Digital Transformation
Sponsored

What Banks Have Learned From Two Years of Remote Working

									by Fintech News Malaysia
September 27, 2021
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In the past two years, the world has undergone a radical experiment like nothing we’ve witnessed before. We’ve moved from a largely office-based work environment to a near-complete remote work environment almost overnight.
This is no small feat for most industries, and even more challenging for banks who still rely heavily on manual processes and is often encumbered by numerous compliance challenges in making this shift.
Necessity is indeed the mother of all inventions, with movement restrictions kicking in 2020, the banking industry’s business continuity plans were immediately put to the test. Having entered the second year of the pandemic, it’s worth examining how banks have adapted to the “new normal” and how they have positioned themselves in the post-pandemic world.
How banks adjusted to remote working and what they learned
According to a KPMG report, banks, in general, were highly effective in handling the transition to remote working. Some bank employees continued to man the branches and small teams maintained a presence in offices for crucial functions.
In March 2020, Bank Negara Malaysia issued a statement asking banks to encourage employees to work from home (WFH), keeping on-site employee numbers to a minimum. Within one week, most Malaysian bank employees have started WFH arrangement.

Maybank, one of Malaysia’s largest banks, had 75% of its employees working remotely while 25% remained on-site, The Edge reported. Maybank’s remote working employee strength was eventually increased to 82%.
The shift to WFH has also required banks to train and upskill employees for digital tools. A report by Mckinsey noted that consumer banks had to increase employee cross-training in specific services to tackle the surging demand for mortgage-refinance applications.
Banks also had to train employees to be empathetic in dealing with distressed customers while helping them to use digital tools as well as new products and services.
Maybank, for instance, used a budget of RM 95 million to upskill and train its employees in 2020. The bank has a weekly learning programme that helps employees stay focused on productivity as well as sustain their upskilling and reskilling endeavours.
Maybank has also upskilled over 360 of its non-clerical employees in Malaysia to become ‘workplace enablers’. The training programme provides non-clerical workers with new skills that help them speed up career progression and take on more responsibilities.
But alongside challenges, the remote working model has provided distinct benefits in the banking sector. For instance, the productivity of workers, a major concern, was found to have risen in many countries with remote working, the KPMG report noted.
However, the report cautioned that this could be a temporary uptick and productivity could eventually stagnate as the pressure to balance work and life continues.
A report by EY noted that remote working has helped banks reduce their carbon footprint. This has given rise to questions about whether big office spaces are still required in the long term. Banks stand to gain significant cost savings from transitioning to smaller spaces, the report noted.
The future of remote working in the banking sector
According to the KPMG report, banks are expected to adopt a hybrid model going forward. More employees will continue to work remotely than pre-COVID levels.
This will be driven by the added advantages of remote working as it benefits both employers and employees, and a significant interest among bank employees to continue working remotely. A survey of bank employees in the US found that 57% of them prefer to continue working mostly from home.
Malaysia’s banks such as Maybank has already taken significant steps towards adopting a hybrid model of work. Recently, it introduced the “Mobile Work Arrangement,” to complement its Flexible Working Arrangement policy, repositioning over 2,000 employees as part of the mobile workforce across all levels and functions.

According to a Maybank report, the bank’s WFH level in Malaysia continued to be above 50% even well after the easing of movement restrictions.
This will help banks minimise office spaces, although the EY report noted that this may not be possible in the short term because of the space required to maintain social distancing.
Maybank, for example, intends to use some of its headquarters floors as co-working sites that involve hot-desking and meeting rooms, suitable for collaboration and team discussion.
According to KPMG estimates, reducing office spaces can help banks potentially save up to $10,000 per employee per year.
The hybrid model in the banking sector also requires banks to evaluate its feasibility. There are potential technical challenges such as extending cyber-perimeters and controls to employees’ homes.
But most importantly, banks need to ensure employee wellbeing in a hybrid model. Banks need to establish a dynamic corporate culture that fosters employee engagement and avoids employee relationships and performances from depreciating over time.
It is not yet clear whether instant messaging services, emails and video conferencing tools can fully replace the traditional office experience.
TM ONE closes the gap between conventional and digital way of working
As banks evolve, so too must their technology partners. TM ONE, the business arm of Telekom Malaysia Berhad (TM) is positioning itself to address the unique needs brought on by the need for a more secured remote working.
TM ONE said that it aims to enable banks and other organisations alike in their digital transformation to empower employees to securely maintain the same level of productivity while working from home.
As more banking operations are moving to the cloud, cybersecurity plays an important first line of protection when it comes to remote working among employees.
Managed cybersecurity, cloud, and digital document management are among the digital solutions required in the 9-to-5 affair that are vital in ensuring remote working comply with the organisation’s and national policy.
Muhammad Ghadaffi Tairobi, TM ONE’s Vertical Director for Banking, Financial Services and Insurance (BFSI) observed that the shift from working in the office to remote work matches the shift of banking customers towards digital channels.
Muhammad Ghadaffi Tairobi
“In the wake of the pandemic back in 2020, TM through TM ONE has committed to provide digital solutions for businesses and public sectors.
We have seen the impact of robust connectivity and digital solutions to Malaysians during the Movement Control Order (MCO). This is where we realise the key to a seamless WFH experience is to ensure robust connectivity of all levels of employment.
From the Board of Directors (BOD) to the employees, companies are in dire need of a secure and robust network environment while working from home. Having a digital concierge is also one of the many ways remote working can be done in banks and financial institutions. Addressing their needs with an array of our services from connectivity to cybersecurity and smart services is given, but the thought of peace of mind, seamless experience, and convenience are the most valuable aspects money can’t buy,”
said Muhammad Ghadaffi.
In recent months, TM has announced that it has reached the 2 million mark of its unifi customers driven largely by its customer’s need to work from home.
While this constitutes a demand-driven push in banking, the pandemic and the resulting rise of remote working has necessitated the digitalisation of back-office functions as well.
In other words, banks and financial institutions as a whole, have no other option but to look into digitalising their entire operations from end-to-end.
“Although a percentage of the workforce are coming back to the office, we are still looking forward to enhancing our WFH and contactless-based offerings beyond connectivity. More financial institutions will be able to have a seamless digital experience with cloud, cybersecurity, and smart services among others. This is the time for us to take our transformation forward,”
he added.

Featured image credit: Photo by Mimi Thian on Unsplash

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Lending

GHL Doubles Down on BNPL Offerings in ASEAN With Atome

									by Fintech News Malaysia
September 15, 2021
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GHL group’s payment touchpoints across Malaysia, Thailand, Philippines and Indonesia will now be able to offer Buy Now, Pay Later (BNPL) payment option to consumers, following a partnership with BNPL platform Atome.
The group said that this alternative payment solution will further enhance customers’ shopping and payment experience, and at the same time, support local retailers and businesses across the region with increased sales amidst the retail crunch during the COVID-19 pandemic.
This payment option offers consumers the option to spread their purchases into 3 monthly payments at zero-interest.

GHL was the first in ASEAN to partner with Visa in the latter’s efforts to take a slice of the BNPL segment in the region.
Sean Hesh
Sean Hesh, Group Chief Executive Officer of GHL said,
“The pandemic-driven shift to online shopping has created an urgent need to improve & boost the ecommerce customer experience.

This partnership will broaden the payment experience across thousands of point-of-sale checkouts, with the right assortment of payment options, throughout GHL’s vast merchant network in the region.”
David Chen
David Chen, CEO of Atome said,
“We’re excited to partner with GHL to expand seamless BNPL acceptance for online and offline merchants across the region.

Our regional partnership will support merchants in enabling a superior shopping and checkout experience for consumers, both in store and online websites, which in turn will accelerate merchant business growth and recovery as we emerge from the COVID-19 pandemic,”

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E-Wallets
Insurtech

Boost Expands Insurance Offerings to Now Include Car Protection Coverage

									by Fintech News Malaysia
September 16, 2021
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Axiata Digital’s e-wallet Boost announced that it has expanded its insurance offerings with the launch of a car insurance “CarProtect”, which is underwritten by Great Eastern General Insurance (Malaysia) Berhad.
The e-wallet said that “CarProtect offers customers protection in your pocket, alongside a seamless and convenient way to customise their car insurance plan best suited to their needs”.
CarProtect offers a one-year coverage for damage to the car insured due to accident, theft or accidental fire, as well as liabilities to third parties including bodily injuries, death, property loss or damage.

Additionally, it also features customisable add-on coverages for windscreen, flood and special perils as well as a waiver of compulsory excess inclusive of additional drivers.
Customers can also renew their road tax at the same time and have it delivered to their doorstep.
As an added safety feature, Boost built in an Emergency Button for CarProtect customers that gives them 24/7 access to car assistance.
The button directs users to the emergency contacts including insurance claims, panel of workshops as well as Boost’s roadside assistance partners in the event of an accident or breakdown.
With this feature, users will not have to frantically search the Internet or their phone book for help during an already stressful emergency situation.
The e-wallet has been actively rolling out insurance plans and now has 15 different offerings in its app.

Sheyantha Abeykoon
Sheyantha Abeykoon, CEO of Boost said,
“The launch of our new car insurance protection is another step forward in driving innovation within the Malaysian insurtech space.

As we continue to develop more affordable insurance plans for the future, we will continue to emphasise on customisation to give users the flexibility of crafting the right plan at the right price to protect themselves and their loved ones.”

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Digital Transformation
Sponsored

Research Finds Malaysian Banks That Fail to Digitise Face Extinction

									by Fintech News Malaysia
September 22, 2021
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A new global research report from the Financial Times Focus (FT Focus) and SaaS cloud banking platform Mambu has identified that three in five banks believe they will cease to exist within five to ten years if they do not change their business models.
Meanwhile, two in three believe they will lose market share in just two years if they fail to transform digitally.
The research report “Evolve or be extinct” surveyed 500 senior banking executives from around the world, to gain insights into their perception of the banking industry, both now and into the future.
The research included responses from senior banking executives from across the APAC region, including Malaysia.
In Malaysia, digital banking has reached an exciting stage, with BNM currently assessing applications for the five digital banking licenses on offer, and licenses set to be announced next year.
Consumer appetite for digital banking has never been greater, and fintech innovation is at an all-time high.
However, while there are many banks making great strides digitally, some established banks remain reluctant to take the steps required to embrace this new digital world.
The FT Focus global research report identifies that it is these banks that fail to embrace digitisation that are most at risk of extinction.
Key findings from the report

One third of APAC banks are concerned that their legacy platforms are holding them back.
Three in five APAC banks believe they will cease to exist in five-ten years unless they change their business models.
Less than one third of APAC banks describe their digital transformation strategy as mature or advanced.
More than half (53%) of global respondents said they are at risk of missing digital transformation targets.

On a more positive note, while APAC banks lag behind their counterparts in other regions, it is clear that many are taking steps to ‘catch up’, with plans to increase investment in big data, machine learning and blockchain technologies at significantly higher rates than other regions.
Kevin Pu
Kevin Pu, General Manager Malaysia at Mambu said,
“But while we have many brave and digitally-focused banks, financial institutions and fintechs operating in the country, there are also many traditional banks lagging behind on their digital transformation strategies, and, as this research report shows, it is those banks that are slow or reluctant to take a digital leap that risk being made extinct.”

Malaysian banks are still lagging behind on digital transformation
Kevin added that the research also shows that APAC banks have made a much larger commitment to investing in digital technologies than other regions, which is very positive, however Malaysia is still lagging behind the rest of the world on digital transformation.
Malaysia has the advantage of having one of the highest rates of financial inclusion in the APAC region, coupled with incredibly high rates of smartphone ownership and internet penetration, so the market is ripe for digital banking innovation.
“It is time for established Malaysian banks that have been reluctant to take a digital leap to really embrace the new digital world,”
he concluded.

Contrary to what might seem to be obvious, it is not only technological capability that is holding Malaysian banks back from embracing the digital world – for many, it is the need to transform culturally that is the blocker.
In fact, more than 80 percent of banking leaders surveyed strongly agreed that replacing outdated mindsets with a progressive social purpose was vital to growth strategy.
No longer is banking purely about profits; banks that are succeeding in this new age are those putting the customer at the center of their own financial journey, creating a socially sustainable business that is future-ready and customer-centric.
Over the last 18 months, as the world grappled with the ongoing Covid-19 pandemic, it has become increasingly clear how important it is for banks to have a robust digital banking offering.
Now, as the world’s economies commence their post-Covid recoveries, having an agile and effective digital transformation strategy in place is absolutely critical.
As this FT Focus research identifies, it is those banks that fail to embrace digitisation that will cease to exist.
The research report “Evolve or be extinct” by Mambu and FT Focus is available here:

Featured image credits: Edited from Unsplash

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Payments
Various

Newly Minted Indonesian Fintech Unicorn Xendit Relocates Financial Hub to Malaysia

									by Fintech News Malaysia
September 21, 2021
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Indonesian payments unicorn Xendit will be relocating its financial hub to Malaysia, this was announced during a speech by Finance Minister, Tengku Datuk Seri Zafrul Tengku Abdul Aziz during the launch of Malaysia’s Capital Market Plan 3.
The Indonesian fintech firm recently earned its unicorn badge with a US$ 150 million Series C funding round led by Tiger Global Management.
The relocation of Xendit’s financial hub to Malaysia follows an investment from the Dana PENJANA programme.

Tengku Datuk Seri Zafrul Tengku Abdul Aziz said,
“This is a testament of how an initiative such us Dana PENJANA has spurred innovation and provided risk capital to nurture new businesses and startups in Malaysia.”
The Dana PENJANA initiative is a matching fund-of-funds programme, which is part of the Short-Term Economic Recovery Plan (PENJANA). The Government of Malaysia will match RM 600 million, on a 1:1 basis, to the funds raised by the VC fund managers from foreign and private domestic investors, with a target allocation of RM 1.2 billion.
This announcement follows the Malaysian government’s recent commitment to creating 5 unicorns within 5 years.
In July, the used car marketplace Carsome became Malaysia’s first unicorn, which also saw investment from the Dana PENJANA Nasional programme.

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Insurtech

UOB Malaysia Taps Prudential’s Virtual Face-to-Face Feature to Offer Insurance

									by Fintech News Malaysia
September 22, 2021
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UOB Malaysia has tied up with Prudential Assurance Malaysia Berhad (PAMB) to provide customers with a suite of insurance solutions through a new Virtual Face-to-Face (VF2F) feature on Pulse, the insurer’s all-in-one health and wellness app.
The bank said that it the first in Southeast Asia to use the VF2F feature.
UOB Malaysia’s 360 sales representatives can use the VF2F feature on the Pulse app to connect with their customers via chat or video call and help them with insurance advisory services including recommending life insurance products relevant to their needs.

The VF2F feature also enables the bank’s customers to submit the necessary documentation and forms electronically.
As the entire process, from receiving financial guidance to applying for and confirming their insurance coverage is conducted on the app.
Ronnie Lim
Ronnie Lim, Managing Director and Country Head of Personal Financial Services, UOB Malaysia said,
“The latest digital offering is part of the Bank’s continuous efforts to offer greater convenience while safeguarding the health and safety of our customers and employees.

With more consumers using smartphones to manage their financial needs, we hope that one in every two customers will benefit from this new feature and sign up for the protection or wealth solutions that we offer together with PAMB,”
Lee Ee Hui
Lee Ee Hui, Senior Director, Partnerships Distribution of PAMB said,
“Prudential’s purpose has always been to help people get the most out of life through protecting their health and growing their wealth. The pandemic has elevated the awareness of insurance protection and the critical need to be financially protected.

With this partnership, we are able to offer UOB Malaysia’s customers a secure end to-end service anytime, anywhere through our AI-powered health app, Pulse.”

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WealthTech

StashAway Malaysia Rolls Out Three Tech-Focused Thematic Portfolios

									by Fintech News Malaysia
September 28, 2021
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Southeast Asian digital wealth manager StashAway announced that it has launched three thematic portfolios given its growing popularity that is eclipsing traditional equity sectors.
The themes include technology enablers, the future of consumer tech, and healthcare innovation.
According to StashAway, the portfolios feature ETFs from some of the world’s top fund managers, including ARK Invest, iShares, Global X, and VanEck.

The firm added that the risk management feature of its thematic portfolios sets it apart from simmilar offerings that are available to both retail and institutional investors.
The feature enables investors to select the downside they’re willing to accept in a given year, and then the StashAway platform will reportedly maximise the thematic exposure as much as possible within those risk constraints.
Since 2018, the amount of assets in thematic funds globally have grown at an annual rate of 37%. In 2020 alone, assets in thematic funds grew by 77% while thematic portfolios have accounted for nearly 40% of all equity fund net sales since 2017.
Freddy Lim
“This gives investors the access to thematic investing without the risk inherent with thematic investing. The remaining non-thematic assets in a portfolio are there to manage risk. We call these non-thematic assets ‘balancing assets’, and their role in our thematic portfolios is just as important as the thematic assets.”
said StashAway Co-founder and CIO, Freddy Lim.
Albert Kok
“StashAway’s thematic portfolios will empower Malaysians to invest in promising innovations for the long term. Innovations that aim to shape the future take time to grow and gain market acceptance. So, it’s important for investors to have a long-term mindset when investing in these themes,”
said Albert Kok, Deputy Country Manager, Malaysia at StashAway.

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Payments

Malaysia’s DuitNow and Singapore’s PayNow to Link in 2022

									by Fintech News Malaysia
September 27, 2021
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The Monetary Authority of Singapore (MAS) and Bank Negara Malaysia (BNM) today announced plans to commence a phased linkage of Singapore’s PayNow and Malaysia’s DuitNow real-time payment systems.
The first phase of the PayNow-DuitNow linkage will be launched in the fourth quarter of 2022. This will allow customers of participating financial institutions to make real-time fund transfers between Singapore and Malaysia using just a mobile number.
Customers will also be able to make retail payments by scanning NETS or DuitNow QR codes displayed at merchants’ storefronts. The project will enable more seamless payments for the high volume of remittances between Singapore and Malaysia, which reached SGD 1.3 billion in 2020. It will also cater to travellers between both countries, which saw sizeable pre-pandemic traffic of about 12 million arrivals yearly on average.

Following the launch, MAS and BNM will progressively expand the PayNow-DuitNow linkage to incorporate a wider range of features and participants. Both regulators will also explore the feasibility of integrating innovative features such as distributed ledger technology-based solutions to catalyse greater efficiencies in payments clearing and settlement between participating banks.
The PayNow-DuitNow linkage represents another significant milestone in the history of close ties between Singapore and Malaysia. The linkage closely aligns with the G20’s work of driving faster, cheaper, more inclusive, and more transparent cross-border payments, and is a concrete step towards achieving an ASEAN network of linked real-time payment systems.
This announcement follows a similar arrangement between Malaysia and Thailand.
Fraziali Ismail
Fraziali Ismail, Assistant Governor of BNM said,
“By bringing the efficiencies observed in domestic payments to cross-border payments, the PayNow-DuitNow linkage will be a game-changer resulting in faster, cheaper and more accessible payment services for the people of both countries. Not only would this initiative further strengthen the economic ties between Singapore and Malaysia, it would also serve as a key enabler to support post-pandemic economic growth.”
Sopnendu Mohanty
Sopnendu Mohanty, Chief FinTech Officer of MAS, said,
“Singapore’s remittance corridor with Malaysia is our largest remittance corridor; hence, the PayNow-DuitNow linkage will be an important infrastructure to support cross-border payment needs of individuals and businesses, as well as the growing digital economic activity between both countries. The linkage also offers MAS and BNM a valuable opportunity to incorporate the use of distributed ledger and smart contract technologies in the wholesale cross border payments space.”

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Funding
Insurtech

Insurtech Firm PolicyStreet Raises RM 25 Million in Series A Round

									by Fintech News Malaysia
September 29, 2021
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Malaysian based insurtech firm PolicyStreet.com, announced the completion of its Series A fundraising round totalling RM25 million over two tranches.
The latest round is led by Altara Ventures, Auspac Ventures, Gobi Partners, and the Leong family of Mah Sing Group led by business magnate Tan Sri Dato’ Sri Leong Hoy Kum.
PolicyStreet.com raised an earlier round via PitchIN, KK Fund and Spiral Ventures during the height of the COVID-19 crisis in June last year one, the largest amount raised from an equity crowdfunding platform in Malaysia.

The announcement of today’s Series A round also coincided with PolicyStreet.com securing in-principle approval for a combined Reinsurance and General Insurance license from the Labuan Financial Services Authority, the financial regulator for Labuan International Business and Financial Centre.
It is the second insurtech to be granted the insurance license. The license will allow PolicyStreet.com to underwrite reinsurance and general risks as it looks to expand its strategic partnerships and footprint in the region.
In 2019, it was the only local insurtech that received the Financial Adviser and Islamic Financial Adviser approval from the Central Bank of Malaysia, enabling it to work with 40 insurance and takaful providers in sourcing, aggregating, customising and advising customers on the best insurance products that meets their needs.
The latest funding round follows a series of strategic partnerships PolicyStreet.com recently including the likes of airasia money, foodpanda and myTukar
With the new round of funding, PolicyStreet.com aims to expand into new markets in the region, while doubling down on its technological capabilities and marketing efforts to address protection gaps and provide greater variety of insurance products to meet the growing demands of the digital economy.
Today, the insurtech serves not just end-users but also businesses in providing customised Employee Benefit, Building and Group Personal Accident insurance. Its business clientele includes small to large corporates and technology companies.
Yen Ming Lee, Co-Founder and CEO of PolicyStreet.com, said
Lee Yen Ming

“We are truly proud to have Altara, Auspac, Gobi and the Leong family’s belief in our vision. We are excited to introduce new sachet-based and on-demand insurance products with our new license to power up the digital ecosystem, while continuing to provide value to all our existing customers in South East Asia. With a very seasoned and experienced team of investor partners, PolicyStreet.com is convinced that our new investors will be able to help us grow to be the leading insurtech in the region.”

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Blockchain/Bitcoin

62% of Malaysians Open to Investing in Cryptocurrencies

									by Fintech News Malaysia
September 29, 2021
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Luno, a regulated digital asset exchange in Malaysia, announced the completion of an online nationwide survey aimed at understanding the financial management habits of everyday individuals.
Conducted by YouGov, the data was collected from more than a thousand Malaysian adults throughout the country. They said this is to ensure a statistically accurate representation of the typical saving and investment strategies employed by the general public.
The survey highlighted that Malaysians predominantly view wealth as an important catalyst in attaining greater financial freedom for both themselves and their families.

A majority of respondents (60%) stated that the importance of having money to them is for safeguarding their family’s financial well-being. Additionally, 58% of respondents stated the importance of attaining a financially flexible lifestyle in the future.
According to the survey, 64% of the total sampled population stated that they save their money often. The data also illustrated that respondents aged between 18-34 years old were most likely to be in (66%) the regular savers group; in comparison, only 55% of 55+ year olds are regular savers. This indicates that the younger generations of Malaysians tend to be more proactive in their savings compared to the older generations.

In terms of where these regular savers would likely allocate their savings to, the survey found that 46% and 41% of them prefer to place their savings into government-supported unit trust funds (ASNB) and pension funds (EPF/PRS), respectively.
This is possibly due to the fact that these funds are well-established and give decent investment returns, and will compound in value over time. It is also interesting to note that 26% of these savers stated that they would invest their savings into gold as a store of value; possibly as a way to hedge against inflation.
When it comes to making investment decisions, the survey pointed out that respondents were more likely to be influenced by family members and peers (31%) compared to professional financial advisors or financial service companies (19%).
According to the data, most (34%) of the respondents tended to seek financial advice about long-term savings and investment strategies, while financial advice on budgeting, financial planning, and debt management was less popularly sought out (24%).

The survey highlighted that Malaysian investors are more confident in the idea of using cryptocurrencies as a viable method in attaining long-term wealth creation and preservation. A total of 62% of current investors stated that they would consider investing in alternative assets like cryptocurrencies as a way to diversify their portfolios.
Furthermore, 37% of respondents stated that the ability to utilize cryptocurrencies for long term investment purposes was an interesting feature of the digital asset. On a similar note, 40% of respondents stated that using cryptocurrencies as an alternative store of value was an attractive feature as well.
According to the survey, Malaysians are generally thoughtful and aware of risk management when investing into cryptocurrencies. For example, the survey highlighted that 42% of cryptocurrency investors stated that they only purchase cryptocurrencies from reputable and trusted exchanges.
In turn, roughly 43% of these respondents would ensure that they conduct proper and thorough research prior to committing to a transaction. To limit their financial exposure to cryptocurrencies, 57% of respondents stated that they would only invest what they can afford to lose.

According to the survey, 34% of those who do not currently invest said that they would likely start investing with cryptocurrencies if there is better financial education on how to properly trade the digital asset. On a similar note, 46% of the same group hope that local regulated cryptocurrency exchanges would feature more easy-to-understand financial educational resources as well.
Aaron Tang
Speaking about the findings, Aaron Tang, Luno Malaysia Country Manager, said,
“Our research has clearly demonstrated to us that more work needs to be done, by both regulators and the industry, to better prepare retail investors for the cryptocurrency market. While it is a welcome sight to see that most retail investors do understand the risks associated with cryptocurrency trading and try to mitigate them as best as they can, we still feel the number of investors who actually undergo such prudent measures is low.’

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Lending
Payments

PayHalal Taps Atome for Islamic BNPL Services in Malaysia

									by Fintech News Malaysia
October 1, 2021
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Shariah-compliant payment gateway PayHalal has partnered with Buy Now Pay Later platform Atome, to enable seamless Murabaha buy now pay later (iBNPL) acceptance across the former’s merchant touchpoints in Malaysia.
Murabaha is also known as cost-plus financing, an Islamic financing structure in which the seller and buyer agree to the cost and markup of an asset. A murabaha is not an interest-bearing loan as the markup takes place of interest which is illegal in Islamic law.
By partnering Atome to introduce iBNPL across PayHalal’s merchant touchpoints, shoppers will now have access to a flexible, convenient and secure payment option that allows them to split their purchases into three zero-interest deferred payments, with no annual or servicing fees.

PayHalal said that it plans to roll out the iBNPL acceptance in Indonesia in the coming months.
Muhammad Sulwan Mohamed Subhan
Muhammad Sulwan Mohamed Subhan, acting Chief Executive Officer of PayHalal said,
“The pandemic-driven shift towards online shopping has created an urgent need for Muslim retailers and businesses to improve and enhance the ecommerce user experience.

This partnership with Atome will broaden the payment experience across thousands of point-of-sale checkouts, with the right assortment of payment options, throughout PayHalal’s merchant network.”
David Chen, CEO of Atome said,

David Chen
“We’re excited to partner PayHalal to expand seamless Murabaha buy now pay later acceptance first in Malaysia before rolling out in Indonesia in the coming months.

This partnership will enable Muslim retailers and businesses to provide a seamless and superior checkout experience for their consumers as we emerge from the Covid-19 pandemic,”

Featured image: Edited from Unsplash

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Payments

HSBC Malaysia Has Entered the BNPL Arena with Visa Instalments

									by Fintech News Malaysia
October 4, 2021
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HSBC Malaysia has launched Visa Instalments, a new credit option to establish fixed repayment terms for select purchases over a set period of time on e-commerce platforms.
The bank said that its Visa cardholders can now instantly select to pay for their purchases in equal instalments at participating merchant websites.
HSBC added that the instalment plans are offered with 0% interest-rate and range from 3 months for minimum purchases of RM300 and up to 36 months for purchases of RM2000 and above.

All instalment plans selected for the purchase amount within an eligible HSBC customers’ total credit limit will be approved automatically, with no new credit checks or additional lending required.
Cardholders will also be able to access Visa Instalments on international merchants’ e-commerce platforms by 2022.
Renee Bullock-Cann
Renee Bullock-Cann, Head of Wealth and Personal Banking, HSBC Malaysia said,
“HSBC seeks to deliver our customers a seamless, faster and flexible digital payment experience.

With Visa Instalments, we’re enabling this capability, as well as helping our customers fit their purchases into their budgeting plans to alleviate the stress of making large purchases upfront.”
Ng Kong Boon
Ng Kong Boon, Visa Country Manager for Malaysia said,
“Visa Instalments empowers consumers with an additional ability to choose how they pay upon checkout, and simplifies the current friction and time-consuming instalment process for buyers and sellers.

We’re pleased to share that HSBC is the first issuer in Asia to introduce this solution to our cardholders in Malaysia, allowing them to split their payment purchases at participating eCommerce merchants.”

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Payments

Razer Ties up With PayNet to Power Tap-on Phone Services for Merchants

									by Fintech News Malaysia
October 5, 2021
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Razer Merchant Services (RMS), the B2B arm of Razer Fintech, has partnered with Payments Network Malaysia (PayNet) to launch the MyDebit Tap-On-Phone (TOP) feature on the RMS Virtual Terminal (RMS VT) mobile application.
Through the RMS and PayNet collaboration, merchant smartphones can be converted into payment terminals, enabling smaller merchants to accept MyDebit payments without incurring rental and monthly maintenance fees for card payment terminals.
The MyDebit TOP feature was enabled by Soft Space.

Consumers merely need to tap their MyDebit ATM cards on merchants’ Android Near-Field Communication (NFC) devices to transact purchases below RM 250 securely, while RMS has enabled the ‘PIN on Glass’ verification feature for contactless transactions above the stipulated amount.
RMS aims to enable 2,000 merchant touchpoints with the MyDebit TOP contactless payment feature by the end of 2021 via the RMS VT app.
The app can accept various payment options, including online banking, popular local and cross-border e-wallets, and now, MyDebit.
RMS VT aims to ease digitisation among non-urban merchants by relieving them of the usual costs to obtain payment terminals, including deposits, rental, and maintenance fees.
The on-boarding process is fully digitalised, and once registered, merchants can download the app to activate their account. Post activation, merchants may start transacting, as deployment is immediate upon application approval.
The RMS VT app also supports face-to-face and remote transactions via online payment links and a vast variety of other payment options, including PayNet’s DuitNow QR.
Li Meng Lee
” This partnership with PayNet cements the VT app as a revolutionary mobile payment software platform that our offline merchants can use to accept MyDebit ATM cards.

RMS VT’s mobility will simplify how RMS merchants receive payments at a fraction of the usual cost. We are very excited to help more small and medium businesses grow with just a tap on their phone,”
said Lee Li Meng, CEO of Razer Fintech.
Peter Schiesser
“We have worked closely with RMS for many years now, and they are gaining good traction with micro, small and medium enterprises.

This new collaboration between MyDebit Tap-On-Phone with RMS would provide opportunities for more MSMEs to go digital and offer contactless card payments and is in line with our strategy to expand MyDebit’s acceptance at Retail and F&B segments,”
said Peter Schiesser, Group Chief Executive Officer of PayNet.

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E-Wallets
Payments

MyMy Partners Mastercard Ahead of Launch in 2022, Raises RM4 Million Funding

									by Fintech News Malaysia
October 6, 2021
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Homegrown e-wallet player MyMy announced its partnership for a principal membership from Mastercard to add prepaid physical and virtual cards to their offering.
MyMy said in a statement that it is the only Malaysian startup that was able to receive this approval from Mastercard.
It also added a further raised RM 4 million in funding from an undisclosed source, bringing the company’s total funding to RM23 million.

MyMy had previously received conditional approval for a large scheme Electronic Money License from Bank Negara Malaysia and plans to launch its services in early 2022.
Users can now pre-register to join MyMy.
Kishore Samuel
“If the pandemic has shown us anything, it’s that Malaysians deserve better financial services. Having to visit bank branches for the most simple of tasks is outdated.

We want to build financial services from the ground up with all Malaysians at the center of the solution. We also want to show all Malaysians that fintech entrepreneurship is possible without moving to Silicon Valley, ”
said Kishore Samuel, CEO and Co-Founder of MyMy.
Devesh Kuwadekar
“In recent years, Malaysia-based financial technology companies have played a pivotal role in driving the country’s digital economy.

Across the world, the payments ecosystem is vast and changing and partnerships like this will be crucial in opening doors for underserved markets such as cooperatives, addressing the gaps on the fintech roadmap and enabling those businesses access to better use of financial services,”
says Devesh Kuwadekar, Vice President of Market Development, Malaysia, Mastercard.

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Blockchain/Bitcoin

SC Issues Cease and Desist to Rimau Swap for Illegally Operating a DEX

									by Fintech News Malaysia
October 7, 2021
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Following information received from the public, the Securities Commission Malaysia (SC) has issued a cease and desist order to RimauSwap for operating a Decentralized Exchange (DEX) without authorisation from the SC.
The SC will also seek the assistance of the Malaysian Communications and Multimedia Commission (MCMC) to block RimauSwap’s website. Additionally, RimauSwap has been placed on the SC’s Investor Alert List.
DEX is a peer-to-peer exchange that allows individuals to swap digital assets directly with one another without an intermediary. Transactions in these exchanges are operated through an automatic protocol mechanism known as smart contracts.

The SC has not authorised any DEX operators in Malaysia. SC reminds members of the public are reminded not to deal with unregistered entities operating a DEX in Malaysia.
The SC also warns all unregistered DEX operators in Malaysia to immediately cease their activities. Operating a DEX without registration with the SC is an offence under the Malaysian securities laws.
Entities who are interested in operating a DEX in Malaysia should apply to be registered as a Recognized Market Operator (RMO) with the SC. In addition, the SC
urges investors to only trade with RMOs that are registered with the SC, and to refer to the SC’s website for a list of registered RMOs.
SC cautions that investors who trade with unlicensed or unregistered entities or individuals are not protected under Malaysian securities laws, and are exposed to risks, such as fraud and money laundering.
Members of the public are also urged to report to the SC if they come across suspicious activities, websites and investment opportunities, especially those that offer high returns with little or no risks.

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Insurtech

Merchantrade Partners MCIS Life  to Launch Micro Insurance With Celcom

									by Fintech News Malaysia
October 8, 2021
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Merchantrade Asia, a Malaysian money services business provider, has partnered with MCIS Insurance (MCIS Life) for a life insurance plan along with Celcom Axiata.
This launch is part of the Perlindungan Tenang Voucher Programme (PTV) is an initiative by the Malaysian government to expand social protection for B40 group.
Under this programme, a RM50 voucher is allocated for eligible Bantuan Prihatin Rakyat (BPR) recipients to help them purchase Perlindungan Tenang products from licensed insurers and takaful operators.

Through this partnership, the Merchantrade Insure Life plan can be redeemed using the RM50 PTV as announced in the 2021 national budget.
This redemption enables eligible Malaysians aged between 18 and 60 years old who are currently recipients of BPR, to get Merchantrade’s Insure Life policy coverage with a sum insured of RM20,000 for 1 year.
Merchantrade’s Insure Life, underwritten by MCIS Life,  is said to be a simple sign-up process, with no waiting period, no medical check-up required and comes with 24-hours worldwide protection.
It was reported that about 8.4 million eligible BPR recipients will benefit from the PTV programme.
T. Kugan
T. Kugan, Chief Emerging Business Officer of Celcom Axiata Berhad said,
“Celcom continues to strive in providing various affordable insurance coverages such as Life, Personal Accident and Snatch Theft to all Malaysians. With Celcom’s widest 4G LTE network coverage, we are also able to reach out the underserved segment across Malaysia through our Celcom Life App. We also look forward to continue our partnership with Merchantrade Insure and offer more simple, direct, affordable and accessible solutions to our customers,”

Featured image credit: Edited from Freepik

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Payments
Security

GrabPay Enhances Online Payments Security With Biometrics

									by Fintech News Malaysia
October 8, 2021
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GrabPay announced that it has recently strengthened its safety and security features designed to protect its users from fraud and security risks.
The in-app wallet of superapp Grab has multi-layer security features will enable users to perform real-time digital transactions on the platform securely.
One of the improved safety measures includes a two-factor authentication (2FA) with Grab PIN and biometrics which is encouraged for all GrabPay users.

The 2FA has been an existing feature on GrabPay that protects users when their mobile phone is compromised.
All GrabPay users are required to create a six-digit PIN if they have not done so previously.
Users will also have an option to activate added biometric authentication security measures such as fingerprint or Face ID to further protect their information based on their mobile device settings.
Priyanka Madan
“As a homegrown tech enabler, we have always advocated for safe, convenient, and seamless digital payments. We prioritise our users’ data privacy and information protection across all our financial services and platform.

Now, with the added two-factor authentication feature on our platform, our consumers have greater peace of mind when they pay with GrabPay”
said Priyanka Madan, Head of GrabPay, Grab Malaysia.

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WealthTech

PNB’s Amanah Saham Rolls Out Digital Onboarding for Investment App

									by Fintech News Malaysia
October 12, 2021
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Amanah Saham Nasional Berhad (ASNB), the wholly owned unit trust management company of Permodalan Nasional Berhad (PNB), announced the launch of its mobile registration and digital onboarding feature (e-KYC), as well as a new goal-based investing function in the myASNB mobile application.
The new mobile onboarding feature allows Malaysians to open accounts via the myASNB app, without having to visit ASNB branches or its agents.
Likewise, existing customers can set up their myASNB portal and mobile app accounts, or update their personal details directly through the portal or app, enabling them to begin investing from the comfort of their homes.

Meanwhile, the new goal-based investing function, Target Labur, is designed to encourage individuals to achieve their financial goals such as buying a property, saving for retirement, planning for a vacation, or setting aside funds for their child’s education.
In addition to the preset goals, unit holders can also customise their own targets. The Target Labur function will be rolled out in stages, starting with those in the 18-34 years old category, and will be available to all myASNB app users by 29 October 2021.
In line with the new features, ASNB kicked off the #JomLabur campaign to reward unit holders who create two goals of at least RM5,000 each.
The campaign, which runs from 8 October to 31 December, is supported by UMW Group, Payments Network Malaysia (PayNet), Jirnexu (the holding company of RinggitPlus.com) and GrabCar.
As part of ASNB’s Digitalisation Strategy, the enhancements to the myASNB app are aimed to facilitate seamless and convenient investing for all Malaysians to achieve their financial goals.
Ahmad Zulqarnain Onn
Ahmad Zulqarnain Onn, President and Group Chief Executive of PNB said,
“These enhancements on the myASNB mobile app are part of our commitment to continuously deliver innovation to our unit holders.

Anyone can now open an ASNB account or register for the myASNB portal and app purely through their mobile phone.”
Peter Schiesser
Peter Schiesser, Group Chief Executive Officer of PayNet, the gold sponsor of the #JomLabur campaign, said,
“We are honoured to partner with PNB in the digitalisation of investments with the provision of FPX for the payment of investments in ASNB unit trusts in the myASNB app.

With Malaysia’s highly banked population, having FPX as a payment option for myASNB is beneficial and cost-effective in helping people in both urban and rural areas to invest for their future.”

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WealthTech

HSBC Malaysia Unveils In-App Investment Dashboard

									by Fintech News Malaysia
October 15, 2021
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HSBC Malaysia has recently enhanced its mobile app with a new feature, a “Wealth on Mobile” dashboard so customers can to invest and track their portfolios at the tap of a button.
The mobile wealth dashboard provides a snapshot of the customer’s wealth landscape with HSBC, allowing customers to review clear and concise account information, activities and investment transactions in an easy-to-read format.
The dashboard can be used as a reference when customers need to make their next key decisions on their investments.

Using this dashboard, customers are also able to access global market insights and easily make investments in unit trust funds with EZInvest – HSBC’s unit trust investment platform on mobile with a selection of unit trust funds of different asset classes for better diversification.
This is available to all of the bank’s local customers with a HSBC or HSBC Amanah investment account.
Jon Chivers
Jon Chivers, Head of Wealth, Wealth and Personal Banking (WPB) at HSBC Malaysia said,
“At HSBC we continue to invest in digital capabilities that will provide our customers a seamless and robust wealth management experience at their fingertips.

With Wealth on Mobile, our customers will have a complete view of their investments with HSBC and unprecedented control of their portfolio to build their wealth at any time.”

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AI
WealthTech

Robo-Advisor MYTHEO Introduces New AI-Based ESG Portfolio

									by Fintech News Malaysia
October 19, 2021
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MYTHEO, a robo-advisor regulated by the Securities Commission Malaysia, has launched a fully AI-based Environmental, Social and Governance (ESG) themed portfolio known as the MYTHEO Global ESG.
The firm claims to be the first in the country to do so.
The portfolio will invest primarily in ESG-related equity ETFs, particularly those that has an investment policy of taking into consideration the environment, social and corporate governance such as having a right balance of executives and directors with strong elements of gender and racial diversity, strict anti-corruption policies and strong internal controls in place.

This will allow investors to align their financial goals with the values that they strongly believe in as they start to look beyond balance sheets and profit or loss statements to identify investments that are responsible and sustainable.
The MYTHEO Global ESG portfolio currently has 11 ETFs with an exposure of 49.95% in the United States and 50.05% globally.
The performance for this ESG portfolio was back-tested all the way to July 2006, which yielded an annualised net return of 9.27% as compared to the MSCI ACWI Index at 8.93%.
Ronnie Tan, Chief Executive Officer and Managing Director of GAX MD, said the rollout of the MYTHEO Global ESG was timely as investments in the ESG space is gaining momentum, at a time when the Covid-19 pandemic laid bare social and economic issues.
Existing MYTHEO investors can create a new portfolio for the MYTHEO Global ESG using their accounts.
Ronnie Tan
Ronnie said in a statement,
“We are very excited to introduce our latest portfolio, the MYTHEO Global ESG.

We wanted to provide a mechanism to contribute to the realisation of a sustainable society through digital investment management for investors who wish for a healthier future environment, a just and equitable society, sustainable corporate practices, and good governance.”

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Australia
Payments

ASX-Listed Payments Firm Novatti Acquires Malaysian Fintech ATX for US$7.1 Million

									by Fintech News Malaysia
October 21, 2021
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Novatti, an Australian Securities Exchange-listed payments firm, announced that it has acquired Malaysian fintech ATX for AUD 9.5 million (US$7.1 million) according to MarketScreener.
ATX’s management team, including the founders who will be filling in as CEO and director for strategy, will stay on after the deal concludes.
This acquisition will enable Novatti to utilise its environment and assets to grow the current ATX business in Malaysia which includes its e-wallet.

Novatti will also be able to dispatch extra services by offering other value-added items to ATX’s client base.
ATX offers a variety of B2B and B2C payment services with a network that includes over 31,000 touchpoints that allow residents to pay invoices, buy cards, recharge cards, and send money.
Novatti has been a working partner with ATX since 2015, largely focused on leveraging the former’s technology in providing digital payment solutions to Malaysian businesses.
Earlier this month, Novatti had secured AUD10.5 million (US$7.9 million) during a Series A funding round to launch its banking subsidiary, Novatti B Holding Company (NBHC).
Kelly Koh
Kelly Koh, Co-Founder and Director Strategy at ATX said,
“This acquisition will strengthen the financial ecosystem of Malaysia by making digital payments more accessible to businesses and individuals. We will now target the untapped markets with new innovative payments solutions that Novatti brings to the table. We are really excited and look forward to continuing our growth trajectory with Novatti.”

Featured image: Edited from Unsplash

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Payments

Thai Payments Gateway Omise Rolls Out in Malaysia

									by Fintech News Malaysia
October 26, 2021
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Omise, a Thailand-based payments gateway for businesses in Southeast Asia and Japan, announced that it has officially launched in Malaysia as part of the company’s ongoing expansion roadmap across the region.
As a registered merchant acquirer regulated by Bank Negara Malaysia (BNM), Omise is set to roll out its payment gateway services to all businesses operating in Malaysia.
Businesses operating online can now accept payments securely, manage transactions, send payouts, and expand operations regionally to capture more sales and grow revenue.

Additionally, businesses already using Omise in Thailand, Japan, and Singapore can now expand their business and operations into Malaysia.
Omise has collaborated with Maybank’s cash management team to support the digitalisation initiative.
With this collaboration, merchants can quickly start accepting online FPX payments through the 19 supported banks.
Ivy Lee
Ivy Lee, the Country Manager at Omise Malaysia said,
“Opening an office here enables our local team to work more closely with businesses — understanding their pain-points and building the payment solutions that would best support them.

I look forward to helping companies in Malaysia leverage digital payment technology to better enhance customer experience and increase revenue.”
Farid Kairi
Farid Kairi, Managing Director, Global Markets and Transaction Banking, Maybank said,
“We are pleased to collaborate with Omise to support e-commerce businesses in the Southeast Asia region by curating an end-to-end digital payment ecosystem.

Omise will be able to utilise our cash management solutions for better customer experience and revenue generation given Maybank’s focus in delivering sustainable value to our clients and enabling financial access and inclusion for the wider community.”

Featured image: Edited from Unsplash

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WealthTech

Kenanga Investors Launches Fund Focused on Global Tech Firms for Retail Investors

									by Fintech News Malaysia
October 28, 2021
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Kenanga Investors Berhad has announced the launch of the “Kenanga Sustainability Series: Frontier Fund” with an initial offer period is from 27th October through 3rd December 2021.
The fund feeds into the Ericsenz Frontier Fund and is suitable for sophisticated investors who have medium to long-term investment horizons and is available in both MYR and USD classes so investors can choose to invest in their preferred currency.
The fund aims to invest primarily in equity securities of global innovative companies with long-term sustainable growth potential, are on the cusps of initial public offerings, and have or will develop products and services that are linked to technologically-driven innovations.

Kenanga Investors said in a statement that it foresees significant investment possibilities in these growth or late stage ventures focused on the space economy, metaverse, healthcare, fintech and cybersecurity.
The fund will allow investors to capture the sustainable value generation of these companies, which were previously exclusively available to institutional investors.
Ismitz Matthew De Alwis
Ismitz Matthew De Alwis, Executive Director and Chief Executive Officer of Kenanga Investors said,
“Frontier tech represents a multitude of opportunities in boosting the development curve of the future, from utilisation of technologies to reduce carbon emissions, new medical discoveries to propel patient empowerment to the democratisation of financial services, the advent of frontier tech will allow for greater societal benefits and driving sustainable returns.”

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E-Wallets
Payments

Touch ‘N Go eWallet to Roll Out Prepaid Card With Visa by 2022

									by Fintech News Malaysia
October 28, 2021
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Touch ‘n Go has partnered with Visa to develop a prepaid card solution tied to its e-wallet which is expected to be available to users in 2022.
The Touch ‘n Go-Visa Prepaid Card will enable the e-wallet to offer additional cash-out options with last-mile withdrawals at Visa-enabled ATMs domestically and globally.
The card complements Touch ‘n Go eWallet’s existing network of QR merchants in Malaysia with Visa’s broad network of more than 70 million merchant locations globally.

Touch ‘n Go eWallet will also join Visa’s Fintech Fast Track Programme, allowing it to directly access the payment giant’s global network of partners and affiliates.
Effendy Shahul Hamid
Effendy Shahul Hamid, Group CEO, Touch ‘n Go Group said,
“This strategic collaboration between Touch ‘n Go and Visa will take the work between our companies to the next stage.

Both brands are customer focussed, and with Visa, we expect to continue to strongly deliver a variety of value- added services to our eWallet users,”
Ng Kong Boon
Ng Kong Boon, Visa Country Manager for Malaysia said,
“As the COVID-19 pandemic is expected to accelerate the transition of our country towards a fully cashless society by 2025, we are pleased to partner Touch ‘n Go to enable more consumers to adopt digital payments through the issuance of a Visa card.

Through this partnership, we also look forward to jointly launching a varied set of financial service offerings with Touch ‘n Go for the unbanked and underserved segments in Malaysia, leveraging the global accessibility of Visa’s network partners.”

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Payments

Tranglo Launches New Payment Corridor to Mongolia

									by Fintech News Malaysia
November 1, 2021
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Tranglo, a cross-border payment firm, has announced the launch of its brand new payment corridor to Mongolia.
The company said in a statement that it will aim to improve the cross-border payment services in Mongolia via a single connection to regional corridors and local partners.
Tranglo’s payment channels in Mongolia include direct-to-bank transfers and cash pickups.

Additionally, ongoing improvements that may make their way there include blockchain integration through RippleNet, as a result of its partnership with Ripple.
Tranglo helps financial institutions and businesses pay globally through Tranglo Connect, its proprietary cross-border payments solution.
It integrates payout and partner services seamlessly, unifying the end-to-end payment process.
With Tranglo Connect, companies can immediately make payments to over 23 countries reliably and securely.
Jacky Lee
Jacky Lee, CEO of Tranglo said,
“The entry into Mongolia is in line with our plans this year. Mongolia is a key market with huge potential. It received about US$550 million in remittances last year against the backdrop of a global pandemic.

Moving forward, we aim to transform the way Mongolians receive remittances by bridging the payment gaps with our technology.”

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Blockchain/Bitcoin

Malaysian Crypto Startup Torum Secures Investment from KuCoin

									by Fintech News Malaysia
November 5, 2021
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Torum, a crypto startup who describes itself as a SocialFI Metaverse ecosystem for cryptocurrency users and projects announced today that they have secured a undisclosed sum of strategic investment from KuCoin Labs, the US$ 50 Million incubator and research of KuCoin.
As part of this strategic investment, Torum will be building an immersive and interactive SocialFi Metaverse ecosystem, where cryptocurrency users around the world can access Social, Decentralized Finance, NFT and Metaverse all in one place.
The partnership with KuCoin Labs will empower Torum with the connection to exclusive partners and access to premium services (blockchain technical support, legal advice) that are within the reach of the KuCoin ecosystem to focus on the development of the SocialFi Metaverse.

Yi Feng Go, CEO, and founder of Torum said
Yi Feng Go
“This round is a major step towards the upcoming Metaverse revolution. It doesn’t matter if you are a Bitcoin maximalist, DeFi player, altcoin trader or NFT artist. This SocialFi Metaverse is our promise of creating an open, safe and interconnected world for everyone.”
This news follows a recent round of fundraising in August 2021 led by Huobi Ventures for an undisclosed sum and an earlier US$ 1.45 million round in April by private investors.

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Lending

MicroLEAP to Disburse RM10 Million Islamic Financing for MDEC’s Agtech Programme

									by Fintech News Malaysia
November 9, 2021
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Shariah-compliant P2P (Peer-to-Peer) financing platform microLEAP has announced their collaboration with Bank Pembangunan Malaysia Berhad (BPMB) to finance Malaysia Digital Economy Corporation’s (MDEC’s) Digital Agtech Programme.
The programme has been allocated with RM10 million in Shariah-compliant microfinancing for Malaysia’s agriculture community.
The collaboration was struck at MDEC’s AI and Data Week (AIDW) 2021 event, where a virtual MOU was signed between BPMB and MDEC.

The collaboration will feature funding support from BPMB to drive digitalisation initiatives in the country and will be deployed through microLEAP’s financing platform.
With this financing, all parties are hoping to help the farming community thrive with technology solutions, which could be applied to other industries severely affected by the effects of the pandemic.
The financing project starts with the Kuala Langat Area Farmers Organisation with other farming organisations to follow.
Tunku Danny Nasaifuddin Mudzaffar
“Working together with financial institutions and government agencies to provide much needed support to local agri-tech players is the way forward to ensure Malaysia continues its high-potential digitalisation path.

We are proud that established entities such as BPMB and MDEC have chosen microLEAP to work with on this project,”
said Tunku Danny Nasaifuddin Mudzaffar, Founder and CEO of microLEAP.
Mahadhir Aziz
“AgTech is a vital pillar within the digital economy not just in strengthening Malaysia’s food security via increased productivity and efficiency, but also to spark and nurture a new generation of innovation-fuelled farmers.

The collaboration between BMPB and microLEAP is a significant step forward in driving the growth of MDEC’s eLadang AgTech programme towards the vision of a Progressive, Inclusive and Sustainable Keluarga Malaysia,”
said Mahadhir Aziz, CEO of MDEC.

Featured image: (From left to right) Arshad Ismail, President/Group Chief Executive Officer, BPMB, Tunku Danny Nasaifuddin Mudzaffar, Founder & CEO of microLEAP, Mahadhir Aziz, CEO, MDEC

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Lending

iPay88 Partners Atome to Expand BNPL Acceptance to Its Merchants in Malaysia

									by Fintech News Malaysia
November 10, 2021
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Regional payment gateway provider iPay88 announced that it has formed a partnership with buy now, pay later (BNPL) platform Atome.
This enables iPay88 to expand BNPL acceptance across its merchant touchpoints in Malaysia.
The move is timely as BNPL is expected to more than double its market share by 2024 according to the 2021 Global Payments Report by FIS-Worldpay.

As part of the NTT Data corporation, a Japanese system integration company, iPay88 offers ecommerce, online and retail payment solutions to more than 35,000 merchants globally.
Today, the company also has presence in Indonesia, Philippines, Cambodia, Thailand and Singapore and currently engages over 200 professionals across its regional offices.
Lim Kok Hing
Lim Kok Hing, Co-Founder and Executive Director of iPay88 said,
“This partnership will enable them to offer a quicker, smoother and seamless payment experience for their shoppers both online and in stores.

With the growing adoption of BNPL in Malaysia, this partnership will support our merchants by helping them to drive better conversions and business growth through BNPL payment acceptance.”
David Chen
David Chen, CEO of Atome said,
“This partnership will enable more merchants in Malaysia to offer Atome’s BNPL payment option across their payment touch points, giving consumers greater flexibility and choice in how they want to pay.

This partnership will also help support and drive recovery in retail sales as Malaysia emerges from the Covid-19 pandemic.”

Featured image: Edited from Unsplash

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Payments

BNM and PayNet Joins Project Nexus for Faster, Cheaper Cross-Border Payments

									by Fintech News Malaysia
November 11, 2021
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Bank Negara Malaysia (BNM) and Payments Network Malaysia (PayNet) will be participating in Project Nexus by collaborating with international partners on a proof-of-concept (PoC) to improve the cost and speed of cross-border payments.
Project Nexus will explore the feasibility of linking the real-time payment systems in Malaysia, Singapore and the euro area.
This comprises the Real-time Retail Payments Platform (RPP/DuitNow) in Malaysia, the Fast and Secure Transfers (FAST/PayNow) in Singapore, and the Target Instant Payment Settlement (TIPS) in the euro area.

Led by the Bank for International Settlements (BIS) Innovation Hub, Project Nexus is closely aligned with the G20 Roadmap for Enhancing Cross-border Payments.
Other international partners in the project are Banca d’Italia, the Monetary Authority of Singapore (MAS) and the Banking Computer Services (BCS).
The results are expected to be published by end-2022 and the prototypes developed under the PoC will not be available for public use at this juncture.
Malaysia’s participation in Project Nexus complements the country’s existing efforts in linking the RPP/DuitNow with other real-time payment systems in the ASEAN region.
Separately, Bank Negara Malaysia is also working with BIS and several central banks to test the use of central bank digital currencies (CBDCs) for international settlements under Project Dunbar
Fraziali Ismail
Fraziali Ismail, Assistant Governor of Bank Negara Malaysia said,
“Building on the success of bilateral payment linkages with other ASEAN countries, this could pave the way for the RPP/DuitNow to connect with other real-time payment systems globally.

This will support aspirations for faster, cheaper and more accessible cross-border payments for Malaysian residents.”
Peter Schiesser
Peter Schiesser, the Group Chief Executive Officer of PayNet said,
“RPP/DuitNow is a key infrastructure to drive cashless payments and digitalisation in Malaysia. We project about 1 billion real-time payments will be made in Malaysia in 2021.

Project Nexus provides us with a unique opportunity to contribute to the design of next-generation payment infrastructure. This will ensure Malaysia is well placed to capitalise on the outcomes of the project.”

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Lending

Bank Negara Malaysia Leading Efforts to Regulate Buy Now Pay Later Schemes in 2022

									by Fintech News Malaysia
November 12, 2021
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Bank Negara Malaysia (BNM) announced today that it is driving inter-agency efforts to enact the Consumer Credit Act in 2022. Datuk Nor Shamsiah Mohd Yunus, Governor of BNM said that this will strengthen regulatory arrangements for all consumer credit activities including providers of Buy Now Pay Later (BNPL) schemes.
Bank Negara said it will be working together with the Securities Commission Malaysia and also the Ministry of Finance to enforce the act.

“These schemes have been on the rise, not just in Malaysia, but also in other countries and there are legitimate concerns that such schemes may encourage consumers to spend beyond their means, with expensive debt that they may not be able to repay, and most BNPL schemes in Malaysia are offered by non-banks,”
Datuk Nor Shamsiah told reporters.

This regulation will provide much-needed clarity to the regulatory treatment of BNPL schemes which some have considered to be operating in the grey area. With this announcement, Malaysia joins the UK and Australia in being among the first to regulate this growing segment within the fintech space.
Meanwhile, in Singapore, the Monetary Authority of Singapore said that BNPL “does not pose an urgent risk” and they will “assess whether a regulatory framework is necessary to guide the evolution of BNPL schemes as they become more widely used in Singapore.”

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Lending

Pine Labs Partners StanChart to Offer Zero-Interest BNPL Option on Credit Cards

									by Fintech News Malaysia
November 17, 2021
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Standard Chartered’s customers in Malaysia now have the option to avail 0% instalment options on credit cards at any offline point-of-sale powered by merchant commerce platform Pine Labs.
The over 25,000 merchant outlets in Malaysia that run on Pine Labs POS terminals will be equipped to process these Buy Now Pay Later (BNPL) transactions.
Pine Labs, which is backed by Mastercard, had previously launched its BNPL services in Malaysia in March 2021.

Chayan Hazra
“We are very excited to partner with Standard Chartered to provide their customers unique affordability solutions.

We are also planning to periodically roll out other important value-added services like cashbacks and discounts for the Bank’s credit card customers,”
said Chayan Hazra, Head of Payment Business for APAC at Pine Labs.
Sammeer Sharma
“The pandemic has affected many Malaysians, and as we are now getting back to normalcy, this collaboration with Pine Labs on BNPL solutions would connect our customers to a wider ecosystem of merchants to provide a flexible and manageable way to cope with purchases or paying bills.

This is in line with the bank’s commitment to improve product access, financial inclusion and value-added services to our clients,”
said Sammeer Sharma, Head of Consumer, Private and Business Banking at Standard Chartered Malaysia.

Featured image: Edited from Unsplash

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Lending

Funding Societies Launches Referral Scheme for MUFG Malaysia’s Corporate Clients

									by Fintech News Malaysia
November 17, 2021
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Southeast Asian SME digital financing platform Funding Societies has partnered with MUFG Bank Malaysia, a subsidiary of Mitsubishi UFJ Financial Group to launch a Referral Scheme Programme exclusively for the bank’s corporate clients in the country.
The collaboration aims to propagate the economic recovery of the country through the referral scheme programme by leveraging the digital financing solutions to empower small and medium enterprises (SMEs).
Amongst the notable key features of the Referral Scheme includes extended credit terms for SME buyers and accelerated payment for MUFG’s corporate clients.

Additionally, credit will be made available to SMEs to fund and purchase their goods and services from MUFG’s corporate clients, extending their ability to purchase at a higher volume and improving their margins.
This collaboration builds upon Funding Societies’ proprietary digital Supply Chain Financing platform, ‘Silk Road’, which offers fast turnaround time and hassle free online experience to the SMEs in Malaysia.
Wong Kah Meng
“As one of the pioneers of digital financing in the Southeast Asia region, Funding Societies remains committed to supporting SMEs’ business growth and expanding their footprint locally and globally by providing them tailor-made financing solutions to achieve their business goals.

Through this referral scheme programme, Funding Societies is able to provide financing access to SMEs to support their post-pandemic recovery.”
explained Wong Kah Meng, Co-founder and CEO of Funding Societies Malaysia.

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Insurtech

Malaysian Insurtech Fatberry Acquires MooMoo to Expand Its Footprint to Thailand

									by Fintech News Malaysia
November 18, 2021
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Malaysian insurtech platform Fatberry.com announced that it has expanded its footprint to Thailand through the acquisition of Bangkok based MooMoo Non-Life Insurance Broker (MooMoo) for an undisclosed amount.
MooMoo started as a non-life insurance broker in 2014, offering motor insurance from its 16 partnered underwriters to over 6000 customers in Thailand.
The move was made possible through a collaboration with Fatberry.com’s majority investor, ASEAN Fintech Group (AFG).

By adopting Fatberry.com’s insurtech platform and processes, they said its Thailand entity is set to accelerate its growth in the local market.
In parallel, the company will now expand its offerings to include non-life insurance products such as health and commercial products.
Founded in 2017, Fatberry.com provides flexible and affordable insurance products to the masses via an easy-to-use online insurance platform from its partnered underwriters.
Somkiat Chaisuparakul, Executive Director of Fatberry (Thailand) said,
“The Thai non-life insurance market is highly competitive.

To become a leader in the non-life insurance segment in Thailand, the adoption of Insurtech is necessary to increase efficiency and remain relevant.”
John Tan
John Tan, CEO at Fatberry.com, says,
“Thailand marks the first regional expansion destination for Fatberry.com outside of our home market Malaysia.

The Thai insurance market is an attractive and important market for us to enter with our innovative technology and ability as it is one of the largest insurance markets in ASEAN.”

Featured image: Edited from Unsplash

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Regtech/Regulation
Sponsored

8 Technology Requirements to Consider When Future-Proofing Your BNPL Offering

									by Veejay Jadhaw, Chief Technology Officer, Provenir
November 23, 2021
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As the BNPL space expands rapidly, organisations need to infuse their go-to-market strategies with advanced technology to make these programs sustainable – to manage risk and respond quickly to market needs, and to be agile to shift as needed to adapt and keep pace with the evolving regulatory environment.
Technology decisions made now will have a direct and tangible impact on the future adaptability, growth and longevity of your BNPL offering, and the scalability of your entire business.
Here are eight key technology requirements to consider:
1. Ability to quickly leverage alternative data beyond traditional credit checks
In the high-risk, fast-moving BNPL sector, risk decisioning that’s accurate and based on real-time information is essential.
Looking to alternative data outside of the traditional credit score, such as behavioral scores, telco information, transactional data and open banking, can offer BNPL providers real-time insights into affordability and risk.
To improve decisioning accuracy, seek to leverage data from a wide variety of sources.
New approaches eliminate hard coding to streamline data integrations, empowering users to quickly integrate and test new data.
And the market is shifting toward the best-practice approach of using prebuilt connections to data vendor APIs that reduces integration times from months to minutes.
This emboldens BNPL initiatives with newfound agility to access and use of data where needed across decisioning processes, onboarding processes, and/or for performance analysis.
2. Rapid onboarding for merchants and customers
Improving the ease and velocity of the BNPL onboarding experience for both merchants and customers is vital.
After all, the onboarding experience is the first customer impression and a critical first interaction.
According to recent research, unless a financial institution can open a new account or complete a new loan application in less than five minutes, the potential for the consumer to abandon the account opening increases to as much as 60% or more.
Alternatively, faster account openings reduce abandonment rates down to 25% or less.
Automation in digital onboarding can significantly minimise customers’ effort. Ideally, automation augments customers’ data with the additional information needed to perform robust compliance checks, identity verification and risk decisioning all in real-time.
3. Agile compliance processes to address evolving regulations
A solid technology foundation can help BNPL providers accommodate shifting compliance regulations
Building agile processes in areas such as Know Your Customer (KYC) and affordability requirements can ensure your BNPL offerings remain fully compliant.
Solutions that leverage no-code, drag and drop user interfaces can empower risk teams to update processes, add in new data sources and make changes on-the-fly.
By adopting these capabilities, providers can reduce their reliance on outside technology vendors while freeing up development resources to focus on other areas.
4. Integrated fraud detection
Fraudsters have been quick to exploit BNPL consumer-friendly onboarding and purchase experiences.
Fully integrated fraud processes, such as robust Anti-Money Laundering and KYC tools, digital footprint tracking, transaction monitoring, simple integration or advanced fraud tools can thwart those looking to exploit system weaknesses.
5. Continuous improvement via analytics
Constant innovation requires constant iteration of analytics models. It’s essential to have the ability to monitor performance data as it’s happening and use that real-time information to identify trends.
In turn, it must be easy to take those insights and make rapid changes to onboarding processes, models, credit line limits and more, forging a continuous improvement loop that drives innovation.
BNPL providers can leverage key capabilities critical to support rapid learning and iteration.
Meanwhile, real-time visual performance dashboards can identify insights that empower innovation.
The ability to use performance and decisioning data to train and retrain models in real time also plays a key role in accelerating product innovation.
6. Support for rapid time-to-market and business model diversification
Technology elements that enable BNPL providers to pivot and enter new markets quickly include simplified data integration, low-code/no-code approaches, rapid model deployment and even prebuilt reusable decisioning templates.
7. Full Customer Lifecycle Support
BNPL providers must grow and nurture customer relationships throughout the customer lifecycle.
Providers should look for technology that can support all aspects of the customer lifecycle, from onboarding to fraud management and ongoing credit line management to collections.
They should also having an enterprise risk decisioning ecosystem to manage the entire customer lifecycle and eliminate data silos results in smarter decisioning and superior consumer experiences.
8. Use of AI/Machine Learning to Support Rapid Risk Modelling
It can take weeks or months for risk models to go live, with many never making it through the deployment process.
As well, whether based on model drift parameters or a predetermined schedule, retraining models can be a time-consuming process.
Machine learning can help BNPL providers retrain models in real time, for significant improvements in decisioning performance.
Faced with data science talent shortages, many BNPL providers are finding significant value in prebuilt or custom-built models to accelerate the time-to-market and make strategic shifts in risk strategy.
Listen to this podcast featuring Larry Smith, Founder & CEO of Provenir, as he discusses how to scale a startup, the early days of working with BNPL giant Klarna, and why AI may be the next great industrial revolution.

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E-Wallets
Insurtech

MCIS Life Acquires 4.99% Stake in Merchantrade

									by Fintech News Malaysia
November 22, 2021
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MCIS Insurance (MCIS Life) has taken up a 4.99% stake in Merchantrade Asia, a Malaysian money services business provider, for an undisclosed sum.
The acquisition is set to accelerate MCIS Life’s digital transformation journey and leverage on Merchantrade’s digital capabilities, access to extensive network of over 1,000 physical touchpoints throughout the country and their three million customers.
The synergies between the two companies will be further supported by Merchantrade’s technology solutions as well as its foray into the payment space.

MCIS Life aims to roll out more inclusive, simple and affordable solutions to Merchantrade’s underserved customer base such as Malaysia’s B40 segment and migrant workers.
It will also expand its offerings on employee benefits and bespoke products for corporate clients, high end products for the remittance market and online products for the technology savvy.
The two companies kicked-off a partnership in 2019 where MCIS Life provided a life insurance protection plan for Merchantrade’s customers which includes Malaysians as well as migrant workers.
In August 2021, they teamed up again to provide a product targeted at underserved communities for the Perlindungan Tenang Voucher (PTV) scheme.
In October last year, Kenanga Investment Bank had similarly acquired a 4.99% stake in Merchantrade following a collaboration to introduce its own e-wallet, Kenanga Money.
Prasheem Seebran
Prasheem Seebran, CEO and Managing Director at MCIS Life said,
“Forging this partnership with Merchantrade provides MCIS Life with significant upside potential. It allows us to break away from the traditional bancassurance model which often incurs exorbitant fees and simultaneously strengthens our position as the sole life insurance partner within the Merchantrade eco-system.

We aim to achieve our targets by rolling out more products to suit Merchantrade’s target market and this strategic alliance is expected to contribute over 25% of MCIS Life’s non-agency new business contributions by 2025.”
Ramasamy K. Veeran
Ramasamy Veeran, Founder and Managing Director of Merchantrade said,
“Having an established brand like MCIS Life with us resonates with our goals of expanding our insurance offerings as it allows us to better develop next-generation products and services that continue to add positive value to customers and communities around us as we make the future convenient, easier and more secure for generations to come.”

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Payments

US-Based Remittance Firm UniTeller Partners Tranglo to Expand in 13 APAC Markets

									by Fintech News Malaysia
December 2, 2021
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UniTeller, an international remittance payments processor based in the United States, has extended its remittance services to more customers in Asia Pacific by partnering with Malaysian cross-border payments specialist Tranglo.
The partnership with Tranglo will allow UniTeller to further expand its services in 13 Asia Pacific markets including Bangladesh, India, Indonesia and Nepal.
This will also add more than 58,000 cash pick-up points, more than 1,100 account deposit banks and 9 e-wallet platforms to its existing paying network.

The collaboration also gives UniTeller access to RippleNet, the global financial network of Ripple which had agreed to acquire a 40% stake in Tranglo in March 2021.
UniTeller has had a presence in Asia for two decades and has been rapidly expanding its network to cover more than 90,000 paying locations in the region.
Alberto Guerra
“This partnership with Tranglo is a great step forward in our expansion plan for Asia Pacific this year. Collaboration has always been an important part of our strategy.

By partnering with like-minded cross-border payments companies, we can integrate international paying networks and combine our technological strength and local market knowledge to make an even greater impact on the industry than what each of us can achieve individually.”
said Alberto Guerra, Chief Executive Officer of UniTeller.
Jacky Lee
“Globally, remittances remain resilient in the current environment with Asia registering the largest volume in remittances which is crucial to support the livelihood needs of people in low to middle-income countries.

As a cross-border payments processor rooted in Asia, we are excited to work with UniTeller to expand and enhance remittance channels in the region.”
said Jacky Lee, Chief Executive Officer of Tranglo.

Featured image: Edited from Unsplash

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Insurtech

GHL Teams up With Senang to Offer Micro Insurance for Retail Purchases

									by Fintech News Malaysia
December 6, 2021
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GHL Systems and homegrown insurtech company Senang have extended their strategic partnership to provide Malaysians with micro-insurance coverage for non-conventional retail purchases that are not commonly insured.
SenangSikit which is insured by The Pacific Insurance Berhad, enables customers to obtain insurance coverage against accidental damages on purchases with just two clicks at checkout.
The offering is available to customers who make purchases at any participating stores in Malaysia that use GHL’s POS terminals.

The insurance plan works like a product warranty providing coverage to a myriad of non-conventional retail products ranging from electronic items, footwear, car accessories, fashion clothing, furniture and more.
The plan is valid for up to a year from the date of purchase with a minimum as low as MYR2.50 a day.
The insurance platform also gives merchants, especially micro, small and medium enterprises (MSMEs) the opportunity to earn referral income – merchants only need to have a GHL terminal without having to invest in extensive training.
Kevin Lee
Kevin Lee, CEO of Malaysia at GHL Systems Berhad remarked,
“I am confident the launch of SenangSikit’s innovative user-friendly platform for microinsurance, offered in collaboration with Senang and its insurer, The Pacific Insurance Berhad, will further enhance the buying experience of Malaysian consumers, while providing value-added services and capabilities for our clients.”
Sharian Raj
Sharian Raj, Co-Founder of Senang added,
“With in-store shopping picking up steam and online purchases remaining high, customers continue to feed into consumer trends through retail shopping, further underscoring how important it is for insurtech companies like Senang to offer long-term, digitally-integrated value to our users.

We are glad to be able to simplify the checkout operation by transforming a tedious, staid process into a more efficient and seamless experience for future policyholders through our collaboration with GHL Systems Berhad.”

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Digital Transformation

FRANK by OCBC Rolls Out Digital Onboarding Powered by CTOS

									by Fintech News Malaysia
December 6, 2021
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OCBC’s mobile-first banking solution FRANK has rolled out the digital onboarding feature that was developed jointly with CTOS Data Systems, Malaysia’s credit reporting agency.
The e-KYC platform will enable customers to apply for and fully transact with FRANK by OCBC within minutes.
Customers will only need to snap a photo of their MyKad and then provide verification by uploading a selfie during the process.

FRANK by OCBC, which was launched in September last year, comes with its debit card enabling contactless payment across 400,000 merchants and access to about 14,000 ATMs nationwide.
Anne Leh, Managing Director and Head of Consumer Financial Services at OCBC said,
Anne Leh
“We are constantly on the lookout for digital banking solutions that make things simpler, faster and more convenient for our customers – without compromising on security.

Such convenience is key to ensuring the vital aspects of our customers’ digital banking experience are addressed,”
Eric Chin
Eric Chin, CEO of CTOS Data Systems said,
“Powered by CTOS eKYC, OCBC Bank customers now have easy access to account opening services, remotely and safely.

As virtual banking expands to every corner of the financial services realm, CTOS’s partnership with OCBC Bank accentuates our gold-standard in eKYC technology that meets customers’ demands for a next-generation core banking solution that will not only revolutionise but secure the financial landscape in Malaysia,”

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Payments

Wise Rolls out Multi Currency Account and Card in Malaysia

									by Fintech News Malaysia
December 8, 2021
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Wise, a London-based online money transfer service formerly known as TransferWise, announced the launch of its multi-currency account and card in Malaysia.
The Wise account and complementary card comes with additional features which are not typically found within the standard Malaysian multi currency account.
This will allow customers to hold and convert between 50+ currencies instantly and spend in 200 countries and territories wherever Visa is accepted online and in-store

Wise said that the app is easy to use as it enables users to add and convert money, get instant spend notifications, and freeze or unfreeze their card anytime.
It also has a built-in auto-conversion technology which chooses the cheapest possible currency to convert money from when using the card.
Customers will also be able to get local account details in MYR and 9 other currencies (GBP, EUR, USD, AUD, NZD, CAD, HUF, SGD and TRY) within minutes.
Wise said that this makes it the first account to do so at the real exchange rate with zero markups, and no foreign transaction fees.
More than 2 million cards have been issued to date with £3.7 billion in current deposits with Wise.
Lim Paik Wan
Lim Paik Wan, Malaysia Country Manager and APAC Expansion Lead at Wise said,
“We believe the Wise card is the best way to spend internationally because, as the research shows, Malaysians are losing billions to hidden fees and exchange rate markups.

This will now be a thing of the past. With more travel lanes gradually opening, it will provide even more value to Malaysians as they look to spend money across borders, when traveling or online.”

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Blockchain/Bitcoin

Luno Rakes up Over Half a Million Malaysian Users in 2021

									by Fintech News Malaysia
December 9, 2021
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Malaysian digital asset exchange Luno announced that it had garnered more than 600,000 customers at the end of November 2021.
Luno said in a statement that this is a marked increase of over 233% year-on-year (YoY) from around 180,000 customers recorded at the end of November 2020.
Its total active customers in Malaysia has grown by 518% YoY from just over 60,000 in 2020 to 371,000 in 2021.

The company also processed over RM12 billion worth of payments in 2021, a 4.3X increase from the previous year.
At the same time, Luno stores more than RM2 billion in value on behalf of its customers across five approved digital assets namely Bitcoin (BTC), Ethereum (ETH), Ripple (XRP), Litecoin (LTC), and Bitcoin Cash (BCH).
Luno added that moving forward in 2022, it will further democratise access to the cryptocurrency market by localising its app and educational resources to Bahasa Malaysia as well as enhance its financial literacy initiatives to reach a wider audience.
Aaron Tang
Aaron Tang, Country Manager, Luno Malaysia said,
“Interest in digital assets among Malaysians continued to grow in 2021, with many investors looking to cryptocurrencies as an alternative store of value or a start to their investing journey.

Hence, we remain optimistic that our customers can achieve their financial goals of growing and preserving their wealth through investing in digital assets.”

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Payments
Sponsored

Is Payment Friction Challenging Your Business Growth Ambitions?

									by Dalbir Sahota, Head of Bankers Almanac Payments and KYC at LexisNexis® Risk Solutions
December 17, 2021
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Digital payments transaction value is growing exponentially and is expected to climb to US$5.6 trillion in Asia by 2025.
For companies that use digital payments, user experience, straight-through processing rates and operational efficiency have become primary concerns.
Although companies such as banks, payment service providers and corporations are advancing their digital payments strategies, a significant number of transactions continue to fail.
The True Cost of Failed Payments

A failed payment is rejected by a beneficiary bank or an intermediary bank in the payment flow and can fail for several reasons, including inaccurate or incomplete information, data entry mistakes due to human error or poor reference data and validation tools.
Based on survey responses from 240 payment professionals across the banking, fintech and corporate landscape, the total cost of failed payments regionally was US$43.7 billion in Asia Pacific.
Banks of all sizes spent on average approximately US$360,000 in 2020 on failed payments – which includes all fees, labor and costs related to customer attrition – whereas the average corporation spent just over $200,000.
However, the true costs of failed payments remain hidden.

These costs can have detrimental implications for organisations, including negative customer experiences, higher customer attrition rates, reputational damage, operational disruption and inefficiencies and hindered opportunities to expand into new markets.
The research study found that 60% of organisations lost customers because of failed payments.
In organisations with over 20,000 failed payments per day, the impact was even greater – with 80% of these organisations reporting losing customers as a result.
Failed payments impact customer service the most, with 37% of organisations reporting a severe impact and nearly 50% indicating some impact.
The general acceptance in the industry that a certain number of failed payments are just ‘the cost of doing business’ is true only to an extent.
Although fewer than 50% of respondents stated they were actively trying to reduce the number of failed payments, the study found that a failed payment rate of 5% or above was the tipping point that compels 80% of organisations to act.
While account numbers (IBAN and non-IBAN) cause one-third of payment failures, this can vary considerably depending on how payments data is validated and enriched (for example, with a lookup tool or API).
Despite the available technology, many payment details are still validated manually. The more manual the process, the greater the chance of error.
The survey showed that manual processes are a reality for organisations of all sizes, with 66% of them finding reducing manual processes extremely challenging.
Reducing the Rate of Failed Payments

Eliminating payment failures continues to be a challenge for banks, financial institutions, fintechs and corporations around the world.
But there are ways to improve accuracy, beginning with comprehensive reference data to set up, route and process payments.
Adoption of technology improves accuracy by removing the window for human error, which can help to lower failed payment rates.
For instance, API technology enables fintechs to easily use industry best practice data validation services before customers submit payment information, thereby increasing the chance that payments will go through without any settlement issues.
While organisations are well aware there is a cost to failed payments, most do not fully understand the impact both financially and from a customer retention standpoint.
Tangible costs such as fees and labor might be easier to measure, but the intangible – including customer relationships – can be more difficult to repair.
In a fiercely competitive payments market, it is vital to make the process as streamlined as possible, to minimise friction, save on fees and labor, and provide an excellent experience for customers.
Improving payment failure rates is the perfect place to start.
Download the LexisNexis® True Cost of Failed Payment APAC’s deep-dive infographic here.

Featured image: Freepik

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