Interested SMEs can apply for these financing solutions online. According to Funding Societies, there are zero collateral requirements for this.

Following a soft launch in May 2022, Funding Societies said that the Shariah-compliant financing propositions have seen encouraging take-up from SMEs.
The platform targets to have at least 50% of its disbursement from its Shariah-compliant financing portfolio by 2025.
Funding Societies has been operating in Malaysia since 2016 and has disbursed more than RM2 billion in financing in Malaysia since its inception.
Across the region, more than RM13.74 billion has been disbursed through more than 5 million transactions as of 2022.
Wong Kah Meng
Wong Kah Meng, Group Chief Operating Officer of Funding Societies | Modalku and Co-founder of Funding Societies Malaysia said,
“Access to finance is mission critical for inclusive growth and MSME development. Case in point, there is a RM90 billion SME financing gap in Malaysia.

Given Malaysia’s leadership in Islamic finance, it is timely for us to scale our Shariah-compliant proposition to support creditworthy Malaysian SMEs of all sizes to thrive,”
Chai Kien Poon
Chai Kien Poon, Country Head of Funding Societies Malaysia said,
“Besides launching our Islamic financing proposition, we have developed Shariah-compliant investment products for our investors. This allows investors to diversify their investments while joining us to support a critical segment of the Malaysian economy.

We have seen very encouraging demand from investors (retail, high net worth individuals and institutions) and look forward to working with financial institutions to offer Shariah-compliant investments to their customers.”

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WealthTech

UOB Kay Hian Wealth Advisors Forges Partnership With KoiZai

									by Fintech News Malaysia
June 1, 2023
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In a notable move to evolve its advisory, staff, and client services, UOB Kay Hian Wealth Advisors has formed a strategic alliance with cloud-based wealth management data platform platform KoiZai. The collaboration aims to leverage advanced financial technology solutions.
As a provider of comprehensive financial planning and wealth management modelling tools, KoiZai leverages robust data to generate deep analytics. The partnership signals a step forward in positioning UOB Kay Hian Wealth Advisors (UOBKHWA) at the forefront of Malaysia’s wealth management and financial planning industry.
The decision to align with KoiZai stems from UOBKHWA’s proactive stance on incorporating advanced technological systems to futureproof its operations. KoiZai’s experienced management team instilled confidence in UOBKHWA in their industry expertise, endorsing KoiZai’s capability to bolster the Malaysian firm’s market vision.

In a press statement, KoiZai expressed shared ambitions with UOBKHWA:
“Together, we share the goal of continually enhancing the development of professional financial advice, suitability, and services UOBKHWA provides to their valued clients and stakeholders.”
The Hong Kong-based firm also conveyed excitement for the alliance, stating,
“We are excited about this opportunity to collaborate and look forward to driving innovation alongside UOBKHWA in delivering exceptional solutions and experiences.”

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Digital Transformation
Sponsored

Transforming the Future of Banking Through Cloud and Open-Source Technologies

									by Fintech News Malaysia
June 1, 2023
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The banking sector has undergone a significant transformation thanks to the introduction of cloud and open-source technologies. Previously, banks relied on legacy systems and proprietary software, resulting in operations being siloed, scalability being limited, and high costs. However, with the advent of cloud and open-source technologies, banks can adopt a more agile and collaborative approach to innovation.
In an interview, Jimmy Ng, Chief Information Officer and Group Head of Technology and Operations at DBS, and Marjet Andriesse, Senior Vice President (SVP) and General Manager of Asia Pacific Japan and China at Red Hat, delved into the role of cloud and open source in shaping the digital transformation journey of DBS Bank.
They discuss the strategic decisions, innovative approaches, and lessons learned from their experience to provide valuable insights for other organisations looking to embark on a similar path.
Open Source: A Key Component of DBS’s Digital Transformation
Open-source technology has considerably impacted DBS’s digital transformation, offering multiple benefits. “First and foremost, the bank has successfully reduced its licensing and hardware costs by transitioning from proprietary hardware and software to open-source technology and commoditized hardware. This shift has also allowed DBS to decrease the footprint of its data centers,” stated Jimmy.

Secondly, the flexibility and transparency of open source have enabled DBS to stitch together solutions in a highly adaptable manner. As a result, the bank can build solutions that are perfectly tailored to its unique needs.
Marjet Andriesse noted that open source remains the bedrock of innovation and transformation, highlighting DBS as an exemplary bank that has adopted a change to enhance customer service.
Two significant aspects characterize DBS’s journey toward digital transformation. First, the bank has focused on building an open ecosystem, which has helped create synergy between business processes and services.
Second, DBS has become “digital to the core” by leveraging digital technology to provide its customers comprehensive services. This holistic approach to multi-hybrid cloud adoption has allowed DBS to advance its data agenda, IT implementation, and application onboarding.
DBS’s Unique Approach to Cloud Adoption
Many organisations choose to adopt the cloud through a “lift and shift” strategy, which involves rehosting an application or workload, along with its data store and operating system, from one IT environment to another – typically from on-premises to a public or private cloud. However, DBS Bank took a distinct approach by constructing its virtual private cloud (VPC) on-premises.
This decision was influenced by two primary considerations: the perception that public cloud solutions were insufficiently robust for a banking institution like DBS and the continued suitability of their existing data centers.

“Building and operating an on-premises VPC has been an essential learning experience. By mastering the underlying technology and incorporating automation and self-service features, DBS has been able to run its VPC as efficiently as a public cloud service provider,” said Jimmy.
DBS has set the foundation for growth and scalability by adopting a cloud-first strategy. The move to a hybrid, multi-cloud infrastructure has resulted in greater resiliency, scalability, and reduced infrastructure costs. DBS uses Red Hat OpenShift and Kubernetes to handle burst loads in the public cloud, enabling the bank to access native services provided by public cloud platforms unavailable on-premises.
Innovation and Future Horizons for DBS

DBS encourages innovation by creating teams and guiding them through a four-stage process known as the 4D approach: Discover, Define, Develop, and Deliver. This process fosters the development of new ideas and allows teams to showcase their accomplishments. Jimmy highlighted the importance of having a roadmap for each platform and function within the business, with three horizons representing short, medium, and long-term goals.
As DBS evolves into a different kind of bank, the organisation recognizes the need to do things differently in the operations area. By leveraging technology, DBS has enabled its operations staff to access systems from anywhere, performing their functions seamlessly as if they were in the office. This approach has allowed the entire operation to become a network model, with work in various locations and countries.

“DBS is currently in the experimentation phase with blockchain, tokenization, NFTs, and the metaverse. Although there is no fixed timeline for implementing these technologies, DBS understands the importance of being ready and receptive to innovative solutions to succeed in the future,” said Jimmy.
The Role of Partnerships and Collaboration
Partnerships and collaboration are crucial to the success of digital transformation journeys. Jimmy acknowledged that working with Red Hat has been an invaluable partnership for DBS, enabling them to gain insights, leverage open-source technologies, and access expertise.
Marjet emphasized the significance of collaboration and the sharing of best practices within the open-source community, as it possesses collective knowledge that can assist organizations in adapting and implementing new technologies more efficiently.
Additionally, Marjet stated that open-source technology is still the cornerstone of innovation and transformation. The technology has contributed significantly to creating a strong developer community, which has been crucial in driving the success of DBS’s digital transformation. The bank has been able to attract top talent and foster a culture of collaboration, enabling its teams to experiment with new ideas and push the boundaries of what is achievable in the banking sector.

Unlocking the Potential of Open Source and Cloud Technology
As DBS Bank and Red Hat continue to lead the way in digital transformation within the banking industry, the power of cloud and open-source technologies remain at the forefront of their success. By embracing an open ecosystem and adopting a cloud-first approach, DBS has set a new standard in innovation, efficiency, and resiliency.
The bank’s strategic alignment with business objectives, robust security architecture, and strong governance and risk management processes have been instrumental in building a scalable and agile IT infrastructure. This, in turn, has allowed them to stay competitive in an ever-changing market while delivering exceptional customer experiences. The partnership between DBS and Red Hat exemplifies the potential of cloud and open-source technologies in revolutionizing the banking landscape and shaping the industry’s future.
Ready to learn more about how DBS and Red Hat have transformed the future of banking through cloud and open-source technology? Watch the full interviews with Jimmy Ng and Marjet Andriesse by clicking this link. Discover how your organisation can become more agile, customer-centric, and innovative by embracing these technologies today.

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Funding
Payments

Malaysian Fintech Bayo Pay Raises RM10 Million Series A

									by Fintech News Malaysia
June 5, 2023
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Malaysian e-money service provider Bayo Pay has secured RM10 million (US$2.2 million) in a Series A funding round, according to a report by TechNode Global.
The funds invested came from Softbank-backed VentureTECH SBI who poured in RM7 million (US$1.52 million) while VentureTECH contributed RM3 million (US$650,000).
The funds will be used to expand Bayo Pay’s client base, increase collaborative-based income and further deepen its focus in its niche verticals.

Bayo offers a platform-based Payment System-as a-Service to its clients via white-labelling its technology and payment system rails needed to offer various financial and non-financial products.
The firm is regulated by Bank Negara Malaysia under the Payment System Act 2003 and a licensed entity by Mastercard as an issuer of Mastercard payment card in Malaysia.
Aznul Abdullah
“The investments will be utilised to fund Bayo Pay’s expansion by onboarding new clients and promote its ancillary digital services.

We are thrilled to have both VentureTECH SBI and VentureTECH as our cornerstone institutional investors and we believe this investment validates our business roadmap, as we execute our strategies to leverage on the global surge in use of digital payments,”
said Aznul Abdullah, Chief Executive Officer of Bayo Pay.

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Funding
Insurtech

PolicyStreet Raises RM67 Million Series B Led by Khazanah to Serve the Underinsured

									by Fintech News Malaysia
June 6, 2023
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Malaysian insurtech company PolicyStreet has raised a total of RM67 million (US$15.3 million) in a Series B fundraising round led by the country’s sovereign wealth fund Khazanah Nasional.
The round was also joined by other local and international investors, including Altara Ventures, Gobi Partners and Spiral Ventures.
PolicyStreet said that it intends to use the funds to strengthen its technology and underwriting capabilities.

It aims to increase its on-demand underwriting policies to make protection more accessible and better tap into underserved and underinsured audience segments in Malaysia and the region.
Founded in 2017 by Yen Ming Lee, Wilson Beh and Winnie Chua, PolicyStreet is a full-stack insurtech company that offers digital and customised insurance solutions to consumers and businesses.
PolicyStreet secured Financial Adviser and Islamic Financial Adviser licenses from Bank Negara Malaysia (BNM) in 2019, enabling it to work with over 40 insurance and takaful providers to provide financial advice, education and claims support to its customers.
It has also obtained the Reinsurer and General Insurer licenses from the Labuan Financial Services Authority (LFSA) in 2021.
Dato’ Amirul Feisal Wan Zahir
Dato’ Amirul Feisal Wan Zahir, Managing Director at Khazanah said,
“Our investment in PolicyStreet aims to improve insurance penetration within the unserved and underserved segments which advocates inclusivity, providing better financial protection, increasing household resilience and financial well-being.”
Yen Ming Lee
Yen Ming Lee, Chief Executive Officer and Co-founder of PolicyStreet said,
“PolicyStreet is committed to empowering underinsured businesses and consumers by providing accessible insurance solutions.

With over half a million B40 gig workers and 50,000 small-medium enterprises (SMEs) already benefiting from our services, we aim to serve 2.5 million gig workers and 300,000 SMEs within the next five years, creating a more financially inclusive future for communities in Malaysia and the region.”

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Payments

BNM’s Symposium Participants Experience Making Live Cross Border QR Payments

									by Fintech News Malaysia
June 8, 2023
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The Malaysian central bank has kicked off its first BNM Sasana Symposium 2023 (SS2023) today at Sasana Kijang which featured an experiential showcase of the country’s cross-border QR payment linkages with Indonesia, Singapore, and Thailand.
Participants of the Bank Negara Malaysia‘s (BNM) S2023 event was be able to experience making live cross-border QR payments at food vendors from Malaysia, Indonesia, Singapore, and Thailand.
Customers of participating financial institutions can make retail payments by scanning QRIS, NETS, and PromptPay QR codes via mobile banking or e-wallet apps.

It supports in-person payments at physical stores and online e-commerce transactions. The same also applies to tourists from these countries to Malaysia.
Among the participating financial institutions are CIMB Bank, Hong Leong Bank, Maybank, Public Bank, and TNG Digital’s Touch ‘n Go eWallet.
Besides these QR payment linkages, BNM is also working on enabling P2P transfers between these countries through the use of mobile or national identification numbers.

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Cloud
Digital Transformation
Sponsored
Virtual Banking

AWS and Mambu Share Their Guide to Cloud Migration for Incumbent Banks

									by Fintech News Malaysia
June 8, 2023
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In today’s rapidly evolving economic environment, businesses need to be able to adapt quickly to changing market and consumer demands.
This is especially true for traditional banks and financial institutions experiencing pressure to offer the same level of agility as their digital competitors.
The use of next-gen cloud native platforms is not exclusive to fintechs or neobanks – traditional banks can also harness these super agile platforms to supercharge operational agility and ensure there is no disconnect between front and back-end systems.
Across the globe, banks are choosing to migrate and gain an advantage with Mambu’s SaaS cloud native core, composable-API banking platform.
Source: Freepik
Composable-API platforms involve minimal coding, encouraging continuous service innovation without overburdening existing IT staff and systems.
Utilising composable-API technology offers clear advantages to banks and FSIs looking to migrate bank services to the cloud, including more distinct customer experiences, greater competitive speed advantage and faster monetisation.
While most traditional banks understand that a move to the cloud is inevitable if they want to remain competitive, navigating that change can be overwhelming.
AWS and Mambu have produced a practical Cloud Migration Guidebook for traditional banking technology leaders and C-Suite executives who are considering cloud migration.
The rationale for change
Source: Freepik
In today’s technology-driven world, customers have come to expect their banks to provide better, faster, and more convenient ways to manage their finances.
Often hindered by legacy technology, traditional banks are facing increasing pressure to keep pace with innovative fintechs powered by agile and flexible next-generation technologies.
In this constantly shifting landscape, it’s clear that traditional banks need to migrate key back-end systems into the cloud to ensure increased speed, security and scalability.
Banks operating in the cloud benefit from:
· Enhanced security: Cloud providers have a laser focus on security, meaning banks operating in the cloud can be better protected from cyber-attacks;
· Improved scalability: Next-gen cloud native platforms are infinitely scalable, enabling banks to easily adapt to changing demand without having to invest in additional technology, so you can focus on growing the business rather than worrying about technology infrastructure;
· Reduced costs: Save money on tech costs, eliminating the need to purchase and maintain your own hardware and software, freeing up resources to focus on providing superior products and services.
However, transitioning from legacy infrastructure to cloud based is a complex exercise, so banks need to strike a balance between addressing the appetite for change while also making decisions about when to retire legacy technology (and associated technical debt).
Determining your cloud migration strategy
Source: Freepik
While there is no one-size-fits-all approach that will ensure success for every cloud migration, there is a common set of guiding principles that organisations can use to determine the correct strategy for their circumstances.
Five critical planning steps for successful cloud-based core banking migration detailed in the Cloud Migration Guidebook are:

Define and commit to a vision
Audit existing portfolio
Build a viable business case
Align organisation and culture
Stress-test readiness and finalise plans.

A ‘dual core’ approach helps navigate bumps in the road
Even with a solid plan, migrating core functions to the cloud can be a challenging process.
While the end result will enable banks to achieve their long and short-term operational goals, barriers like high technical dept, increasing IT costs and runaway competition can distract from the task at hand and have a negative influence on decision making.
Common pitfalls that banks and FSIs should be aware of
So, how can banks avoid these migration traps? The answer is to choose a ‘dual core’ approach, where customers are progressively migrated, based on key events such as new product onboarding or product rollovers.
This approach sees the legacy core still supported for a set period – perhaps a year or two – but any new business growth, new products and new customers go straight onto the new cloud banking platform.
This approach is far less risky than a ‘big-bang’ rip and replace plan, and allows banks to go to market much sooner with exciting new products and services.
Starting from the core fast-tracks transition
Cloud-based operators use next-gen cloud-native core banking systems that leverage API-enabled technology to simplify IT, lower operating costs, provide greater flexibility and enable rapid experimentation.
Composable API technology offers three key advantages for those looking to migrate bank services to the cloud.

To succeed in today’s fast-paced financial markets, a ‘digital makeover’ is no longer enough.
Banks and FSIs need to become truly responsive to customer, operational and market needs by having every layer of the business operating at the same fast pace so the organisation can pivot, change, and innovate rapidly on demand.
Using a proven change accelerator platform such as Mambu’s core cloud banking platform running on AWS can help simplify the process, optimise performance, and accelerate results.
Download the step-by-step guide to seamless migration for incumbent banks developed by AWS and Mambu here.

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Proptech
WealthTech

StashAway and EdgeProp to Help Malaysians Invest Towards Home Ownership Goals

									by Fintech News Malaysia
June 8, 2023
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Southeast Asian digital wealth manager StashAway has partnered with property website EdgeProp to empower Malaysians to plan their finances wisely and save for their future homes.
As the Official Investment Partner of EdgeProp START, StashAway will offer cash incentives to future home buyers who use its platform to invest towards their home ownership goals.
StashAway offers a range of investment solutions from globally-diversified portfolios, to thematic and ESG-focused portfolios that are tailored to meet medium to long-term financial goals.

Prospective homeowners can start investing with StashAway and qualify for a RM30 cashback. Upon achieving their investment goal of purchasing a house, clients will be rewarded with an additional RM100 bonus.
StashAway and EdgeProp aim to encourage future home owners to start investing early to save up for the various costs of financing a home, whether it’s for their down payment or move-in expenses.
Wong Wai Ken
“We have always believed in empowering individuals to achieve their goals through investing, and home ownership is a significant milestone for many.

Together with EdgeProp START, we look forward to supporting aspiring home owners at every step of their journey, inspiring them to invest consistently and stay committed to making their dream home a reality,”
said Wong Wai Ken, Country Manager, StashAway Malaysia.

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Payments

Where Does Malaysia’s Digital Payment Ecosystem Go From Here?

									by Rebecca Oi
June 12, 2023
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The rapid adoption of digital payments has revolutionized how we make transactions, offering benefits such as speed, affordability, and seamless experiences. This shift towards digital payments is not limited to domestic markets but has extended to cross-border transactions, with the ASEAN region witnessing significant activity in this space.
However, as digital payments continue to grow, so do the risks associated with fraud and cyber threats. Maintaining public confidence in digital payments requires the collective efforts of financial institutions, authorities, and industry players.
To address these concerns and explore the future of digitalization in payments, a panel session titled ‘Going Digital with Confidence in an Innovative Landscape’ was organized during the Bank Negara Malaysia (BNM) Sasana Symposium 2023 (SS2023) featuring industry experts.

The panelists comprised Assistant Governor of Bank Negara Malaysia Suhaimi Ali, Group Chief Executive Officer of PayNet Farhan Ahmad, Chief Executive Officer of TNG Digital Alan Ni, and Group Chief Digital Officer of Maybank Kalyani Nair.
Advancing digital payments in Malaysia: vision and outcomes

In Malaysia, the vision for digital payments is focused on achieving financial inclusion and supporting economic growth. This vision encompasses accessibility, affordability, security, interoperability, and informed consumers.
The goal is to ensure that digital payments are accessible to all, regardless of income level or geographic location, and that they are affordable and secure.
Interoperability is crucial, allowing users to transact across different platforms and service providers. Additionally, fostering informed consumers who understand the benefits and safety measures of digital payments is essential.
Suhaimi Ali highlighted that the financial sector blueprint outlines three strategies: increasing adoption among businesses and households, ensuring digital payment infrastructure readiness, and balancing development and security.
Increasing adoption and infrastructure readiness
To increase adoption, Malaysia has witnessed a significant migration to e-payment, with notable results during the pandemic. Malaysians made an average of 291 e-payment transactions per person in 2022, compared to 144 transactions in 2019.
Assistant Governor of Bank Negara Malaysia Suhaimi Ali
“The bank is working on efforts to migrate to e-payment, targeting that each Malaysian makes an average of 400 e-transactions by 2026. The bank is also focusing on transforming difficult-to-reach or transform areas, with notable successes in Pulau Redang and Sungai Petani,” said Suhaimi.
To ensure infrastructure readiness, Malaysia has focused on enhancing cross-border payment capabilities. While domestic payments are efficient, cross-border transactions still face cost, speed, and transparency challenges.
To address this, Malaysia is working with ASEAN countries and the BIS Innovation Hub to establish a multilateral payment platform for cross-border transactions.
This platform aims to make cross-border payments as efficient as domestic transactions, reducing costs and improving speed. Additionally, Malaysia is exploring the use of Central Bank Digital Currency (CBDC) and preparing for its potential implementation.
Sustaining momentum for digital payments
Collaboration between the public and private sectors, along with key factors such as convenience, security, trust, and value-added services, has played a vital role in the success of digital payments in Malaysia and the ASEAN region.
Partnerships with industry players, regulatory backing, and substantial investments in infrastructure have propelled the growth of digital payments.
Chief Executive Officer of TNG Digital Alan Ni
Alan attributed the surge in digital payments to the collaboration between the public and private sectors, emphasizing the role of various initiatives such as cross-border payments, national QR code adoption, and anti-fraud measures.
Moving forward, sustaining the momentum of digital payments requires a focus on convenience, security, trust, and value-added services. Ensuring universal payment coverage across various sectors, including rural areas and small merchants, is crucial.
Developing secure and fraud-resistant systems is vital for maintaining trust among users. In addition, providing value-added services beyond payments, such as financial and merchant services, can enhance the overall ecosystem and deliver more value to customers.
Drawing from TNG’s presence in China, Alan discussed the benefits of learning from cross-border experiences and emphasized the importance of collaboration in driving growth.
“The lessons learned from China’s experience in digital payments, highlight the importance of internet infrastructure, affordability, and a delicate balance in regulatory frameworks to ensure low transaction costs while maintaining commercial viability,” said Alan.
The role of RPP in Malaysia’s digital payment landscape
Farhan highlighted the transformative impact of the Real-Time Payment Platform (RPP) on Malaysia’s digital payment landscape. RPP provides an enabling environment for the industry to compete at the product level to benefit end users.
“With an extensive global view, RPP’s performance in Malaysia has been impressive, ranking among the top three to five platforms globally.” said Farhan.
Group Chief Executive Officer of PayNet Farhan Ahmad
“Despite boasting an outstanding infrastructure, the RPP’s potential is yet to be fully harnessed. This collective responsibility involves various stakeholders, from payment providers to merchants and consumers. The objective is not merely to digitize payments but to add value to the populace,” he added.
Strategies such as merchant adoption, user-friendly interfaces, strong regulations, technological readiness, and fintech-bank partnerships are crucial to ensure future success. India’s Unified Payment Interface (UPI) provides valuable lessons.
Cross-border transactions are also important, aiming to create an alternative to established players such as Visa and Mastercard. Malaysia’s digital payment landscape is set for exciting times by fostering collaboration, innovation, and user-centric approaches.
Redefining SME banking with digital solutions
 As technology continues to reshape industries, it has become increasingly essential for small and medium enterprises (SMEs) to embrace digital technologies to stay competitive.
Group Chief Digital Officer of Maybank Kalyani Nair
Maybank recognizes the need to help SMEs embrace digital technologies for their businesses. By providing cross-border transaction capabilities, the bank aims to expose SMEs to a broader market and increase their exposure. However, implementing digital solutions is not enough – educating SMEs about using these digital tools is equally important.
Digital maturity cannot be assumed for all businesses, so banks must guide and support SMEs. This includes providing insights to help enterprises to up their game, offering peer-to-peer (P2P) payment options, and thinking about embedded financing.
“We recognize that financial literacy is not universal; thus, part of our mission is to educate SMEs fectively using digital tools for business. Payments are critical to enable SMEs to transition smoothly into the digital sphere,” said Kalyani.
Moreover, Maybank acknowledges the potential for open data and banking to help SMEs with capabilities such as invoice payment and trust building.
The Impossible Trinity and maintaining trust in digital payments
The Impossible Trinity is the delicate balance between three critical aspects of the financial industry: promoting financial inclusion, ensuring security, and facilitating convenience. This trinity presents a challenge for regulators and industry players alike, as enhancing one aspect often comes at the expense of the others.
“Financial inclusion aims to provide access to financial services for all individuals, regardless of socioeconomic status. However, expanding access may require relaxing security measures, increasing vulnerability to fraudulent activities,” said Suhaimi.
“On the other hand, prioritizing security may limit convenience, making transactions more cumbersome for users. Striking the right balance among these three elements is crucial for a sustainable and thriving financial ecosystem,” he added.
Ultimately, the key lies in adapting to changes and finding innovative solutions to maintain financial inclusion, security, and convenience concurrently.
Security in digital payments
The integral role of security in digital transactions cannot be overstated. Both conventional financial institutions and emerging fintech companies are making concerted efforts to safeguard users and uphold confidence in their services. Security is a fundamental aspect of digital payments.
Some of these measures include removing hyperlinks and enhancing customer awareness about potential fraud threats.
On the one hand, making transactions friction-free enhances customer convenience, but it also invites potential fraud threats. Therefore, finding the right balance in maintaining customer trust is crucial while offering an efficient and hassle-free transaction process.
“As technology continues to evolve, so do the techniques employed by fraudsters. Constant innovation is required to stay ahead of the curve and maintain a secure digital payments ecosystem. The rise of quantum computing and artificial intelligence (AI) poses new challenges and threats that need to be addressed proactively, ” said Farhan.
“In addition to fundamental security hygiene measures like eliminating links and implementing transaction alerts, the industry should strive to share information and data on fraud incidents and suspected fraud, he added.
Looking ahead, consumer education will remain essential but may not be the most effective means of combating fraud. Instead, an open sharing of data and information among industry players can provide real-time insights into fraudulent activities and help protect end users.
The importance of public-private partnerships for advancing innovation
Amidst the ever-evolving landscape of digital payments, one thing remains clear: public-private partnerships are the order of the day. The financial sector has witnessed significant progress, evident in the succession of blueprints and initiatives implemented from 2001 to 2020—however, the true potential lies in the interlinkages and collective actions of all stakeholders.
“Embracing a whole-of-nation approach that involves collaboration among industry players, regulatory bodies, and the government is paramount for propelling the nation forward,” said Suhaimi.
“By uniting forces and pooling resources, we can foster an environment that thrives on innovation, ensuring that Malaysia and the ASEAN region remain at the forefront of advancements in digital payments. It is through such collaborations that we can unlock the full benefits and seize the opportunities presented by the rapid pace of technological advancements,” he added.

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Cloud
Digital Transformation
Sponsored

Purposeful Coexistence in Your Journey to a Digital Core

									by Fintech News Malaysia
June 12, 2023
0 comments

The costs and complexity of legacy banking technology have firmly established the need for financial institutions to modernise their systems.
Banks must move away from legacy infrastructure that constrains innovation and prevents them from providing the real-time, personalised banking experiences that customers have come to expect. Banks can unlock greater flexibility, enhanced resilience, and lower operational costs by moving core technology into the cloud.
In the past, banks may have adopted a big bang migration approach to move to a new core platform. This would entail a single migration phase in which all product data was extracted, transformed and loaded in the shortest time possible.
This approach was risky but more feasible in the era of 9-5 banking schedules, with customers accepting a lack of service for long periods at night and over weekends. In many cases, the batch-based nature of legacy cores only compounded the difficulty in bridging between old and new when phasing migration events.
Source: Dreamstime
Due to the delivery methodologies of the day — where the scope was delivered as a big bang, with only the most innovative banks managing releases quarterly — it often made sense to migrate data in this way.
The dissatisfaction customers have had with frequent failures of the big bang migration pattern has been well publicised – notwithstanding the intense regulatory scrutiny that follows.
Understandably this can cause enormous concern for any bank looking to modernise its core. Given this reality, and the strong desire to de-risk migration events, banks have accepted that the core coexistence migration pattern is a more effective route to success.
Coexistence, or running two or more cores together for a period, is an important issue for banking technology executives. The ability to bridge between cores allows for a phased transition from old to new and enables more creative and risk-mitigating deployment strategies.
The coexistence pattern aligns migration with modern software practices, allowing the bank to deploy, migrate, test, and learn from small tranches of its portfolio in a far more controlled approach.

While the coexistence pattern offers a breakthrough for migration – lack of preparation presents significant issues. Too often, migration is treated as a footnote: seen as hindering progress towards new capabilities, features and products that core modernisation will provide.
Banks that expect the process to require little manual intervention — and that stakeholders will align at the right time — risk failure.
Our experience in migration shows that planning for coexistence is critical, especially as the size of the bank increases. Coexistence is a complex journey that will be different for each programme.
Nevertheless, here’s a compilation of thirteen common lessons that delivery teams can use to smooth the coexistence journey:
1. Embrace coexistence and empower a central team
Recognise coexistence and actively plan for it during your transition state or states. Don’t leave it as a low-level design issue.
Set up a central team of experts to ensure comprehensive planning and decision-making. This may be distinct and separate from the business and technical teams that define the target state operating model and architecture.
This team needs to be empowered and have the appropriate senior sponsorship. Coexistence will have a ripple effect across many teams. Difficult decisions must be made, often at pace, to keep the programme and its stakeholders aligned while moving forward with a holistic change-management strategy.
2. Don’t try to answer all questions at the start
Defining the answers for all coexistence situations at the beginning of a significant transformation programme is impractical. The central coexistence team will set the north star in terms of coexistence early in the programme. From there, they will lay the required implementation path, working through each challenge in bite-sized chunks.
3. Use technology to better support coexistence
Gone are the days of stitching together a manual process which would inevitably place additional pressure on operations colleagues. Instead, utilise the programme’s target architecture to enable technology-centred coexistence.
Banks can be safe knowing that any interim builds can more easily be changed as you transition from one state to another with a more loosely-coupled architecture. For example, a dedicated service could be stood up to serve as the ‘control centre’ for managing coexistence indicators across various systems of record.
4. Identify your coexistence control points
Identify where in your technology stack you can most easily control data flows needed to operate in coexistence. The fewer points you must control to flip from one coexistence state to another, the better.
In modern architectures, this is less likely to be in the customer or product systems themselves but rather in the integration layer that operates as the central foundation for the bank.
Access the full paper here.

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Editor's Pick
Insurtech

How Embedded Insurance is Changing the Face of Online Shopping

									by Rebecca Oi
June 14, 2023
0 comments

In an age where financial services are evolving to match the pace of consumers’ dynamic lifestyles, embedded insurance is gaining traction as a transformative approach to offering protection.
Unlike the traditional standalone policies, the essence of embedded insurance lies in integrating insurance protection into everyday transactions or activities, making it more accessible and less intrusive to consumers.
In an interview with Fintech News Malaysia, Wilson Beh, Co-founder and Chief Operating Officer of PolicyStreet, shared how the company embraces embedded insurance and protection and what this means for its customers.

The insurtech, which also recently secured US$15.3 million (RM67 million) in its Series B funding under Khazanah Nasional Berhad’s Dana Impak, has set goals of serving 2.5 million gig workers and 300,000 small and medium-sized enterprises over the next five years.
Bridging the protection gap in the digital economy
The idea of venturing into embedded insurance originated from PolicyStreet’s commitment to making insurance more accessible, especially for traditionally underserved communities.
“About 30 million Malaysians, or 90 percent of the population, are underinsured,” Wilson shared. This statistic propelled PolicyStreet to venture into embedded insurance, driven by a commitment to narrow this significant protection gap.
Wilson Beh, Co-founder and Chief Operating Officer of PolicyStreet
The insurtech recognised the need to extend protection to the digital and gig economies now prevalent in the consumer market and adapted its platform accordingly.
Wilson noted that despite the reopening of the economy, research shows that most Malaysian consumers prefer to shop online. Recognising this shift in consumer behaviour, PolicyStreet saw an opportunity to embed insurance protection within the online purchasing journey.
This led to a partnership with Shopee, an e-commerce platform in the region where the insurtech introduced the Damage Protection Plan to ensure affordable and comprehensive coverage to online shoppers, thereby bringing insurance protection directly to consumers’ fingertips.
Rethinking traditional insurance models
Embedded insurance presents a distinct approach compared to traditional standalone insurance policies.
While standalone insurance policies often offer comprehensive coverage that may include unnecessary elements, embedded insurance is bite-sized and tailor-made to address users’ needs at the moment of need.
Embedded insurance transforms the journey, making it more accessible and appealing to the average consumer. Simplifying the acquisition process removes the traditional barriers that often discourage individuals from obtaining insurance coverage.
With its emphasis on convenience, affordability, and seamless integration into daily life, embedded insurance offers significant advantages for both insurers and consumers.
“Insurance is traditionally sold, not bought,” Wilson explained, highlighting the common perception of insurance as a complex and daunting purchase. By simplifying the acquisition process and making it a seamless part of transactions, embedded insurance can encourage greater uptake of insurance protection among Malaysians.

Designing embedded insurance solutions: key considerations
The primary considerations for insurance providers in developing embedded insurance solutions include understanding the specific needs of users, creating a user-friendly claims process, and ensuring efficient communication channels.
However, challenges may arise during the embedding process, such as aligning technical integrations, designing products that inspire trust, and managing complex claims processing.
Wilson also stressed the importance of understanding the end consumer when designing these solutions. “We constantly ask ourselves – does the product actually solve the issue at hand? Would we, as consumers ourselves, purchase this protection? These questions guide our product development process, ensuring we create insurance offerings that truly meet the consumer’s needs.”
Seamless integration for a smooth user experience
Ensuring a smooth user experience for Shopee’s sellers and buyers was central to PolicyStreet’s strategy in integrating insurance offerings. By partnering closely with Shopee, the insurtech succeeded in embedding its technology into the e-commerce platform’s online and mobile interfaces.
The integration process was designed to be intuitive and user-friendly. Shoppers can simply opt-in for protection at the checkout stage by checking a box, providing them with easy access to insurance coverage.
After opting in, shoppers receive a confirmation email from PolicyStreet, guiding them to a dedicated claims management portal. This portal lets users view, submit, and track claims anytime, anywhere, ensuring a seamless claims process.
By collaborating with e-commerce platforms, PolicyStreet ensures that insurance products are seamlessly integrated into the shopping journey. This integration enhances the user experience and increases the accessibility and convenience of insurance protection.
Transforming the shopping experience
Integrating insurance into the shopping journey can positively influence user experience and conversion rates. Shoppers who opt for the Damage Protection Plan offered by PolicyStreet gain increased confidence in their purchases. This plan covers all-risk damages, including wear and tear, for up to six months, acting as a quality assurance policy.
For example, if a shopper purchases a piece of furniture and it starts deteriorating rapidly just a few months after purchase, the Damage Protection Plan provides compensation of up to RM10,000.
Additionally, the plan covers accidental damage caused by lightning strikes, burglary and theft, flash floods, and fires. This increased sense of security fosters customer loyalty and helps enhance financial security amid life’s uncertainties.

In the event of a flood caused by the monsoon season, Malaysians will not have to worry about the financial implications of replacing their belongings purchased from e-commerce platforms if they have opted for the Damage Protection Plan.
This coverage helps promote financial stability and inclusion among vulnerable communities, as annual floods in 2021 resulted in RM1.6 billion in losses in living quarters.
Considering the vast number of items Malaysians buy online, the protection offered by embedded insurance provides peace of mind, ensuring consumers can shop confidently. This enhances the overall shopping experience and contributes to a culture of financial security among online shoppers.
“By transforming the insurance shopping experience, we’re helping our consumers better manage life’s uncertainties. This peace of mind is invaluable and contributes to the overall shopping experience,” Wilson concluded.
Future of embedded insurance in Malaysia
The future of embedded insurance in Malaysia may depend on several key factors. Firstly, the regulatory environment and the authorities’ support level play a vital role in fostering innovation and collaboration within the insurance sector.
 A conducive regulatory framework encouraging developing and implementing of embedded insurance solutions will drive its growth and adoption.
Secondly, consumer demand and preferences for insurance products that are tailored, convenient, and affordable will shape the future of embedded insurance. As customers seek personalised and easily accessible coverage, insurance providers must adapt to these evolving needs and offer solutions that meet their expectations.
Thirdly, the availability and adoption of technology platforms that enable seamless integration and distribution of embedded insurance solutions will be a determining factor. The advancement and widespread use of technology platforms will facilitate insurance integration into various touchpoints, making it more accessible and convenient for consumers.
Lastly, the future landscape will shape the competition and collaboration among insurance providers, embedded insurance enablers, and distribution partners. Insurance providers can differentiate themselves in a competitive market by offering value-added services and enhancing the customer experience.
Collaboration between various stakeholders is also essential to leverage expertise and resources, ultimately driving the growth of embedded insurance in Malaysia.
Considering these factors and addressing the opportunities and challenges, the future of embedded insurance in Malaysia holds great potential to bridge the protection gap and provide Malaysians with accessible insurance solutions.
PolicyStreet’s venture into this space marks a promising start to a more customer-centric future for the insurance industry. It will be exciting to see how this approach continues to evolve and impact the broader market in the years to come.

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Editor's Pick
Payments

Is Earned Wage Access the Answer to Living Paycheque to Paycheque?

									by Rebecca Oi
June 20, 2023
0 comments

In today’s world, where many individuals live paycheque to paycheque, there is often a struggle to make ends meet before the next payday arrives. This financial challenge is not limited to the underbanked and unbanked populations but extends to those in more affluent societies.
Recognising this issue, companies such as PayWatch located in Malaysia, offer solutions through Earned Wage Access (EWA), allowing individuals to access a portion of their earned wages before the traditional payday.
In an interview with Richard Kim, CEO and co-founder of PayWatch, he spoke of how earned wage access solutions work and the benefits it provides for both the underbanked and unbanked populations.

Providing relief from financial struggles
One of the core problems individuals worldwide faces is running out of money before the end of the month.
Richard Kim, CEO and co-founder of PayWatch
“This issue is not confined to lower-income countries but can be seen even in more developed nations,” said Richard.
“In countries with robust economies like South Korea, it’s not uncommon for workers to deplete their monthly wages by the 10th or 12th of the month. The situation is even grimmer in specific sectors like freelancing, where payment cycles often stretch far beyond the typical month-end, sometimes reaching up to 60 days,” he added.
PayWatch addresses this challenge by enabling individuals to access up to 50 percent of their monthly income before payday. By offering this service, the company aims to prevent people from resorting to loans, borrowing from friends, or turning to predatory lenders.
Access to already-earned wages ensures that individuals can handle emergency expenses and unexpected financial burdens without falling into a cycle of debt.
Shifting the risk from individuals to corporations
The financial struggles faced by the underbanked and unbanked populations are further compounded by limited access to traditional banking services and high-interest rates.
Financial institutions often hesitate to lend to individuals without credit history or with poor credit scores, leaving them with limited options and higher costs.
According to Richard, one of the main obstacles to traditional financial systems is their approach to risk.
PayWatch tackles this issue by shifting the risk from individuals to corporations, ensuring payments are received from employers. The rationale is straightforward: banks are more likely to trust large corporations to meet their financial obligations.
Hence, by tying an employee’s financial services to their employer through the EWA system, PayWatch enables access to financial services regardless of personal credit histories. This paves the way towards financial inclusivity for historically marginalised demographics.
Collaborating with multinationals and banks for mutual benefit

In its initial stages, PayWatch strategically partnered with multinational corporations (MNCs) known for their credibility. The company worked across various sectors, including Fast-Moving Consumer Goods (FMCGs), retailers, and manufacturers, where employees often have limited access to financial products.
When it came to forging partnerships with banks, PayWatch presented a compelling case. In the era of burgeoning digital banks, traditional banking institutions need to broaden their customer base to remain competitive.
PayWatch’s solution provided these banks with a low-risk method of acquiring new customers. Moreover, these banks were under increasing pressure from society and the government to assist the bottom 40 percent of the population.
PayWatch’s solution offered a way to meet these expectations without giving out free money. Instead, they could extend their financial services to a broader demographic more safely and sustainably.
Improving employee retention and productivity
Implementing the EWA system has resulted in substantial positive transformations for companies adopting it. The system effectively reduces financial stress by providing employees immediate access to earnings.
This, in turn, has the potential to enhance productivity, improve attendance, and increase employee retention rates. The cumulative effect of these benefits positively impacts organisations’ overall health and performance.
During times of crisis, such as the recent pandemic, employees with access to their earned wages are less burdened, leading to improved productivity and reduced turnover rates.
“Many companies have reported significant employee retention and attendance improvements after implementing our solution. For example, in the food and beverage industry, where turnover rates are traditionally high, businesses using our solution have experienced a retention improvement of up to 75 percent”, said Richard.
This significant reduction in turnover demonstrates the potential of Earned Wage Access as a tool for improving job satisfaction and retention.
PayWatch’s expansion plans

PayWatch’s commitment to providing financial access has resulted in impressive growth. With over 200,000 employees benefiting from their services globally, PayWatch has experienced a rapid monthly growth rate of 40 percent in the past year alone.
PayWatch processes over RM5 million (US$1.2 million) in monthly transactions through its app in Malaysia. The solution has also demonstrated its effectiveness in improving retention rates for both small and medium-sized enterprises (SMEs) and MNCs, enabling businesses to save up to RM2.1 million (US$ 500 thousand) in annual rehiring fees.
PayWatch aims to expand its footprint across Asia, with a particular focus on countries with a significant underbanked population.
The company has recently partnered with bank KB Bukopin as it expands into the Indonesian market, making it Indonesia’s first bank-backed EWA service.
“By targeting countries like Indonesia, the Philippines, and Thailand, where there is a large young population, our company seeks to promote financial inclusion and educate individuals about responsible financial habits,” said Richard.
Additionally, the company plans to introduce longer-tenure products, such as loans with favourable interest rates, to cater to the evolving needs of its user base.
PayWatch strives to create a sustainable and impactful solution for addressing financial inequalities by partnering with major banks and financial institutions.
Contributing to United Nations Sustainable Development Goals
PayWatch’s mission and operations align closely with the United Nations Sustainable Development Goals (SDGs), particularly in eradicating poverty and promoting financial inclusion.
By providing affordable and accessible financial services, PayWatch aims to fight poverty and reduces economic inequality. Their commitment to empowering individuals with financial knowledge and enabling them to build better financial habits contributes to overall financial well-being and a brighter future for the communities they serve.
Earned Wage Access solutions such as PayWatch have emerged as a game-changer for individuals facing financial stress and limited access to traditional banking services.
By bridging the gap between paydays and offering a convenient, low-cost alternative to loans, PayWatch empowers employees and promotes financial inclusion.
As PayWatch continues its geographic expansion and works towards its vision of helping millions of individuals, its efforts demonstrate the transformative potential of technology in addressing financial inequalities and fostering economic growth.

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Lending
Malaysia

The Most Anticipated Fintech Events in Asia – Second Half of 2016

									by Fintech News Malaysia
July 18, 2016
3 comments

Fintech News will update you once again about the most anticipated Fintech events in Asia in the second half of 2016. These events vary from Fintech in general, Lending, Digital Finance, Customer Experience, Mobile Payments, or IOT,  which gather top industry leaders and experts to share experience, knowledge, case studies and network.
Check out the list below and find out the most anticipated Fintech events in Asia for the second half of 2016. And make sure you will not miss out the special offers for specific events, exclusive for Fintech News readers!

Lang Di Fintech Conference 2016
July 17-18, 2016, Shanghai

SPECIAL OFFER: Register now with code FNS16VIP to get 15% discount for event tickets!
Share best practices and learn about the latest trends in Internet finance at the premier conference for global fintech industry leaders in China. This is your chance to join global fintech industry leaders to share best practices and learn about the latest trends in Internet finance.
Conference Highlights:
-The largest conference featuring internet finance leaders from both China and the West
-2 action-packed days of learning, networking, and deal-making
-1,000+ decision makers including leading Chinese and international Internet finance executives, investors, banks, government regulators, and technology providers

Next Generation Lending Asia Summit
July 18 – 20, 2016, Singapore

SPECIAL OFFER: Register now with code 27190.001_FTN10 to get 10% discount for event tickets!
Top industry leaders from banks, FinTech, lender institutions, and mortgage aggregators across Asia will gather at the summit to share their best practices in case studies, panel, round-table discussions, and workshops so that you can quickly implement the best strategy for your organisation.

Techsauce Summit
July 23-24, 2016, Bangkok, Thailand

Top industry leaders from banks, FinTech, lender institutions, and mortgage aggregators across Asia will gather at the summit to share their best practices in case studies, panel, round-table discussions, and workshops so that you can quickly implement the best strategy for your organisation.

The Future of Digital Finance 2016
August 08, 2016, Kuala Lumpur, Malaysia

SPECIAL OFFER: Sign up now with code “FTNS16” to get 10% discount!
Top industry leaders from banks, FinTech, lender institutions, and mortgage aggregators across Asia will gather at the summit to share their best practices in case studies, panel, round-table discussions, and workshops so that you can quickly implement the best strategy for your organisation.

BankTech Asia Jakarta Series
August 24-25, 2016, Jakarta, Indonesia

SPECIAL OFFER: Register now with code FNS10 to get 10% discount for event tickets!
BankTech Asia – Jakarta 2016 is the leading banking technology conference to network with key industry influencers and decision makers, recognize leading-edge products and solutions, and discuss best practice strategies for applying innovation within your organization.

The IOT Show Asia 2016
September 1-2, 2016, Singapore

SPECIAL OFFER: Sign up now with code NYGK to get 10% discount!
The IoT Show Asia will address the new business possibilities from the Internet of Things and contextual technology. It will explore new business models, facilitate new collaborations and partnerships and generate new ideas and thinking. The IoT Show Asia is about getting the prototypes out of the lab and into the market and the exhibition will showcase some of the leading IoT innovations from established players and up-and- coming start-ups.
In 2016 the show will be run alongside The Commercial UAV Show Asia to form Asia’s largest Emerging Technology showcase.

The Commercial UAV Show Asia 2016
September 1-2, 2016, Singapore

SPECIAL OFFER: Register now with code “NYGK” to get 10% discount!
The Commercial UAV Show Asia will bring together commercial communities to learn and see how UAV’s can help them save money, time and lives. Whilst, the exhibition will showcase the vast capabilities and applications of UAV’s, from surveillance and monitoring to surveying and delivery.
This will include some of the world’s leading UAV manufacturers and their suppliers. In 2016 the show will be run alongside two complimentary events: The IoT Show Asia to form Asia’s largest Emerging Technology showcase.

4th Annual Customer Experience Management Summit 2016
September 6-7, 2016, Singapore

SPECIAL OFFER: Register now with code ISG_FTN to get 15% discount for event tickets!
In an increasingly transparent world where information flow is fast and limitless, it is extremely hard for organizations to withstand the onslaught of heightened expectations from an increasingly sophisticated, heterogeneous and demanding customer. Attend the 4th Annual Customer Experience Management Asia and find your next step in the customer centric journey.

Cards & Payments Asia Philippines 2016
September 6-7, 2016, Manila, The Philippines

Cards and Payments Asia is one of the region’s biggest events dedicated to payments innovation and technology. C-level executives and heads of cards, payments, retail banking, prepaid, security, marketing, loyalty, transit and IT will attend the conference. From major banks, government, telecoms, transport operators and retailers across Philippines and those looking to launch in this market.

Mondato Summit Asia
September 20-21, 2016, Bangkok, Thailand

SPECIAL OFFER: Register now with code FintechSN25 to get 25% discount for event tickets!
Mondato Summit Asia will explore the many issues surrounding the transition to the next generation of digital finance & commerce (DFC) services across Southeast Asia. The conference will touch upon the diverse use cases seen across the region – ranging from fundamental P2P transfers to savings, loans and credit to products that leverage social media, eCommerce and smartphone penetration. Thought leaders and industry innovators will come together to discuss key challenges and opportunities in the development, innovation, deployment, adoption, and regulation of digital financial services in the ASEAN region.

Research Innovation Asia
September 26-29, 2016, Singapore

SPECIAL OFFER: Register now with code ISG_FTN10 to get 10% discount for event tickets!
This year’s Research Innovation Asia Summit aims to enable businesses to capitalise on new industries and economic opportunities, and sharpen their competitive advantage through various innovation projects. This cross-industry conference is tailored to address concerns with research innovation, e.g. innovation centres, government grants, tax exemptions, knowledge transfer and etc.

InsurTech 2016
September 27-28, 2016, Singapore

SPECIAL OFFER: Sign up now with code “FNSG10” to get 10% discount!
InsurTech 2016 aims to be the knowledge-exchange platform to foster synergies among market players to find solutions to implement and promote best innovative insurance practices in a collaborative, open and transparent manner.
We are expecting participants from more than 40 countries in a close knitted gathering of various players from the insurance industry from across different stages of the business lifecycle.
We aim to establish a platform where the latest innovations and applications for the insurance industry will be showcased.
From keynote speeches to fireside chats, panels, showcasing, startup pitches and users cases from entrepreneurs and insurance professionals within the InsurTech ecosystem, join us in the inaugural global event focused on insurance & technology.
Global Payment Summit 2016
October 12-13, 2016, Singapore

SPECIAL OFFER: Register now with code FNSGPS20 to get 20% discount for event tickets!
The Global Payment Summit, organized by the Transactives will take place from 12th October to the 13th October 2016 at the Grand Copthorne Waterfront Hotel, Singapore in Singapore, Singapore. The conference will cover areas like Impact of mobile payments have on social networks and local marketing,linking payments to savings,credit and insurance and compliance and consumer protection.

Cards & Payments Indonesia 2016
October 12-13, 2016, Jakarta, Indonesia

Following Cards and Payments Asia’s Filipino edition, another conference will be held in Indonesia. The conference will tackle many issues, including: Payment disruption and innovation, Payments and the customer experience, Digital currencies and wallets, Improving customer experience with mobile wallet, Bitcoin and digital currencies, Opportunities in carrier billing for Indonesia, New opportunities created by data analytics, Financial inclusion in Indonesia, Impact of alternative currencies and payments, Cyber security threats to payments and banks

Finovate Asia 2016
November 08, Hong Kong

Special Offer: 20% Discount Code: “FintechNewsSingapore20“. Register NOW!
Finovate Asia will feature Finovate’s signature demo-only format (no slides or pre-recorded videos allowed!) with dozens of innovative companies presenting their best new financial and banking technology to the entire audience. We will feature a mixture of established industry leaders and brand-new startups, and each hand-picked company will receive just 7 minutes on stage to show you their latest innovations.
A networking session will follow the demos, giving you the chance to speak directly with the innovators you’ll see on stage (along with the rest of our awesome audience)

Digital Financial Services Indonesia 2016
November 08-09, Jakarta, Indonesia

SPECIAL OFFER: Register now with code FINTECH_10 to get 10% discount for event tickets!
Attract new customers and drive revenue by developing a comprehensive digital strategy
With the increase of smartphones and internet users, the opportunity to launch successful Digital Financial Services in Indonesia is growing fast. New tools for banking, mobile payments, personal wealth management, and more, have been rapidly sprouting up in Indonesia and the rest of Asia. Join us for a deeper look at these services in the region. What is making the biggest advances? Where are the setbacks? What can we expect next?
Join us is this exciting discussion – led by bank, fintech, insurance, telco leaders and pioneers across Asia to emphasize technological trends, industry demands, and best-practice strategies. This is your chance to ask your burning questions and learn more about Digital Financial Services. The market is evolving so be among the pioneers in the changing face of the industry.
Key Topics To Be Addressed in 2016 include:
-Digitising your financial products to get to the market more efficiently and reducing time in
transactions
-Leveraging innovative social media strategies to maximize customer acquisition, conversion, and retention
-Promising better rates to your customers with automated processes and seamless omni-channel integration that resonate with the sophisticated market demands
-Leveraging the risk management by ensuring data security of the whole end to end process
-Forecasting the latest trends to respond to the fast changing demands and be at the forefront of innovation

BankTech Asia – Regional Series Kuala Lumpur
November 08-09, 2016, Kuala Lumpur, Malaysia

SPECIAL OFFER: Register now with code FNS10 to get 10% discount for event tickets!
BankTech Asia will be returning to Kuala Lumpur in 2016 with the 8th annual banking technology conference & exhibition with specific focus on regional issues.

Digital Wealth Hong Kong
November 10, 2016, Hong Kong

Five months after Digital Wealth Asia’s Singapore edition, the conference will head to Hong Kong for another event that will discuss the implication of technology on Asian wealth management.

Singapore Fintech Festival
November 14-18, 2016, Singapore

SPECIAL OFFER: Register now with code FinTechNewsSG10 to get 10% discount for event tickets!
The inaugural Singapore FinTech Festival will bring together a series of distinct FinTech events back-to-back in the week of 14-18 November 2016. Look forward to our Hackcelerator Demo Day, Innovation Lab Crawl, FinTech Awards, FinTech Conference, Tech Risk Conference, RegTech Forum, and a grand closing party.

Digital Financial Services Hong Kong 2016
November 29-30, Hong Kong

SPECIAL OFFER: Register now with code FINTECH_10 to get 10% discount for event tickets!
Maximize revenue opportunities by aligning internal and external digitization strategies
Digital Financial Services Summit Hong Kong brings you industry’s best practices in digitization strategies for long term success. Financial service sectors in Hong Kong and across Asia are putting a lot of focus in the area of digitization in recent years as they realize it is the key differentiating factor to stand out from competition. Also, consumers are becoming more tech-savvy with rapid adoption of new services and processes and the only way to capture this new market shift is through a comprehensive digital strategy.
Join your peers in this event, learn from industry’s best leaders to stay ahead of the competition andembrace digitization inside-out!
Key Topics To Be Addressed in 2016 include:
-Redesigning your product development & delivery process to enhance user experience and engagement
-Strategizing internal processes & communication strategies to maximize efficiency and minimize costs
-Integrating risk & compliance management as part of the digitization strategy to reduce structural cost and operations risk
-Leveraging on FinTech and innovative business models to stay ahead of your competitors
-Recognizing the applications of artificial intelligence in driving digital strategies

Customer Experience Management Financial Services Hong Kong Summit 2016
November 29-30, Hong Kong

SPECIAL OFFER: Register now with code FINTECH_10 to get 10% discount for event tickets!
Delivering True Customer Centricity in the Digital Age
With rapid disruptive innovation of Fintech and stiff competition amongst the financial sector in Hong Kong and Greater China, customer experience is becoming increasingly important as part of a core business strategy for organizations to differentiate themselves from their competitors.
Customer Experience Management (CEM) Financial Services Hong Kong Summit features the best practices and actionable insights from leading banks and insurance companies on customer-centric strategies to drive customer loyalty. Join us in this event to network with your peers, meet and hear from industry experts and start your transformation towards customer-centricity!
Key Topics To Be Addressed in 2016 include:
-Striking a Balance between Customer Experience and Financial Compliance
-Leveraging on Customer Journey Mapping to Deliver Exceptional Customer Experience
-Elevating Customer Experience with Digitization and User Experience
-Providing Differentiated Platforms for Different Customer Segments to Drive Customer Experience
-Building an Integrated Omni-Channel Platforms for Exceptional Customer Experience
-Capturing Customer Insights with Big Data and Analytics to Enhance Customer Experience
-Transforming into a Service-Based Business Model to Instill Customer-Centricity

Recommended: “Upcoming Fintech and Digital Banking Events in (Southeast) Asia in 2016“

This article was first published on fintechnews.sg

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Insurtech

Petotum Partners Etiqa General Insurance to Offer Pet Insurance Products

									by Fintech News Malaysia
June 20, 2023
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Petotum, a digital pet ecosystem integrator, has partnered with Etiqa General Insurance in Malaysia to provide enhanced coverage and streamlined services for pet owners.
By leveraging on advanced technologies, data analytics and a customer-centric approach, Etiqa General Insurance and Petotum aims to offer comprehensive pet insurance products.
Petotum said that pet owners can look forward to a user-friendly online platform that simplifies policy management and other pet-related services for them and their pets.

Additionally, the collaboration will facilitate personalised pet health monitoring to ensure their well-being in the long run.
Afifah Basir
Afifah Basir, CEO of Petotum said,
“By integrating our ecosystem with Etiqa General Insurance ’s industry-leading insurance solutions, we can provide pet owners with an all inclusive ecosystem that encompasses insurance, healthcare and various pet-related services.

Together, we will revolutionise the perception and experience of insurance for the pet industry in Malaysia.”
Fukhairudin Mohd Yusof
Fukhairudin Mohd Yusof, CEO of Etiqa General Insurance said,
“By leveraging on our combined expertise, Etiqa General Insurance aims to offer comprehensive insurance products that protect what matters most to pet owners with seamless customer experience.

Through advanced technology and data-driven insights, we will develop insurance solutions that address the unique needs of the pet industries.”

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Digital Transformation
Regtech/Regulation
Sponsored

TOPPAN IDGATE Deploys Facial Recognition Tech on Kiosks for Digital Onboarding

									by Fintech News Malaysia
June 22, 2023
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It can be difficult for financial institutions to rely exclusively on physical branches for comprehensive service for certain markets, particularly those spanning large territories.
In such cases, Modular Service Kiosks are the perfect alternative, extending financial and payment services to remote areas for the widest customer base.
But these convenient machines’ advantages are not limited to coverage alone. One of the best avenues to improve overall customer experience is to avoid unnecessary frustration by cutting long waiting times.
Toppan Gravity’s Modular Service Kiosks is designed for this exact purpose, streamlining commonly time-consuming processes such as onboarding while packing all the necessary equipment for instant issuance inside a compact box.

Toppan Gravity is continuously seeking to enhance their Modular Service Kiosk with new options and useful features.
This is demonstrated in the recent integration of proprietary AI-powered face recognition technology iDenFace to assist with the digital onboarding procedure.
The technology was developed in-house by TOPPAN IDGATE, one of Toppan Gravity’s subsidiaries focusing on mobile authentication solutions.

The new addition targets the identity verification process. Once an ID document or passport has been scanned, the system will display an interface requiring users to take a selfie.
The solution will encrypt the information with Advanced Encryption Standard (AES) before transmitting it to the server.
iDenFace then performs selfie match with liveness detection against the photo from the ID document, completing the verification process.
By combining the Modular Service Kiosk with biometric face recognition, the machine offers convenience at no cost for security, with a wide range of functionalities contributing to its well-deserved moniker, your “Branch-in-a-Box”.
Toppan Gravity recently announced a partnership with Nouvobanq in the Seychelles to enable the bank to become one of the first to offer automated service kiosks in the country.
TOPPAN IDGATE will be participating in Seamless Asia (Booth No.25) from 27th June to 28th June in Sands Expo, Singapore.
Learn more about TOPPAN IDGATE here or TOPPAN Gravity here.

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E-Wallets
Payments

TNG Digital Ties up With Bank Rakyat to Enable In-App JomPAY Bill Payments

									by Fintech News Malaysia
June 21, 2023
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Touch ‘n Go eWallet has formed a strategic partnership with Bank Rakyat to enable in-app bill payments via JomPAY.
JomPAY is the nation’s bill payment service which is run and operated by Payments Network Malaysia (PayNet), the national retail digital payments infrastructure provider in this country. Bank Rakyat is a participant of JomPAY.
This partnership enables more than 20 million of Touch ‘n Go eWallet’s users to make bill payments to over 10,000 JomPAY billers.

Bank Rakyat said that it will continue to explore partnerships with key e-wallet players in the market to enhance its digital payment capabilities.
Dr. Mohammad Hanis Osman
Dr. Mohammad Hanis Osman, Chief Executive Officer of Bank Rakyat said,
“This tie-up marks the continuation of Bank Rakyat’s digital transformation journey and ambition to reach new customer segments using e-wallet platforms.

The expansion of Bank Rakyat’s JomPAY service on e-wallet platforms will not only create a new spectrum of the bank’s digital channels via third party service providers but will also expand the access to the bank’s products and services.”
Alan Ni
Alan Ni, Chief Executive Officer of TNG Digital said,
“We see this as an important collaboration that adds JomPAY’s network of over 10,000 billers to our existing bill payment partners.

As the first non-banking institution to enable JomPAY, our users now have a comprehensive billing solution for them to make payments securely on a single platform, thus making Touch ‘n Go eWallet the most convenient way to manage monthly expenses.”

Featured image: Alan Ni, CEO of TNG Digital, Dr. Mohammad Hanis Osman, CEO of Bank Rakyat and Gary Yeoh, Chief Commercial Officer of PayNet at the press conference for the official launch of JOMPAY in Touch ‘n Go eWallet.

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