Payments
Sponsored

Cross-Border Challenges Cost a Lot, but There’s a Simple Solution

									by Fintech News Malaysia
November 14, 2022
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Cross-border payments are complex – just how many times have you read that before? But just how complicated and costly are these challenges?

Regulatory complexities
Every country comes with its own set of regulations that govern financial transactions. For example, some payment destinations have no capital controls, which makes funding easier compared to those that impose additional restrictions.
Government policies may shift too, forcing payment service providers to relaunch payout corridors that turned unfamiliar.
Navigating regulatory differences cost a lot. Leading professional services firm Deloitte reported that costs associated with compliance have increased by 60% for financial institutions.
That’s not all, the Bank of International Settlements, in a report to the G20, noted that regulatory constraints hindered the implementation and standardisation of application programming interfaces (APIs) in payment systems.
APIs are one or more pieces of software that enable different payment systems to talk to each other and perform specific functions based on instructions or requests. A lack of standardised APIs means these systems cannot communicate effectively with one another, leading to slow transactions.

Cybersecurity risks
As most payments are now digital, cybersecurity is another major concern, especially for financial institutions. According to the 2022 AFP Payments Fraud and Control Survey, 71% of organisations were victims of payment fraud attacks or attempts in 2021.
Cyberattacks cost millions of dollars in monetary and reputational damage. The 2016 Bangladesh heist is perhaps one of the biggest known cyberattacks involving a financial institution. In the theft, hackers sent fraudulent transaction instructions via the SWIFT payment network and made away with US$81 million.
In 2017, hackers stole US$6 million from a Russian bank in yet another attack using the SWIFT system. In August, Cybersecurity Ventures predicted that cybercrime will cost US$7 trillion in damages this year.
Preventive measures themselves don’t come cheap either. In 2021, tech giants Google and Microsoft pledged US$10 billion and US$20 billion respectively to boost cybersecurity.
Consulting firm Gartner predicted in a recent report that the world will spend US$188.3 billion (+11.3%) on security in 2023. This increase in spending eats into budgets and factors into costs.

Payment solutions can help
Here’s a shocker: cross-border payment challenges cost a lot, but you don’t have to overcome them yourself.
Why invest millions in building networks and infrastructure, negotiating terms and maintaining an in-house team to take care of your payments when you can get specialist help?
Just make sure they follow these best practices.

Best cross-border payment practices by Tranglo

To learn more about how the right payment solutions can help your business overcome cross-border challenges, visit www.tranglo.com

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E-Wallets
Payments

BigPay Hits RM1 Billion Milestone for International Remittance

									by Fintech News Malaysia
November 10, 2022
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BigPay announced that it had achieved a new milestone for its international remittance feature.
The company said it had achieved RM1 billion in Gross Transaction Value (GTV) for its international remittance feature.
BigPay allows users to send money to other countries bank accounts and mobile wallets. The service is available in over 50 countries and supports over 30 currencies.

BigPay currently serves a total of 45 corridors, including its latest addition of Northern Ireland, Scotland, and Wales in the United Kingdom and 34 countries in Europe, including France, Germany, Italy, Belgium, and Spain.
The company said that the achievement is a testimony to the growing demand for its international remittance service.
BigPay has recently recorded a 41 percent growth in international remittances in October 2022, compared to January 2022.
Salim Dhanani
“The ability to move money globally for our customers in a fast and cost-effective way has been a critical factor in how we have developed the remittance product,”
said Salim Dhanani, BigPay CEO and Co-Founder.
“We have continued to expand the corridors we serve and will continue to enhance the product overall. We are grateful for the support from all our customers that have helped us achieve this milestone,” he added.
The corridors that see the highest number of outbound remittances from Malaysia include Indonesia, Thailand, Singapore, the Philippines, India, and China. The newest additions to its remittance corridors across the UK and EU have seen 113 percent month-on-month growth since their launch in August 2022.

Featured image credit: Edited from Unsplash

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Innovation
Lending
Payments

KPJ Healthcare Partners Pine Labs to Offer BNPL Payment Option

									by Fintech News Malaysia
November 10, 2022
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KPJ Healthcare Berhad (KPJ Healthcare) is collaborating with Pine Labs, a merchant commerce omnichannel platform, to offer flexible payment options for its patients.
This service allows payments for KPJ Healthcare’s medical services to be made at Pine Labs’ point-of-sale terminals located at the hospital’s payment counters via debit or credit card.
The Pine Labs platform provides a unique option of converting the payment into a zero-interest instalment plan through its extensive network of 14 banking partners and for charges above RM500 for up to 24 months via debit or credit card.

Pine Labs’ Point of Sale terminals also enable Buy Now Pay Later (BNPL) instant conversions and accept digital payment via popular E-Wallet platforms, including Touch N’ Go, Grab Pay, Boost, WeChat Pay, Shopee Pay, and Alipay.
The service is available at 30 KPJ hospitals in Malaysia located at the Central and Southern regions, with plans to be rolled out across the group’s remaining hospitals in phases. Full deployment is expected to be completed by the first quarter of 2023.
Norhaizam Mohammad
“Our collaboration with Pine Labs marks an important milestone as we expand our payment options for our patients. This is in line with our commitment to provide high-quality and accessible healthcare to all Malaysians,
said Norhaizam Mohammad, Chief Financial Officer of KPJ Healthcare.
“This will also empower our patients to plan their medical expenses better and allow for greater flexibility in getting the quality healthcare they seek,” she added.
Sharad Gulhar
Meanwhile, Sharad Gulhar – Head of Merchants Business – APAC, Pine Labs commented,
” Our partnership with a renowned healthcare institution like KPJ Healthcare enables us to deliver seamless, speedier, and secure digital payment transactions to patients and their loved ones.”
“We believe healthcare as a segment is ripe for disruption when it comes to instalment payment purchase options as affordable healthcare is everyone’s right and providing it to all is what we strive for at Pine Labs,” added Gulhar.

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Lending

Funding Societies to Provide Financing for Proton’s Second Hand Car Dealers

									by Fintech News Malaysia
November 14, 2022
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SME digital financing platform Funding Societies Malaysia will provide credit facilities for PROTON dealers to finance the purchase of second-hand cars for floor stocking.
Dealers who wish to apply for financing may do so via Funding Societies’ online platform. Funding Societies will be able to provide financing for up to 85% of the transaction value with repayment periods of up to 90 days.
With this financial facility, PROTON dealers can grow their business by raising short-term capital to manage their cash flow and even use it for new car purchases from Proton Edar as well.

Currently, the company has 35 outlets retailing PROTON Certified Pre-Owned (PCPO) vehicles in the country.
UCM has also set up a dedicated PROTON used car website where consumers can view stocks without walking into showrooms and browse through the website to get an estimated used car’s market price.
Chai Kien Poon
Chai Kien Poon, Country Head, Funding Societies Malaysia said,
“In line with Funding Societies’ mission to provide financing facilities to underserved, creditworthy SMEs, this revolving credit facility provides PROTON’s dealers with a more seamless experience. They may utilise the facility any time and anywhere upon its activation.

Additionally, dealers will have access to our online supply chain financing system to manage their financing facility with us.”
“With PROTON’s sales volume increase over the past few years, we have seen an increase of trade-in or trade-up transactions.

Through the dealer financing service provided by Funding Societies, our dealers can finance the purchase of floor stocks to enable the trade-in transaction,”
said Wan Ahmad Fadzli Wan Mustafa, General Manager, Proton Edar.

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AI
Lending
Sponsored

3 Ways Machine Learning Can Enhance Your Lending Process

									by Fintech News Malaysia
November 15, 2022
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A vast majority of the populations in the emerging markets of Southeast Asia, Latin America, and India are at the cusp of financial inclusion, thanks to the growing availability and adoption of digital lending services.
The fintech-as-a-service market is predicted to grow to around US$ 949 Billion by 2028 due to the popularity of the alternative payment solution Buy Now Pay Later in these markets.
With increased acceptability for digital lending in segments that had never been a part of the financial mainstream, organizations must enhance risk decisioning while ensuring faster turnaround on credit applications.
Maintaining a high rate of credit approvals and managing risk while lending to people with little credit information is a challenge that more and more financial institutions are looking to solve by leveraging machine learning and artificial intelligence.
Fintech companies are automating these processes by enriching their machine learning techniques with data and scores that improve predictive risk modeling. Here are three ways machine learning can improve your acquisition and lending processes.
1. Enable Faster Credit Decisioning
In the digital lending space, where some firms are now approving credit within minutes, quick turnaround on credit applications is a must for any organization wanting to remain competitive.
The standard customer due diligence (CDD) function at these institutions, a process to highlight credit risk by evaluating various data points and fraud signals, has been completely disrupted with the use of automation and machine learning.
2. Lower Your Credit Risk
Fintech companies use predictive models to develop detailed consumer profiles to prevent fraud and flag default risks.
The models use machine learning to harness massive amounts of structured or unstructured data to extract immediate insights. With unified data points from watchlists, fraud screenings, email/phone/address validations, and more, companies can instantly confirm the identity and understand the behavior of their prospective customers.
3. Improve Cross-Sell and Up-Sell
With the features used to create detailed risk profiles and mitigate potential fraud, companies have the opportunity to expand the profiles of their high-value customers by enriching their machine learning models with predictive features to help them better understand behaviors, demographics and households beyond the data they capture internally.
Marketers and data analysts within these organizations can now use these profiles to develop personalized retention and cross-sell strategies to nurture these relationships while building lookalike models to apply the data characteristics of the most valuable buyers to capture new customers.
High Quality Data Empowers Machine Learning Algorithms
Developing a complete customer risk profile requires aggregated, clean data from multiple sources, especially in markets that do not have traditional credit or payments data readily available. Data partners must ensure that the data provided has been obtained lawfully and in compliance with local regulations where data was sourced.
Mobilewalla recently launched its industry first solution, LendBetter, to help financial institutions decrease lending risk in new-to-credit markets. Connect with Mobilewalla data experts to learn more about their feature-rich data enrichment offerings or download their BNPL sample data to see how Mobilewalla helps data and marketing professionals build more precise AI and ML models for fintech-as-a-service organizations.

Featured image credit: Freepik

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Payments

Malaysians Can Now Add Their Debit and Credit Cards to Google Wallet

									by Fintech News Malaysia
November 15, 2022
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Several Malaysian banks including CIMB, Hong Leong Bank (HLB), Hong Leong Islamic Bank (HLISB), Public Bank will be able to support the use of Google Wallet from today onwards.
However, not all of these banks’ debit and credit card are able to support the payment option. For example, HLB and HLISB allows both their credit and debit card users to add their cards to Google Wallet.
Meanwhile, CIMB only supports this feature for its credit card users and will soon enable Islamic Mastercard credit cards on the payment platform.

Additionally, Mastercard and Visa credit cardholders of HSBC and HSBC Amanah will also be able to access Google Wallet in the coming months.
To get started, customers can download Google Wallet on the Google Play Store. Then, they can tap ‘Add to Wallet’ and follow the instructions to enter and verify their card details.
Once it has been set up, customers can pay in stores that accept contactless payments via Google Pay with just one tap using their smartphone or Wear OS device.
Users can also make payments on apps and websites by checking out using the Google Pay button.
Domenic Fuda
Domenic Fuda, Group Managing Director and Chief Executive Officer of HLB said,
“Aligning with our bank’s “Digital at the Core” ethos, we are very excited to be one of the first banks in the market to support Google Wallet for our cards. Working together with Google is part of our continuous efforts to offer simple and frictionless payment services to our customers.”
Samir Gupta
Samir Gupta, CEO, Group Consumer Banking of CIMB Group said,
“We are delighted to be one of the first Malaysian banks to introduce Google Wallet via our CIMB Bank Mastercard credit cards. As customers increasingly depend on their smartphones and wearable devices to interact and transact in their daily lifestyles, Google Wallet will make it easier for our customers to make seamless and secure payments across a wide range of contactless points of sale in stores, as well as in apps and on the web.”

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WealthTech

Bursa Malaysia Rolls Out Interactive Fund Information Platform for Retail Investors

									by Fintech News Malaysia
November 16, 2022
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Bursa Malaysia has launched an interactive fund information platform to provide the investors a comprehensive information on unit trusts and wholesale funds.
The Bursa Fund Platform is open to and free-to-access for members of the public.
It offers quick and easy fund comparison as well as the creation of a watchlist for users to track and monitor funds that meet their investment needs and risk appetites.

Additionally, the platform enables users to communicate directly with the participating fund managers should they wish to begin investing in funds or to simply receive more personalised services.
The funds available on the Bursa Fund Platform presently include Shariah and conventional funds with equity, fixed income and ESG mandates.
Participating fund managers include Kenanga Investors, Opus Asset Management, RHB Asset Management, RHB Islamic Asset Management, UOB Asset Management (Malaysia), AMFunds Management, and AMIslamic Funds Management.
Datuk Muhamad Umar Swift
“The launch of the Bursa Fund Platform is part of the Exchange’s strategy of having diverse product offerings that provide more investment options for the investing public, and complements our aspiration to become the investment destination of choice.

This Fund Platform will complement the current investment marketplace, as many investors have investments in both listed and unlisted markets.”
said Datuk Muhamad Umar Swift, Chief Executive Officer of Bursa Malaysia.

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Digital Transformation
Sponsored

Agile Banking Transformation: A New Era in Banking

									by Fintech News Malaysia
November 18, 2022
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The world of financial services is in a state of constant change, with many traditional banks across the Asia Pacific, and indeed the world, now actively pursuing digital transformation strategies.
For many of these organisations, it has been the impact of disruptive technologies and digital-only challengers that have compelled traditional financial institutions to actively begin to reinvent themselves from being bureaucratic, machine-like organisations into agile organisms which have people – employees and customers – at the centre.
From machine-like bureaucracies to agile organisms

For decades, traditional banks and financial institutions have operated as highly structured organisations, with rigid top-down hierarchies, mid-level bureaucracies and specialised teams working in silos.
However, the current focus on digital transformation has been a catalyst for many organisations to rethink the way they operate and look at different ways of doing things.
As many of these banks are learning along the journey, being open to organisational change is a critical factor in successful digital transformation.
In many instances, it has been seeing competitors embrace new digital technologies that has been the driving force behind traditional financial institutions transforming the way they operate, in an attempt to stay ahead of the curve.
Agility is key, as many banks are discovering during their quests towards digital transformation.
However, agility does not come naturally for many traditional financial institutions – it is something that needs to be consciously incorporated into all facets and levels of the organisation.
Having inherent agility enables organisations to keep up with customer demands and respond to crises; but transitioning to an agile organisation doesn’t happen overnight.
Key characteristics of agile organisations

So, what characterises an agile organisation? And can agility help financial institutions stay ahead of the curve?
In many instances, agile organisations have taken their cues from technology companies, making frequent small decisions as part of rapid cycles of continuous innovation – testing and adjusting as needed along the way.
Agile organisations – or agile teams within organisations – also break down large, complex problems into modules, and develop solutions to each specific component, constantly testing and improving in tight feedback loops.
For banks, an agile approach can enable them to solve pain points in the customer journey in a micro fashion, and build on these incrementally, with customer-centricity at the heart of the culture of agile teams and organisations.
And while technology is obviously a key focus of every DX strategy, it’s important to remember that it is not the be-all-and-end-all of digital transformation; being agile and enabling changes in corporate culture and management can be just as important as digital infrastructure and technological advances.
DBS: A leading example of an agile bank

Over the last decade Singapore’s DBS has undergone a complete business overhaul, transforming from a highly bureaucratic infrastructure to an organisation made up of cross-functional teams that are dedicated to improving the customer experience, including reducing customer time wasted on specific processes like reporting a stolen card.
In the two years since launching the new structure, DBS has been able to eliminate 250 million wasted customer hours, and has managed to solve specific customer pain points across a wide range of processes by mapping end-to-end customer journeys.
DBS’ transformation to an agile, customer-centric organisation has seen its revenue surge phenomenally.
To learn more about DBS’ transformation to an agile bank, as well as examples of how other high profile global financial institutions such as ING and Commonwealth Bank of Australia operate as agile organisms, download the Mambu-sponsored Economist Impact report here.

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Digital Transformation

CIMB Taps MESINKIRA to Bolster Malaysian MSMEs’ Digitisation Efforts

									by Fintech News Malaysia
November 22, 2022
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CIMB Bank and CIMB Islamic Bank announced a partnership with software and system integration company ModulEight Technologies to support the growth of micro, small and medium enterprises (MSMEs).
Through this partnership, MSMEs will be onboarded onto MESINKIRA, an integrated mobile business management solution.
MESINKIRA is a commercial platform that offers point-of-sale software including inventory management, payment and accounting, and reporting services to MSMEs.

This is the latest solution extended to CIMB’s SME customers to ease the transition to digitisation by lowering the barrier to entry for businesses wishing to digitise their operations.
The MSMEs will also be invited to complimentary webinars and workshops that include tutorials on the importance and methods of digitising business operations, as well as MESINKIRA’s digital payment function for businesses.
Victor Lee Meng Teck
Victor Lee Meng Teck, Chief Executive Officer, Group Commercial Banking, CIMB Group said,
“The availability of this digital-first and cost-efficient solution is a highly practical value-add to MSMEs which will enable them to leverage business opportunities in the e-commerce sphere.

This latest offering also reaffirms CIMB’s continued commitment to support the development of MSME businesses, which form the backbone of the Malaysian economy, as they continue to accelerate their business growth post-pandemic.”
Syed Omar Almohdzar
Syed Omar Almohdzar, CEO of MESINKIRA said,
“MESINKIRA intends to support and help MSMEs grow, digitalise their operations and boost their net income and creditworthiness.

This is achievable through our Retail Operations Support System (ROSS) which is truly end-to-end, easing business operations and reconciliation.”

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Crowdfunding

Crowdfunding Platform Fundnel Launches Its Refreshed Brand Alta in Malaysia

									by Fintech News Malaysia
November 24, 2022
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Singapore-based equity crowdfunding platform Alta, previously known as Fundnel, has announced the official launch of its refreshed brand in Malaysia.
The announcement follows Alta’s acquisition of private digital securities exchange Hg Exchange (HGX) in November this year.
The launch will enable Alta to support the tokenisation of alternative assets, creating an end-to-end solution that makes it cheaper and faster to trade private securities, funds, and asset-backed securities like real estate, and luxury assets.

Additionally, Alta has enhanced its array of service offerings to its previous and potential issuers in addition to its existing offerings.
In Malaysia, Alta has funded notable firms like CapBay, Eatcosys, Fish Club, and the first-ever micro-VC fund with Emissary Capital.
Alta has generated over US$600 million in transactions and created access to over US$22 billion worth of mandated deals for its global investor community.
Willie Chang
Willie Chang, CEO of Alta Exchange said,
“The introduction of Alta in Malaysia along with the acquisition of Hg Exchange shall serve as a new chapter for us in Malaysia in connecting our issuers and our investors with new opportunities through our offerings.

We want to continue revolutionising the private markets, bringing more opportunities to more investors to invest in new opportunities. We are particularly excited about the opportunity in Malaysia, a key market in our vision of becoming the leading alternative assets platform.”

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Cloud
Digital Transformation

Security Bank Philippines Taps Malaysia’s Consolsys to Automate Its Branches

									by Fintech News Malaysia
November 24, 2022
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Security Bank Philippines has partnered with Malaysian banking automation company Consolsys to revamp its branch experience.
The partnership will enable Security Bank to transition its current branch banking management system to a cloud-based omni-channel platform.
This includes the replacement of the bank’s current tellering, lobby management and Signature Verification System (SVS) with the Mosaic Voyager which is Consolsys’ flagship suite of solutions.

Security Bank said that it plans to complete the implementation across all its branches by Q3 2023.
Consolsys has been providing banking automation services in Asia since 1999 with a presence in Malaysia, the Philippines, Indonesia and Brunei.
Lucose Eralil
“As the bank transitions from traditional to new and scalable digital cloud-based services, we will be able to service customers faster and provide them with our signature BetterBanking service powered by innovative digital banking technology.

Implementing Mosaic Voyager is a key enabler as we transform our branches to deliver customer-focused differentiated experiences”
said Lucose Eralil, EVP and Head of Enterprise Technology and Operations at Security Bank.

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Islamic Fintech
WealthTech

SC Consolidates All Shariah Rules on Islamic Capital Market Products and Services

									by Fintech News Malaysia
November 29, 2022
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The Securities Commission Malaysia (SC) has issued new guidelines on Islamic Capital Market Products and Services (ICMPS Guidelines) to further enhance the Shariah governance framework for the Islamic capital market.
This will be the central source of reference on all the various offerings of Islamic Capital Market (ICM) products and services for sophisticated and retail investors.
The ICMPS Guidelines consolidate all Shariah requirements previously set out in various guidelines including that on Unit Trust Funds, Exchange-Traded Funds, and Unlisted Capital Market Products under the Lodge and Launch Framework.

The SC Chairman Dato’ Seri Dr. Awang Adek Hussin said the ICMPS Guidelines, which took effect on 28 November, will provide relevant stakeholders with one comprehensive central document on Shariah principles and requirements that are applicable to ICM products and services.
The ICMPS Guidelines also introduce a new chapter dedicated to waqf.
The expanded Waqf-Featured Fund Framework (WQ-FF Framework) will now include listed funds such as Islamic Real Estate Investment Trusts (REITs) and Islamic Exchange Traded Funds (ETFs).
Dato’ Seri Dr. Awang Adek Hussin
Dato’ Seri Dr. Awang said,
“The release of the ICMPS Guidelines and the expansion of the WQ-FF Framework are in line with the development of the industry and market needs.

Innovation is key to remain relevant and to solidify Malaysia’s role at the forefront of shariah market-based advancements.”

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Insurtech

5 Interesting New Details in BNM’s New Digital Insurance & Takaful Draft Framework

									by Vincent Fong
November 29, 2022
0 comments

On Friday, Bank Negara Malaysia (BNM) issued its exposure draft for digital insurance and takaful operators (DITO) for written feedback following the issuance of the Discussion Paper in January this year.
As part of the licensing application process, BNM will require applicants to submit a comprehensive five-year business plan, which includes, among others, planned measures to effectively manage technology and cyber risks in delivering its products and services.
BNM aims to finalise the Policy Document and invite applications for the licenses in 2023. Up to five licenses may be issued to applicants that meet all requirements.

New Details on the Eligibility Criteria and Application Process
The eligibility criteria largely remain the same, DITOs are expected by BNM to contribute positively to the insurance and takaful sector in three ways namely; inclusion, competition, and efficiency.
Notably, under the eligibility criteria for “competition” the following was added in the new draft, indicating a preference by the central bank for new entrants to not directly compete with existing incumbents serving existing markets and to instead focus on the uninsured and underinsured.
Applicants must be able to clearly differentiate themselves through the offering of innovative insurance/takaful products and value-added services to consumers. This must be supported by a sound understanding of the pain points faced by customers or, the needs and preferences of new customers that may not be served by existing licensed ITOs (insurance and takaful operators).
Under the eligible business model section, the new draft also added that intermediaries such as enablers, agents, brokers and managing general agents are scoped out from this framework as these intermediaries do not assume any insurance/takaful risks and have no obligation under the insurance policy/takaful certificate.
More details are also made available on the application process, specifically, BNM stated in the document that applicants must put in a formal application within 6 months of the license application period being announced. The central bank is however seeking feedback from the industry to determine if 6 months is sufficient for industry players to put in their applications.
Additional Details and New Requirements on the Foundational Phase
The minimum capital requirement of RM 40 million remains the same, the document now specifies that upon exiting the foundational phase, a licensed DITO will need to comply with all requirements applicable to existing licensed insurance and takaful operators which includes maintaining a paid-up capital of RM 100 million for each licensed entity.
Similar to the digital banking framework, the foundational phase is put in place to facilitate new digital business models. Approved DITOs are required to operate for a minimum of three years but no more than 5 years unless approved otherwise by Bank Negara Malaysia.
Dual DITO Licenses
The new draft also specified that if an applicant is looking to operate both general and life/family businesses, they are required to apply for two licenses. For DITOs with two licenses, they are expected to maintain a minimum paid-up capital of RM 30 million each instead of RM 40 million and a minimum paid-up capital of RM 100 million each.
They are also expected to appoint a different dedicated person to be its appointed actuary and have separate resources for its business functions including for underwriting and claims management. The document explains that this is due to the “different nature of risks between the general insurance/general takaful business and the life insurance/family takaful business”.
Exit Plan Requirements
The new exposure draft also included a new segment requiring applicants to submit an exit plan. If a licensed DITO fails to graduate from the foundational phase, they are required to implement its exit plan.
As part of the exit plan, applicants are required to demonstrate they are able to extract real-time data on customers upon request and the ability to ensure continuity of services throughout the implementation of the exit plan.
More Details on the Shareholder’s Assessment
The document indicates that BNM will now additionally look at shareholders’ suitability as part of their assessment process. It specified that shareholders collectively must demonstrate the ability to contribute in the following areas; risk and compliance, application of technology particularly to address critical gap areas, access to deep and robust consumer analytics, ability to continuously serve as a source of financial strength, and shariah expertise for applicants pursuing a digital takaful license.
The document also stated that BNM may suggest that a shareholder who holds an aggregate interest of above 50% of shares to organise all its financial-related subsidiaries under a financial group, headed by a single apex entity, which may be either a licensed person or a financial holding company.
New Flexibility on Physical Distribution Channels
The previous document had heavier expectations for DITOs that rely almost solely on digital channels for all its critical functions. The new draft seems to indicate more flexibility towards using physical channels for distribution.
It allows for DITOs to ultilise limited physical access points to reach out to unserved and underserved segments especially in cases where the necessary digital infrastructures are unavailable. This may include limited physical access points to facilitate the submission of certified documents for claims, post-sales customer services, and handling of face-to-face customer complaints.
The document also newly specified that DITOs will not be permitted to engage, appoint or use the agency and bancassurance/bancatakaful channels that rely on face-to-face or in-person interactions with consumers for product distribution.
There’s also an entire section of distribution through embedded finance, signalling a possible preference of BNM towards this business model.

Feedback on the Exposure Draft can include clarification or elaboration and alternative proposals. BNM welcomes written feedback, backed by clear rationales, to be submitted by 28 April 2023 to DITF@bnm.gov.my

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Crowdfunding

Fundaztic Raises RM16 Million in Less Than Two Weeks on pitchIN

									by Fintech News Malaysia
November 30, 2022
0 comments

Peoplender, the company behind the Fundaztic P2P financing platform, has raised more than RM16 million on Malaysian equity crowdfunding platform (ECF) pitchIN’s platform.
According to pitchIN, the campaign was oversubscribed in less than 2 weeks and is one of the largest ECF rounds ever in Malaysia.
The ECF campaign raised RM16,641,600 from 51 investors and the largest single investment was RM6 million.

In 2018, Fundaztic made waves when it raised RM3 million in just 38 minutes on pitchIN to become the fastest ever funded equity crowdfunding deal in Malaysia. The firm also secured an additional RM7 million in private placement.
pitchIN has funded 151 companies and raised over RM275 million to date.
Jeffrey Chew
Jeffrey Chew, Founder and Chairman of Peoplender said,
“We have returned to pitchIN for the second round as it enabled us to reach out to a full range corporate, high net worth, angel and retail investors.

A campaign on pitchIN also attracts wide publicity and interest.”
Sam Shafie
Sam Shafie, CEO of pitchIN said that it was happy to support its fellow Registered Market Operator again in their ECF campaign. He added,
“In 2018, the Fundaztic campaign drew strong very strong interest. It’s RM3 million ECF portion was fully taken up in 37 minutes the last time around. Since then, we have seen the company expand to Singapore and were extremely confident that investors would support its second ECF campaign.

This is the second large campaign of over RM15 million that pitchIN completed this year, confirming its status as the ECF platform of choice for fast growing well known Malaysian companies.”

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Insurtech

PolicyStreet Digitises Insurance Processes for foodpanda’s Delivery Partners

									by Fintech News Malaysia
November 30, 2022
0 comments

foodpanda has tied up with insurtech platform PolicyStreet to digitise the insurance processes for tens of thousands of its delivery partners’ to close the protection gap among gig workers.
Through PolicyStreet’s latest digital solution– the Gig Workers’ Claims Portal, delivery partners can monitor their insurance coverage status, submit, and monitor their claims’ progress while on the go.
foodpanda Malaysia’s delivery partners can do this by logging onto foodpanda-claims.policystreet.com.

The proprietary technology can be rolled out to p-hailing companies nationwide in Malaysia and neighbouring countries such as Singapore and Australia.
Lee Yen Ming
“With the launch of this new solution, we hope to work towards ensuring the digital economy will remain sustainable for the long term by protecting the social and financial welfare of gig workers.

We are working to onboard more p-hailing service providers onto the platform so gig workers can monitor their various insurance policies from their coverages across different various employers, all from one portal,”
said Lee Yen Ming, Chief Executive Officer of PolicyStreet.
“The partnership with PolicyStreet is a longstanding one, and the existence of the Gig Workers’ Claims Portal was borne out of constant collaboration and feedback from both ends.

The parallel and symbiotic growth of PolicyStreet and foodpanda Malaysia is a paragon of the Malaysian tech ecosystem, and without them, we wouldn’t have been able to progress so far ahead in insuring our delivery partners,”
says Kelvin Chan, Director of Operations for foodpanda Malaysia.

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E-Wallets
Payments

Grab’s PayLater Extended to Non-Active Users, Can Now Be Used in Physical Stores

									by Rebecca Oi
December 1, 2022
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Superapp Grab has added updates to its “buy now, pay later” (BNPL) feature PayLater by extending the  payment option to in-store purchases.
With this extension, shoppers now have more flexibility to pay for their purchases over time.
Grab Paylater extension to in-store purchases
Additionally, Grab will be collaborating with  CTOS to provide PayLater as a payment option for non-active Grab users.

Anyone can now apply to use PayLater postpaid and instalments, effective November 30, 2022, by providing the necessary information via the Grab app so that CTOS can conduct the necessary credit checks. If deemed eligible, applicants will receive a notification to activate PayLater.
Grab PayLater as a payment option for non-active Grab users
Since the launch of PayLater in 2019, it has become one of Grab’s most popular payment options. In response to the growing popularity, Grab has added these updates to PayLater to make it even more convenient and accessible for consumers.
These updates are in line with the e-Conomy 2021 report, which indicates that Southeast Asian consumers’ search interest for BNPL has increased by 16x.

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Funding
Insurtech
Islamic Fintech

FWD Launches RM45 Million Fund to Invest in Insurtech and Islamic Fintech

									by Fintech News Malaysia
December 1, 2022
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FWD Group, a a pan-Asian life insurance business, announced the launch of a RM45 million fund in collaboration with Malaysian venture capital firm Artem Ventures.
The fund, TIM Ventures, will be investing in emerging startups in the insurtech and Islamic fintech space in Malaysia.
The fund has already invested into four startups so far, including winners from the FWD Start-Up Studio, a pre-accelerator programme launched in 2021 to support insurtech and takafultech startups in Malaysia.

The four startups include on-demand subscription-based insurance company Senang, digital solutions provider for Islamic inheritance planning Pewarisan, Malaysian fintech Du-It and zero-deposit insurance agency Blueduck.
Sim Preston
Sim Preston, Managing Director and Group Chief Operating Officer at FWD said,
“By launching TIM Ventures, we hope to support early-stage entrepreneurs in Malaysia by not just providing them with financing, but also helping to connect them with the networks and expertise they need to succeed.

We hope to invest in businesses that share our vision as we work together on changing the way people feel about takaful.”
Binayak Dutta
Binayak Dutta, Managing Director, Emerging Markets and Group Chief Distribution Officer at FWD said,
“The launch of this fund, together with our pre-accelerator programme, FWD Start-Up Studio, signifies our continued commitment to the Malaysian market and the role we want to play in closing the takaful protection gap.

This initiative allows us to partner with exciting emerging talent and develop innovative new technologies to achieve a brighter, digital future.”

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WealthTech

Versa’s Customers Can Start Investing in Real Estate and Gold From RM100

									by Fintech News Malaysia
December 5, 2022
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Versa Asia, a Malaysian digital cash management platform, announced the expansion of its suite of digital investment offerings today through the launch of Versa REITs and Versa Gold.
Customers can start investing in both Versa REITs and Versa Gold with a minimum of RM100.
Versa REITs is a fund that invests in multiple real estate sectors such as shopping malls, offices, data centres, business parks, factories and warehouses located across the Asia Pacific (ex-Japan) region, that are managed by Asia’s top real estate companies.

The underlying fund of Versa REITs is the Affin Hwang Select Asia Pacific (ex-Japan) REITs fund.
Meanwhile, Versa Gold is Versa’s first Shariah-compliant fund that closely tracks the performance of gold price that makes the buying and selling of gold highly liquid and convenient.
The underlying fund of Versa Gold will be the Affin Hwang Shariah Gold Tracker fund.
Launched in 2021, Versa had recently secured an 8-figure funding round through the sum was not publicly disclosed.
Teoh Wei-Xiang
Teoh Wei-Xiang, Chief Executive Officer at Versa said,
“Due to its intrinsic properties, asset classes like real estate and gold continue to be favoured by global investors alike due to its stable nature and role as a hedge against inflation.

In introducing Versa REITs and Versa Gold, Versa is committed to ensure that everyday Malaysians can invest in these resilient offerings with minimal entry barriers.”
Dato’ Teng Chee Wai
Dato’ Teng Chee Wai, Managing Director of AHAM Capital said,
“Through our partnership with Versa, AHAM Capital remains committed in our journey towards spearheading digitalisation to make investing easier and more accessible to all Malaysians.

With market cycles becoming shorter and sharper, asset classes like REITs and gold offer a way for investors to diversify their portfolios in order to grow and preserve wealth.”

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Payments
Security

iPay88 Names Zainol Zainuddin as Its Chief Technology Officer

									by Fintech News Malaysia
December 5, 2022
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Payment gateway provider iPay88 announced that it has appointed Zainol Zainuddin as its new Chief Technology Officer (CTO).
Zainol Zainuddin
In his new role at iPay88, Zainol will be in charge of development, innovation and transformation of IT strategies.
Additionally, he will also lead the development of IT solutions while ensuring enhanced customer experiences.

Zainol has over 25 years of experience in IT with expertise and leadership experience in the fintech and telco industries.
Prior to his appointment at iPay88, Zainol was the CTO at Malaysian money services business provider Merchantrade for 4 years until September 2022. He also held several IT roles before that at AmBank and Bank Muamalat.
iPay88 said in a statement,
“We are excited to announce that Zainol Zainuddin has joined iPay88 as our Chief Technology Officer.

He brings along a wealth of experiences from his previous senior roles which will undoubtedly contribute to iPay88’s further growth as Malaysia’s leading payment company.”
iPay88 landed in hot water in August this year when it was revealed that its users’ card data may have been potentially compromised.
This prompted the Association of Banks in Malaysia (ABM) and Association of Islamic Banking and Financial Institutions Malaysia (AIBIM) to caution the banks to “take seriously the data security of their cardholders”.

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Funding
Lending

Earned Wage Access Firm Paywatch Bags US$9M to Expand in Malaysia and Beyond

									by Fintech News Malaysia
December 6, 2022
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Earned Wage Access (EWA) service provider Paywatch has raised US$9 million in a Pre-Series A funding round led by returning investor Third Prime.
The round also received participation from Hana Ventures which is the venture arm of Hana Financial Group in Korea, Parkwood Corp. and the endowments of Vanderbilt University and University of Illinois Foundation.
The company plans to use the new funds to grow its product offerings and strengthen its presence in existing markets Malaysia and South Korea.

Paywatch is also looking to accelerate its expansion efforts into new markets including the Philippines and Hong Kong where it expects to launch in 2023.
Founded in 2020, Paywatch has over 100 corporate clients and claims that its earned wage solution has already reached a 50% engagement rate among its Malaysian users this year.
Earlier this year, Paywatch managed to bag US$5.25 million in a seed funding round.
Richard Kim
“Though macroeconomic conditions are catching up to everyone globally, many low-income workers were already experiencing financial burdens.

During our year in Malaysia, we have seen first-hand how much of a difference our service makes to employees’ state of mind. For companies, we have proven to increase recruitment and retention,”
said Richard Kim, Founder and CEO at Paywatch.

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Payments

Local Boost Merchants Can Now Accept DuitNow QR Payments From Thai Tourists

									by Fintech News Malaysia
December 6, 2022
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Axiata Group’s fintech arm Boost has partnered with the Payments Network Malaysia (PayNet), the national retail payments network infrastructure, to enable its merchants to accept cross-border payments from tourists from Thailand via its DuitNow QR.
Tourists will only need to scan the Boost DuitNow QR code, which will automatically recognise the user’s current location in Malaysia.
The user will receive a request to put in the amount of their purchase in Malaysian Ringgit (MYR), and an automatic conversion will then be deducted from their home country e-wallet accordingly.

There are close to 200,000 Boost DuitNow QR merchants at popular tourist hangouts around Malaysia and they will continue to accept payments in MYR.
In the first phase, this feature will be made available to tourists from Thailand.
Participating Thailand financial institutions that can scan the Boost DuitNow QR in Malaysia are CIMB Thai, Siam Commercial Bank, Bangkok Bank, Krungthai Bank and Bank of Ayudhya.
Boost added that it also aims to include cross-border QR payments acceptance to Indonesia and Singapore tourists alongside other regions within PayNet’s coverage in the coming months.
Sheyantha Abeykoon
Sheyantha Abeykoon, Group CEO of Boost said,
“Today, we are excited to now offer this to regional tourists through our collaboration with PayNet’s extensive cross border payment network.

With the holiday season approaching, this novel offering in the market will provide our merchants with an edge to widen their network of customers, while tourists can enjoy simplified transactions in their own currency with close to more than half a million Boost merchant touchpoints across the country. ”
Farhan Ahmad
Farhan Ahmad, Group CEO of PayNet said,
“We are delighted that our ecosystem participant, Boost, has paved the way for tourists from Thailand to make cross-border payments via DuitNow QR.

This convenience not only benefits the Malaysian tourism industry but also our micro-SMEs and other retailers, which in turn boosts economic activities and growth.”

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Payments

Hong Leong Has Implemented Cashless Ecosystems at 16 Kota Kinabalu Schools

									by Fintech News Malaysia
December 7, 2022
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Hong Leong Bank announced that its ‘HLB@School’ programme has rolled out cashless ecosystems for 16 schools in Kota Kinabalu to date.
The programme provides cashless payments, digital banking tools and financial infrastructure to schools and students.
The students of these schools were equipped with the HLB 3-in-1 Junior Account, which comes with a savings account with fixed deposit, and a reloadable debit card that will allow them to make cashless payments in their schools.

They can buy meals at the canteen, pay their school fees, purchase books and more by tapping their debit cards at the POS terminals.
This ties in with the HLB Pocket Connect app, a simple mobile banking platform for students and their parents with Earn, Save and Spend features.
The app allows students to track their pocket money, expenditure and savings with their guidance of their parents.
Similarly, parents are able to manage and monitor their children’s bank accounts anytime, anywhere through the HLB Connect online and digital banking platforms.
Hong Leong Banks’ efforts to nurture financial literacy among students has gained recognition from the Payment Networks Malaysia (PayNet).
Jasani Abdullah
Jasani Abdullah, Chief Executive Officer of Hong Leong Islamic Bank said,
“Our ‘HLB@School’ program extends beyond just enabling the digital transformation of the schools. The more important objective is to drive financial literacy, encourage financial inclusion and inculcate environmental stewardship at a young age.

Furthermore, we are also very proud that this program has been adopted by so many schools in Kota Kinabalu and is recognised by PayNet, which is the enabler of the national payments network and shared central infrastructure for Malaysia’s financial markets.”
Azrul Fakhzan, Director of Card Services at PayNet said,
“We applaud HLB’s effort in educating and encouraging financial and digital literacy among young Malaysians, which is in line with PayNet’s aspiration for inclusive and accessible cashless payments to all Malaysians.”

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Crowdfunding

MyStartr’s Ongoing Crowdfunding Campaign on Alta Raises RM1.9 Million

									by Fintech News Malaysia
December 13, 2022
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Malaysian equity crowdfunding platform MyStartr has launched its own crowdfunding campaign on its counterpart’s platform Alta, formerly known as Fundnel.
MyStartr’s campaign has raised over RM1.9 million to date from 189 investors and has reached 95.5% of its fundraising target.
The crowdfunding campaign will conclude in 10 days on 23 December 2022.

MyStartr was first established as a reward-based crowdfunding platform and licensed by the Security Commissions in 2019.
It has facilitated over 59 startups to raise RM100 million via its platform and currently has over 5,400 investors in its network.
Goh Boon Peng
Goh Boon Peng, Founder and CEO of MyStartr said,
“ With funds raised from the ECF round, we will accelerate the advancement of our next generation ECF platform, which will better help issuers raise capital and provide well-analyzed opportunities for investors.

The funds raised will also go to expanding our mentorship program to help companies level up skills in scaling their business, as well as also improving public awareness of ECF.”
Kelvin Lee
Kelvin Lee, Co-Founder and CEO of Alta said,
“With the maturity of alternative financing platforms in Malaysia today, firms like MyStartr and Alta provide compelling offerings that benefits both issuers and investors alike.

With a strong roadmap and exciting developments to forward the space, Alta is thrilled to support MyStartr in their fundraising round.”

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Digital Transformation
Innovation

The Story of Sugar: Why a Company Pivoted from Buy Now Pay Later to Save Now Buy Later

									by Rebecca Oi
January 4, 2023
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Buy now pay later, or BNPL, solutions have recently gained traction. These solutions allow customers to purchase items and pay for them later, either in installments or full. A Juniper Research report predicts that BNPL users will surpass 900 million globally by 2027; increasing from 360 million in 2022.
There are different BNPL providers, each with its terms and conditions. However, the concept is the same: you can get the items you want now and pay for them over time.
However, founders Dylan Tan hailing from Malaysia, and Vishvesh Suriyanarayanan, from India, in an interview with Fintech News Malaysia, said they started Sugar with the vision to provide an alternative solution to the BNPL model, which is the Save Now and Buy Later (SNBL) scheme.

The world of Save Now Buy Later
While BNPL schemes have been criticised for encouraging impulse spending and leading to debt problems, SNBL schemes are touted to help people save for big-ticket items without accruing debt.
Although the segment is still in its infancy, a handful of startups worldwide have devised SNBL schemes to incentivise saving for big spending.
How exactly does it work? Under these schemes, customers contribute small amounts to a savings goal every month. Once the goal is reached, they can use it to purchase the item.
This approach, also known in the retail industry as Lay-By, was historically offered by brick-and-mortar stores as an interest-free way for customers to break up the cost of large purchases.
With the rise of e-commerce, the same can now be done via apps and websites. Tortoise and Hubble are some companies operating in the SNBL space in India. At the same time, this scheme is offered by startups such as Accrue Savings and Join Reel in the United States and Neobank Up, an independent subsidiary of Bendigo and Adelaide Bank from Australia.
Tan and Suriyanarayanan believe that by saving up for something we want, we can have the funds to pay for it later. They say this is a more viable alternative to taking on debt to pay for items.
The move from Buy Now Pay Later to Save Now Buy Later
Tan and Suryanarayanan initially founded a BNPL service in travel bookings coined Split. The company won the WiT Singapore’s 2018 Startup Pitch and raised VC funding from Entrepreneur First and 500 Global at the end of 2019.
However, the company’s mission to make travel more affordable and accessible hit a snag when the pandemic struck and decimated the travel industry. Suddenly changing direction became a daunting challenge, but that’s precisely what the duo did.
The team pivoted Split into an e-commerce BNPL similar to Afterpay or Klarna and rode on the wave of low interest rates, stimulus checks, and, most importantly, how people were caught up with home shopping.
In 2022, the show halted after a VC pulled out from Split’s Series A equity funding. This was a difficult decision and not one that Tan took lightly. He had to consider the company’s future and what was best for its long-term success. In the end, he made the tough call to shut down Split.
He believed that BNPL could not have been more sustainable in the long run and that there needed to be a clear path to building a successful business with US$100 million in revenue.
Tan’s decision was based on his understanding of the market and the future of the payments industry. He was confident that there were better solutions than BNPL for the company’s long-term success.
Starting Sugar on Malaysian shores
The initial genesis of Save now Buy Later started with a customer walking into one of Split’s merchant outlets a year ago requesting Lay-By, and this was the aha-defining moment for the duo.
They then decided to launch Sugar in June 2022 in Malaysia with some of their trusted BNPL merchants. While gradually growing their user base, the duo enthusiastically received feedback from any user willing to speak to them.

Rewards and Cash back on Sugar
Tan is diligently researching Malaysian consumerism behaviours with his team. After speaking to Agensi Kaunseling & Pengurusan Kredit (AKPK), he discovered that close to 70 percent of buyers are planners. In comparison, the remaining 30 percent prefer instant gratification.
In addition, during the earlier days of the experimental phase of launching Sugar, the duo interviewed some of their users again from Split and asked if they could defer their gratification to receive a cash reward or a discount for delayed shipping; many opted to do so.
Dylan Tan
“The following insights were that some purchases, by definition, are that users don’t need to have them today. For example, even if I buy travel today, I will wait to travel. This could apply to Umrah; therefore, we can work with travel agents to make it more affordable for people to purchase travel packages. So, let’s spread the idea. Now let’s run some experiments to determine whether this theory is true,” Tan said excitedly.
However, the duo’s challenge is to figure out who finds it most useful, for what purchases, which merchants, and underlying all that to make it a sustainable business. To them, that’s the biggest question.
Moving towards ending the sour note on a Sugar high
Sugar is making steady progress by leveraging its previous experience with Split, which was also Shariah-compliant and had excellent business relationships with prior merchants.
Tan told Fintech News Malaysia that whenever he pitched Sugar to anyone, the standard response he gets is, who wants to save up for something when they can buy now and pay later?
“This ignores the reality that BNPL and credit cards represent a small minority of all e-commerce transactions worldwide, especially in Southeast Asia. People have always been saving up to buy stuff – Sugar makes it easier and more rewarding,” said Tan.
He added that users can earn sweet rewards through cashbacks when they save up for the things they want through Sugar’s app.
Vishvesh Suriyanarayanan,
Suriyanarayanan echoed the sentiment: “It can get tempting to use credit even for nonessential spending.”
“We’ve seen people abuse it and get into dangerous debt spirals that get so tough to escape. Make no mistake, some may claim that “paying later” is a budgeting tool, but the best budgeting tool is saving up, especially for stuff we don’t need today,” he added.
When asked when a big launch would be held in Malaysia, Tan had this to say.
“From a startup founder’s perspective, there will probably be a dozen launches, as we are constantly tweaking and experimenting – listening to users’ and merchants’ feedback,” said Tan.
“Our goal is to allow our users to afford what they want; sustainably as sweet things come to those who wait,” he added.
He added that Sugar would start with a few merchants in Malaysia, and there could be four to five versions of the app. By quarter two of 2023, Tan said that his key indicator of measured success would be the weekly growth of users as Sugar is currently operating in an unknown space, and there will always be changes ahead.
Only time will tell for this entrepreneurial duo as they take the journey through the Save Now Buy Later landscape and use their experiences as startup founders to create sweet deals with Sugar.

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Payments

Gary Yeoh Joins PayNet as CCO After Hops at Fave and Atome

									by Johanan Devanesan
January 5, 2023
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Malaysian payments network and infrastructure provider PayNet has appointed Gary Yeoh as its new Chief Commercial Officer.
The new appointment to oversee PayNet’s commercial operations follows an eventful year for Yeoh, a veteran of the Malaysian payments scene who had quick stints at both payments platform Fave and buy now pay later (BNPL) operator Atome in 2022.
Yeoh brings a lot of varied experience to the table. As a pioneering member of the Berjaya Loyalty program (Bcard), Yeoh led the business development of Bcard to achieve massive growth with a base of over 4.5 million card holders with over 100 merchants on board.

The program won numerous awards and recognition during his six years there, before Yeoh joined the fledgling Boost e-wallet team in 2017. In over four years there, Yeoh helped Axiata Digital’s fintech unit to grow from a cutting-edge application with a rewarding user experience to a heavily used, essential e-wallet for Malaysian consumers — garnering over 9 million users and 350 thousand merchants during Yeoh’s tenure at Boost.
He brought his sizable knowledge in loyalty promotions and payments to payments platform Fave, where he was made the country manager in February 2022. As Malaysian country manager, Yeoh oversaw the day-to-day operations as well as shepherded Fave’s venture into the buy now pay later space that was fast-growing at the time. The company said in a statement at the time that Yeoh would also be responsible for developing the brand’s market leadership in the country to accelerate adoption of innovative digital payment technology across Malaysia.
“I am confident that with Gary’s leadership, Fave will grow and further strengthen our position in Malaysia’s digital payments and BNPL landscape,” Fave Group CEO Joel Neoh said at the time.
After his lengthy and successful stints at Bcard and Boost, industry observers were surprised to learn that within six months of being named Fave Malaysia country manager, Yeoh was announced as the General Manager of BNPL platform Atome in August 2022.
Atome had launched at the end of 2020 in Malaysia and had experienced exponential growth in a brief period, acquiring over 3,000 merchant partners including ZALORA, Agoda, Sephora, Watsons, Switch, Machines,  Decathlon, Senheng, ALDO, SHEIN, Bjak, and Mydin.
Yeoh was able to harness over two decades of experience across retail, financial and payment sectors to bear to spearhead Atome’s growth in Malaysia. The BNPL service provider had already made several improvements earlier in 2022 to enhance both its customer and merchant experience, that saw it rank among the top five most downloaded shopping apps in Malaysia.
Among the enhancements to its app in Malaysia was the addition of Malay language features, adding deferred payment options for longer periods over six or 12 months at selected merchants, and launching Islamic partnership with PayHalal, the world’s first Syariah-compliant payment gateway.
Gary Yeoh
Now less than five months later, Gary Yeoh will oversee commercial operations for PayNet as the new Chief Commercial Officer.
“2023 was a interesting but tough year. Appreciate the time I spent at Fave with Joel Neoh and Chen Chow Yeoh for the first half of the year then a short but interesting stint at Atome,” Yeoh shared on LinkedIn.
“Looking forward to the new adventure and to catching up with old friends and to meeting new friends from the industry.”

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Payments

Revenue Group Names Former GHL Top Exec Danny Leong as New Group CEO

									by Fintech News Malaysia
January 9, 2023
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Payment solutions provider Revenue Group announced that it has appointed Danny Leong Kah Chern as its Group Chief Executive Officer effective 6 January onwards.
Leong has more than 28 years of experience in driving growth in companies across ASEAN from various industries.
Prior to joining Revenue, Leong was the Group CEO of two publicly listed companies namely payment solutions provider GHL as well as F&B business management solutions provider Cuscapi. He was also one of the Co-founders of Adeptis Solutions.

Danny Leong
The New Straits Times quoted Leong saying,
“I am delighted to join the company and be part of the team, as I see tremendous growth opportunities in Revenue. As a leading e-payment solutions provider, we are in the right sector at the right time. E-payment is one of the megatrends identified for at least the next decade.

So we have to move fast, innovate and adapt to changing technology to continue riding on the trend. In addition, with the board, my focus is also to formulate and execute long-term strategies to ensure sustainable profit growth for Revenue moving forward.”
Datuk Eddie Ng Chee Siong
Datuk Eddie Ng Chee Siong, current Managing Director and former Group CEO of Revenue said,
“Revenue has up to now been entrepreneur-led. However, as a main-market company with great prospects and a long growth journey ahead, it is high time that we pass the baton to the professionals to elevate the company to the next level.

Given Danny’s track record, execution skills, as well as expertise, particularly in payments and technology-related sectors, he is just the right person to lead the management team in driving Revenue forward.”
Revenue was recently in the news for suspending two of its Executive Directors Ng Shih Chiow (Group Chief Operating Officer) and Ng Shih Fang (Group Chief Technology Officer) with immediate effect for stealing company documents.
Ng Shih Fang has since sold a total of 20.54 million or 13.12% of total issued warrants which is valued at approximately RM2.32 million.
He currently owns only 1.75% of the total warrants issued in the company as reported by The Edge.

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Lending

Will Ablr’s Ethical Approach to BNPL Stand The Test of Time?

									by Rebecca Oi
January 13, 2023
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”The “Buy Now, Pay Later” (BNPL) phenomenon has taken the world by storm. The concept is simple: customers can purchase and pay for items later, in installments, without accruing interest.
BNPL has been a godsend for many people, allowing them to buy items they otherwise couldn’t afford. However, as with anything, there is a downside to BNPL. Some people have entered into debt using BNPL, and it can be challenging to break the cycle.
According to a report, BNPL payment adoption is expected to grow in Malaysia steadily over the forecast period, recording a CAGR of 35.4 percent from 2022 to 2028. The BNPL Gross Merchandise Value in the country will reach US$6,884.7 million by 2028.

BNPL companies such as Atome and Grab Paylater allow consumers to make purchases and then spread the cost over a period of time, usually interest-free.
However, BNPL has been heavily criticised by campaigners who believe consumers are being driven into debt by the ‘get finance quick’ model. With three-quarters of users aged between 18 and 36, many young people struggle to pay off their debts.
While BNPL services can be convenient for consumers, they have also been criticized by some as being a tool that promotes unhealthy consumerism. A discussion was held on whether BNPL is a force for good or evil in Fintech Fireside Asia, a webinar moderated by Chief Editor of Fintech News Malaysia Vincent Fong.

Traditional BNPL companies have also been increasingly criticised for their high fees, late payment penalties, and aggressive debt collection practices. In response to this, a new breed of BNPL companies is beginning to emerge that are committed to providing alternatives with their unique propositions.
Can BNPL be ethical?
Ethical BNPL is a new concept that a few providers in the market are propagating. These companies offer payment plans with no interest, late fees, or hidden costs. They also promote financial literacy and provide resources to help their customers make smart financial decisions.
Essentially, it is BNPL with a difference – where the provider offers a range of life-fulfilling and life-enhancing products and services instead of just the usual payment plans.
Ablr – taking a different approach to traditional BNPL
One such company which provides a “unique” proposition to the growing BNPL scene in Malaysia is Ablr. The company integrates flexible plans and presents a different approach by embedding ethical financing through its products and services.
Ablr is a consumer-centric business that provides a suite of ethical financing solutions to help consumers buy the things they need without putting a strain on their finances.
How BNPL Ablr works. Image: Ablr Malaysia
“By using Ablr, consumers can pay for their families’ healthcare treatments, childcare services, or travel experiences with easy, fixed monthly instalments, from 30 days up to 60 months, depending on the plans on offer by our growing list of merchants, said Co-founder and CEO Amanda Chin in an interview with Fintech News Malaysia.
The company started in Singapore in 2020 and made its way to Malaysian shores, where it launched in July 2022. The platform’s core focus merchant categories consist of health and wellness, education and enrichment, home and family, and travel and experience.
Ablr has a network of over 30 brands in Malaysia and Singapore, spanning over 250 merchant points. The company looks forward to deepening its engagement with these sectors, and it will stay open to other merchants that can benefit and add value to its ecosystem.
Most of Ablr’s users are predominantly females, and two-thirds (70 percent) are from Gen Z and Y. The company has seen demand for types of products and services shifting as users become working individuals or progress in their careers.
Amanda Chin
We want the products and services on Ablr and the merchants we onboard to reflect that shift and provide meaningful, essential offerings that add value throughout their life cycle,” added Amanda, who has over 16 years of experience in the fintech space with notable companies such as Touch n’ Go Group and Revenue Monster.
Gauging one’s creditworthiness
Ablr said it is equipped with data-driven credit assessments for its consumers, thus allowing them to understand a user’s financial situation. Through this, Ablr will be able to provide the appropriate access responsibly and sustainably.
Ablr will send their users a reminder a day before the due date of repayment. However, if the auto-deduction fails on the day of the intended payment, the account will be frozen from the next day onwards.
Users will also be able to make other purchases with Ablr once they have cleared their outstanding payments.
For merchants, the platform has various strategies to help ensure that approval and conversion rates remain high without compromising on the customer journey.
Hence, creditworthiness is determined through a combination of factors, including evaluating the ability and willingness to pay.
“Our approval process is different from other players in the field. We focus on consumer protection by providing appropriate access and limits to the right people,” shared Amanda.
Engagement with CCOB and alignment with Shariah principles
As a BNPL fintech company in Malaysia, Ablr is always looking at ways to support the Consumer Credit Oversight Board’s (CCOB) agenda. The company is constantly engaging with them to ensure its practices align with the board’s guidelines.
CCOB is the statutory regulator and supervisory body overseeing non-bank credit providers, carrying out its responsibilities as a competent authority under the Consumer Credit Act (CCA) which include among others, BNPL activities.
“We can lead discussions with the CCOB due to our consumer-centric approach. Engagement with CCOB helps us to be at least on par with the other financial services, as well as to support our financial service sustainably through positive behaviour to avoid propagating negative habits,” said Amanda.
Ablr has always modelled its business to be aligned with Shariah principles: transparency, value-driven, and interest-free.
“We are now at the last mile of implementation to get our certification with Amanie Advisors. We are looking at changes in the transaction structure and our marketing,” said Amanda.
The motivation for this is to provide more inclusive offerings for Malaysians and target the underserved population and eventually expand into other markets in Southeast Asia,” said Amanda.
Will Ethical BNPL survive the long haul?
The question of whether ethical BNPL will survive in the long run in Malaysia is a difficult one to answer. While the BNPL industry is rapidly growing, there are concerns about the sustainability of this alternative financing model. There are a number of factors that will play into whether or not these businesses can keep their promises of being ethical.
When push comes to shove, can they keep their commitment to being ethical when funding runs low or when VCs demand to see higher numbers? Only time will tell.
However, Ablr  knows how it feels when dreams aren’t realised. The platform claims that it can put the unreachable within reach. To put purchasing power back in the users’ hands, on their own terms. With Ablr, they’ll now be able to.
Amanda disclosed to Fintech News Malaysia that Ablr is looking to move to the business-to-business (B2B) realm this year to finance merchants, suppliers, and customers.

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Payments

Indonesian Payments Unicorn Xendit Officially Expands to Malaysia

									by Fintech News Malaysia
January 11, 2023
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Indonesian fintech unicorn Xendit announced that it has officially made its entry into the Malaysian market to offer its payment solution for businesses.
Former Finance Minister Tengku Datuk Seri Zafrul Tengku Abdul Aziz had previously announced that Xendit would be relocating its financial hub to Malaysia following an investment from the Dana PENJANA programme.
The programme is a RM600 million investment fund by the Malaysian government for the venture capital firms to invest in startups.

Xendit has also announced an investment in local payment gateway provider Payex which is licensed by Bank Negara Malaysia.
The collaboration will see Xendit bring its regional expertise to synergise with Payex’s local knowledge driving merchant acquisition and local expansion.
Xendit offers a one-stop payment infrastructure that enables businesses to scale rapidly into the Philippines, Indonesian, Thailand, Vietnamese, Malaysian and other Southeast Asian markets.
The Indonesian unicorn offers payment acceptance from virtual accounts, credit and debit cards, e-wallets, retail outlets and direct debit.
Beyond this, Xendit also provides card issuing, platform management, infrastructure for e-wallets, express checkouts and more.
Xendit has over 3,500 active customers across the region and has recorded over US$21 billion in annualised third-party verifications across over 250 million transactions in total.
The firm first launched in Indonesia in 2015 and entered the Philippines market in 2020. The firm was minted as a unicorn following the closing of its US$150 million Series C funding round.
Moses Lo
Moses Lo, Founder and CEO of Xendit said,
“We are proud to be officially bringing our payment infrastructure and ecosystem to the Malaysian market – boosting the growth trajectory of local start-ups through our secure and easy-to-integrate payment system.

We look forward to working collaboratively with the local market adding value through our world-class products and regional experience to collectively drive this national agenda.”
Jason Siew, General Manager at Xendit Malaysia said,
“At Xendit we prioritise a simple integrated system with an emphasis on speed and quality service. This is what we will be bringing to the Malaysian market.

Our systems are designed to simplify payment processes in all forms, from conventional to the most in-demand traditional and alternative payment channels. This coupled with our wide regional reach means it is easier than ever for local businesses to scale and grow rapidly across the nation and region.”

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Insurtech

Tune Protect Gets Approval for BNM Sandbox

									by Fintech News Malaysia
January 12, 2023
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Tune Protect Group announced that its wholly owned subsidiary Tune Protect Ventures  (Tune Protect Life) has received Bank Negara Malaysia’s (BNM) approval to participate in the Financial Technology Regulatory Sandbox.
Tune Protect Life will provide simple and affordable pure life and health protection geared towards the unserved and underserved communities namely SMEs, B40 and M40.
It is also looking at first time insurance buyers and those who are new-to-insurance with its products and propositions to drive financial inclusivity.

Koot Chiew Ling
Koot Chiew Ling, Principal Officer of Tune Protect Life said,
“Our first proposition, SME EZY is an employee benefit insurance plan that is targeted at SMEs as we realise that retaining employees and maintaining productivity is a challenge post-pandemic.

It is designed to help SMEs plan their budget ahead with the flagship product being a group medical with fixed premium for 3 years, that also comes with a health-based rewards programme (Activ8) to motivate their staff to stay healthy.”
As a digital life insurance player, Tune Protect Life will also bring end-to-end digitisation to allow businesses to buy, self-serve and submit claims with minimal human intervention.
Tune Protect added that it is aiming to offer SME EZY via its B2C channels next year.
Rohit Nambiar
Rohit Nambiar, Group Chief Executive Officer of Tune Protect said,
“….we provide value propositions on protection and services and build on growth opportunities to reach out to the market.

This was when we came up with the SME EZY proposition as we do see a positive future for the SME segment going forward as we continue building on our health and SME business pillars.”

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Insurtech

Insurtech Startup Ouch! Raises Pre-Series A, Eyes Digital Takaful License

									by Fintech News Malaysia
January 12, 2023
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Ouch!, a tech-enabled insurance platform has announced a fully subscribed six figures pre-series A round and is set to continue this momentum with Ouch! exercising Its over-allotment for additional investors to come on board.
This follows their RM 1.5 Million seed funding announced just a year ago.
Following the investment Ouch! is now looking to acquire final approval from Bank Negara Malaysia (BNM) to operate in its regulatory sandbox.

The company said that this comes as a prelude to their mission to become Malaysia’s first digital Takaful operator with the planned launch of its new digital Takaful product within the first quarter of 2023.
The new licensing framework for Digital Insurers and Takaful Operators (DITO) is part of BNM’s goal to encourage innovation and inclusion within the sector, it was first announced in late 2022.

Shazy Noorazman
“Obtaining the license will expand our market and thereby potential, significantly. This is all in line with our ambition to be a first-of-its-kind digital Takaful operator especially focusing on the younger generation bringing our signature approach to insurance to a new space.

There are now multiple generations that either don’t see the importance of or can’t quite wrap their heads around the layers of insurance offerings and processes. Ouch! aims to strip all of that out for a simple, straightforward product that resonates with the youth of today and tomorrow,” said Shazy, CEO, Ouch!
Ouch! has also announced the appointment of board member and advisor, Mukesh Dhawan — a former CEO of Zurich Takaful Malaysia and currently the founder of Drivn Fintech a startup focused on embedded insurance solutions.
Founded in September 2019, to date, Ouch! offers insurance solutions across life, home, travel and motor, all powered by an app platform that makes the process and tracking easy and transparent.

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Lending

GHL Rolls Out Grab’s BNPL Service PayLater for Physical Stores

									by Fintech News Malaysia
January 16, 2023
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Payment solutions provider GHL Systems will continue the rollout of Grab‘s Buy Now, Pay Later (BNPL) service for its in-store merchants following the enablement of PayLater back in 2021 for online purchases.
PayLater by Grab gives consumers the flexibility of making payment in the following month or in four monthly instalments with 0% interest.
Through this expanded partnership with Grab Malaysia, merchants using GHL’s terminals can now offer their shoppers more payment options when making purchases in physical stores.

Consumers can also earn GrabRewards for every PayLater transaction for more benefits and savings on Grab’s platform.
Kevin Lee
Kevin Lee, CEO of GHL Malaysia said,
“We’re excited to partner with Grab Malaysia to extend PayLater to our in-store merchants. We believe that this offering is able to empower both the merchant and consumer, especially in this post-pandemic time with expectations of increased foot traffic.

By enabling PayLater, consumers can stay on top of their budget and gain greater purchasing power, while driving sales for merchants.”
Lim Tien Ming, Head of Payments, e-Commerce, and Insurance at Grab Malaysia said,
“This partnership with GHL is timely as consumers are now more open to buying now and paying later (BNPL). In fact, a recent ResearchAndMarkes.com report highlights that BNPL payment adoption is expected to grow steadily, recording a compound annual growth rate of 35.4% during 2022-2028.

Therefore, PayLater encompasses this and is a natural progression in our evolution of vast financial offerings through our platform as it provides more flexibility and encourages shoppers to shop responsibly.”

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Payments

Malaysians Can Now Get Mobile Prepaid Top-Ups Directly From the BigPay App

									by Fintech News Malaysia
January 16, 2023
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BigPay, a Capital A venture company, has launched the prepaid mobile top-up feature so its Malaysian users can now top-up directly from their e-wallet balance.
The feature is available for local telecom providers including Celcom, Digi, Hotlink, TuneTalk, U Mobile, and XOX.
BigPay said that the addition of this feature allows users to better track their overall spending and manage their finances through the app.

Additionally, prepaid top-ups via BigPay will entitle users to 1 airasia reward points for every RM20 spent.
For the month of January, the first 1,000 users to make a minimum of RM10 top-up can receive up to 10% cashback credits capped at RM10.
In 2022, BigPay launched various regulated financial products and services in Malaysia, which includes BigPay Personal Loans, DuitNow QR, DuitNow transfer, and goal-based savings offering Stashes.
Since its inception in 2017, BigPay has over 3 million users and surpassed RM1 billion in Gross Transaction Value (GTV) through its international remittance services.
Salim Dhanani
“With the addition of the prepaid mobile top-up feature, we’re making it more convenient for users to consolidate their everyday spending on the BigPay app.

We’re empowering our users with the convenience of integrating all their spending in one card and app, and in the long run, allow them to better manage their finances through a comprehensive overview of their expenditure,”
said Salim Dhanani, CEO and Co-Founder of BigPay.

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E-Wallets
Payments

Touch ‘n Go Launches CSR-linked Numberless Visa Prepaid Card

									by Fintech News Malaysia
January 18, 2023
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Touch ‘n Go Group has partnered with Visa to launch a corporate social responsibility (CSR)-linked numberless prepaid card with a maximum transaction limit of RM5000 per day.
With this card acting as a complementary payment channel to the Touch ‘n Go eWallet, users will be able to make payments even at merchants who do not have a DuitNow QR code.
The card also permits users to withdraw cash at automated teller machines (ATMs) and perform online and offline payments internationally.

However, users will not be able to use the new Visa card to pay at highway tolls or car parks due to technical limitations according to a report by SoyaCincau.
Touch ‘n Go eWallet users can apply for their Visa card through the e-wallet app where they will need to just pay a RM5 delivery fee for the card.
The design of the new Visa card incorporates the artwork by Damien Wong, an artist from Malaysian NGO United Voice who was diagnosed with autism. The proceeds from the group’s purchase of this painting goes directly to Damien.
For every card applied, RM2 will be donated to United Voice where the proceeds will be used to run projects to drive new employment opportunities by upskilling, training, and educating people with learning disabilities.
Alan Ni
Alan Ni, Chief Executive Officer of TNG Digital said,
“Together with Visa, we have integrated innovation and advanced technology to deliver enterprise grade security and features for this Visa card. At the same time, it is also the first-of-its-kind CSR-linked Visa card in Malaysia.

With all the features incorporated in this card, Touch ‘n Go eWallet is now able to offer all the services equivalent to an alternative bank to all eWallet users for free. We expect strong demand for the card as this will expand our eWallet customers’ payment horizon internationally”.
Ng Kong Boon, Country Manager for Malaysia at Visa said,

Ng Kong Boon
“We are extremely excited to partner Touch ‘n Go eWallet to launch a prepaid card in Malaysia. This prepaid product that is tied to the Touch ‘n Go eWallet will enable cardholders to pay at Visa’s wide network of over 80 million merchants worldwide.

We are also heartened that cardholders who apply for this product will be able to contribute to United Voice’s upskilling initiative and do their part for charity, while benefitting from making seamless and convenient card payments.”

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Blockchain/Bitcoin

Luno Slashes 35% of Workforce as Crypto Fallout Rages On

									by Johanan Devanesan
January 26, 2023
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Luno was the first digital assets exchange to be approved by the Securities Commission in Malaysia, opening the door for Malaysians to trade and store cryptocurrency assets in a more regulated setting.
But as challenging macroeconomic factors adversely impact sectoral growth across the board, the tech industry overall and the cryptocurrency industry have been hit by waves of layoffs as companies struggle to find ways to rebalance their business plans towards more conservative outlooks for 2023.
Luno became the latest to announce workforce reductions yesterday, saying it would cut 35% of its team globally. In an internal message to employees, Luno co-founder and CEO Marcus Swanepoel cited the turbulence impacting the broader market and how the asset exchange needed to readjust its focus to “lay a strong yet sustainable foundation for the business as we prepare to come out of this current cycle in a very strong position. ”

2022 saw over a trillion dollars in value wiped out as the cryptocurrency sector plunged into one of its coldest bear markets since 2014. The total crypto market capitalisation was 64.1% lower that it had been at the beginning of the year, and rising interest rates and a sagging economic outlook saw the demise of notable crypto exchanges and hedge funds FTX, Three Arrows Capital, Genesis, and Celsius Network.
Marcus Swanepoel
“This in turn has impacted us indirectly in a number of ways: on the capital side, a significantly more constrained funding environment, with the market’s focus shifting from long term investment to shorter term profitability, and on the operating side, a negative impact on market sentiment and consequently on growth and revenue for our business, along with all of our peers and competitors,” Luno co-founder Marcus explained in his note.
“While we anticipated a downturn and proactively planned ahead with a business and funding model that can be resilient to some of these factors, the sheer scale and speed of all of this happening, and all at the same time, has put significant strain on our original plan.”
Luno was one of only four registered digital asset exchanges operating under cryptocurrency regulations in Malaysia, the others being MX Global, SINEGY Technologies, and Tokenize Technology. The exchange was acquired by New York-based Digital Currency Group in September 2020, which also owned cryptocurrency lender Genesis that filed for bankruptcy protection last week.
Luno was in the process of rolling out numerous features to its platform in Malaysia, including language availability in Malay, localised educational content, and adding high-profile tokens Cardano and Solana. At its height, Luno claimed over 180,000 users in Malaysia along with over 90% of the local regulated digital asset exchange market share.
A 35% headcount reduction would affect over 330 employees out of its total team of about 960, as per CNBC. How many of those positions would be affected in the Malaysian office is presently unknown,  as Luno Malaysia declined to comment at this point.
Luno joins US-based exchange Coinbase, Singapore-based Crypto.com, Amber Group, and Huobi as just some of the companies in the crypto space to reveal mass redundancies in recent months.

Featured image credit: Edited from Unsplash and freepik

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Blockchain/Bitcoin
WealthTech

HelloGold Shutters Its Consumer Business — Users Have Until 2 Feb to Withdraw Funds

									by Johanan Devanesan
January 26, 2023
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Malaysian-based fintech HelloGold, a savings app that blended gold trading with blockchain technologies, has become the latest casualty of adverse market forces and will be closing down its core business in Malaysia and Thailand.
Users are given until 2nd February 2023 to withdraw their funds, any gold that remains on their platform after the deadline will be sold and funds will be transferred back to users within 5 working days.
Founded in 2015 and officially launched in 2017, the app made use of blockchain innovation to enable customers to save money using gold for as low as RM 1.

The low investment threshold was aimed at enabling low- to medium-income customers to have access to financial products that would traditionally be out of reach for them, like gold savings.
The concept gained traction for its financial inclusion benefits for underserved and underbanked communities in Malaysia, and was recognised for its innovative application of blockchain, becoming the world’s first Shariah-compliant certified online digital gold platform.
On the back of this growth HelloGold expanded its user-friendly financial inclusion services to Africa and then Thailand in 2019, where gold could be procured for as little as 10 Baht.
The startup grew its reach for gold product financing with collaborations with non-banker lender AEON Credit Service (M) Bhd and with KLEAN reverse-vending machines that encouraged recycling plastic and aluminium by disbursing 0.00059 grams of gold for every bottle or can recycled through KLEAN machines.
Despite all the positive momentum and coming out of the COVID-19 pandemic looking like a winner, HelloGold failed to meet its growth targets last year, amidst the far-reaching economic pullback in the region and globally that is still being felt.
“We have not been able to get it to a level of customer activity to make it profitable it didn’t make it make sense to keep it going,” Robin Lee, CEO and Co-Founder of HelloGold, told Fintech News Malaysia, “so we are closing it down and we are pivoting to a B2B model.”
The company has already emailed its current userbase of the decision, and will instead pursue a more promising business model and explore other opportunities presented by its technology while cutting costs.
“It enables us to be back-end focused instead of front-end focused,” Robin confirmed. “We are still continuing to pursue a white-labeling business in Malaysia and abroad.”

Featured image credit: Edited from Unsplash

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