Payments

Adyen Expands Offerings in Malaysia, Appoints New Country Manager

									by Fintech News Malaysia
April 17, 2023
0 comments

Global payments platform Adyen is expanding its offerings in Malaysia through the launch of its unified commerce solution to help businesses flexibly meet changing consumer expectations.
The unified commerce solution gives businesses end-to-end control of transactions across different sales channels including online, in-app, and in-store to help them understand their consumers in a single overview.
Adyen had previously announced that it has expanded its acquiring capabilities to include Malaysia back in July 2020.

As Adyen doubles down on its presence in Malaysia, the company had also appointed Lee Soon Yean as its Country Manager.
Lee joined Adyen in 2015 and was previously the Head Of Account Management for APAC where he was pivotal in managing relations with key regional accounts.
Prior to joining Adyen, Lee developed his technical expertise and industry knowledge from his stints in companies like AirAsia and Amadeus Asia.
Lee Soon Yean
Lee said,
“I am honored to lead Adyen’s growth in Malaysia. Our experience with a global, well-diversified merchant base means that we’re well-versed with the challenges retailers typically face. Knowing these, we’ve built a single platform that addresses these pain points, and to benefit all merchants.

Whether it’s a homegrown enterprise looking to expand overseas, or a global retailer hoping to set up shop here, we can help merchants create seamless consumer experiences that uplift conversions and drive revenue growth.”
Warren Hayashi, President of Adyen, APAC said,
Warren Hayashi
“We’ve always been a strategic partner in helping businesses realize their ambitions – increasingly so, as the modern consumer becomes channel-agnostic. This is why we’re excited to bring unified commerce to Malaysia.

With our single platform, businesses can get a central overview of payments data from all sales touch points, thus drawing invaluable insights about their customers’ preferences.”

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WealthTech

Kapital DX Launches Malaysia’s First IEO Platform Regulated by the SC

									by Fintech News Malaysia
April 18, 2023
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Kapital DX (KLDX) announced the launch of its Initial Exchange Offering (IEO) platform, touting it to be the first of its kind in Malaysia, in a bid to open up new investment opportunities for investors in private markets.
The IEO platform is registered and regulated by the Securities Commission Malaysia (SC). The only other registered operator is equity crowdfunding platform pitchIN which aims to launch its own IEO platform this year.
The two registered IEO operators will be able to provide an alternative avenue for eligible companies to raise funds via the issuance of digital tokens in Malaysia. An issuer may raise funds up to RM100 million from retail, sophisticated, as well as angel investors. This is subject to the investment limits provided in the SC’s Guidelines on Digital Assets.

KLDX said that the IEO platform will provide investors with the opportunity to invest in digital investments that are backed by underlying assets, such as equity shares, fixed income instruments and funds.
The firm added that it would ensure that only high-quality investments are offered through the platform by implementing a rigorous due diligence process.
KLDX will also actively offer environmental, social and governance (ESG)-focused investment products to its investors.
“For companies looking to raise money, our IEO Platform provides easier access to capital, at a lower cost, and faster time to market, allowing companies to raise capital more efficiently.”

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Payments

Securities Commission Malaysia Launches New E-payment Platform ‘e-PATH’

									by Fintech News Malaysia
April 19, 2023
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The Securities Commission Malaysia (SC) has announced the launch of a new electronic payment hub known as e-PATH to provide a more seamless and secure way for market participants and the public to make online payments to the SC.
e-Path is part of the SC’s digital transformation initiatives and will be officially launched on 1 May 2023.
This will enable an easier online payment process for various regulatory and registration fees related to most submissions made to the SC which include fees for, among others, applications for initial public offerings, transfers of listing, as well as take-overs and mergers.

The SC said that this will help enhance the overall user experience through faster and more efficient processing of payments, integration with a range of payment methods, including credit and debit cards, online banking, and access to real-time tracking of payment status.

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Regtech/Regulation
Sponsored

BNM to Co-host Virtual AML/CFT Hackathon 2023 to Help Crack Down on Financial Crime

									by Fintech News Malaysia
April 20, 2023
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Bank Negara Malaysia (BNM), in partnership with the Financial Intelligence Consultative Group (FICG), will be co-hosting the AML/CFT Hackathon 2023 from 1 to 28 June 2023 to develop digital solutions to help combat financial crime.
Marzunisham Omar
Bank Negara Malaysia Deputy Governor Marzunisham Omar said,
“Global challenges require global solutions. Financial crime is a global issue, and we all have a role to play in maintaining the integrity of the financial system.

We are pleased to continue our long-term partnership with FICG through this search for creative solutions to curb financial crimes, particularly scams, from talented individuals across the region.”
The AML/CFT Hackathon 2023, which will be held virtually, will feature workshops and mentoring sessions run by experts in cybersecurity and anti-money laundering/counter-financing of terrorism (AML/CFT).
Participants will work in teams to prototype innovative digital solutions to specific problem statements identified by the organisers, which reflect real-world pain points in combating serious financial crimes today.
Pitches will be evaluated in three separate tracks to reflect different categories of participants: public sector (e.g., law enforcement agencies), private sector (e.g., reporting institutions, fintech companies) and open category (e.g., freelance developers, students).
Participants stand a chance to win up to US$5,000 as well as an opportunity to present their winning prototypes to senior financial intelligence officials from across the region.
The AML/CFT Hackathon 2023 builds upon past efforts by BNM and Australian Transaction Reports and Analysis Centre (AUSTRAC), and is now in its third instalment following the International FIU Codeathon in 2017 and the ASEAN-Australia Codeathon in 2018.
Prototypes developed include, amongst others, enhancement of AML/CFT compliance and suspicious matter reporting by applying artificial intelligence.
Those interested in participating may register here before 28 May 2023, and stay up to date by following the AML Hackathon 2023 Facebook page.

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Blockchain/Bitcoin

Aaron Tang Succeeds David Low as Luno’s APAC General Manager

									by Fintech News Malaysia
April 25, 2023
0 comments

Global cryptocurrency company Luno announced that David Low will be stepping down as APAC General Manager and succeeded by Aaron Tang was most recently the Country Manager for Luno Malaysia. The appointment will take effect on 15th May 2023.
As part of the pioneering team in Malaysia, Aaron has been working hand-in-hand with David in building the firm’s local presence, and in leading and obtaining Luno Malaysia’s regulatory approval from the Securities Commission Malaysia (SC).
He has since expanded the local team to more than 60 employees, with over 800,000 Malaysians currently signed up with the platform.

As Luno’s APAC General Manager, Aaron will be tasked with the strategic overview of Luno’s market operations at the regional level, in addition to growing business in core markets across the APAC region.
In addition to these changes, Scarlett Chai will take over as the new Country Manager for Luno Malaysia effective immediately, having served as Marketing Manager since July 2021.
Scarlett has built the company’s brand awareness and established various partnership programs during her 4 years in leading Luno Malaysia’s marketing initiatives.
Some of her key achievements include building Luno’s affiliates programme, leading the development of Women-in-Crypto – a community for women to learn about crypto, and  Luno’s largest integrated brand campaign, Move with Luno.
Luno currently stores more than RM1.2 billion in value on behalf of its customers across nine approved digital assets in Malaysia.
David Low
David Low, the outgoing APAC General Manager shared,
“It has been a privilege to be given the opportunity to lead Luno’s APAC businesses. After 5 years, I’ve decided to take a career break and pass the baton to the next line of leadership. Both Aaron and Scarlett have been an integral part of Luno Malaysia’s team.”
Aaron Tang
Aaron said,
“I am grateful to have had this opportunity, and I look forward to growing Luno’s business at the regional level, from building closer relationships with industry stakeholders to advancing awareness efforts for investors across the APAC markets.”
These leadership changes comes on the heels of Luno’s announcement last week that it will be shuttering its operations in Singapore following a “regular evaluation of its global strategy and presence”.
Last month, Luno’s Co-founder Marcus Swanepoel stepped down as CEO and was succeeded by James Lanigan who was formerly the Chief Operating Officer.

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Company Announcement
Payments

Salim Becomes Final Co-Founder to Step Down From BigPay

									by Fintech News Malaysia
May 2, 2023
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Southeast Asia fintech BigPay, a venture of Capital A, has named Zubin Rada Krishnan as its acting Group CEO. Zubin, who previously served as Malaysia Country Head for BigPay, takes over from Salim Dhanani who stepped down in February to pursue other opportunities.

Salim Dhanani
With Salim exiting the role, all of the founding BigPay team members which included then-CEO Chris Davison and former COO Navin Rajagopalan have now left the organisation.
Reflecting on his time at the company, Salim commented, “I trust that the amazing team I’ve had the privilege to work with will ensure that we have a sustainable business model scaling within the AirAsia and Capital A ecosystem as BigPay embarks on the next chapter with the new leadership.”
Zubin brings extensive experience in financial services to the role, having been a Partner at the Boston Consulting Group for over six years and a co-founder of Tuas Capital Partners. He also held strategic positions at Hong Leong Bank and KPMG Business Advisory.
Zubin Rada Krishnan
As acting Group CEO, Zubin said, “With an increased focus on our customers and deeper collaboration with airasia Superapp, I am confident in achieving greater growth for BigPay, which saw 56% YoY growth in revenue and a 43% improvement in gross profit margins.”
The Capital A company plans to expand its presence in Malaysia and across ASEAN, with launches in Thailand, Indonesia, and the Philippines in the coming months.
BigPay currently boasts 1.37 million transacting and carded users, representing a 17% YoY growth. In 2022, the company introduced several regulated financial products and services in Malaysia, including BigPay Personal Loans, DuitNow QR, and DuitNow transfer. Most recently, it reached RM1 billion in gross transaction value (GTV) on its international remittance feature.

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Insurtech

PolicyStreet Achieves Significant Growth, Reaching US$6 Billion Sum Insured

									by Fintech News Malaysia
May 3, 2023
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Malaysia’s Insurtech Startup PolicyStreet has experienced exponential growth in FY22, with its topline increasing fivefold compared to FY21 and a sum insured of over US$6 billion. Despite challenging market conditions, the company has continued to innovate, delivering tailor-made insurance products and services to customers by leveraging technology and industry expertise.
Since obtaining the Reinsurer and General Insurer license from the Labuan Financial Services Authority (LFSA) in 2021, PolicyStreet has been the reinsurer in its partnerships with onshore insurers, enabling the launch of innovative insurance solutions.
Key drivers of this growth include the Digital HR Solution and Gig Worker’s Claims Platform in collaboration with p-hailing service providers. These solutions cater to Southeast Asia’s underserved gig and digital economy, which is expected to reach US$1 trillion by 2030.

Lee Yen Ming
Lee Yen Ming, Co-founder and CEO of PolicyStreet stated the company is committed to serving the underserved market segments, ensuring sustainability in the gig and digital economy through embedded insurance and platform development.
“By tapping into our underwriting and tech development capabilities to expand our partnership network with leading industry brands and protect more underserved communities, we are confident that we will register strong growth this financial year (FY23) compared to FY22,” said Yen Ming.
The company specializes in creating embedded insurance solutions, addressing the pain points of consumers and businesses while incorporating in-house tech capabilities and strategic partnerships with industry leaders.

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Regtech/Regulation
Security
Sponsored

TOPPAN IDGATE Offers Highly Secure Authentication for Digital Banking

									by Fintech News Malaysia
May 9, 2023
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Digital technology is increasingly transforming financial services. In the era of mobile devices, digital services through mobile apps have become part of our daily lives. The question now is whether one can trust the system to manage their assets and money via virtual services?
With a zero trust architecture, the internet is never trusted, and digital financial services aim to always verify and authenticate information. Authentication is the most significant element of a digital service structure.
TOPPAN IDGATE, a Taiwan-based company, joined the TOPPAN group in 2020 and has focused on digital identity authentication for more than 10 years.

Part of the company’s solutions is the unique mobile device binding technology which is a patented push notification mechanism and high-secure face recognition technology.
TOPPAN IDGATE provides digital identity lifecycle management solutions for digital banking services from enrollment and registration to authentication, even for device changes. This is to support device rebinding via biometrics.
TOPPAN IDGATE holds more than 70% market share of Taiwan’s digital banking market

TOPPAN IDGATE has been adopted by more than 70% of digital and virtual banks in the Taiwanese market. In addition, it has been applied to numerous banks in Hong Kong and Southeast Asian (SEA) countries.
By using device-binding technology, TOPPAN IDGATE provides safe and user-friendly multi-factor authentication solutions. Today, the company has more than a million banking customers’ records, which demonstrates IDGATE’s reliability and compatibility.
Offering a highly secure authentication method
In the past, an OTP (One-Time Password) was used to authorise a digital transaction, such as SMS OTP or hardware tokens. However, SMS OTPs are a cybersecurity risk as hackers can forward the codes easily by implanting malicious apps on users’ devices.
Financial institutions pay a great deal of attention to this threat. In terms of hardware tokens, there is no doubt that they are relatively safe, but they are expensive and difficult to store and manage.
For example, Bank Negara Malaysia (BNM) had announced plans to implement five additional measures to combat rising financial scams. The most significant measure will be the migration of SMS One-Time Passwords (OTPs) to more secure authentication.
Other measures include tightening fraud detection rules. Among the new rules are a cooling-off period that will be observed for first-time online enrolments, customers being restricted to one mobile or secure device for authentication as well as the setup of dedicated hotlines by financial institutions for customers to report financial scams incidents.
In light of the above measures, the adoption of more secure methods is expected to be on the rise as there will be a need for a connection between users and their mobile devices for digital identity verifications.
TOPPAN IDGATE develops its own biometric face recognition ‘iDenFace’

TOPPAN IDGATE’s FIDO-certified device binding solution iDenKey is based on regulation-compliant authentication technology. With iDenKey, mobile devices can be used as a strong authentication system for mobile apps, using a risk-based authentication method.
iDenKey supports multi-factor authentication by risk level, including biometric face recognition. TOPPAN IDGATE had developed its own technology referred to as iDenFace, ranked Top 12 by NIST Face Recognition Vendor Test (FRVT), a benchmark evaluating facial recognition algorithms, in 2021.
To support more banking customers in the SEA market, TOPPAN IDGATE aims to draw on its successful experience and reliable cases.
IDGATE has expanded into the SEA market since 2019 and currently has several reference cases in Singapore, Indonesia, Malaysia, Vietnam, and Cambodia as a result.
Learn more about TOPPAN IDGATE here.

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Insurtech

AEON Retail Partners bolttech to Launch Device Protection Insurance From RM25

									by Fintech News Malaysia
May 8, 2023
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Malaysian retail brand AEON has partnered with insurtech bolttech to roll out a new comprehensive protection programme ‘AEON SAFEGUARD; which combines device insurance and support services for all mobile devices and home appliances purchased at all 35 AEON stores nationwide.
The insurance coverage, underwritten by Tune Insurance Malaysia, protects customers’ new devices against accidental and liquid damage, as well as provides extended warranty for all insured devices.
AEON SAFEGUARD’s device support services include device trade-in service for used smartphones and tablets, 24/7 technical support service for usage issues, ‘new-in-the-market’ repair concierge service, and door-to-door device pick-up and delivery service.

The AEON SAFEGUARD starts from RM25 and offers protection for up to two years.
Low Ngai Yuen
Low Ngai Yuen, Chief Merchandise and Marketing Officer, AEON Retail said,
“AEON SAFEGUARD provides a convenient, all-in one programme to take care of the devices that our customers love – be it their mobile phones or other appliances in their homes.

This innovative new offering, that goes beyond the traditional in-store extended warranties currently seen in the market, demonstrates our commitment to meet customers’ expectations every step of the way as they enjoy a seamless customer experience with AEON.”
Baldev Singh
Baldev Singh, CEO for Southeast Asia, bolttech said,
“We’re thrilled to bring additional value to AEON’s customers as we partner with Malaysia’s go-to retail chain.

This collaboration aligns with bolttech’s goal to create compliant device insurance and protection solutions that enhance our partners’ offerings and deliver more choice, convenience and access to protection for their customers at the point of need.”

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Payments

QR Payment Linkage Between Indonesia and Malaysia Has Now Gone Live

									by Fintech News Malaysia
May 8, 2023
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Bank Negara Malaysia (BNM) and Bank Indonesia (BI) today announced that the cross-border QR payment linkage between both countries has officially gone live.
This will enable more Indonesians and Malaysians to make instant retail payments in either country by scanning Quick Response Code Indonesian Standard (QRIS) or DuitNow QR codes at physical stores or online merchants using services offered by participating financial institutions.
The commercial launch of this linkage sees the number of participating financial institutions which include non-banks increase. The full list of issuers and acquirers from both countries is available here.

The launch of this linkage follows from the successful completion of the pilot phase of the linkage announced in January 2022.
Tan Sri Nor Shamsiah Mohd Yunus
Tan Sri Nor Shamsiah Mohd Yunus, Governor of Bank Negara Malaysia said,
“Many more users from Malaysia and Indonesia will benefit from a secure, more seamless and more efficient experience to make and receive cross-border payments. This in turn has significant potential to boost economic activities, including tourism spending in our two countries.

The payment linkage will also help expand markets for some businesses and facilitate increased settlements in local currency, thereby improving financial outcomes.”
Perry Warjiyo
Perry Warjiyo, Governor of Bank Indonesia said,
“Cross-border QR payment linkage between Indonesia and Malaysia is concrete evidence of strengthened cooperation on Regional Payment Connectivity to promote faster, cheaper, more transparent and more inclusive cross-border payments, particularly for the benefits of micro, small and medium enterprises.”
So far, Malaysia’s payment linkage with Singapore and Thailand has gone live to enable cross-border QR payments.
The central bank is also working on enabling P2P transfers between these countries through the use of mobile or national identification numbers.
Source: BNM’s annual report 2022

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Regtech/Regulation
Sponsored

Futureproofing Fintech: Navigating AML Compliance in a Rapidly Evolving Sector

									by Fintech News Malaysia
May 3, 2023
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The fintech space is experiencing unprecedented challenges when it comes to anti-money laundering (AML) compliance.
From a global pandemic that shifted users online to economic downturns and sanctions resulting from geopolitical conflicts, fintech firms face daunting challenges that can harm their operations. With the fintech industry expected to grow by US$305.7 billion in 2023, compliance with AML regulations is more crucial than ever to avoid reputational damage and monetary losses.
Financial data specialist Refinitiv in collaboration with Fintrail has interviewed fintech experts to understand the AML challenges facing the industry. The resulting whitepaper delves into the cause and effect of rising AML compliance pitfalls for fintech companies.
Fintech News Malaysia takes a look at just a few of the key trends and issues covered in the whitepaper.
Fintech trends weighing on AML needs
Technology, Data and Governance: Effective Risk Management
AI-based AML technology requires high-quality data to produce better outputs and support proactive risk management. Fintech companies need to strike a balance between not creating too much friction during onboarding and not attracting malicious actors.
Quality data is obtained and analysed, including underlying data which contains high quality secondary identifiers such as date of birth and gender for more pinpoint, targeted results. Successful implementation of data deduplication can eliminate copies of the same entry, while also optimising storage and minimising ineffective processes, improving the hit rates of monitoring procedures along the way.
Governance becomes a critical component of success for fintechs scaling up, requiring a shift to a more robust governance model that adapts over time as the company grows.
Scaling Fintech AML Teams: Finding the Right Talent
Fintech outfits tend to face a shortage of specialised, qualified workers. And they need to find the right talent to scale their AML operations — from the first and second line of defence to engineers and data scientists.
Financial crime compliance is largely considered recession-proof, and the demand for financial crime compliance roles is expected to remain high. Outsourced solutions can help balance a firm’s increasing alert volumes or strong customer growth with increasing regulatory scrutiny.
Even more pressing trends in fintech that affect AML efficiency can be found in the Refinitiv whitepaper, ‘AML Challenges for Fintechs: Insights for the Future’.
AML challenges facing FIs and fintech
Online Fraud: The Rising Threat

The shift to remote and digital banking has caused a swell in cybercriminals targeting financial institutions. One of the biggest threats is fraud, particularly the rising impersonation of individuals’ and organisations’ identities.
Fraudsters can manipulate information, including likenesses, at a rate that is extremely difficult to discern. AML compliance teams focus on awareness and education to help consumers avoid bad actors, who often use social media to promote their scams. These scams are present both in traditional fiat and cryptocurrency spaces.
Role of Digital Assets and Cryptocurrencies
Speaking of cryptocurrencies, digital asset-related legislations are advancing globally, increasing the need for all fintechs to consider the risks and exposure associated with the more widespread adoption of virtual assets.
As regulations for digital assets and cryptocurrencies evolve, fintech firms need to create and review their AML risk-rating methodology to consider the nuances of different cryptocurrencies and non-fungible tokens (NFTs). Digital asset companies must stay on top of new asset classes, functionalities, and potential risks, leveraging data and automation. Fintechs must decide which product falls within a firm’s risk appetite for buying or selling, or for assessing how they interact with virtual asset service providers (VASPs).
Sanctions
Fintechs face challenges, including asset flight risks and sanctions breaches resulting in fines. In 2022, AML teams faced the challenge of keeping up with Russia-related sanctions in response to the conflict in Ukraine.
In 2023, the exposure to sanctions risk will likely continue, stressing the need for fintechs and their sanctions teams to remain alert and agile.
More on the use of tech, regulatory guidance, and prioritising efficiency in the full Refinitiv whitepaper.
Looking to the future
Regulatory AML Opportunities and Fintech Community Collaboration
Regulatory changes and requirements are constantly evolving alongside financial crime threats. Fintechs need to remain agile in response to these upcoming changes and be aware of opportunities, adopting a “global but local” approach.
Fintechs should engage with regulators, collaborating when possible to ensure meaningful outcomes. Regulatory sandboxes demonstrate how regulatory tech firms can support the ecosystem by creating innovative solutions for greater anti-financial crime efficiency.
Balancing Customer Service and Compliance
Customers are increasingly demanding personalised, one-to-one service. Fintechs must balance customer service with the right level of friction for AML compliance. The demand for faster and more convenient customer experiences is increasing, increasing the need for frictionless onboarding journeys.
Using digital identities is one solution that can help achieve a frictionless customer onboarding journey, which has been implemented in some jurisdictions. Fintechs must remain agile and innovative while balancing compliance requirements with the common goal of meeting customers’ demands for faster and more convenient experiences.
Fintech pros interviewed in the Refinitiv whitepaper gave examples like MyInfo in Singapore, a government tech centralised KYC solution, has led to lower fraud or account takeover rates. Other practical examples of fintech firms bolstering their AML compliance processes with tech without disrupting customer experiences can be seen in the full whitepaper.
Refinitiv’s AML assistance for fintechs
Refinitiv provides comprehensive solutions to help the fintech sector tackle AML and KYC-related challenges and meet evolving regulatory obligations, prioritise customer centricity, and promote seamless digital experiences. Refinitiv’s targeted solutions include risk screening, due diligence, identity, and account verification, and digital onboarding.
Fintechs must stay alert, agile, and innovative while navigating the evolving regulatory landscape and balancing customer service with compliance requirements. Download the full Refinitiv report to learn more about the practical solutions and strategies recommended by the fintech community to futureproof your AML compliance operations.

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Digital Transformation
Financial Inclusion
Sponsored

How Embedded Finance Is Revolutionising Financial Services in Southeast Asia

									by William Dale, Regional Vice President, Mambu
May 8, 2023
0 comments

Embedded finance is a thriving trend that is rapidly changing the banking and financial services landscape in Southeast Asia.
With around 290 million unbanked consumers in the region, embedded finance has the potential to help improve financial inclusion for those who were previously excluded from the formal financial system, as well as offering unrivalled convenience and efficiency to consumers.
As the benefits of embedded finance solutions become more widely recognised, traditional banks are facing increasing competition from digital banks and fintechs utilising embedded finance to offer financial services through non-financial channels.
Frontrunners in embedded finance

Several Southeast Asian companies are already experiencing success by capitalising on the potential of embedded finance.
For example, Cake by VPBank, a digital bank in Vietnam, offers its customers the ability to link their Cake account to other digital wallets and e-commerce platforms, as well as ride-hailing service Be, enabling them to seamlessly access a range of financial and non-financial services at their fingertips.
Similarly, UNOBank in the Philippines offers a range of digital banking and lending services to customers via its partnership with AI-led fintech Trusting Social, which leverages access to telco data to provide credit assessments for consumers who would otherwise struggle to access formal credit.
Bank INA, a digital bank in Indonesia, is another example of a company that has successfully utilised embedded finance. Bank INA has partnered with various non-financial platforms, such as ride-hailing and e-commerce platforms, to offer customers access to a range of financial services such as loans, savings accounts, and insurance products.
Driving financial inclusion through embedded finance solutions

By offering financial services through non-financial channels, embedded finance can help improve financial inclusion for those who were previously unable to access financial services via traditional means.
For example, unbanked individuals who rely on cash transactions can benefit from the convenience of digital payments, which can be accessed through non-financial digital platforms (i.e. smartphone apps) they are already familiar with.
This can help them build credit, save for the future, and access financial products that were previously out of reach.
The rise of embedded finance has also resulted in banks providing financial services to underserved communities through non-traditional channels, such as mobile devices and e-commerce platforms.
By leveraging embedded finance, banks can reach a wider audience and provide financial services to those who were previously excluded from the formal financial system.
As the demand for embedded finance grows in Southeast Asia, organisations from a wide range of industries have the opportunity to leverage next-generation technology to create new value-added services for their customers.
This includes the use of artificial intelligence, machine learning, and data analytics to provide hyper-personalised financial services that meet the unique needs of each customer.
Embedded finance: A disruptive force in financial services

Embedded finance is revolutionising the banking and financial services industry in Southeast Asia, effectively driving financial inclusion for those consumers who have been excluded from the formal economy, and offering consumers personalised services and unprecedented levels of convenience.
The success that organisations like Cake by VPBank, GoTyme Bank, and Bank INA – and many more – are experiencing by incorporating embedded finance solutions into their offerings highlights the enormous potential this approach can offer to businesses looking to provide innovative financial services through non-financial channels.
As financial and non-financial organisations continue to leverage next-generation technology, and the adoption of embedded finance continues to grow in Southeast Asia, the potential for further disruption in the banking and financial services industry is boundless.

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Big Data
Payments

Mastercard Launches Data Hub in Malaysia, Creating New Job Opportunities

									by Fintech News Malaysia
May 10, 2023
0 comments

Mastercard has set up a data and services (D&S) hub in Kuala Lumpur to support its clients across the Asia Pacific region with a suite of offerings beyond transactions including solutions in the areas of cybersecurity, credit risk, and data analytics.
The new hub will also provide career opportunities and upskilling for emerging talent and graduates in Malaysia and across the region across a range of capabilities focusing on data science, product development and payments consulting.
Mastercard’s D&S experts globally work with nearly 4,000 clients in over 120 countries to offer solutions ranging from hyper-personalised loyalty programmes, to product prototyping, to end-to-end marketing solutions.

The payments giant said that the new hub will become part of a growing global team that includes thousands of data scientists, engineers and consultants.
The D&S will support businesses and governments in Malaysia and APAC to make more data-driven decisions and optimise performance and profitability.
Fahmi Fadzil
“The launch of Mastercard’s Data & Services Hub in Kuala Lumpur is a very good opportunity for us to become a more integral part of the region’s digital landscape, while helping to strengthen our local talent pool in this increasingly important part of the digital economy.

We look forward to building on our relationship with Mastercard to help create more mutually beneficial opportunities in the future.”
said Fahmi Fadzil, Minister of Communications and Digital, Malaysia.
Ari Sarker
“APAC is a powerhouse of economic growth, and we’re seeing many of the emerging markets across the region leapfrog some of the more conventional steps towards digitalisation.

This kind of rapid change demands dedicated expertise—the type of which will be offered by Mastercard’s newest Data & Services Hub in Kuala Lumpur, which will support the organization in servicing clients from Southeast Asia to China, Japan, Australia and New Zealand.”
said Ari Sarker, President, Asia Pacific, Mastercard.

Featured image: [Left to right] Fahmi Fadzil, Minister of Communications and Digital, Malaysia; Ari Sarker, President, Asia Pacific, Mastercard

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Payments
Sponsored

Why Partnerships Are Essential in the Cross-Border Payments Industry

									by Fintech News Malaysia
May 11, 2023
0 comments

Global economies are becoming increasingly connected. More significantly, the cross-border payments industry has undergone an accelerated revolution, thanks to the Covid-19 pandemic that transformed transacting patterns.
Digital payments, in particular, are supercharging the movement of money across borders. In 2022, the cross-border payment industry recorded US$156 trillion, with a YOY increase of US$7 and US$8 trillion.
The Boston Consulting Group, in a report, expects this value to hit US$250 trillion by 2027.
Businesses, especially smaller ones, are expanding outwards. A 2022 survey revealed that 75% of small businesses want to take their businesses internationally. However, the survey also found:

45% of respondents said cross-border payment fees were high and exchange rates poor
40% lamented a lack of transparency in the payment process
1/3 was frustrated by limited network reach

Partnerships between financial institutions, money service providers, fintechs and non-bank payment providers can help tackle these challenges.

Here are the benefits of forming partnerships:
Reduced costs
By leveraging the existing infrastructure of a partner company, a payment service provider can reduce the cost of developing new infrastructure or expanding into a new market. Partners can also share compliance responsibilities and expenses by taking on different roles according to their expertise.
Faster payments
Fintechs can use blockchain technology to facilitate instant, low-cost cross-border payments, while banks can provide regulatory oversight and risk management framework. Together, they form a partnership that can build consumer confidence and technological trust at the same time.
Better regulatory compliance
Partnerships help financial institutions comply with regulatory requirements, particularly anti-money laundering and counter-terrorist financing. Banks have a long regulatory compliance history and can help fintechs and non-bank payment providers navigate the complex regulatory landscape. Their familiarity with compliance and regulatory frameworks means better controls and more secure transactions.
More payment options
Non-bank payment providers can offer mobile payments and other digital payment options that are more accessible and convenient for customers. However, in some developing destinations, more traditional payout options like cash pickups and home deliveries are preferred, which also requires domestic partnerships.

Key partnerships in recent years
Wise and Visa

In 2021, TransferWise (now Wise) partnered with Visa to offer a multi-currency debit card that allows businesses and customers to hold and convert 55 currencies. The partnership enabled Wise to leverage Visa’s infrastructure and network of partners to expand its reach, while Visa gained a strong use case for its partnership programme.
PayPal and Xoom

PayPal acquired Xoom, a digital money transfer service, in 2015. The acquisition combines “PayPal’s global scale with Xoom’s capabilities”. As a result, Xoom helped accelerate PayPal’s entrance into the international remittance market while PayPal expanded Xoom’s services globally.
Western Union and Mastercard

While not a new partnership, Western Union boosted its decade-long partnership with Mastercard in 2021 to enable customers to send money directly to a recipient’s debit card. This collaboration expanded the options for both Western Union and Mastercard users.
Singapore and Thailand

Singapore and Thailand linked their real-time retail payment systems, PayNow and PromptPay, in 2021. This collaboration allows senders from these 2 countries to complete transactions using a mobile phone. This partnership purportedly shortened transfer time from 1 to 2 working days to less than 5 minutes. In February 2023, Singapore announced a similar linkage with India.
Ripple and Tranglo

Ripple, the leading provider of enterprise blockchain solutions for global payments, acquired 40% of Tranglo in 2021. This partnership assists Ripple in meeting growing demand in Asia Pacific and scales its On-Demand Liquidity (ODL) service. As a result, Tranglo has revitalised volume in key corridors, processing over USD1 billion in ODL transactions since the launch of ODL. Some of the advantages of this partnership are credit facilities and 2x network reach.

Partnerships can benefit all parties
While fintechs and banks are often seen as fierce competitors, almost half of the banks surveyed by the Economist Impact still opted to partner with fintechs.
That is unsurprising – vital operational functions often encumber banks, while fintechs cannot avoid banks for FX transfers and last-mile payouts.
However, each has unique advantages in the end-to-end payment process, and partnerships can bridge the gap and benefit all parties.

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Payments

Riding the Fintech Wave: The Rise, Fall, and Potential Recovery of IOUpay

									by Rebecca Oi
May 16, 2023
0 comments

In the ever-shifting world of financial technology, the trajectory of a company can sometimes resemble a roller coaster ride. The sector is marked by continuous change, offering a blend of challenges and opportunities for those daring to innovate. In this dynamic arena, the story of IOUPay, a fintech firm based in Malaysia, presents a cautionary tale.
Not too long ago, IOUPay was merely one of the many players in the fintech scene, operating in the realm of digital commerce software solutions. However, a turn of events has thrust the firm into the spotlight.
The company’s downward spiral began with allegations of significant fraud, leading to financial distress and a considerable dent in its reputation. The series of incidents that unfolded subsequently is as riveting as it is alarming, bringing to light the risks and pitfalls inherent in the industry.

The Discovery of Fraud: A Shocking Revelation
In a twist of fate, IOUpay’s board of directors stumbled upon a suspected fraud scheme in March, shaking the very foundations of their Malaysian office. This turn of events prompted the Kuala Lumpur-based company to take swift action and suspend trading at US$0.05.
A staggering amount of millions was reportedly swiped clean, and all fingers pointed toward the company’s former chief financial officer, Kenneth Kuan Choon Hsuing. The man found himself in hot water, dismissed for insubordination and suspected involvement in the fraud.

As the drama unfolded, the Royal Malaysia Police, armed with their commercial crime and anti-money laundering divisions, swooped in to investigate Kenneth. They conducted a thorough investigation, leaving no stone unturned, aiming to recover the stolen funds.
The plot thickened when IOUpay discovered that Kenneth had allegedly dipped his fingers into the company’s treasury. He reportedly made a cool US$7 million in loans to businesses with close ties to himself, his wife, and other former employees.
Kenneth is alleged to have gone to great lengths to cover up the unauthorized loans. He stands accused of forging letters from reputable Malaysian law firm Thomas Philip, Advocates, and Solicitors, in a deceptive ploy to mislead auditors into believing IOUpay’s funds were safely held in trust.
The total of IOUpay’s financial hemorrhage? A suspected jaw-dropping US$19 million siphoned out of the company over the last year. The company was informed that these transfers were allegedly made to companies called Piminik Investment and Birch Capital. The latter, Birch Capital, is jointly owned by Piminik Investment and Kenneth’s wife, the company’s sole director.
The Struggle for Survival: Seeking Fresh Capital
IOUpay initially met with several potential investors from Australia and Malaysia to secure funding for its recovery action. Australian firm Finran offered a non-binding debt funding proposal but later withdrew its offer, leaving IOUpay in a precarious financial position.
IOUpay was then placed into administration with no choice, appointing Daniel Walley and Philip Carter from PwC Australia to take over the company. Their primary task is evaluating “genuine proposals” that benefit the company’s shareholders and creditors. Despite the turmoil, IOUpay’s subsidiaries in Malaysia continue to operate with minimal business disruption.
The company has also launched legal action against its auditors, Grant Thornton, for allegedly not following up on the letters falsified by Kenneth, which were supposed to confirm the company’s funds.
In a separate legal dispute, corporate advisory firm Clee Capital sued IOUpay after overseeing a US$50 million capital raise, claiming it was never issued 15 million IOUpay options at an exercise price of US$1, as per an agreement with the company.
A Glimmer of Hope: New Directors and a Possible Recovery
In a surprising turn of events, an extraordinary meeting of shareholders resulted in the removal of existing directors and the appointment of new ones, including David Halliday, a partner at Aesir Capital, Grow Finance boss Gregory Woszczalski, and Malaysia-based Mohammad Azizuddin Shahruddin. This development could mark the beginning of a potential recovery for the embattled fintech firm.
With new leadership at the helm, IOUpay now faces an uphill battle to regain the trust of its shareholders, clients, and the broader fintech community. The company must address the fallout from the alleged fraud and navigate the legal battles that have further strained its finances.
To bounce back, the company must implement stringent internal controls and governance measures to prevent similar incidents. Additionally, the company must work to reestablish partnerships with its clients and focus on delivering innovative fintech solutions that cater to the ever-evolving needs of the market.
A Cautionary Tale in the Fintech World
As the dust settles on the tumultuous saga of IOUPay, the fintech sector is left with a stark example of the potential pitfalls that can derail even a promising player in the field. From allegations of fraud and financial mismanagement to a series of legal battles, the misfortunes that befell IOUPay highlight the critical importance of robust financial controls, transparent governance, and ethical conduct.
As the fintech landscape continues to grow and evolve, firms must prioritise transparency, accountability, and ethical conduct to ensure their long-term success and resilience in this competitive industry.
The aftermath of the IOUPay saga also raises questions about the industry’s response. Fintech firms, regulatory bodies, and investors alike will have to reflect on their roles and responsibilities in preventing such crises. The incident serves as a wake-up call for the sector, prompting a review of oversight mechanisms and, possibly, the push for stricter regulations.
Ultimately, the future of IOUpay remains uncertain, but its new leadership has the opportunity to learn from past mistakes and chart a course for recovery. By addressing the underlying issues and rebuilding the company’s reputation, IOUpay may find a way to reclaim its position as a trailblazer in fintech.

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Payments
Regtech/Regulation

Revenue Group Plans to Acquire 51% Stake in Innov8tif for RM36 Million

									by Fintech News Malaysia
May 15, 2023
0 comments

Payment solutions provider Revenue Group plans to acquire a controlling stake of 51% in Innov8tif Holdings from glove maker Hong Seng for RM36 million in a total cash purchase.
Innov8tif Holdings is an investment holding company that owns Innov8tif Solutions Group and Xendity which are collectively known as the Innov8tif Group. The group focuses on AI-powered digital identity solutions and claims to have over 70% market share in Malaysia.
Hong Seng had previously acquired the 51 percent equity interest in Innov8tif Holdings for RM30.85 million back in January this year.

According to the Bursa Malaysia filing, Innov8tif Group’s digital ID technology and solutions will help to complement and enhance the existing businesses of Revenue and its subsidiaries.
Moreover, with the combined larger market shares of both Innov8tif Solutions Group and Xendity, the group will have a better appeal among its prospective customers due to the increased service and product efficiencies and potentially more cost-effective solutions offered.
Revenue added that Innov8tif Group will also be in a position to “tap into the global trend of digitalisation to expand its footprints to other markets in the ASEAN region”.
The news comes on the heels of a major revamp of Revenue Group’s boardroom with mass resignations and new appointments being made back-to-back in March this year.
Group CEO Danny Leong Kah Chern was also reported to be stepping down officially on 23 May but Revenue released a statement saying that he would be reconsidering his decision. An official announcement has yet to be made.

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Payments

Razer Merchant Services, PayNet Enhance Payments for foodpanda Merchants

									by Fintech News Malaysia
May 16, 2023
0 comments

Razer Merchant Services (RMS), the B2B arm of Razer Fintech, has emerged as the first merchant acquirer to migrate FPX to DuitNow Online Banking/Wallets (DuitNow OBW), a new service on the real-time payments platform (RPP) from PayNet.
FPX is an existing version of PayNet’s e-commerce payment services, whereas DuitNow OBW is the enhanced version which allows customers to securely authenticate their purchases respectively without the use of OTPs. RPP enables seamless e-commerce purchases experience.
RMS is also now the first merchant acquirer to enable all three channels for PayNet’s RPP (DuitNow payment solutions), allowing both online e-commerce and offline physical merchants to accept payments with interoperability between participating banks and e-wallets.

Thirdly, RMS is also the first of its kind to enable a single integration API for PayNet’s RPP services, which allows its ecommerce merchants to seamlessly migrate to PayNet’s services, with no additional integration work needed – saving time and cost for its merchants.
Among the first to have access to these features are merchants on online food and grocery delivery platform foodpanda.
The payment experience is enhanced by re-directing customers to their preferred bank or e-wallet for subsequent login to authenticate the purchase.
With DuitNow OBW, customers can easily opt to pay for their foodpanda orders via online banking account and e-wallets, alongside other customary payment methods.
Li Meng Lee
“We are thrilled to be working with foodpanda to enable the DuitNow OBW services.

As RMS is the 1st acquirer to enable our merchants with a full suite of DuitNow products such as DuitNow QR online and DuitNow AutoDebit & Consent, our merchant can now collect payments without the hassle of their customer’s repetitive OTP authentication.”
said Lee Li Meng, Razer Fintech’s Chief Executive Officer.
Gary Yeoh
Gary Yeoh, Chief Commercial Officer at PayNet said,
“We believe in empowering merchants across all segments by addressing their current digital payment and collection friction and pain points.

Through a simple API integration, the DuitNow Online Banking/Wallets launch with RMS will allow a significantly more secure ecommerce payment experience for foodpanda customers.”

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Lending
Payments
Security
Sponsored

Alliance Bank’s New Credit Card Touted to Be One of the Safest in Malaysia

									by Fintech News Malaysia
May 24, 2023
0 comments

In recent times, there has been an unfortunate flurry of financial fraud cases such as scams, security breaches, unauthorised access to bank accounts and unauthorised credit card transactions.
It was recently reported that losses from financial scams totaled RM39 million from October 2022 to January 2023, based on over 16,000 contacts to the National Scam Response Centre (NSRC).
With more and more transactions now available online, payments have become more convenient but at the same time increases the risks of fraudulent activities due to security breaches.
Financial institutions play a critical role in cyber and financial security to provide a secure environment for financial transactions.
Given how serious matters have gotten, it is not surprising that a bank’s or financial institution’s approach to combat financial crimes influences users’ choices.
Malaysians are actively finding ways to improve their financial security in a bid to keep their data safe to avoid falling victim to these crimes.
Could this be Malaysia’s Safest Credit Card?
The all-new Alliance Bank Visa Virtual Credit Card is one that can mitigate various safety concerns that everyday users may have.
This card has evolved from the ways of traditional credit cards, empowering users with modern features that give greater control as well as convenience.
On top of that, there are additional layers of security that further reduces the risk of financial fraud.
Alliance Bank Visa Virtual Credit Card is Malaysia’s first credit card to offer a unique Dynamic Card Number (DCN) feature. Let’s dive deeper into what this means.
Security Feature That Significantly Lowers The Risk Of Financial Fraud

The traditional credit card (or debit card, for that matter) comes with a sequence of 16 to 19 digits embossed on it.
When making a purchase, the card number acts as an identifier that provides information, such as the bank provider and account holder, to the merchant.
When this number, paired with other details such as the security number, falls into the wrong hands, the account holder may become a victim of a financial crime.
Alliance Bank Visa Virtual Credit Card offers cardholders a much safer way of making payments through its Dynamic Card Number feature.
It can generate a random 16-digit number which changes every 30 minutes to provide an added layer of security that cancels automatically after it is used.
This can protect the user’s identity if they frequently make online payments to different merchants.
Generate One-Time Card Numbers or Card Numbers For Recurring Payments

By accessing the allianceonline mobile app, cardholders can generate a random card number for one-time payments, as mentioned above.
This will come in handy when customers make one-off purchases for groceries, petrol, meals, and others.
Each card number will last 30 minutes and the cardholder will not be charged for generating a new one each time.
However, the app will display a warning if the user continuously generates the card number without purpose or usage.
So how about recurring expenses? Plenty of customers have subscriptions and utility bills that they pay for on a monthly basis. This will work for those payments too.
When users create a card number on the app, they have the option to select ‘Subscription’ instead of ‘one-time’ and set a personalised limit and expiry date for each virtual card.
For example, customers could set up a virtual card for their streaming service that lasts for 6 months and has a monthly limit of RM50.
Freeze/ Unfreeze Your Card Or Delete It In Just A Few Taps

If, in any case, the user notices any suspicious activities with their Alliance Bank Visa Virtual Credit Card, they can temporarily block all transactions charged by freezing the card on the app.
Customers can also unfreeze the card without going through the hassle of calling customer service and waiting for the bank to take the necessary actions. Instead, they can have it done immediately on their own.
For cards that are no longer in use, customers have the option to delete it and it will be removed from their app. To use a new card number, they will simply need to generate a new one to make a transaction.
Alliance Customers to Receive Touch ‘n Go Rewards
When customers sign up for the Alliance Bank Visa Virtual Credit Card, they will have the opportunity to receive RM1000 Touch ‘n Go eWallet credit on top of a guaranteed gift of RM200 Touch ‘n Go eWallet credit.
They will need to apply using the code “RPVCC”, get approved, and activate their virtual credit card to be among the lucky winners where terms and conditions apply.
Click here to sign up for the all-new Alliance Bank Visa Virtual Credit Card.

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Australia
Payments
Virtual Banking

Soft Space Partners Tyro to Power Apple’s Tap on Pay for iPhone

									by Fintech News Malaysia
May 17, 2023
0 comments

Tyro Payments announced that its merchant partners in Australia will now be able to accept in-person contactless payments with Apple’s Tap to Pay on iPhone using the new Tyro BYO app.
The Tyro BYO App is a customised SoftPOS merchant application developed with Malaysian fintech company Soft Space.
Tap to Pay on iPhone accepts contactless payments, including Apple Pay, contactless credit and debit cards and other digital wallets, using only an iPhone and the Tyro BYO app where no additional hardware or payments terminal are needed.

At checkout, customers will need to hold their iPhone or Apple Watch to pay with Apple Pay, their contactless credit or debit card, or other digital wallet near the merchant’s iPhone, and the payment will be securely completed using NFC technology.
Tap to Pay on iPhone also supports PIN entry, which includes accessibility options.
Apple’s Tap to Pay on iPhone technology also uses the built-in features of iPhone to keep businesses’ and customers’ data private and secure. When a payment is processed, Apple doesn’t store card numbers on the device or on Apple servers.
Tyro provides Australian businesses with payment solutions and value-adding business banking products. The firm has partnered with over 66,800 Australian merchants as of December 2022 and has processed US$21.7 billion in transaction value in the first half of FY23.
Jon Davey
Jon Davey, CEO of Tyro said,
“Tap to Pay on iPhone is a fantastic simple and secure way for new or existing Tyro customers to accept payments using only their iPhone, anytime, anywhere – without the need for additional hardware.

We are excited to provide this new offering to our customers, providing greater flexibility when staff are working on-site or on the move. It couldn’t be simpler. Just download the Tyro BYO app to start accepting customer payments on your iPhone in minutes.”
Jennifer Bailey
Jennifer Bailey, Apple’s Vice President of Apple Pay and Apple Wallet said,
“Now, with Tap to Pay on iPhone it’s easier than ever for businesses of any size to seamlessly accept contactless payments using only their iPhone, wherever they do business.

The convenience of Tap to Pay on iPhone empowers Australian businesses to offer easy, secure, and private contactless payment experiences to their customers, and help them run and grow their business.”

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WealthTech

Futu’s Investment Platform moomoo Expands To Malaysia

									by Fintech News Malaysia
May 17, 2023
0 comments

Hong Kong-based Futu Holdings will be expanding its investment platform moomoo to Malaysia, its second Southeast Asian market following its Singapore launch in June 2021.
The company’s wholly-owned Malaysian subsidiary had recently received the Approval-In-Principle (AIP) for the Capital Markets Services license (CMS) from the Securities Commission Malaysia (SC).
Futu offers market data, financial news, interactive social features, and investor education on its proprietary one-stop digital platforms, Futubull and moomoo.

Its subsidiaries provide clients with investing services, including trading and clearing services for the United States, Hong Kong SAR, China Connect, Singapore, and Australia stocks, margin financing, and securities lending, and wealth management.
Robin Xu
Robin Xu, Senior Partner and Senior Vice President, Futu Holdings  said,
“”We are thrilled to have been granted the AIP from the SC, as it is a validation of our mission and vision to make investing more convenient and accessible to investors worldwide.

Following our success in Singapore and other APAC markets, we are well-equipped to bring our international know-hows in transforming the digitised investment landscape in Malaysia.”

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Luno: Fueling Malaysia’s Crypto Growth

Blockchain/Bitcoin
Sponsored

Luno: Fueling Malaysia’s Crypto Growth

									by Rebecca Oi
May 23, 2023
0 comments

In the rapidly evolving world of cryptocurrency, Malaysia faces unique challenges and opportunities in meeting the growing demand for digital assets.
Luno, a cryptocurrency exchange platform, is aiming to address these challenges head-on while ensuring a conducive and sustainable environment for crypto trading.
Recently, the platform has recently appointed Aaron Tang as the APAC General Manager and welcomed Scarlett Chai as the new Country Manager for Malaysia.
Luno has experienced substantial growth, with over 800,000 Malaysian users recorded by the end of 2022, representing an impressive year-on-year increase of 11.3 percent.
Expanding crypto education and awareness
Recognizing the significance of expanding crypto education beyond the basics, Scarlett highlighted Luno’s commitment to empower Malaysian investors with comprehensive knowledge and skills.
The platform has successfully transformed informative webinars into easily digestible bite-size content, making them accessible and engaging for users.
Scarlett Chai
Scarlett shared, “Our platform isn’t limited to online interactions. We actively partake in offline events and exhibitions, offering engaging face-to-face interactions, educational sessions, and compelling demonstrations. We value this direct engagement with the community.'”
One example is the “Move with Luno” featuring ambassadors such as Pandelela Rinong and Zaquan Adha , which served as a dynamic catalyst to empower Malaysians by promoting financial literacy and dispelling misconceptions around cryptocurrencies.
A key campaign component was a mobile truck activation that brought education about Bitcoin and cryptocurrencies to various locations. Participants learned about these digital assets and engaged in exercise, creating a memorable and immersive experience that resonated with the public.
Transparency, compliance, and association formation
Luno prioritizes transparency and compliance, ensuring the security of investors’ funds and building trust in the platform.
Scarlett highlighted the importance of open communication with regulators, particularly the Securities Commission Malaysia. They engaged in discussions regarding new offerings, market trends, and strict adherence to regulations.
The platform actively engages with regulators to explore opportunities for incorporating features that align with evolving regulations. Although specific details cannot be disclosed, the platform said it diligently explores avenues for introducing compliant and new features.
Additionally, Luno contributes to the Malaysian Digital Asset Exchange Platform Association (MDAPA), addressing common concerns and advocating for industry interests.
The platform’s collaborations aim to establish a sustainable and supportive environment for crypto trading, fostering the growth of the cryptocurrency market in Malaysia while protecting investors’ interests.
Strategic priorities for the coming years
Luno’s strategic focus in Malaysia revolves around enhancing user experience, expanding cryptocurrency options, and streamlining the onboarding process.
The company has introduced a comprehensive tiered referral program to enhance its user-friendly platform. This program incentivizes users to refer others and regularly invest in cryptocurrencies.
In addition, a new “Multibuy” feature has been implemented to enhance trading. This feature allows investors to diversify their portfolios with a single click.
“This streamlined process offers users the choice between popular pre-selected coin combinations or personalized selections. Over 2,000 customers have already embraced this feature, with personalized combos being the most favored option,” Scarlett explained.
Investors appreciate the freedom of selecting their preferred coins while enjoying reduced fees, creating a mutually beneficial arrangement.

In line with its commitment to expanding cryptocurrency offerings, Luno has added Avalanche (AVAX) to its platform, providing users with an even broader range of investment options.
Embracing nuances of different markets
As Luno’s APAC General Manager, Aaron acknowledges the favorable and dynamic regulatory landscapes in different regional countries. He sees these unique aspects as opportunities to exchange knowledge and experiences, ensuring that the platform’s offerings align with local requirements.
Aaron Tang
“Engaging with regulators and industry players allows us to learn from different markets and tailor our offerings accordingly. While striving for consistency in our product offering, we prioritize respecting and complying with local regulations to ensure users a safe and secure trading environment,” Aaron emphasized.
Aaron shared that after careful consideration, the platform discontinued its services in Singapore due to unfavourable market circumstances and the local environment, which was less conducive for a retail-focused platform like Luno.
“Many crypto-related companies in Singapore shifted their focus to the business-to-business model, but Luno maintained a strong retail focus. To maximize our chances of success, we prioritized key markets in Southeast Asia, where we observed higher user activity and engagement,” added Aaron, highlighting Luno’s strategic approach to market selection and growth.
Evolving needs and expectations of retail and institutional investors
The platform understands the importance of continuously monitoring and responding to retail and institutional investors’ evolving needs and expectations.
By closely studying customer demand, the platform identified trends and preferences that shape its product offerings.
“Retail investors have shown increased interest in products that generate yields or rewards, seeking opportunities beyond short-term gains,” said Aaron.
Luno is exploring options such as bundled products to cater to these demands. On the institutional side, traditional financial institutions are becoming more interested in crypto, paving the way for potential crypto-focused funds and other institutional services.
“We remain committed to working with regulators to ensure compliance and provide responsible investment opportunities for retail and institutional investors,” he added.
Navigating risks and opportunities in the crypto market
In the dynamic crypto market, a vigilant approach and continuous awareness are crucial for navigating risks and capitalizing on opportunities.
Scarlett emphasized the importance of thorough research and understanding cryptocurrencies before investing. This enables informed decision-making and risk mitigation.
“Staying updated with news and market trends is vital for informed investment choices. Diversifying portfolios and aligning strategies with risk appetite is important. Above all, selecting a reliable, regulated platform safeguards investors’ funds,” Scarlett emphasized.
Aaron further highlighted that trust and responsible growth form the core of Luno’s business strategy.
“Building and maintaining customer trust is of utmost importance to Luno as we strive for a long-term presence in the crypto industry,” he said.
Luno cultivates trust through responsible practices, strict compliance with regulations, and a strong focus on customer satisfaction, establishing itself as a reliable and customer-centric crypto platform.
With a vision that extends beyond immediate gains, Luno aims to be a consistent and trustworthy ally to customers, accompanying them on their cryptocurrency journey for years to come.
Click here to start your cryptocurrency journey with Luno today and experience secure and user-friendly trading. Sign up now to explore the world of digital assets!

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Blockchain/Bitcoin
WealthTech

SC Takes Action Against Huobi and CEO Leon Li for Operating Illegally in Malaysia

									by Fintech News Malaysia
May 22, 2023
0 comments

The Securities Commission Malaysia (SC) has taken action against crypto trading platform Huobi Global, and its CEO Leon Li for operating a digital asset exchange (DAX) in Malaysia without registration.
The SC is urging Malaysian investors who have been using Huobi Global to immediately cease trading through its platform, withdraw all their investments, and close their accounts.
The commission has ordered Huobi Global to stop its operations in the country, including to disable its website and mobile application on Apple Store, Google Play and any other digital application platform.

Huobi Global has also been directed to cease circulating, publishing or sending any advertisements, whether in email or on social media platforms, to Malaysian investors.
The regulator had already placed Huobi on its on its investor alert list for operating illegally in Malaysia back in August 2022.
Huobi had previously issued a misleading statement that it had secured a license from the “Malaysian authorities” to provide a “safe and regulated way to trade cryptocurrencies” in the country in November 2020.
The SC said that Huobi was only allowed to operate within the jurisdictions of Labuan and needed additional approval to offer its crypto trading services outside of Labuan.
The regulator released a statement saying,
“This decision comes after concerns about the platform’s compliance with local regulatory requirements and protecting investors’ interests.

The SC views this breach seriously, as operating a DAX without obtaining the SC’s registration as a Recognised Market Operator (RMO) is an offence under Section 7(1) of the Capital Markets and Services Act 2007.”
There are currently only two platforms that the SC has registered as Initial Exchange Offering (IEO) operators; the recently launched Kapital DX (KLDX) as well as equity crowdfunding platform pitchIN which aims to launch its own IEO platform this year.

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WealthTech

Rakuten Trade Offers Fractional Trading for NYSE and Nasdaq-Listed Shares

									by Fintech News Malaysia
May 22, 2023
0 comments

Malaysian online equities broker Rakuten Trade has introduced fractional trading for shares listed on Nasdaq and the New York Stock Exchange (NYSE).
The fractional share trading starts from 0.01 unit (buy) or 0.0001 unit (sell) for US stocks, ADRs and ETFs tradeable on Rakuten Trade where the brokerage fees range from RM1 to RM100.
This is the second enhancement to Rakuten Trade’s U.S. trading platform as it had previously announced its foreign currency settlement services enabling investors to choose to trade in either Ringgit Malaysia or in US Dollar.

Rakuten Trade reported that it had activated almost 265,000 accounts and processed a total trading value of more than RM115 billion since its inception May 2017.
Its clients’ assets under administration surpassed RM3.7 billion.
Kazumasa Mise
Kazumasa Mise, CEO of Rakuten Trade said,
“We are making significant changes to our services in ways that will stimulate online trading and boost retail participation, especially among new investors.

US fractional share trading is a game-changer for Malaysia’s investors, allowing for more affordable, diversified and balanced portfolio that includes familiar brands like Apple, Amazon, and Tesla.”

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Payments

Tranglo Ties up With UAE’s Lulu Money to Enhance International Fund Transfers

									by Fintech News Malaysia
May 23, 2023
0 comments

Cross-border payment hub Tranglo has partnered with Lulu Money to benefit businesses and individuals seeking efficient, fast and secure international fund transfers.
Lulu Money is a currency exchange and money transfer service companies which is a subsidiary of the Abu Dhabi-based financial services conglomerate Lulu Financial Holdings.
LuLu Financial Holdings runs a proprietary Digit9 platform, an API-first model for remittance-as-a-service. Digit9 enables financial institutions to offer their services to other financial institutions and fintechs, and has a network spanning 10 countries.

Meanwhile, Tranglo helps financial institutions and businesses pay through Tranglo Connect, its proprietary cross-border payments solution where it processes 80% of its payments in real-time.
It seamlessly integrates payout and partner services, unifying the end-to-end payment process with direct API access. With Tranglo Connect, companies can make payments to over 30 countries.
Jacky Lee
Jacky Lee, Group CEO of Tranglo said,
“Lulu Money specialises in connecting end users with beneficiaries worldwide through accessible cross-border payments. We are confident the partnership will further lower the time it takes to send funds, thanks to Tranglo Connect’s real-time infrastructure and smart connection to our payout corridors.”
Richard Wason
Richard Wason, CEO of Lulu Financial Holdings said,
“Lulu Financial Holdings is dedicated to continuously enhancing our service delivery and upholding exceptional customer satisfaction standards. We are excited about this partnership, which will enable Tranglo to benefit from our extensive network while simultaneously strengthening our payments infrastructure connecting various corridors. Ultimately, this move will help both companies provide faster and more reliable transactions to our valued customers.”

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Regtech/Regulation

Taking Stock of ESG Investment Leadership in Malaysia

									by Johanan Devanesan
May 24, 2023
0 comments

The landscape of Environmental, Social and Governance (ESG) investment in Malaysia has seen significant growth in recent years. Companies forced to prioritise the ESG agenda in part due to strong regulatory guidance on trajectory of ESG investing in Malaysia, and bolstered by the efforts of large, influential funds including the Employees Provident Fund (EPF) and the country’s sovereign wealth fund Khazanah Nasional Bhd.
Strengthening climate change frameworks
There are numerous guidelines and policies at play to guide ESG and support longer-term sustainable and transition finance in Malaysia. Some of the government-led ESG initiatives, which include various policies and programmes to promote sustainable development, are the National Policy on Climate Change, the Green Technology Financing Scheme, the Green Technology Master Plan, the National Green Procurement Policy, and the Green Technology Tax.

Regulatory bodies such as the Securities Commission Malaysia (SC) have also played a crucial role in accelerating this movement, publishing guidance notes and establishing taxonomies to streamline the domestic development of ESG investing, and has also launched the Sustainable and Responsible Investment Roadmap for the Malaysian Capital Market.
A crucial area of focus for Bank Negara Malaysia (BNM) and the SC’s Joint Committee on Climate Change (JC3) is supporting the consistent and credible application of the Climate Change and Principle-based Taxonomy (CCPT).

The Committee says to have noticed considerable differences in how financial institutions classify assets and investments. JC3 is working towards publishing guidance and developing criteria for due diligence and screening, with the aim of harmonising these practices.
Additionally, JC3 recognises the need to address existing data gaps and aid businesses in evaluating the environmental impact of their operations. By the end of 2023, JC3 plans to complete most of its work to align practices for the CCPT implementation.
In the wake of increasing climate change concerns, the SC continues to focus on promoting sustainable business practices, including advocating for better sustainability disclosures, especially for smaller businesses.
JC3 continues to collaborate with government ministries, agencies, and industry associations to align financial sector responses to climate-related risks with national and business strategies. This collaborative effort sends a strong signal that large investors are increasingly directing capital towards sustainable investments, pushing corporate Malaysia to bolster their sustainability practices.
Funds bolster green commitment and governance practices
As part of its environmental commitment, wealth fund Khazanah aims to achieve net-zero emissions by 2050 and carbon-neutrality in its own business operations by 2023. It’s also paving the way in governance, aiming to enhance board competency in sustainability at portfolio companies by 2024 and include ESG-linked Key Performance Indicators for key roles by 2023. In terms of social responsibility, Khazanah is working towards ensuring 30% representation of women in boards and senior leadership roles at its key portfolio companies by 2025.
Within its current portfolio, emphasis will be placed on the adoption of net-zero targets, setting explicit gender diversity goals, along with stressing the importance of effective governance at both board and management levels, and transparent voting procedures.
Regarding new investments, Khazanah is taking the initiative under its Dana Impak mandate for catalytic sectors, evaluating a variety of projects that align with ESG-related themes such as clean energy, climate technology, and social inclusion.
And to drive its own sustainable investment initiative, the EPF has set up a dedicated team at the Sustainable Investment Centre (SIC) that independently assesses new investment proposals based on ESG expectations. Their ultimate goal is to achieve a fully ESG-compliant portfolio by 2030 and a climate-neutral portfolio by 2050.
The Green Investment Tax Allowance (GITA) and Green Income Tax Exemption (GITE) have been extended until December 31, 2023, and are garnering overwhelming response from the industrial and commercial sectors. MIDA has approved investments in green projects and services amounting to RM15.4 billion with 2,496 projects from 2017 to March 2022.
Growing interest in sustainable investing
Malaysia is witnessing a surge in sustainable investment, with many institutions launching their own sustainable investment frameworks. As of end-December 2021, there were 34 Socially Responsible Investing (SRI) funds with a combined net asset value of RM5.07 billion, offering investors a range of conventional and Shariah-compliant ESG-focused funds. Individual investors are also showing increasing interest in ESG, which will further catalyse sustainable investment growth in the region.
The SRI Roadmap launched in 2019 provides strategic direction to drive the SRI ecosystem and positions Malaysia as a regional SRI centre. This includes increasing the range of SRI instruments, enlarging the investor base, and establishing a strong SRI issuer base. Furthermore, instilling a strong internal governance culture and creating a robust information architecture are integral parts of this vision.
As SC Chairman Datuk Seri Dr Awang Adek Hussin aptly put it, “This sends a strong signal that our largest investors are increasingly allocating capital into sustainable investments, motivating corporate Malaysia to step up their sustainability practices.”
ESG readiness of banks in Malaysia
The ESG readiness in Malaysian banks, which was assessed in a 2021 survey by PwC Malaysia on how Malaysian banks are integrating ESG into their business practices. The survey found that 71% of respondents have considered climate change risks, 93% have assigned a department to operationalise ESG, and 50% have conducted or planned board-level training on ESG.
In addition, 21% of respondents said they have already embedded three ESG-related frameworks within their organization, namely the CCPT, the Value-based Intermediation Financing and Investment Impact Assessment Framework (VBIAF), and the Task Force on Climate-related Financial Disclosures (TCFD).
Of the 14 Malaysian banks surveyed, 57% said they had adopted the VBIAF, and 64% said they will adopt the TCFD by this year. At its tenth meeting in May 2023, JC3 said it will review the TCFD Application Guide for Malaysian Financial Institutions which was released by JC3 in 2022 to take into account the requirements of the upcoming release of the general sustainability-related (S1) and climate-related (S2) disclosure standards by the International Sustainability Standards Board (ISSB).
But only half of respondents said they had adopted the CCPT at the time of the survey, with the other 50% saying they plan to implement it by this year. Respondents said navigating the CCPT set out by Bank Negara Malaysia comes with its own intricacies. These range from an absence of client data or information and challenges in applying principles-based guidelines in practice, to difficulties in measuring indirect environmental impact and a shortage of expertise in the area of ESG.

With most banks globally struggling to meet ESG requirements, some banks in Malaysia like Hong Leong Bank and CIMB Group Holdings have distinguished themselves in this arena. CIMB ranked fourth in ESG performance out of 155 influential global banks in the inaugural 2022 Financial System Benchmark at COP27 in Egypt last year — the bank was acknowledged as a leading performer in the realm of governance and strategy, and also demonstrated commendable performance in the areas of “respecting planetary boundaries and adhering to societal conventions”.
And Hong Leong Bank received praise for promoting ESG practices across its operations, working with its borrowers to improve standards, incorporating ESG evaluation in its loan approval process, and practicing disclosure of ESG-related information. HLB introduced its ESG framework incorporates 12 of the 17 United Nations Sustainable Development Goals (SDGs) and BNM’s Guiding Principles in assessing economic activities taken from the CCPT.

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Insurtech

Tune Protect Rolls Out Two New Offerings for MSMEs

									by Fintech News Malaysia
May 24, 2023
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Malaysian insurer Tune Protect Group has rolled out two new offerings for micro, small and medium enterprises (MSMEs) to help them better protect their employees’ well-being and manage their own business risks.
The first offering is an online employee health and life insurance by Tune Protect Life. This allows employers the flexibility to purchase life or medical insurance or both, for their employees directly on a business-to-consumer (B2C) channel.
Incorporated with the insurance is a health/wellness-based rewards programme called Activ8, which aims to improve employees’ health, well-being and productivity through annual health screening and digital coaching programmes.

Business owners will be able to purchase the SME EZY product and plan of their choice directly with up to 10% rebate.
The second offering is a user-friendly homegrown SME Microsite by Tune Protect Malaysia. It is a one-stop platform for MSMEs to obtain customised business insurance solutions.
The microsite offers easy access to information, enabling MSMEs to make informed decisions about their coverage needs.
It also provides a marketplace for MSMEs, offering profession-based insurance bundles such as Business Shield with a 15% platform-exclusive premium rebates and connecting them with partners’ offerings.
Tune Protect claims to offer a quick quote within three minutes, a three-hour response time and claims pay-out within three days upon approval.
Rohit Nambiar
Rohit Nambiar, Group Chief Executive Officer of Tune Protect said,
“It is unfortunate to see that despite being a vital part of the economy, contributing 37.4% to the GDP in 2021, SMEs remain largely uninsured or underinsured. This protection gap exposes them to significant risks and vulnerabilities.

Hence why, we as a digital insurer, are taking proactive steps to address the insurance needs of MSMEs, leveraging our digital-first approach. Everyone deserves to be protected.”
Jubin Mehta, Chief Executive Officer of Tune Protect Malaysia said,
Jubin Mehta
“Complexity, affordability, and lack of customisation have been significant challenges for MSME business owners when obtaining insurance. Through our one-stop microsite solution, we aim to address these challenges head-on.

By providing customisable insurance solutions and simplifying the process of managing risk, we not only aim to enhance the customer experience but also to provide our MSME community a platform to collaborate with one another.”

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Digital Transformation
Virtual Banking

UOB Malaysia Unveils Its Upgraded AI-Powered UOB TMRW App

									by Fintech News Malaysia
May 24, 2023
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UOB Malaysia announced the launch of its refreshed mobile banking app UOB TMRW powered by data analytics and artificial intelligence (AI) to offer a more personalised banking experience for its customers.
The existing UOB Malaysia’s mobile banking app that was first launched in 2017, UOB Mighty, will automatically be updated to UOB TMRW from this month onwards for all existing users.
The UOB TMRW app has multidimensional capabilities in investments, payments and rewards.

Through the app, customers can get an overview of their investment portfolios, including information such as mark-to-market values and real-time performances, so they can manage their wealth conveniently on the go.
The app’s Rewards+ feature allows customers to view their reward points and redeem it in real-time for travel miles, products and vouchers listed in the UOB Rewards catalogue or offset the balances on their credit card purchases.
They can also use the redeemed coupons to receive discounts and deals with any participating local and international merchants.
In addition to that, UOB said that it will progressively incorporate a comprehensive suite of self-service features for its cards in UOB TMRW later this year.
Customers will be able to perform card services conveniently through the app, including card activations, temporary credit limit increase, applications for payment instalments, card replacements and balance conversions.
Ronnie Lim
Ronnie Lim, Managing Director and Country Head of Personal Financial Services, UOB Malaysia said,
“At UOB, we are committed to understand and serve the unique needs of each customer and this is achieved through a combination of data and relationship-led insights.

Through UOB TMRW, the bank offers insights and solutions that are closely aligned to customer needs in a manner that engages them and better anticipates their life goals.”

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Payments

What’s PayNet’s Vision for Malaysia’s Digital Payments?

									by Rebecca Oi
May 29, 2023
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Digital payments have emerged as a transformative force in the financial landscape, revolutionizing how people transact and interact with money. As technology continues to advance and consumer preferences shift, the future of digital payments holds immense potential for growth and innovation.
During a fireside chat at the ‘Everything Payments Summit‘ of the PayNet Digital Payments Week moderated by Vincent Fong, Chief Editor of Fintech News Malaysia, Farhan Ahmad, Group CEO of PayNet, discussed the future of digital payments in the country.
Drawing from his experience in start-ups and expertise in the payments industry, Farhan shared valuable insights on his experience in growing four start-ups and the future direction of PayNet.

He emphasized PayNet’s role in shaping and influencing Malaysia’s digital payments landscape, focusing on driving innovation and fostering the growth of the start-up and fintech ecosystem in this country.
From Startup to PayNet
As an experienced entrepreneur with 25 years of experience, Farhan Ahmad said he joined PayNet because he admired the company’s ambitious mission and vibrant company culture.
Recognizing the potential of digital payments to contribute to the greater good, he saw an opportunity to leverage his entrepreneurial experience and make a meaningful impact in the industry.
Drawing from his startup journey, Farhan highlighted the crucial timing and comprehensive planning elements. He recognized that while navigating good times may be relatively straightforward, challenging periods demand resilience and well-prepared strategies.
Farhan firmly believed in taking control of one’s destiny and emphasized the importance of contingency plans to overcome unforeseen obstacles.
One crucial lesson that Farhan carried from his startup experience was the value of succinctly communicating a value proposition. He emphasized the need for a clear and concise message that instantly conveys the value of a product or service.
“If it takes too long to explain the value, it is a sign that it may not be compelling enough,” he said. This lesson applied not only to startups but also to established organizations such as PayNet.
Perfecting the 20% in the 80/20 Rule

Farhan underscored the significance of directing attention towards the vital 20 percent, which encompasses the core activities, strategies, or initiatives that wield the most profound influence on organizational success.
Drawing inspiration from the Pareto Principle, which reveals that 20 percent of inputs yield 80 percent of outcomes, this concept advocates for organizations, including startups, to optimize their resources and efforts strategically.
Key points about the crucial 20 percent include identifying the core value proposition to differentiate from competitors and enhance value for the target audience.
“Success lies in prioritization and resource allocation, recognizing that not all tasks are created equal. By focusing resources on the most impactful activities and minimizing efforts on less critical tasks, organizations can unlock their true potential and maximize their effectiveness.,” said Farhan
Adopting a narrow focus is recommended over spreading resources thin across various initiatives. Organizations can deliver exceptional value and achieve remarkable results by dedicating efforts to a few key areas and striving for excellence.
Continual evaluation and refinement are crucial, as the essential 20 percent is not static. It requires an ongoing assessment based on market dynamics, customer needs, and organizational goals.
Regularly reassessing and adjusting the focus allows organizations to stay aligned with strategic objectives and maintain a competitive edge.
“By recognizing the significance of the crucial 20 percent, organizations have the power to optimize their operations, enhance efficiency, and significantly enhance their chances of attaining desired outcomes,” said Farhan.
The Long-Term Vision for PayNet

When discussing the long-term vision for PayNet and his “20 percent”, Farhan outlined a cohesive three-tier strategy that PayNet has developed, which will be implemented over a five-year period.
“In the first tier, our priority is to strengthen the foundation of PayNet by internalizing the payment system, optimizing costs, and ensuring its reliability and stability,” explained Farhan.
Transitioning to the second tier of initiatives, the focus shifts towards strengthening core capabilities, enhancing user experiences, and implementing open data initiatives that contribute to the usability of the payment system.
Lastly, the third tier aims to provide value-added services, address fraud and risk management concerns, and foster partnerships between fintech companies and traditional banks. Farhan emphasized the significance of nurturing an ecosystem where banks and fintechs collaborate, bringing innovative products and services to the market.
By implementing this three-tier strategy, PayNet strives to position itself as a leading force in the digital payment industry, providing secure and efficient solutions while fostering collaboration and innovation.
Making PayNet Accessible for Startups

During the discussion, the issue of significant costs associated with participating in PayNet’s payment ecosystem was brought up, prompted by concerns among the fintech attendees.
Addressing these concerns, Farhan, acknowledging the importance of affordability and supporting the growth of startups, stressed the need for reasonable and rationalized pricing to foster innovations. He explained that if innovative and value-adding products and services are offered at no fees or charges, there is no incentive to innovate.
He highlighted his desire for fintechs, traditional banks, regulators, and PayNet to work together towards this goal.
He explained for any domestic payment schemes/infrastructure; the main motivations should be technology sovereignty and affordable cost. Hence, his focus is on building the technology in-house instead of relying on external vendors.
This strategic shift is aimed at significantly reducing transaction costs over the next five years. He went on to explain that there is a developer’s portal where PayNet’s APIs may be consumed to explore innovations.
Farhan believed scarcity is the mother of innovation and encouraged startups to explore alternative revenue streams beyond payment processing, fostering a mindset of creativity and adaptability.
Responding to feedback from a start-up, he assured the audience that steps were being taken to alleviate the burden on fintechs and revealed that efforts were underway to streamline and expedite the onboarding process, reducing time-to-market and, therefore, saving costs.
“Streamlining the onboarding process for fintech startups is a key priority for us,” Farhan emphasized. He further outlined their ambitious target of achieving a self-onboarding process that could be completed instantly within the next three years.
Furthermore, he revealed the development of PayNet Connect, which will leverage on open data and aim to integrate offerings seamlessly in a much simpler manner, enhancing convenience and accessibility for all stakeholders.
Challenges and Opportunities in QR Adoption
Regarding a question on QR adoption in this country compared to neighbouring countries, Farhan acknowledged the challenges in QR adoption and cross-border payments in Malaysia. QR adoption in Malaysia is relatively lower, and he recognized the need for Malaysia to catch up.
Among the reasons for the lower adoption are customer friction from end-user and merchants’ perspectives, mainly due to inconsistent user experience due to the different ways QR payments are accessed in mobile banking and e-wallets in this country.
Farhan drew a comparison from his recent visit to India, which witnessed the remarkable success of QR-based payments, which he believed was mainly attributable to a consistent user experience across all participating banks and digital wallets.
The other success factor was high merchant adoption and the ability of the QR payment option to provide convenience and remove payment friction.
Comparing the Indian experience with Malaysia, he believed the payment infrastructure of both countries is similar with Malaysia having the edge. All that is left is a mindset shift which left him optimistic about Malaysia’s potential to replicate similar successes by improving user experiences, simplifying payment processes, and aligning regulatory policies to incentivize adoption.
Cross-Border Payment Initiatives

Responding to a question about cross-border payments, Farhan highlighted PayNet’s active pursuit of cross-border payments, focusing on bilateral linkages with Thailand, Singapore, and Indonesia and participating in multilateral initiatives through Project Nexus.
There are several more countries on the cards; in this respect, he acknowledges the instrumental role of Bank Negara Malaysia.
He also spoke on the importance of collaboration among ASEAN countries and the potential for future global partnerships and shared an ambitious global cross-border initiative that leveraged technologies such as blockchain.
PayNet envisions a future where domestic networks can seamlessly connect internationally, providing a viable alternative to current bilateral agreements.
Driving Economic Growth
The future of digital payments in the country holds immense promise, and PayNet, under the leadership of Farhan Ahmad, is driving strategic initiatives to shape this landscape.
By strengthening the payment foundation, enhancing core capabilities, and providing value-added services, PayNet aims to position Malaysia as a leader in digital payments.
Collaboration, innovation, and customer-centricity will be the keys to unlocking the potential of digital payments and driving economic growth in the country.
Watch the full session here:

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WealthTech

Malacca Securities Launches New Global Investment App ‘M+ Global’

									by Fintech News Malaysia
May 25, 2023
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Malaysian stockbroker Malacca Securities has launched an all-in-one global trading platform for all traders dubbed as M+ Global.
This will provide investors with access to a diverse range of international investment opportunities, starting with two of the world’s largest global stock markets – the United States and Hong Kong.
Users can access over 7,000 stock listings in the United States, 3,000 in Hong Kong and unlimited tradeable derivatives, including warrants, ETFs, CBBCs and REITs.

This allows Malaysians to invest in major corporations such as Apple, Tesla, Alibaba, Tencent, and many more.
M+ Global claims to be the first digital trading platform in Malaysia which offers basic real-time data in partnership with the National Association of Securities Automated Quotations (NASDAQ).
The platform also offers a Shariah Screening feature for global stocks, allowing Malaysians to identify Shariah-friendly stocks efficiently and accurately on a global scale.
M+ Global is integrated with 24/7 stock-mover monitoring and real-time news where users can personalise their watchlist news, customise their alerts and get instant updates on top trending news.
The platform has a 24-hour multi-channel customer support service on in-app live chat, WhatsApp, hotline, email and live stream.
Initial public offering (IPO), conditional order, US fractional shares and options trading will be rolled out soon to the public in stages.
Lim Chia Wei
Lim Chia Wei, Managing Director of Malacca Securities, said,
“We’re excited to take Malaysians on a journey to win the world with M+ Global.

By offering access to the United States and Hong Kong markets, Malaysians now have greater investment opportunities in some of the largest and most successful companies across various sectors and industries globally.”

Featured image: (From left to right) Chuck Lim, Head of Business of Malacca Securities, Lim Chia Wei, Managing Director of Malacca Securities and Fok Chuan Meng, Executive Director, Dealing of Malacca Securities

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