Payments
Regtech/Regulation
Sponsored

Is Your Organization Leveraging the Full Potential of ISO 20022?

									by Fintech News Malaysia
June 21, 2023
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The advent of ISO 20022 signifies a monumental shift in the financial world, a transition that promises unprecedented transparency, efficiency, and improved risk management.
This financial standard elevates transaction data richness to a new level by offering up to ten times more data elements per transaction.
Its global adoption across the banking industry, regulators, and other financial players significantly transforms the once fragmented landscape into a unified field of standardized transactions.
ISO 20022 comes with the potential of yielding higher quality data and thereby enhancing reconciliation rates. It could enable real-time and frictionless payments. Moreover, this new standard compels banking giants to rethink and innovate their offerings in the face of emerging financial tech solutions.
Government intervention and regulatory momentum
The significance of ISO 20022 extends beyond its technical sophistication. It has garnered political backing, with the G20 pushing to harmonize global payments using this standard.
This governmental pressure dovetails with the regulatory requirements and transactional necessities to drive the transition to ISO 20022.
Several institutions, including Geld Service Austria, Bank of England, and ESMA, have already chosen to utilize ISO 20022 for regulatory reporting purposes, further emphasizing its importance.
From a regulatory standpoint, the ISO 20022 standard is a transformative development. It establishes a universal set of data elements and identifiers, such as Critical Data Elements (CDEs) and Unique Product Identifier (UPI), simplifying regulatory reporting processes and ensuring compliance.
The challenge of transition
Despite the promises of ISO 20022, transitioning to this new standard is not without its challenges. The chief concern is the diversity in messages. ISO 20022 provides a format for financial messaging but not a definitive syntax.
Christophe Vastesaeger, Senior Solutions Architect of SmartStream
“This flexibility, while allowing customization, leads to different interpretations and, thus, differing implementations. The potential for proprietary message formats can inadvertently create dependencies and additional costs,”
said Christophe Vastesaeger, Senior Solutions Architect of SmartStream.
Another major hurdle is the underestimation of the magnitude of the task. The switch to ISO 20022 often necessitates changes in core banking systems, payment gateways, and portfolio management systems, with complexities resulting in unexpected delays. Hence, banks must plan well and anticipate possible roadblocks in this transition.
“One potential pitfall of the transition to ISO 20022 is the underutilization of the wealth of data it offers. Without appropriate changes to underlying systems, banks may end up using the new standard with a significantly reduced data set, thereby failing to leverage the full potential of the standard,”
added Christophe.
Therefore, timely adoption and full utilization are critical to achieving the true value that ISO 20022 offers.
Shaping the future financial landscape with ISO 20022
In today’s fast-paced world, efficient data exchange is crucial for the smooth functioning of various systems, particularly in industries such as banking, where secure and prompt transactions are paramount.
End-users now have high expectations for immediate responses and actions from their applications and services, and this expectation has greatly influenced their demands from banking applications.
For instance, banks face competition from highly efficient trading platforms offering nearly instantaneous services. As competition intensifies, traditional institutions are pressured to elevate their performance and provide a comparable, if not superior, user experience.
Roland Brandli, Strategic Product Manager of SmartStream
“Banks are urged to undergo a transition to meet the growing demand for real-time responses. This transition encompasses enhancing the business-to-consumer (B2C) aspect, typically associated with digital transformation, and improving business-to-business (B2B) and bank-to-bank operations,”
said Roland Brandli, Strategic Product Manager of SmartStream.
ISO 20022 plays a significant role in this transformation by providing a standardized framework that is increasingly vital in facilitating seamless communication among different financial systems.
The API integration facilitated by ISO 20022 is essential for establishing a coherent view of payment channels, a necessity in today’s complex and interconnected financial landscape.
Roland highlighted that while API integration is valuable, it is not a one-size-fits-all solution. Like any technology, it comes with challenges and risks. Implementing API integration requires a deep understanding of the data being utilized, the security requirements of the systems involved, and the technical aspects of cloud operations.
Given the complexity involved, the future will likely see a shift toward platforms that offer scalability and versatility in managing large volumes of transactions.
Leveraging artificial intelligence for increased efficiency
Artificial intelligence (AI) is another aspect worth considering. While AI sounds appealing, it is crucial to understand its business value. AI solutions are valuable when they solve specific business problems, and their value proposition is verified.
AI’s strength lies in its ability to deal with large datasets. When it comes to ISO 20022, with hundreds of data fields, AI is a potent tool for data analysis.
“These processes often present challenges, but AI can effectively address them. For example, AI can reduce the time and complexity associated with data loading, which is usually costly. By utilizing AI, onboarding new data can be streamlined, resulting in cost savings,”
said Roland.
Similarly, in data matching, AI can handle large datasets with numerous fields, an area where human capacity is limited. AI can find relationships across different data formats, significantly reducing the time taken to identify connections.
“Finally, AI’s supervised learning capabilities can significantly improve operational efficiencies. AI can reduce dependency on specific rulesets by learning from users’ individual data sets,”
added Roland.
This capability also helps create a resilient and sustainable operating model, making AI a potent tool in the financial industry’s future.
As with any task, slowing down efficiency or accuracy can lead to problems. Supervised learning functions embedded in AI software allow it to learn highly intuitively, informed by user behavior.
The benefit of this approach is that over time, a more resilient operating law is created, one that is less susceptible to change and delivers consistent results. This resilience is crucial when team members fall ill or need extended leave, as it ensures that operations continue smoothly, minimizing any potential negative impact.
Despite the efficiency of AI, human ingenuity, comprehension, and abstract thinking are irreplaceable. They will remain vital components of the operation, creating value.
The system safeguards against fluctuations caused by personnel changes or unanticipated leaves, ensuring minimal deviation from the expected operations. It helps create a sustainable operating model, critical to stakeholders and financial leaders who must look beyond the present day and plan for the future.
Leveraging the right technology for ISO20022 integration
In some financial industries, where legacy systems are still prevalent, choosing the right technology to enable these instant capabilities is crucial.
SmartStream ‘s solution offers the scalability and transaction handling capabilities needed to support the breadth and depth of financial transactions.
It can bring together disparate systems, consolidate data, and provide a coherent view of payment channels, enhancing the end-user experience.
The solution natively supports ISO 20022 and provides the necessary tools to integrate and normalize players’ various slightly different ISO formats. This investment in data normalization allows for improved data comprehension and facilitates seamless data exchange across various product suites.
One of the significant advantages is its ability to work seamlessly with different types of data and its flexibility to adapt to various operational environments. It can be used across multiple financial sectors, to handle complex and diverse data reconciliation needs.
The platform’s key strength lies in its ability to deal with high volumes of transactional data, allowing financial institutions to reconcile transaction and reference data, cash, securities, derivatives, and more. It helps organizations quickly identify and manage exceptions, reducing operational risk and increasing efficiency.
In real-time event streaming and API integration, it can enable smooth data exchange, improve transaction speeds, and ensure data accuracy, contributing to better financial management and customer service.
By leveraging such technology, financial institutions can keep pace with their clients’ increasingly digital, instant expectations while ensuring robust, secure, and compliant operations.
A key focus of SmartStream is maintaining and enhancing value operational excellence. It achieves this by reducing deviations and ensuring continuity in facing challenges. As a result, a business using the software can maintain a focus on tomorrow’s strategic needs rather than today’s operational problems.
For more information about SmartStream, click here.

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E-Wallets
WealthTech

Touch ‘n Go Users Can Now Invest in Eight New Funds From RM10

									by Fintech News Malaysia
June 22, 2023
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TNG Digital has partnered with Principal Asset Management to roll out eight new unit trust funds via GOinvest, a digital investment platform on Touch ‘n Go eWallet.
Launched in August 2022, GOinvest’s first product offering was the Principal Islamic Money Market Fund.
Touch ‘n Go eWallet users can start investing in the unit trust funds from as low as RM10 with no lock-in period or capped amount.

Users can set up a regular savings plan via the auto cash-in function to invest a fixed amount every month to average down the risk for stable returns.
The eight unit trust funds are a mix of conventional and Shariah-compliant funds, based on a mid to longer-term investment period with historical returns of up to 12.35% per annum.
The funds are; Principal Islamic Global Selection Moderate Conservative Fund (conservative), Principal Islamic Lifetime Enhanced Sukuk Fund (moderate), Principal Islamic Global Selection Moderate Fund (moderate), Principal Asia Pacific Dynamic Mixed Asset Fund (aggressive), Principal Islamic Global Selection Aggressive Fund (aggressive), Principal Asia Pacific Dynamic Income Fund (aggressive), Principal Global Titans Fund (aggressive), and Principal DALI Global Equity Fund (aggressive).
Alan Ni
Alan Ni, Chief Executive Officer of TNG Digital said,
“We are pleased to partner with Principal Malaysia, one of our trusted and long-time partners, to provide eight more product options to our users.

We will continue to work with Principal Malaysia to introduce more inclusive investment products that can inculcate good savings and investing habits for all Malaysians.”
Munirah Khairuddin
Munirah Khairuddin, CEO and Country Head of Principal Malaysia as well as Head of Group Islamic business said,
“Through our partnership with TNG Digital, we have curated eight additional Principal funds that allow users access to international and local investment opportunities.

With this, Touch ‘n Go eWallet users are now able to build an optimal investment portfolio tailored to their risk appetites via a mature eWallet ecosystem.”

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Lending

Hong Leong Offers Salary Advances With Paywatch’s Earned Wage Access Solution

									by Fintech News Malaysia
June 28, 2023
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Hong Leong Bank (HLB) has tied up with earned wage access (EWA) service provider Paywatch Malaysia to launch the HLB Salary Advance Employer Solution. HLB claims to be the first bank in Southeast Asia to back an EWA solution.
The HLB Salary Advance Employer Solution enables employees to withdraw up to 25% of their monthly earned salaries, whenever the need arises.
There are no interest or late charges, except for a nominal service fee of RM 2 per withdrawal.

To access the HLB Salary Advance Employer Solution, employees from participating organisations can create an account on the Paywatch app.
Once approved, salary advance requests will be credited to the user’s bank account within one business day. On payday, the advanced amount withdrawn will be automatically deducted from the employee’s salary.
On the employers’ end, the bank said that there is no cash flow impact and no deposit or integration with any company software required.
Andrew Jong
Andrew Jong, the Managing Director of Personal Financial Services at HLB said,
“The rising costs of living and inflation increase the financial pressure on particularly the lower- to middle-income earners and households. In such circumstances, the payroll timings and conventional salary advance methods may not be able to provide timely assistance to meet cashflows and unexpected demands. This may leave individuals vulnerable to unsustainable borrowing practices.

By offering real-time access to their own earned wages, the HLB Salary Advance Employer Solution can help employees to tap into their earned but yet-to-be-paid wages and improve their control over their own finances, overcome short-term financial challenges, and improve their overall financial well-being.”
Richard Kim
Richard Kim, Founder and CEO of Paywatch said,
“We partner with leading banks across different regions, including Hana Bank in South Korea, to ensure fair pricing, consumer protection, and greater financial access to all.

With HLB’s backing, our solution would more efficiently support employees’ financial security and resilience while providing companies with opportunities to offer enhanced benefits, thereby improving employee motivation and overall productivity.”

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E-Wallets
Payments

Touch ‘n Go eWallet Users Can Now Pay for Street Parking in All KL, Selangor Areas

									by Fintech News Malaysia
July 4, 2023
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Touch ‘n Go eWallet now offers complete payment coverage for on-street parking in both Kuala Lumpur and Selangor areas.
The newly enabled councils are the Majlis Perbandaran Klang, Majlis Bandaraya Seremban – Nilai, and Majlis Perbandaran Ampang Jaya.
To make the payment, users can tap on the Parking icon under “Services” on the Touch ‘n Go eWallet home screen.

They will need to select “Pay For Parking Now” to choose the location and add their vehicle details before proceeding to make the necessary payment.
Users are now able to pay at more areas under the 19 enabled councils, covering areas including Kuala Lumpur, Selangor, Negeri Sembilan, Kelantan, Terengganu, Perak, Wilayah Persekutuan Putrajaya.
Alan Ni
Alan Ni, Chief Executive Officer of TNG Digital said,
“Touch ‘n Go eWallet is the first eWallet in Malaysia to offer complete coverage for on-street parking in both Kuala Lumpur and Selangor. With this, we are addressing pain points experienced by our users, especially with the removals of parking machines.

With more than 300,000 users paying their parking fee with Touch ‘n Go eWallet daily, this expansion will bring good news to more users and our aim is to provide nationwide on-street parking coverage.”

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Crowdfunding
Funding

pitchIN Ties up With MRANTI for 3-Day Accelerator Programme

									by Fintech News Malaysia
July 5, 2023
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Equity crowdfunding platform (ECF) pitchIN has tied up with Malaysian Research Accelerator for Technology & Innovation (MRANTI) for its 3-day Fundraising Accelerator (FA) programme that will take place on 24 to 26 July 2023.
This specialised programme equips founders with the necessary techniques and knowledge to effectively raise capital for their businesses, providing in-depth learning on the intricacies of fundraising.

This year, the target is set to boost 15 tech startups from MRANTI in raising funds from investors in exchange for a stake in the businesses.
Through this accelerator, pitchIN will provide access to its extensive network of legal, marketing, and financial experts.
These startups will also be granted access to a diverse range of investors, including those from ASEAN countries through pitchIN’s ECF platform.
Furthermore, MRANTI’s collaboration with pitchIN will foster collaboration between the private, public, government, and civil society sectors.
Since its launch in November 2021, pitchIN has completed six cohorts of the FA culminating in successful fundraising efforts of 163 companies, collectively raising RM297 million since 2016.
The programme has now been extended to three different cities, namely Kuala Lumpur, Penang, and Kuching in Sarawak.
Applications for the Funding Accelerator Programme are now open until 17 July here.
Sam Shafie
Sam Shafie, CEO of pitchIN said,
“Our experience running the pitchIN equity crowdfunding platform has shown that most startups will benefit from learning about key areas covered in our programme such as company valuation, legal, due diligence, deal structuring, and funds sources.

In addition to that, all our FA cohorts participants receive specialised fundraising advice as well as preferential access to our equity crowdfunding expertise.”

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Insurtech

Tune Protect Partners Baoviet to Offer Travel Insurance for Vietjet Air’s Flyers

									by Fintech News Malaysia
July 6, 2023
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Tune Protect Group’s reinsurance subsidiary has rolled out its travel insurance offering on Vietjet Air’s website in partnership with Baoviet Insurance. The sale went live on 5 July 2023.
Vietjet Air is Vietnam’s largest private carrier and is the group’s seventh airline partner so far. Other airlines include AirAsia, AirAsia X, Bamboo Airways, SalamAir, AirArabia and FlyArna.
The travel insurance will offer a range of benefits including medical, personal accident and travel inconveniences which can be selected when booking a flight on Vietjetair.com.

Baoviet is the primary underwriter for all the travel policies sold by Vietjet Air, after which part of the insurance premium is ceded to Tune Protect Re.
The technology powering the travel insurance offering is by White Label, the group’s insurtech arm.
Rohit Nambiar
“We are excited to partner with Baoviet Insurance and Vietjet Air as we are completely aligned strategically in offering affordable travel and travel insurance to meet travellers’ demands while contributing to boosting the regional travel and tourism economy.

We have been chosen due to our key strength in travel technology and capabilities, as well as our extensive experience in partnering with six other airline partners across ASEAN and the Middle East,”
said Rohit Nambiar, Tune Protect Group’s Chief Executive Officer.

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Insurtech

Carsome Offers Personal Accident Coverage up to RM10K with PolicyStreet

									by Fintech News Malaysia
July 10, 2023
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Used car trading platform CARSOME has tied up with Malaysian insurtech company PolicyStreet to roll out the CARSOME Care+ coverage.
The complimentary coverage is valid for a year and is embedded into every purchase of a CARSOME Certified car, available to Malaysians who apply for car loans from CARSOME Capital without any additional cost.
CARSOME Care+ includes personal accident coverage of up to RM10,000 in the event of accidental death or permanent disablement.

The new offering also includes loan protection add-on in the event of unemployment. CARSOME Care+ covers car loan payments of up to RM1,000 per month for a maximum of six months.
The coverage also includes weekly hospitalisation benefits, smart key protection in the event of theft or accidental damage, theft of personal belongings kept inside the car, and travel allowance for the transportation of the policyholder’s children to school and tuition classes.
Policyholders who want to claim the CARSOME Care+ coverage can email their bank statement and Employment Insurance System (EIS) documentation to PolicyStreet.
Yen Ming Lee
Yen Ming Lee , Co-founder and Chief Executive Officer of PolicyStreet said,
“While car insurance is mandatory for road-legal vehicles, there are no regulations to ensure that the drivers themselves are protected while on the road.

Regardless of the circumstance, we believe that insurance is a peace of mind that every Malaysian should be able to enjoy. Through our partnership with CARSOME, we hope to narrow the protection gap and protect underinsured Malaysian drivers.”
Eric Cheng
Eric Cheng, Co-founder and Group CEO of CARSOME said,
“We understand the worries and uncertainties that come with car ownership, and that’s precisely why we’ve partnered with PolicyStreet to provide this added layer of protection.

CARSOME Care+, combined with our existing quality guarantee through CARSOME Certified, ensures that you can enjoy a worry-free and hassle-free car buying experience.”

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Digital Transformation

Hong Leong’s Ongoing Digital Push Results in Strong Growth

									by Fintech News Malaysia
July 10, 2023
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Hong Leong Bank (HLB) reaffirms its commitment to provide its customers with digital services and experiences through its annual HLB Connect Day throughout the whole month of July.
The HLB Connect Day 2023 rewards the bank’s customers for embracing the digital banking lifestyle with special offers including over RM1 million in cashback, rewards, and exclusive rates.
Customers who sign up for the HLB Wallet, the bank’s newly launched multi-currency e-wallet, will have a chance to win more than RM500,000 in cashback.

Additionally, eligible transactions conducted through the HLB Connect app qualify for over RM300,000 in cashback.
As of May 2023, the HLB Connect App has seen a 22% year-on-year (YoY) growth in user base, whereby the volume and value of financial transactions conducted through the app increased by 26% and 39% respectively.
The bank was also able to grow its 3-in-1 Junior Account users by a 127.6% YoY. The account comes with a savings account, fixed deposit and debit card facilities, as well as the HLB Pocket Connect app.
The app is a hyper-personalised, interactive digital banking app designed for young savers which integrates money management, financial literacy, and environmental awareness into an accessible, lifestyle-based ecosystem.
HLB is also encouraging its customers to provide feedback and suggestions on new features for the HLB Connect app through its “Designed By You” platform.
Kevin Lam
Kevin Lam, Group Managing Director and CEO of HLB said,
“Expanding our customer base and usage on our digital banking platforms goes beyond building a sophisticated banking app.

It starts with having a deep understanding of our customers and the communities we serve, by listening to them and being on the ground to observe how they interact with banking and digital tools.”
Andrew Jong
Andrew Jong, the Managing Director of Personal Financial Services of HLB shared the immense value of having the bank on the ground to assist customers and communities, especially in underserved areas to adopt digital banking.
“During the implementation of our initiative to transform Sekinchan into a Cashless Kampung, we noticed that while the microbusiness (MSME) community understood the importance of having cashless payment options, they were concerned over their ability to handle the necessary digital tools.

To help them transition with ease, we deployed our team to engage and listen to their challenges and help them use our cashless payment solutions with confidence.”

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Payments

Curlec by Razorpay Transitions to Full-Stack Payment Gateway

									by Fintech News Malaysia
July 13, 2023
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Malaysian payments firm Curlec by Razorpay has transitioned from a dedicated recurring payments solution to a full stack payment gateway for businesses of all sizes.
Indian payment gateway provider Razorpay had acquired a majority stake in the local fintech in February 2022 for an undisclosed sum. Razorpay said that the valuation of Curlec was roughly around US$ 20 million at that time.
The transition aims to provide businesses with a payment gateway that streamlines their payment processing and automates payouts.

By harnessing the Razorpay technology that powers 10 million businesses in India, the all-new Curlec Payment Gateway looks to serve more than 5,000 businesses with a target of RM10 billion in annualised Gross Transaction Value (GTV) by 2025.
Curlec already has more than 700 clients including Tune Protect, CTOS, Courts, Mary Kay, and The National Kidney Foundation.
Shashank Kumar
Shashank Kumar, Managing Director & Co-Founder, Razorpay said,
“When we joined forces with Curlec a year ago, our vision was to build products that cater to the needs of Southeast Asian users. The unveiling of the new Curlec Payment Gateway today is a first step in that direction.

We believe the new payment gateway will revolutionise how Malaysian businesses and end-consumers transact and engage with each other.”
Zac Liew
Zac Liew, Co-founder and CEO of Curlec by Razorpay said,
“With the launch of the Curlec Payment Gateway, we are now a full-stack payment solutions provider, having combined the expertise of both Curlec and Razorpay India.

We hope to build on our recent significant traction, notably in insurance, lending, and savings, where we tracked a 110% increase in transaction volumes. With Curlec providing an unrivalled payment experience for our customers, we are targeting 10X growth by 2025.”

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Lending

CapBay Surpasses RM1 Billion in P2P Financing

									by Fintech News Malaysia
July 17, 2023
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CapBay, a Malaysian multi-bank supply chain finance and peer-to-peer financing (P2P) platform, announced that it has disbursed over RM1 billion in P2P funding to more than 400 underserved SMEs in Malaysia.
The firm attributed its P2P’s success to its advanced technology and proprietary credit model, which leverages Artificial Intelligence (AI) to assess an SME’s repayment ability based on a comprehensive range of traditional and non-traditional data points. CapBay said that it has a default rate of less than 0.1%.
Moreover, CapBay’s has developed an Auto Invest feature that automatically diversifies investors’ portfolios, enhancing the safety of P2P investments and ensuring healthy returns.

CapBay was also one of the key P2P platforms that helped to drive the Malaysia Co-Investment Fund (MyCIF) programme, which has collectively co-invested over RM540 million, benefiting at least 3,500 MSMEs.
The government had allocated RM40 million to the MyCIF as part of Budget 2023, recognising the significance of alternative financing in the Malaysian economy.
CapBay Group, which includes its multi-bank SCF platform and Islamic factoring house, has provided a total of over RM2.5 billion in financing, helping over 1,600 businesses through its alternative financing solutions.
Ang Xin Xiang
Ang Xing Xian, CapBay’s Co-founder and CEO said,
“Our remarkable growth in recent years has positioned CapBay P2P as a leader in the Malaysian P2P space.

Together with our talented team and unwavering investor support, we will continue pushing boundaries, unlocking new opportunities, and scaling greater heights.”
CapBay’s Chairman Dato’ Sri Mohd Mokhtar Mohd Shariff said,
Dato’ Sri Mohd Mokhtar Bin Haji Mohd Shariff
“Leveraging on our tech expertise, we have empowered businesses to overcome financing challenges and expand in a post-pandemic world.

Over 70% of our financing contributes to the achievement of the United Nation Sustainable Development Goals. We are not only driving positive change but also shaping a brighter future for all stakeholders involved.”

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Payments

Touch ‘n Go eWallet Users Can Now Send Remittance to 10 Countries

									by Fintech News Malaysia
July 17, 2023
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TNG Digital has launched its digital remittance services, GOremit in the Touch ‘n Go eWallet so its users can send money securely to ten countries.
The countries are Indonesia, the Philippines, Singapore, Thailand, Vietnam, Bangladesh, India, Nepal, Pakistan, and Sri Lanka.
Senders are required to complete their verification via e-KYC to use GOremit services and can choose to transfer to the recipient’s bank account, local e-wallet or to cash pick-up points.

As of now, there are three supporting e-wallets which include bKash in Bangladesh as well as GCash and PayMaya in Philippines.
According to TNG Digital, recipients will receive their funds within 15 minutes depending on their method of collection.
Push notifications will be sent to users on progress of their money transfer, and they can view the status of any ongoing remittance in the Touch ‘n Go eWallet. There is also an option to obtain a transaction receipt and for it to be sent to the registered email on the e-wallet.
In addition to sending money internationally through GOremit, users can also receive funds from overseas in their e-wallet real-time from Wise and Panda Remit.
The company is planning to expand this service to more overseas partners in the near future.
Alan Ni
Alan Ni, Chief Executive Officer of TNG Digital said,
“With GOremit in the Touch ‘n Go eWallet, users and merchants can remit money to 10 countries from a convenient and safe platform. We are providing an inclusive solution with competitive exchange rates that meet the needs of millions of foreign workers that are here in Malaysia. Users who have the need to transfer money conveniently to their children studying abroad or transfer on behalf of their domestic helpers can do so via GOremit.”

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Regtech/Regulation
Security
Sponsored

Dynamic Data Streamlines Customer Experience, Fights Fraud in Digital Banking

									by Fintech News Malaysia
July 18, 2023
0 comments

As the digital economy continues to surge and expand, consumer expectations for fast, secure access to products and services seem never-ending.
Furthermore, when it comes to financial services, there is an entire generation of consumers cropping up who have barely stepped foot inside a brick-and-mortar bank.
In fact, in its Online Banking Market Outlook, Allied Market Research expects the online banking market to grow from US$11.43 billion in 2019 to US$31.81 billion by 2027, representing a compound annual growth rate (CAGR) of 13.6%.

To stay competitive in this explosive market, banks must not only meet the ever-growing demand for a seamless user experience at both onboarding and transaction, but they must also ensure their platforms are safe and trustworthy.
To meet both demands, banks must have an effective fraud management strategy in place, backed by a fraud management platform capable of streamlining and automating the account opening and transacting process.
Identity verification is key

A key component of truly effective fraud management in digital banking is customer identity verification.
Specifically, the right solution will answer the two very important questions of whether the transaction requestor is a real person and whether they are who they claim to be.
In order to answer these questions, it is important that banks have the tools and technology required to uncover the person behind the request by linking their digital identity back to them.
Assessing fraud risk and streamlining processes with dynamic data

According to Ekata, a Mastercard company providing digital identity verification solutions for businesses worldwide, nothing is more fundamental to an organisation in this digital economy than its data.
Specifically, how it is used to improve business; in this instance, how the right complementary data adds context and drives differentiation by enabling banks to create stronger machine learning models for the purpose of identity verification and fraud prevention.
In the recent e-book “Achieving effective fraud management in digital banking“, Ekata details the workflow of a best-in-class identity verification solution that examine data using two key analytic methods to make a probabilistic assessment of fraud risk.
For example, to appropriately validate an identity and assess fraud risk, the solution needs to be able to examine how the dynamic identity data elements of email, address, phone number and IP address are linked to an identity – and for how long.
Specifically, the right identity verification solution– fueled by unique, global, third-party data sets – should be able to accurately answer the questions of whether an email belongs to the customer and when it was first seen in a digital interaction.
In turn, the solution should present a risk score determined via the answers to the above questions. Following this, the bank can then confidently make an informed decision regarding the appropriate workflow of each application or transaction.
For example, should the data determine an identity has a high-risk score, extra friction, including manual review is necessary. Meanwhile, a low-risk score means this consumer can enjoy a streamlined, friction-free onboarding or transaction.
To learn more about how the Ekata Identity Engine is helping banks worldwide scale up their online offerings to meet the demands of the digital banking market while ensuring a frictionless yet secure customer experience, read their latest report.

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Crowdfunding
Malaysia

EthisKapital.com – World’s First Licensed Islamic P2P/Crowdfunding Platform

									by Fintech News Malaysia
November 4, 2016
3 comments

Securities Commission Malaysia has awarded 6 P2P licenses, one of which is the world’s first license for Shari’ah-compliant P2P. This license was awarded to EthisKapital.com, which will be focused on funding small businesses, and real estate development projects.
The team is spearheaded by Umar Munshi, a technology entrepreneur, supported by former senior World Bank and Barclays Bank executives.
Islamic Crowdfunding has been a hot topic in the Islamic Finance world – a recent point of focus among industry leaders and academics over the past year. Crowdfunding is estimated to reach a funding volume of USD100billion this year, and is very quickly becoming a global force for change.

However, Islamic Crowdfunding is in its early days. Islamic Finance continues to grow strongly globally, and Islamic Crowdfunding is expected to play a pivotal role, especially in bringing about greater financial inclusivity.

EthisKapital.com is an innovative P2P platform to facilitate the circulation of wealth and uplift communities based on economic fairness and justice. It provides crowd-sourced Islamic finance solutions to Malaysian businesses, bringing Malaysia to the forefront of the sharing economy.
EthisKapital.com cultivates direct connections between investors and businesses across the region, in doing so supporting a vibrant ASEAN Economic Community (AEC).
Building on Malaysia’s strength as a global Islamic Finance hub, Ethis aim to lead the growth of Islamic Crowdfunding by focusing on the fundamentals – to provide high quality projects that are both commercially viable and enhance social development for our crowd of Ethical and Islamic investors.

Umar Munshi, the CEO of Ethis Kapital Sdn Bhd said, “We believe that there is a huge need for Islamic Crowdfunding in Malaysia and the region. With greater awareness, we are confident that Islamic Crowdfunding will grow rapidly, and impact all levels of society.”
Munshi was recently featured in the second edition of the Islamica500 list of Islamic Economy movers in Dubai next week. He is also the Chairman of the newly-formed Islamic Fintech Alliance.
Chairman of Ethis Kapital, Dr Shahridan Faiez, said, “Malaysia is well-placed to lead Islamic Crowdfunding globally. We have a twin focus to support and develop the Islamic Sharing Economy in Malaysia, and also grow Ethis Kapital into a serious global player.”
Minister Datuk Haji Johari Abdul Ghani and Dr Shahridan Faiez sharing a light moment on stage after awarding the license to EthisKapital.com
This article was first published on fintechnews.sg

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Lending
Malaysia

Malaysia: 6 Licences for Peer-to-Peer Financing Operators

									by Fintech News Malaysia
November 7, 2016
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Securities Commission Malaysia (SC) introduced six registered Peer-to-Peer (P2P) financing platform operators in Malaysia to widen funding avenues for small and medium enterprises (SMEs).
The six registered operators are B2B FinPAL, Ethis Kapital, FundedByMe Malaysia, ManagePay Services, Modalku Ventures and Peoplender. They are expected to be fully operational in 2017. This makes Malaysia the first country in the ASEAN region to regulate P2P financing.
Securities Commission Malaysia
SC was also the first to put in place a regulated framework for equity crowdfunding (ECF) in 2015. As of October 2016, 11 Malaysian SMEs have raised a total of RM8 million via the six ECF platforms. SC introduced ECF in 2015 to provide early-stage financing for start-up entrepreneurs while the P2P financing framework, introduced in April this year, aims to address funding needs of SMEs to raise working capital or capital for growth.

At its annual event “SCxSC Digital Finance Conference 2016”, Tan Sri Dato’ Seri Ranjit Ajit Singh, Chairman of SC, highlighted SC’s digital agenda in his opening address.
“SC’s digital agenda aims to achieve four key objectives, namely to enhance access to financing, increase investor participation, augment the institutional market and develop a synergistic ecosystem. Market based financing including P2P and ECF will help enhance access to financing for entrepreneurs and SME businesses in Malaysia,” said Ranjit.

From Pixabay
To meet the investment needs of the emerging digital generation and increase investor participation, SC will also be introducing its Digital Investment Services framework in 2017. This will allow approved licensees to offer automated discretionary portfolio management which is a more cost-effective, accessible and convenient channel for investors to manage and grow their wealth.

While the SC is advocating the benefits of digital finance, the regulator is also mindful of the new forms of risks and challenges posed by technology. To address that, the SC has issued a cyber risk framework to raise wider awareness and put in place guidelines to improve industry-wide resilience.

This article was first published on fintechnews.sg

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Insurtech
Malaysia

Malaysian Startup Wants to Improve Road Safety

									by Fintech News Malaysia
December 12, 2016
0 comments

“I always been passionate of improving road safety and we were thrust into action by the tragic death of a schoolmate earlier this year. My friend and his brother were killed in a road accident, and I still remember how inconsolable the mother was when burying her two sons. Malaysia has an average of more than 6,800 deaths caused by road accidents from 455,000 accidents each year – statistics by Malaysian Institute of Road Safety Research (MIROS).” said Koh Mui Han, CEO of DraVA
“Shanmuga Pillaiyan (DraVA CTO) and I came together to develop an app to provide insights to drivers on their own driving behavior. This was based on our belief that people can’t improve if they don’t know what they are doing wrong. In the corporate world, we always have this saying, “you can only control what you measure”.

Koh Mui Han, CEO of DraVA and Shanmuga Pillaiyan, CTO of DraVA

DraVA app will be able to detect and record dangerous driving behaviors such as exceeding speed limits, hard breaking, abrupt swerving and etc. The system also analyses driving habits such as usual routes taken and driving time to assess risky driving habits. All these data are then consolidated into the DraVA Safety Score, which indicates how safe a person drives.
DRaVA’s key technology lies in the proprietary machine learning algorithms developed to accurately detect drivers’ behavior. The robustness of this technology allows DraVA to be fully app based as compared to other competitors who rely on hardware devices. Special attention was also given to the user interface design to make it as user friendly as possible.

A primary target market for DraVA would be parents with teenage drivers. The app has a mentor-mentee function where by parents can monitor the driving habits of their teenage drivers. With factual data, parents can coach their children to become safer drivers early on, so that safe driving habits are inculcated.
In September 2016, DraVa participated in the Malaysian Digital Economy Corporation (MDEC) Fintech Bootcamp that was jointly organized by i-Train (M) Sdn. Bhd. They are amongst the 20 finalists selected to showcase our startups at the upcoming Fintech Bootcamp Demo Day on 15th December 2016. The Fintech Bootcamp presented DraVA with great networking opportunities with other budding fintech startups in Malaysia and industry experts from the region.

The next step for DraVA is to launch our first release on Google Play Store in January 2017. This will be followed by our nationwide road safety awareness campaigns. We are currently seeking corporate partners that would like to champion road safety as part of their Corporate Social Responsibility (CSR) program.
DraVA plans to market customized motor insurance policies by mid 2017, so that they can incentivize their users for their safe driving behaviours. They are also seeking partnership with Malaysian insurance companies to develop custom auto insurance policies utilizing the DraVA Safety Score.
“DraVA’s vision is to improve road safety by leveraging cutting edge technology and rewarding safe drivers with lower automobile insurance premiums. Safer drivers should pay less for insurance premiums!”

This article was first published on fintechnews.sg, Featured Image via pixabay

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Insurtech
Malaysia

Asia’s Own Lemonade:  Neosurance & KLCC Runners Group Partner To Offer The First “Push” Micro Insurance To Malaysian Runners

									by Fintech News Malaysia
December 23, 2016
2 comments

Neosurance  and KLCC Runners Group have signed a Memorandum of Understanding for the distribution of microinsurance to KLCC Runners Group growing community members. The microinsurance product will be provided ad hoc by a leading reinsurer and insurer who will be disclosed later, together with the price and features of the microinsurance.
The InsurTech sector has already seen investment deals of more than $2B in 2016 and the growing trend is expected to continue in the coming year. Interest in the InsurTech industry has increased significantly over the last few years, reaching a media coverage 8 time higher and an investment level x3 with respect to 2014. Lemonade raised $60 million to date and is a benchmark among insurtech startups for managing to fire-start a so much needed change in an outdated US insurance market by using Artificial Intelligence and a mobile first approach.

Following in Lemonade’s footsteps but on the other side of the Pacific Ocean, is Neosurance: the startup that is ready to shake up the Asian insurance industry as part of this exciting macro trend. Neosurance has created the first virtual insurance agent that sells micro policies to communities managed by third parties.  In other words, Neosurance proprietary award-winning solution is able to “push” a highly personalized microinsurance offer on one’s smartphone according to the individual needs and the environmental context.
The push notifications are sent to users in an intelligent way thanks to Neosurance’s Artificial Intelligence and machine learning system which bases its knowledge on contextual data. The AI component perfects the knowledge on insurable moments and on personal behavior in order to sell the right cover at the right moment in the most effective way.
Neosurance has already received important recognition at an international level through its several recent wins: Medici TOP 21 Insurtech Award, Insurance IoT Europe Award, AXA Insure Lab Contest and Aviva Digital On Award.
KLCC Runners Group is a runners community which has grown organically from 100 members in April 2016 to over 17,000 members in December 2016. KLCCRG is the only running group in Malaysia to have free structured running events weekly for members which include Group Runs, Running Clinics, HIIT Workouts, Integrated Yoga and Running Workshops.

This agreement marks an important stepping stone for both organization as Neosurance has just launched in Europe the first microinsurance to be distributed with a push approach and is now rapidly expanding to Asia by creating the world first push-based microinsurance case in Malaysia where Bank Negara (Malaysia’s National Bank) has been recently developing a regulatory framework to facilitate the growth of the microinsurance market.
KLCC Runners Group is Malaysia’s highest growth runners community with ambitions to become the biggest nationwide and to expand regionally. Microinsurance offers the Group the opportunity to take the lead in terms of innovation and services by offering an unprecedented value proportion to its members.

This article was first published on fintechnews.sg

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Regtech

Will Singapore Become a Regtech Leader? Regulatory Reporting 2.0

									by Fintech News Singapore
July 10, 2017

35   16

Regtech has grown from a niche to one of the most promising and exciting areas in the financial world. Regulatory technology, commonly known as regtech, is a classification of technology specifically addressing regulation and compliance issues in the financial industry.
Regtech not only promises to improve reporting and compliance, it also promises to enable banks to save a lot of money.
Bain & Company estimates that governance, risk and compliance costs account for 15 to 20% of the total operating cost for most major banks globally in 2016. A LexisNexis Risk Solution research paper found that financial institutions in China, Hong Kong, Malaysia, Indonesia, Thailand and Singapore are spending an estimated US$1.5 billion on anti-money laundering compliance alone.
Not only banks have wakened up to the potential of regtech, now regulators too are interested in these technologies.

Image credit: Bank building illustration by Daniilantiq via Shutterstock.com
According to a report by the Global Partnership for Financial Inclusion, many regulators in advanced economies have either already updated their market monitoring systems, or are in the process of updating, and in many cases, they are working closely with tech-focused startups to develop these regtech systems.
“Some central banks have embarked on initiatives aimed at enhancing internal systems and processes for regulatory reporting and off-site supervision, in a bid to shift away from template-based approaches towards real-time, input-based approaches that enable greater efficiency in the collection of data and information from banks and non-bank financial institutions,” the report says.
An example is the Austrian central bank, Oesterreiche Nationalbank (OeNB), which has partnered with the banking industry and regtech solutions provider BearingPoint to introduce a new software platform to streamline the data collection and regulatory report process for banks in Austria.
The OeNB is using BearingPoint’s AuRep solution, which runs on BearingPoint ABACUS/GMP, a common software platform that works as the central interface between the banks and the central bank.
The platform has enabled the OeNB and partnering banks to reduce the cost of regulatory reporting. It has also dramatically reduced the systematic risk exposed to banks by these changes in regulation.
A system that could also work well in Singapore. Singapore banks and the MAS could join forces to build “SINRep” a regulatory reporting utility to face the complexities of the regulatory environment.

Singapore: Asia’s regtech leader
In Asia, Singapore too has its eyes on regtech as it works towards building a “Smart Financial Center.” Last year, the city-state’s central bank and financial regulator the Monetary Authority of Singapore (MAS) hosted Asia’s first regtech-focused event, a move that aimed at demonstrating its commitment to digitalizing every part of its financial sector.
The event, called the ABS-MAS Regtech Forum, was part of the inaugural Singapore Fintech Festival, the world’s first large-scale fintech event. The forum looked at the opportunities and challenges for regtech, and explore how these technologies could enable better compliance solutions, increase efficiency, profitability and reduce barriers to entry to the financial sector.
Last June, MAS introduced a regulatory sandbox to enable startups as well as financial institutions to experiment with innovations in a live environment but without disrupting the entire banking system.
Greg Knieriemen, chief technology strategist at Hitachi Data Systems, told MIS Asia that his firm has been using MAS’ sandbox to test the use of blockchain technology to issue and settle checks in Singapore. The test aims to identify issues from various perspectives such as technology, security, operation and legal.

Fostering innovation
But alongside sandboxes, Asian regulators also need to change existing regulations to enable banks to adopt and benefit from regtech, says Craig Davis, Asia Pacific head of financial risk management at KPMG in Singapore.
“Regtech requires a number of other technologies such as the cloud, in order to be viable. MAS has made changes to the outsourcing requirements to enable the cloud to be used. We heard that regulators in Australia and Hong Kong are following suit and planning to enhance their own outsourcing requirements,” Davis told Bank IT Asia.
According to Tim Phillipps, APAC financial crime network leader and SEA forensic partner at Deloitte, “Asian central banks need to create an environment in which innovation and designed experimentation is encouraged and rewarded. They need to be a partner in the development, not simply an observer.”

A response to the changing regulatory landscape
In Singapore, the major changes under the proposed MAS Notices 610/1003 imply increased data volume with more than 100,000 data points, increased data granularity, and increased reporting complexity.
According to a spokesperson for BearingPoint, the regulatory changes will pose an indirect challenge for banks and merchant banks to adopt the right reporting solution that can optimize performance, achieve scalability and attain efficient reporting on time.
The company has developed Abacus360 Banking, an integrated platform for reporting, risk calculation and controlling regulatory KPIs, that aims to meet this exact challenge.

Founded in 1997 and headquartered in the Netherlands, BearingPoint is a multinational management and tech consulting firm that operates in over 20 countries across Europe and Asia.
In Asia, BearingPoint has offices in Singapore, Shanghai and Hong Kong, where it serves the financial services industry with its regtech and risktech products and services supporting the entire regulatory value chain.
Its customers represent 5,000 firms worldwide, among them large international banks, a major part of the largest European banks, leading insurance companies as well as supervisory authorities and central banks.
Abacus360 Banking, a new generation of its recognized Abacus platform, was launched in June. Abacus360 Banking cover all existing Abacus regulatory and risk modules, but also provide additional components as well as an intelligent toolset allowing for tailor-made optimization of regulatory reporting processes, regulatory analytics and regulatory management.

Featured image by Sarawut Aiemsinsuk via Shutterstock.com.

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How Regulators can help Fintech?

Regtech

How Regulators can help Fintech?

									by Fintech News Singapore
July 12, 2017

9   8

The Asia Securities Industry & Financial Markets Association (ASIFMA) has formulated a set of ten best practices to guide regulators in Asia as they seek to support the development of Fintech to better serve consumers, businesses and investors.
Fintech is dramatically changing the face of the financial services industry, and offers the potential for increased productivity and efficiencies in the way financial services are delivered. It has also challenged policymakers worldwide as they develop regulations that strike a balance between promoting innovation, maintaining the resiliency of the financial system and ensuring consumers are protected.
ASIFMA is an independent, regional trade association with over 100 member firms comprising a diverse range of leading financial institutions from both the buy and sell side, including banks, asset managers, law firms and market infrastructure service providers.
Through its collaboration with Herbert Smith Freehills, ASIFMA has come up with 10 best practices for regulators in Asia to facilitate the growth of Fintech.

Best Practice 1: Support the development and adoption of responsible, safe and secure Fintech products and services, by facilitating dialogue between Fintech participants and financial institutions and policymakers.
Financial regulators should engage in regular dialogue with Fintech companies to understand the industry landscape, including new product and technological developments and trends. Regular dialogue will also allow regulators and the industry to identify opportunities and risks at an early stage of product/service development.

Caption: Regulators need to keep in touch with the latest in the Fintech industry to balance innovation and consumer protection. via pixabay
ASIFMA supports the steps taken by Asian regulators to better understand new financial technologies and their implications for existing policies. Such steps include establishing dedicated Fintech offices, contact points and hubs; and establishing ‘regulatory sandboxes’, where businesses may test products in an environment with certain regulatory flexibilities for a limited duration.
Best Practice 2: Work with the industry to explore regulatory technology (Regtech) solutions to create more efficient and effective regulatory supervision and reporting mechanisms.
Regtech has the potential to provide configurable, reliable and cost-effective solutions in the regulatory arena.  A major advantage offered by Regtech is that it enables the storage and analysis of massive and complicated data, and it has the potential to simplify compliance monitoring activities. Regulators should leverage the experience of other regulators in using new technologies to access and process the increased volume of available data, helping them to promote investor protection, market fairness and financial stability.
Best Practice 3: If required, develop regulatory policies that strike an appropriate balance between innovation, safety, and consumer protection.
Regulators should formulate principles-based guidelines that allow Fintech players to develop new products or services that meet the needs of consumers whilst at the same time advancing regulations. Regulations should be designed with sufficient flexibility, as opposed to being overly-prescriptive. A one-size-fits-all approach to policy-making is not conducive to technological innovation.
Best Practice 4: Ensure consistent regulatory standards are applied to all market participants.
Competition is increasing in the Fintech sector. McKinsey estimates that new entrants will increasingly battle for customers with incumbents over the next decade, with the top five banking businesses (i.e. consumer finance, mortgages, lending, retail payments, and wealth management) at risk of losing between 20 percent and 60 percent of their profits by 2025.
Regulators have a role to play in ensuring a level playing field between existing incumbents and new entrants. Both incumbents and new entrants need the regulatory space to explore and test new ideas. Equally, when a product poses a risk to the system then incumbents and new entrants should have the same regulations applied to them.
Know-Your-Customer and Anti-Money Laundering requirements are examples of regulation that should be equally applied to incumbents and new entrants. Both are key to protecting the financial system.
Best Practice 5: Ensure inter-agency cooperation to promote consistency nationally across different sectors impacted by Fintech such as banking, securities, insurance and telecommunications.
Providing a uniform approach will better assist Fintech start-ups with developing their strategies and navigating the regulatory landscape, and regulators, government agencies and ministries can also benefit from sharing experiences and know-how. For example, the Monetary Authority of Singapore (MAS) has set up a Fintech Office that looks at aligning Fintech-related funding schemes across government agencies, and also proposing cross-agency strategies in industry infrastructure.
Best Practice 6: Enhance cross-border cooperation with other regulators to promote use of best practices, recognition agreements and harmonisation of laws and regulatory requirements.
Fintech transcends jurisdictional borders, and therefore cross-border cooperation amongst regulators is critical.  Recognition agreements can also allow Fintech firms to more easily cross borders to pursue opportunities. The agreement between the MAS and the UK Financial Conduct Authority and another agreement between Australia and Singapore allows for recognition, wrote ASIFMA.
Best Practice 7: Support industry-driven interoperability.
Regulators should support interoperability among the systems of all current market participants, which will lead to lower compliance costs and minimise potential disruption to the market.
Data standardisation and harmonised definitions could allow financial regulators to make efficiency improvements by allowing for the sharing of information in the market. For example, the International Technical Committee for Blockchain Standards  is currently working on developing international standards to support the roll-out of blockchain technology.
Best Practice 8: Provide a clear framework and guidelines to allow for cross-border transmission of data for processing and storage.
Digital data is core to Fintech and that data needs to be able to continue to cross borders for processing and storage. Allowing firms to utilise regional and global data centres as well as the cloud provides particular benefits to smaller firms and supports innovation. Smaller firms are able to access technology and innovations that would otherwise be out of their reach given the costs of investment and maintenance.
Best Practice 9: Ensure laws support technological developments.
ASIFMA recommends that governments review and update laws to ensure they allow for technological innovations to be introduced. Some regulations hinder the electronic distribution of certain products, limiting the ability of firms to utilise digital distribution channels. For example, if customers are required to bring physical identity documents into a location it slows down processes. National identity numbers or cards, as adopted by India, can allow for digital verification and more rapid digitisation. Voice biometrics can also be used to verify the identity of individuals.
The Monetary Authority of Singapore is taking the regulation of Fintech seriously. The Merlion statue in Merlion Park, Singapore, via Wikipedia
Best Practice 10: Promote cybersecurity and data security in a globally interconnected financial system.
The future of Fintech and cybersecurity are also interlocked, as the advancements in Fintech have brought about new cybersecurity and data security risks. In order to help market participants navigate cybersecurity challenges and raise awareness of cybersecurity risks, several Asian market regulators such as Hong Kong, Singapore, India and Malaysia have developed, or are in the process of developing, cybersecurity frameworks and guidelines.

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InsurTech

InsurTech Is Disrupting Insurance Forever – Will There Still Be a Place for Human Financial Advisors?

									by Fintech News Singapore
August 9, 2017

Wave after wave of technological disruption has hit us in recent years and it looks like the insurance industry is next in line. Insurtech is the new tradename for an aggressively growing group of apps, software’s, and startups reinventing a tired and lackluster insurance industry. In fact, the Insurtech industry is already forcing traditional financial advisors to seat up and take notice.
To further justify the growth of the Insurtech industry, The Monetary Authority of Singapore has committed S$225 million to the Financial Sector Technology & Innovation scheme (FSTI).
 The Rise of Insurtech
In a 2016 study done by New York firm Lemonade, 90% of legacy insurers worry about new market entrants, fearing that will take over some of their business. Additionally, according to the Business Insider UK, the first quarter of 2016 received more investment than ever before in the Insurtech business with deals raising $650 million.
Why are Insurtech platforms thriving?
According to PwC a third (35%) of these Insurtech startups are focusing on ways to improve customer relationships, promoting transparency that may be lacking with human financial advisors. Additionally, as Fintech Finance rightly points out, Insurtech companies have the ability to transform the operational practices of the insurance industry, to the benefit of both business and customer. They offer a new and rich data source, providing new possibilities for underwriting, increasing customer centricity and reducing costs.

All these point to the inevitable situation where another industry that one assumed needed a distinct ‘human touch’ is ready to bite the dust. Or is it and where does this leave traditional financial advisors?

The Case for Traditional Insurance Advisors
Despite the hype built around Insurtech of late, according to a McKinsey report, financial advisors are more successful in clinching signed policies than digital channels. With over 65% of insurance purchases made through an agent, financial advisors can offer a human touch which proves to be more effective in establishing relationships with customers. Additionally, a new survey done by insurance technology firm Vertafore revealed that only one-quarter (23%) said they would be comfortable sharing personal data with an Insurtech startup, even if it resulted in a cheaper rate. The majority (78%) said they would prefer to work with a real person when reporting an insurance claim.
Therefore, even with the digital transformation of the insurance industry, the crucial element of human interaction that reinforces trusts remains critical. While InsurTech appeals to an emerging tech-savvy generation of customers, a trusted relationship between a financial advisor and the consumer. This begs the question – can Insurtech platforms truly replace human financial advisors?

Mr. Poh Choon Kia, Senior Financial Services Director at Infinity Wealth Management, the largest branch (with more than 100 financial adviser representatives) of ProfessionalInvestment Advisory Services (PIAS), an affiliate of Aviva group of companies. IWM was featured in The Straits Times as being the first branch in PIAS to cross $10m gross revenue in the financial year 2016. Highly focused on training their advisors for the new financial advisory climate, they have one of the lowest industry staff turnover rates (less than 5% where the industry average is about 10%). They have been in Singapore for more than a decade.

Ms. Val Ji-Hsuan Yap is the founder of Insurtech company Policy Pal, which displays all your existing insurance coverage plans on a single screen. It’ll tell you when to renew specific plans as well as when a premium payment is due.
They are part of the Monetary Authority of Singapore (MAS)’s FinTech Regulatory Sandbox, where it will be testing their product through a partnership with insurance providers NTUC Income and Etiqa insurance. They also recently received a round of seed funding from 500 Startups.

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Regtech

SAS and KPMG launch first cloud-based IFRS9 and stress testing RegTech solutions in Asia

									by Company Announcement
August 30, 2017

18   3

SAS and KPMG in Singapore released two new Managed Analytics Service Providers (MASP) solutions – the first cloud-based, cost-effective and secure solutions in market to help financial institutions in Asia meet the International Accounting Standards Board’s (IASB) new IFRS9 reporting standards which take effect from 2018, as well as with enterprise stress testing.
Built on Microsoft Azure, KPMG expects the cloud-based IFRS9 and Enterprise Stress Testing risk analytics solutions to benefit banks with significant cost savings and business agility as compared to an on-premise software solution. The MASP model will allow financial institutions to access KPMG’s expertise in financial risk management and IFRS9 compliance, as well as SAS’ expertise in risk technology and model implementation, without the need for extensive investment in staff training or consulting services.
KPMG brings to the table its deep knowledge into regulatory compliance and RegTech for financial institutions, as well as the ability to execute and deliver regulatory knowledge into actual, practical solutions. The IFRS9 Calculation Engine and Enterprise Stress Testing solutions are the first of many managed services to be offered.

Andy Zook
“IFRS9 presents demanding requirements, not only for the calculation of expected credit loss, but data, models, governance and auditability. Many banks in ASEAN seeking a pragmatic solution for IFRS9 have been caught between tactical solutions that do not meet the full requirements, or high-end solutions that are too expensive. This MASP solution offers an affordable, best practice solution that can grow with their businesses,”
said Andy Zook, Vice President, SAS ASEAN.

Today’s launch in Singapore will be followed by another in Indonesia this year. Also to be available across the rest of Asia, these solutions are the result of the SAS MASP program launched in 2015, which allows customers to implement SAS technologies and reap the benefits of analytics in ways that best fit their individual needs.
Credit modelling with anonymized industry data
IFRS9 calls for the close collaboration of risk and finance departments as it requires the provision for impaired assets to be based on the output of expected credit loss models. The IFRS9 MASP solution provides access to anonymized development data across the industry; providing large volumes of historical data to help banks tackle the challenge of data availability in developing their expected credit loss models.

Craig Davis
“With the deadline for IFRS9 looming, we are seeing many Asian banks still unprepared. Banking executives are faced with tight timelines and budget pressures. Implementation of IFRS9’s forward-looking requirements may be challenging, and we want to help these financial institutions implement it successfully by laying the framework early. Working with an established partner such as SAS allows us to offer them solutions that can be implemented quickly and cost effectively,”
said Craig Davis, Asia Pacific Head of Financial Risk Management, KPMG in Singapore.
First cloud-based solution for IFRS9 and stress testing in Asia
Industry surveys are still highlighting the shortage of risk and compliance staff in Asia. Having a cloud-based solution frees up finance and risk management professionals in financial institutions to focus on value-added activities such as planning and forecasting.The KPMG-SAS IFRS9 Calculation Engine and Enterprise Stress Testing offerings run on Microsoft Azure. This means that banks have access to these solutions without the hassle of maintaining legacy systems and platforms, or compliance with local regulations around the use of cloud services.
The KPMG-SAS IFRS9 Calculation Engine and Enterprise Stress Testing offerings run on Microsoft Azure. This means that banks have access to these solutions without the hassle of maintaining legacy systems and platforms, or compliance with local regulations around the use of cloud services.
Rupesh Khendry
“Microsoft engages closely with financial regulators to deeply understand compliance requirements and has been making significant investments in building a cloud with the security, scalability, and agility to support mission critical financial services industry needs. This solution with our partners is the first of several in offering an innovative and holistic cloud based utility for regtech needs,”
said Rupesh Khendry, director, Worldwide Financial Services Industry at Microsoft.
Key features of the KPMG-SAS IFRS9 Calculation Engine and Enterprise Stress Testing offerings include:

Pre-built rules and analytical models for addressing IFRS9 requirements including stage identification, cash flow calculation, PD term structure modelling and Expected Credit Loss calculation.
Single platform for IFRS9 that can be extended to enterprise stress testing, model risk management, and other compliance provides flexibility to integrate related regulatory and accounting applications and allows banks to maximize their total cost of ownership.
The lag between model development and model deployment reduced to hours from weeks – this provides a more risk sensitive approach to loss provisioning, leading to better capital management at the bank.
Users can swap models, quickly run ad-hoc scenarios and create loan level models on large loan portfolios using in-memory processing, providing a more dynamic and proactive business management capabilities.
Transparent and replicable model execution in a controlled environment to support the increased needs of governance and auditability.

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InsurTech

PolicyPal becomes the First Start-Up to Graduate from the Mas Fintech Regulatory Sandbox

									by Company Announcement
August 30, 2017

Singapore-based startup PolicyPal today announced its graduation from the MAS FinTech Regulatory Sandbox and will commence operations as a registered direct insurance broker and exempt financial adviser under its subsidiary BaoXianBaoBao Pte Ltd from 1st September 2017. PolicyPal is the first start-up to graduate from the MAS FinTech Regulatory Sandbox, having entered the six-month sandbox in March 2017.
PolicyPal | image via PolicyPal FB page
PolicyPal is Asia’s first independent app that utilizes artificial intelligence to simplify and digitize insurance, allowing both customers and organisations to streamline the management of their insurance policies. PolicyPal empowers individuals to further understand their assets and liabilities, get adequate insurance coverage for themselves and plan for their retirement. The six-month sandbox trial allowed PolicyPal to test the technology and validate their distribution model in Singapore. PolicyPal will now focus on scaling their product offerings to individuals and SMEs aimed at helping them analyze, manage and ultimately optimize their insurance portfolio.
Founded in April 2016, PolicyPal employs the use of algorithms to analyze current insurance coverage received funding from 500 Startups and angel investors and is presently working with global insurance
companies to help them go digital. PolicyPal Pte. Ltd. is a company under the incubation of PayPal. The PayPal incubation program is an APAC Fintech focused incubation program run by PayPal.
PolicyPal has recently on-boarded several organizations for group insurance management and will roll out additional corporate services for a growing pool of SMEs.

It has also partnered with global insurance companies in Singapore – AIG, Aviva, AXA, Etiqa and NTUC Income. PolicyPal’s regional expansion strategy includes scaling their existing platform and operations beyond Singapore to include Japan, Taiwan, Indonesia, and Thailand.
Val Ji-hsuan Yap, CEO & Founder – PolicyPal, said,

Val Ji-hsuan Yap
“The MAS sandbox allowed us to experiment with technology applications and our product offerings in order to fulfill our vision of making insurance simple and convenient for all. We are delighted to be the first startup to graduate from the MAS regulatory sandbox and are looking forward to operate and scale up as a registered direct insurance broker and exempt financial adviser under BaoXianBaoBao to provide individuals and organizations with better insurance coverage .”
Sopnendu Mohanty, Chief FinTech Officer – MAS, said,

Sopnendu Mohanty
“Today’s rapidly evolving FinTech landscape requires a responsive and forward-looking regulatory approach to enable aspiring companies to deliver innovative financial services and products that can benefit both consumers and inspire the broader industry. We are glad that the sandbox has helped PolicyPal jumpstart their journey through live experimentation, and look forward to enabling more FinTech innovations that can enhance value and improve people’s lives.”

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InsurTech

Singapore’s Industry-first Intelligent Chatbot provides Information Specific to Customers Life Insurance Plans

									by Company Announcement
September 4, 2017

As part of Prudential’s customer-centric approach, the life insurer has launched an industry-first chatbot that can provide its Financial Consultants with real-time information specific to their customers’ life insurance plans.
More than one in two Prudential Financial Consultants are now active users of the askPRU chatbot since its pilot launch in July 2017
Named askPRU, the cognitive-powered chatbot is built on IBM Watson technology and integrated into Prudential’s backend systems. It is able to retrieve instantly data such as a customer’s policy cash value, policy premium due date and status of submitted claims, among others. As askPRU operates round the clock, Prudential’s Financial Consultants can communicate with the chatbot via a mobile application at any time of the day to obtain information pertaining to their customers’ insurance plans, enabling them to be more productive and more responsive.
Using IBM Watson’s Conversation Service, askPRU has been trained by NCS’ data scientists1 to understand non-scripted questions, probe users to get to the intent of their queries and deliver responses in a way that simulates human conversations.
Since the pilot launch of askPRU in July, more than half of Prudential’s 4,000 Financial Consultants have started to use the chatbot. Ms. Theresa Nai, Chief Operating Officer at Prudential Singapore, said,askPRU is part of Prudential’s commitment to continuously improve the service experience for its customers.

Theresa Nai
“In today’s fast-paced, time-starved environment, our customers do not have the patience to wait for information. With askPRU, our Financial Consultants can now get faster access to customer-specific information and respond to their customers’ queries even more promptly. askPRU is one of the ways in which we digitally enable our Financial Consultants so they are equipped to meet increasing consumer demands and expectations,” said Ms Nai.

askPRU complements PRUONE Express, an enhanced digital point-of-sales portal, to help Prudential’s Financial Consultants engage their customers more efficiently. For instance, PRUONE Express is able to generate a detailed quotation in just three seconds and uses the latest technologies, such as SmartData Capture and Fingerprint Authentication, to facilitate a quicker and more effective consultation and sales process. Launched earlier this month, all of Prudential’s Financial Consultants currently have access to PRUONE Express to complete their sales process and to submit new policy requests.
askPRU to potentially reduce call volume at Prudential’s Contact Centre by 30 per cent
Apart from improving customer experience, askPRU also creates operational efficiencies for the life insurer. Prudential estimates that approximately 30 per cent of its Financial Consultants’ queries received by its Contact Centre consultants today can be answered by askPRU. With frequently-asked queries channeled to the chatbot, Prudential’s Contact Centre consultants will be able to focus on handling more complex enquiries and provide a better service to its Financial Consultants and customers.
Designed as a standalone mobile application, askPRU was developed in collaboration with NCS Pte Ltd (NCS), IBM Watson and Nokomai Studios. IBM Watson is a cognitive computing technology platform that uses natural language processing and machine learning to reveal insights from large amounts of structured and unstructured data, such as text and images.
Mr. Chia Wee Boon, Chief Executive Officer of NCS, said,

Chia Wee Boon
“We are pleased to work with Prudential to develop a cognitive powered chatbot that provides responsive, 24/7 support to its Financial Consultants. Notably, the integration of the chatbot to Prudential’s core backend systems ensures that there is always a reliable and consistent source of information available, which translates to the Financial Consultants and their customers having instant access to accurate, real-time information.”

Kenny Hay
Mr. Kenny Hay, Director of Cloud, IBM ASEAN, said,
“The way in which customer relationships are built is constantly evolving. Technology such as IBM Watson has cognitive capabilities that often serve to augment human intelligence and abilities, supporting Prudential’s Financial Consultants. Thepathway to self-service in real time can certainly bring about huge growth opportunities for forward- thinking businesses.”

Mae Urquhart
Ms. Mae Urquhart, Director of Nokomai Studios, said,
“It is a privilege to work with Prudential in transforming the data-driven expertise of NCS and IBM into an intuitive, engaging experience for the life insurer’s Financial Consultants. In particular, the close collaboration with Prudential’s Financial Consultants was crucial in the successful development of askPRU.”

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InsurTech

Insurtech Set to Change Asia’s Insurance Market

									by Fintech News Singapore
September 11, 2017

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UBS says that Asia’s underinsured market presents  ripe opportunities for insurtech startups.
In a UBS report titled Shifting Asia, it noted that Asia is one of the most underpenetrated insurance markets in the world. Emerging Asia held 43 per cent of the world’s population but only 13 per cent of total premiums in 2016.
The report added that Asia will be home to around 64 per cent of the world’s middle-class population by 2030, up from 40 per cent currently. As disposable incomes grow, the middle class will demand greater protection for their health, wealth, families and property.
The strong and sustainable growth outlook over the medium term makes the Asian market an important battleground for insurers, said UBS.

The report highlighted that traditional distribution models are costly and inefficient in emerging Asia due to its large populations and geographical dispersions.
“With mobile apps and online aggregators, shopping for and purchasing insurance policies will become more convenient and efficient,”
said UBS.
“We believe most insurers will have their own mobile app with a full suite of capabilities, from product enquiry and direct purchase to claims processing. They could be equipped with AI chatbots to assist with customer queries, as machine learning allows AI to learn from interactions and improve customer services over time,”
 it added.
Connected devices, advanced data analytics, artificial intelligence (AI), and digital distribution channels should result in accelerated market penetration, more accurate risk assessment and pricing, more personalised solutions, more efficient operations and processes, and most importantly, improved customer experience and satisfaction.
UBS also believes insurtech could spur total cost savings of around US$300 billion a year for the Asian insurance industry by 2025. Competition in Asia’s insurance industry will likely intensify as customers demand greater transparency and convenience, more tailored products, easier claims processes and better customer services.
Competitive pressures should drive insurers to pass on a majority of the cost savings to customers, but we still expect the overall profits of Asian insurers to increase by around US$55 billion a year.
Putting jobs at risk
The technological advances may lead to job losses in the insurance industry. UBS estimates 1.5 million fewer jobs in the Asian insurance industry in the medium term, primarily in the operations and administrative support areas.
Auto insurance in Asia is an over US$200 billion business, said UBS. The standardised nature of auto insurance policies, along with its prevalence and relatively high penetration, means that advances in insurtech can have a more immediate and outsized impact on auto insurance than on other products.
“We expect insurtech to drive substantial cost savings for the industry in Asia, primarily in the following areas: operational efficiency: automation and streamlining of processes;  underwriting and risk selection: improved pricing, better risk monitoring, and lower claims; fraud prevention: improved fraud detection and lower claims costs;  marketing and distribution: targeted marketing, more effective cross-selling, and improved customer retention,”
 said the report.
UBS surveyed three industry veterans and one start-up and found that suggest that there is enormous potential for Asian insurers to expand their digital distribution and improve customer engagement. They expect more insurers to move in a similar direction, but also see a number of challenges that could disrupt insurers’ digital transformation.
“These include legacy IT platforms, corporate culture and customer resistance,”
said the report.
Customers will eventually be the biggest winners of insurtech, benefiting from better services, greater convenience, cheaper premiums and more personalised solutions.
 “Insurers will gain not only greater cost savings but also enhanced perception and reputation. Incumbent insurers slow to adapt to digital transformation could see rapid market share erosion,”
warns UBS.
Featured image via Wikipedia

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Regtech

Connecting Canadian and South-East Asian RegTech Ecosystems

									by Company Announcement
September 27, 2017

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RegTech Canada and Singapore based RegPac Revolution, have signed a co-operation agreement to collaborate on the development of cross-border Regulatory Technology initiatives.
For those who are not aware of this recent phenomenon, RegTech (or Regulatory Technology) is the application of technology in Regulation, Compliance and Supervision of regulated entities – an area where Canada and Singapore are both recognised as global leaders. A recent study demonstrated that firms in the financial sector spend between 10% and 15% of their annual revenues on regulatory compliance. As regulation becomes more complex, it becomes harder and harder to manage costs and human error will only increase. RegTech allows the companies to shift their focus to true differentiators, products and services, instead of spending millions on compliance.
Matt Elton, CEO of RegTech Canada explains,

Matt Elton
“Canada and Singapore, both being built upon strong regulation and the financial stability which comes from it, are perhaps, best placed to be able to take real benefit from the opportunities that a technology centric supervisory environment can provide.Canada has pursued a long-term strategy of investing in the development of the right skills which is now really paying off in having the right knowledge, the right environment, and the right timing to grow the sector for the benefit of Canada, and to create a valuable export market for Canadian technology.
Working together with another respected global leader will allow us to make very tangible and rapid progress, both in knowledge sharing, and enabling market access for Canadian solutions in the South- East Asian market, and at the same time providing a means for firms from South-East Asia to bring their products to Canada.”
The objectives of the collaboration are to:

Run an exchange visit between Singapore and Canada, to introduce RegTech companies into the Singapore/South East Asian market and vice-versa;
Co-create guidelines allowing solutions to be tailored to the needs of the local market;
Liaise with governments and regulators for trade missions and road-shows;
Collaborate on specific themes and topics in the regulatory space for events, seminars and workshops;
Facilitate cross-border knowledge exchange.

Beyond the initial activities, both parties are looking forward to further collaboration with each other in the form of joint projects, knowledge sharing, thought leadership and other relevant initiatives.

Mona Zoet, Founder of RegPac Revolution, elaborates,

Mona Zoet
“This collaboration agreement between RegPac Revolution and RegTech Canada will provide tremendous incentives for both Countries. Singapore, the technology hub of South-East Asia, prides itself for the swift adoption of innovative solutions and forward thinking regulatory regime. The collaboration with Canada, a country strong in both finance and regulation as well, allows for even greater exchange in knowledge and expertise which enables the acceleration of the implementation of Regulation Technology solutions on both sides”.
Anna Velvet, Co-Founder and President at RegTech Canada concludes,

Anna Velvet
“Canada prides itself on inclusion, collaboration and due diligence to protect their digital customers within the e commerce globally. It is part of our innate culture and Singapore shares the same methodology – they are similar to Canada as they are investing in diverse talents and technology in order to deal with challenges in compliance. This collaboration will bring credibility and trust globally; collaboration benefits everyone in the compliance space as it will open doors to those that see RegTech as an added value as opposed to a burden.“

Featured image via pixabay

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InsurTech

Tokio Marine Life Insurance Singapore Ltd. Launches Self-Learning Chatbot To Simplify Insurance For Public

									by Company Announcement
October 3, 2017

4

Tokio Marine Life Insurance Singapore Ltd. (TMLS), the only Japanese life insurer in Singapore, today launched the first self-learning AI chatbot in Singapore that makes life insurance easier to understand and more accessible for the public.
Available 24/7 on popular messaging app Facebook Messenger, the chatbot, named TOMI (for Tokio Marine Insurance), builds on the success of an earlier version released in January when TMLS became the first financial institution in Singapore to launch a chatbot for its financial advisers.
The current version is aimed at empowering the public to understand and manage their insurance coverage more independently by providing users with instant and accurate explanations of commonly-used terms in insurance, information on TMLS products and solutions, and how to join the industry as a financial adviser with TMLS.
“TOMI represents our vision on the future of Singapore’s life insurance sector,”
James Tan
said James Tan, Chief Executive Officer of TMLS.

“Conversations play an important role in how a customer buys and consumes life insurance products. As customers’ behaviour shift towards digital, we see intelligent AI-powered chatbots as a natural evolution of websites and mobile apps, and will eventually become a dominant digital channel in how a customer interacts with an insurer.
“Customers are at the core of our business, and we aim to empower them in making well- informed decisions on their financial planning and insurance coverage. We are confident that TOMI will be a useful tool that prepares them to have more meaningful, well-informed discussions with their financial advisers on their relevant insurance needs,”
he said.
TOMI marks a milestone for TMLS in its digitisation journey, which was inspired last year by Prime Minister Lee Hsien Loong’s call to action on the Smart Nation initiative. The move towards digitisation is supported by regional headquarters Tokio Marine Asia (TMA), which will be exploring the potential extension of TOMI and its functionalities to other regional markets in Asia.
The technology behind TOMI is called Deep Learning for Natural Language Processing, or Deep NLP in short. Compared to the traditional NLP approach which only interprets short phrases and sentences, Deep NLP can interpret sentences regardless of length and grammatical accuracy. This capability allows TOMI to understand grammatically inaccurate sentences and even Singlish. This sets TOMI apart from many other chatbots, which rely primarily on keyword recognition or require grammatical accuracy from users.
Built in collaboration with home-grown AI startup Pand.ai, TOMI signifies TMLS’ ongoing commitment to support the local financial and insurance technology ecosystem, by partnering local small and medium enterprises (SMEs) to build locally relevant products and services for the Singapore market.

Chuang Shin Wee
“We are proud to partner a Tier-1 insurer like TMLS to bring our proprietary AI technologies to the insurance space,”
said Chuang Shin Wee, Co-founder and Chief Executive Officer of Pand.ai.
“We are very excited about the launch of TOMI for the public, and look forward to bringing more AI technologies from our research laboratories to the market.”
TOMI can be accessed via the following methods:

On the Facebook Messenger mobile app, by searching “Tokio Marine Singapore”;
On the Facebook page, by typing “Tokio Marine Singapore” in the search bar and starting a chat via the “Message” button; or
On the Tokio Marine Singapore website, by clicking the TOMI icon on the Tokio Marine Life Insurance page.
On the Facebook Messenger mobile app, by scanning Tokio Marine Singapore profile code

o To scan, users can click on their profile picture to access the “Me” page. On this page, users should click on their profile picture again to open the code scanner.

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InsurTech

Life Insurance Made Easier by Singapore Life

									by Company Announcement
October 9, 2017

4

Protecting your loved ones should not be complicated. With this in mind, independent life insurer Singapore Life launches its suite of life insurance products, coupled with a fuss-free, customer-centric insurance experience.
Singapore Life’s Term Life and Critical Illness plans aim to fill the gap in catering to customers who are looking for adequate protection with minimal complexity. This introduction of plain vanilla term insurance is a deliberate departure from the many new products in the market compounded with various interesting, but equally complicated features.
Customers can now be assured of their coverage and own these policies on their preferred terms – getting online directly themselves, or through one of Singapore Life’s partner advisory firms – and get covered almost immediately.
Mr Walter de Oude, Chief Executive Officer, Singapore Life, said:

Walter De Oude
“People deserve a better solution for their life insurance needs – accessible, un-convoluted and fast. As a preferred Singaporean alternative, Singapore Life simplifies both the product and life insurance process to remove any deterrent for people to get the protection they need. We take the efficiencies from technology to offer better value to the insurance journey – making it more efficient, transparent and flexible to their needs.”

via singlife.com
Singapore Life features robust digital robo-underwriting and identity verification capabilities that dynamically expedites the application and approval process. The purchase journey with Singapore Life is intuitive and secure, can be done without another person’s assistance, and is usually free of the hassle of going for a medical test. As a launch promotion, all submissions of Term Life policy applications, including critical illness and disability riders, on www.singlife.com by 31 December 2017 will enjoy up to 18% discount.

The first local independent insurer to be licensed since 1970, Singapore Life successfully raised US$50 million – the largest ever by a Singapore-based InsurTech company – in its Series A funding round in April this year, with the support of renowned international shareholders – Chong Sing Holdings FinTech Group Limited and IPGL Limited. It has also partnered two of the world’s leading reinsurers – Munich Re Group and Pacific Life Re Limited.

Featured image via Singapore Life Facebook page

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Fintech Insurance in Singapore

InsurTech

Fintech Insurance in Singapore

									by Company Announcement
October 26, 2017

1

Markel International, the specialist insurer, has unveiled a fintech policy offering comprehensive protection for businesses in the financial technology sector in Asia, having successfully launched it in the UK early last year.
Simon Moi, Senior underwriter and head of professional and financial risks at Markel International Singapore, will lead his team in Asia and be the focal point for the product that will offer protection for policy limits of up to a maximum of USD10 million.
Launching in Singapore, fast becoming the fintech hub in Asia, the policy comes with three additional options for cover, building on the core professional indemnity section, to protect clients against their key exposures.
The professional indemnity core addresses the professional liability issues that may arise in a fintech and offers broad civil liability protection against claims and related costs from clients or third parties, including alleged bad advice, poor servicing or programming errors. Coverage also extends to the costs involved when sensitive documents or data is lost.

On top of the professional indemnity core cover, the policy offers protection for three additional perils:

Directors’ and officers’ liability cover protects against claims of mismanagement, which could be brought by shareholders, employees, creditors or regulators.
Theft option covers the insured against the stealing of money or other financial instruments, through both electronic and non-electronic means, including through extortion. It will also cover the cost of rectifying computer systems following a theft.
Cyber liability and loss cover provides protection if the insured suffers a network security incident, such as a hack, denial of service attack, or a computer virus, and will also cover business interruption losses arising from such an incident. This section includes cover for the cost of rectifying computer systems following a network security incident.

The fintech team at Markel recently took home the Insurance Team of the Year prize at the Reactions London Market Awards in June 2017.
Simon Moi says:

Simon Moi
“Our focus is to provide a broad coverage, and so, we have modelled our policy to be packaged together in a single cover so that it is more holistically beneficial to our customers. And this is the first time these protections are offered in this manner.”
He added:
“We have also established a team of experts that are available on a 24/7 basis to help manage, investigate, resolve and recover from a network security incident, theft, phone hacking or a privacy breach; electronic or otherwise.”
Commenting on this launch, Matthew Cannock, principal officer and managing director of Markel International Singapore, said:

Matthew Cannock
“The launch of this fintech insurance coincides very nicely with our recent 10 th anniversary celebration in Asia, reflecting how we grow and develop with our customers’ needs. Singapore is exactly the right place to launch this product and we are positive that this product will take off as users are becoming more aware of the increasing risks in the financial technology sector.”
Markel will be at booth no. ZH02 at the Singapore Fintech Festival, held from 13-17 November 2017, at Singapore EXPO, Halls 1-3.

Featured image via Pixabay

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