Tag: banking

Singapore – Despite the rising number of digital-only banking offerings, around 73% of consumers in the Asia-Pacific region still trust traditional banking systems, compared to the 44% of consumers saying they trust digital-only banking systems, according to the latest data from YouGov.

While 82% of Indonesians trust traditional banks, only around 38% trust digital-only banks. Similarly, 78% of Singaporeans trust traditional banks, and 37% trust digital-only banks. 

Meanwhile, confidence in digital-only banks is highest among consumers in Australia and India – where trust is at most 21% points lower than that for traditional banks. Around 62% of Australians trust digital-only banks versus 75% for traditional banks, while 51% of Indians trust digital-only banks versus under 72% for traditional banks.

Lastly, in China and Hong Kong, trust in digital-only banks lags that of traditional banks by 30% and 37% points respectively.

In terms of Gen Z consumer behaviour, trust in digital-only banks lags traditional banks the most among Gen Z consumers in Singapore by 29 points and Hong Kong by 26 points – above the APAC average of a 19-point trust gap – less so in Indonesia by 13 points and Australia by 8 points.  

Meanwhile, around 39% of Gen Z consumers in Hong Kong trust digital-only banks, significantly lower than that of the APAC average of 48%. Additionally, Gen Z consumers’ trust of traditional banks is also significantly lower in Australia, around 53%, but significantly higher in Singapore at around 79% when compared to the APAC average of 67%.

Among millennials, 72% trust traditional banks while around 47% have confidence in digital-only banks. Trust in digital-only banks lags traditional banks the most among Millennial consumers in Hong Kong and Singapore, both by 33 points– above the APAC average of a 25-point trust gap – less so in Indonesia by 22 points and Australia by 15 points. 

Notably, millennial consumers’ trust of digital-only banks in Hong Kong of 37% and Singapore of 40% is significantly lower than that of the APAC average of 47%. Additionally, Millennial consumers’ trust of traditional banks in Australia of 61% is also significantly lower than that of the APAC average of 72%.

Geneva, Switzerland – Saigon-Hanoi Bank in Vietnam has tapped cloud banking platform Temenos to accelerate the bank’s digital transformation. For SHB, the move to Temenos digital banking platform is a crucial step toward its goal to rank first in efficiency and technology among Vietnam’s commercial banks by 2025.

Through the partnership, adopting the digital banking capabilities on top of Temenos open platform for composable banking will enable SHB to reimagine how it engages with customers and deliver a consistent, seamless experience across multiple channels. 

Additionally, SHB will leverage Temenos’ open architecture – with its combination of APIs, microservices and Micro Apps – to create a true omnichannel experience across all channels, including internet, mobile, branches and ATMs.

Do Quang Vinh, deputy general director and director at SHB Digital Banking Division, said, “SHB aims to become a leading digital bank in Vietnam in the next five years. We are confident that choosing Temenos, the world leader in banking software, will enable us to complete the transformation project in the fastest and most effective way. With a modernised and secure system, we will be able to engage existing customers better and attract new customers through a digital banking experience that meets their current and future financial service needs.”

Meanwhile, David Becker, managing director for APAC at Temenos, commented, “SHB is a visionary bank with a clear digital transformation roadmap, and we are proud to support and partner with the bank on this journey. Temenos has nearly 30 years of experience in implementing core and front-office solutions for over 20 clients in Vietnam. This deep expertise together with the powerful capabilities of our open platform will help SHB accelerate the digital transformation initiatives that will differentiate its service and realize its growth ambitions.”

Karachi, Pakistan – National private bank Bank Alfalah has partnered with fintech platform Paymob to drive payment acceptance in Pakistan, which will empower over 100,000 merchants across Pakistan and launch new innovative services in e-commerce acceptance for online merchants.

Through the partnership, both entities have collaborated to activate and support merchant acquisition and integration services across Pakistan. This is Paymob’s first collaboration outside its Egyptian home market and comes as part of its expansion strategy in the Middle East, North Africa, Afghanistan, and Pakistan (MENAP) region.

Bank Alfalah’s partnership with Paymob will drive financial inclusion and lead the way for swift payment acceptance, and will follow Bank Alfalah’s objective to support merchant acquisition and integration services across the country. This collaboration will enable an instant onboarding feature for the first time in Pakistan using Paymob’s advanced solutions such as payment gateway integration, POS terminals and SoftPOS.

Atif Bajwa, President and CEO of Bank Alfalah said, “Bank Alfalah is proud to partner with Paymob in one of Pakistan’s largest Fintech partnerships. Our collaboration will aim to serve thousands of merchants across Pakistan and the industry-first ‘Tap-on-Phone’ service will allow us to reach even the most remotely located merchants in Pakistan.”

Furthermore, the instant onboarding feature made by the partnership is empowered by the digital onboarding regulations recently published by the State Bank of Pakistan and comes as one of many positive steps the State Bank has led to enable MSME merchants in order to further digitise the ecosystem.

Meanwhile, Alain El-Hajj, COO of Paymob, commented, “This is a remarkable moment for Paymob. We are honoured to partner with Bank AlFalah under its progressive leadership to provide reliable and seamless digital payment services for SMEs across Pakistan. With this partnership we aim to contribute to the shared vision of economic growth and digitization of SMEs.”

Islamabad, Pakistan – The State Bank of Pakistan (SBP) has announced the launch of a challenge fund for local small-and-medium enterprises (SMEs). According to their latest circular, SBP instructs local banks to develop innovative technological solutions to cater the banking needs of the SME sector. In addition, this will also enable the SME sector to increase the access and usage of digital financial services.

Said challenge fund will be focusing on developing SME banking solutions, digital payment solutions for SMEs, developing e-commerce or online marketplace, and digitising loans application and credit management.

The grant size will be determined according to the financing requirements of the proposal under consideration. However, each grantee will contribute 15% of the total cost. Depending upon the quality and innovations of the proposal, the grant size can vary, however one bank will get only one grant. 

The duration of the projects to be implemented through CFS grant should not exceed 8 months.

In addition, commercial banks–both conventional and Islamic, are eligible to apply for grants under the fund. Banks can also apply in partnership with non-banking financial Institutions (NBFIs), fintechs, electronic money institutions (EMI) and software houses. However, lead responsibility will rest with the applicant bank.

Australia — Australian multinational bank, The Australia and New Zealand Banking Group (ANZ), has announced the appointment of Mark Evans as the new country head of its Singapore market. In addition, Evans has been named as ANZ’s head for  Southeast Asia, India and the Middle East. This follows the retirement decision of the incumbent Vishnu Shahaney after a 40-year career with the bank. 

Evans is currently head of strategic planning and execution based in Sydney. Prior to joining ANZ, he previously held senior roles at HSBC overseeing its trade and supply chain business first in Australia, before moving to Hong Kong in a leadership capacity across Asia Pacific. He has also held positions earlier in his career at National Australia Bank, Commonwealth Bank of Australia, and St. George.

Simon Ireland, managing director of International of ANZ, shared, “Singapore is a critical market for the Bank given its status as a key financial hub and gateway location for the world’s largest multinational companies with trade and capital flows across ASEAN. As one of our most experienced banking executives in both our home markets and in Asia, Mark is well placed to drive strategic opportunities, growth and value for our business and our customers.”

He added, “Vishnu is a true veteran of our business and the banking industry across the region. The leadership team at ANZ thanks him for his significant contribution over many years and wish him well for the future.”

To ensure a smooth transition, Evans will relocate from Sydney to Singapore in May and report to Ireland while Shahaney will depart the Bank in July.

Kuala Lumpur, Malaysia – In a bid to support the leap of the Malaysian banking industry to go digital, global management consulting firm Oliver Wyman and Technology and software engineering company GFT have teamed up to support Al Rajhi Bank Malaysia’s (ARBM) desire to design, build and launch a cloud-based digital bank.

To set new standards of excellence for Islamic banking in Malaysia, ARBM will undertake a complete digital redesign of their products, services, and channels for this new digital bank

Arsalaan Ahmed, chief executive officer at ARBM, said that they have invested significantly in innovation as they lay the foundation of a customer-focused digital bank which offers best-in-class digital banking propositions and channels to benefit individual and business customers.

“We are tapping into the vast potential of innovation and partnering with key experts to provide added value to our customers and better serve the Malaysian market, and ARBM is seizing the opportunities in both digital banking and Islamic finance by striving to become the number one Islamic finance innovation bank in Malaysia,” Ahmed said.

Meanwhile, Dan Jones, partner at Oliver Wyman Digital, said, “The architecture and technology stack we’ve recommended will allow ARBM to provide disruptive, mobile-first, and highly scalable banking services.”

Lastly, Chris Ortiz, global markets and region manager for APAC and UK at GFT, commented, “GFT supports the design, build and launch of ARBM’s digital bank. This new digital bank will enable ARBM to respond to its clients’ needs for simpler, faster and better banking.”

Pakistan – Pakistan-based bank network HBL has partnered with Temenos, a global banking software company, to adopt the company’s core banking platform, aimed at providing domestic and international operations with a cutting-edge banking experience.

Through the partnership, HBL will be onboarding over 25 million of its clients onto Temenos’ open platform for composable banking, which will accelerate its services across all segments, markets, and channels. HBL clients will now have an enhanced user experience in the form of increased reliability, security, and a modern platform that will enhance the bank’s digitalisation journey.

In addition, the Temenos implementation will include a full suite of client-friendly products and services that will provide end-to-end, technologically advanced solutions to both HBL’s conventional and Islamic banking clients. This faster onboarding and quicker transaction processing will provide a more seamless client experience, enabling HBL to increase its digital footprint across Pakistan and internationally.

The new system will also enhance adherence to local banking regulations and improve reporting standards for international markets in China, GCC, Europe, and SAARC countries.

Muhammad Aurangzeb, HBL’s president and CEO, said “The open technology platform provided by Temenos is flexible, global-ready and has the breadth of banking services to meet our clients’ fast-developing banking needs. This partnership contributes to our goal to become a ‘Technology company with a banking license’.”

Meanwhile, Sagheer Mufti, HBL’s chief operating officer, noted, “At HBL, we are always looking at better ways to serve our clients. By adopting this leading platform, we will add to our capability to give clients an improved experience when using our services, now and for many years to come.”

Max Chuard, Temenos’ CEO, commented that HBL is a forward-looking bank with a pioneering approach to shaping the future of banking, and Temenos’ open platform for composable banking will free the bank from legacy constraints. 

“To innovate safely at speed, as well as scale its offering and achieve its growth goals. We are proud to support HBL as it delivers on this exciting vision for more than 25 million clients worldwide,” said Chuard.

Hong Kong – With 2022 already past its first month, banking institutions in Hong Kong, both the traditional and virtual ones, are optimistic about their venture into this year as they expect to implement higher interest rates to improve margins, according to the latest insights from consulting firm KPMG China.

According to the insights, banks highlighted the attraction and retention of talent as a key concern, where global demand across all roles, including digital transformation and ESG has been strong. Meanwhile, mainland banks, which have been a growing force in the sector for the last few years, have been focusing on stabilising their operations in Hong Kong. 

In addition, banks in Hong Kong have continued to increase their focus on digital transformation in all aspects, as technology is being used to improve operational efficiency and reduce costs, including in areas such as know-your-customer (KYC) and anti-money laundering (AML). 

On the customer side, demand has risen for more seamless digital experiences and banks are being pushed to improve their offerings. Digital transformation, which is critical for Hong Kong to retain its position as a leading international financial centre, is expected to remain a key pillar of growth.

Meanwhile, virtual banks in Hong Kong have completed their first full year of operation. While a few have performed well, most are struggling to find a clear path to growth and looking for ways of customer acquisition at lower costs. These banks are also facing stiffer competition from traditional banks that have strengthened their own digital offerings in response to the arrival of the virtual banks.

Terence Fong, head of Chinese banks for Hong Kong at KPMG China, said, “Mainland Chinese banks in Hong Kong are looking forward to increased fee and commission income in 2022, particularly since they have a large retail customer base. While risk appetite has decreased over the last year, mainland banks will be looking to develop new income streams and increase the level of digitalisation and collaboration between their mainland and Hong Kong operations.”

Singapore – The Monetary Authority of Singapore (MAS) and the Association of Banks in Singapore (ABS) have announced new measures to encourage financial institutions in Singapore to enhance their own security across their digital banking systems.

A main takeaway from this announcement is that MAS and ABS has ordered banks to remove any clickable links in emails or SMSes sent to their retail customers. Other measures being announced include delay of at least 12 hours before activation of a new soft token on a mobile device and sending out a notification to existing mobile number or email registered with the bank whenever there is a request to change a customer’s mobile number or email address.

The announcement also included reminders for putting up a threshold for funds transfer transaction notifications to customers to be set by default at SG$100 or lower, as well as cooling-off period before implementation of requests for key account changes such as in a customer’s key contact details.

MAS and ABS continue to warn the general public to never click on links provided in SMSes or emails or never divulge internet banking credentials or passwords to anyone, as well as verifying SMSes or emails received by calling the bank directly and verify that one is at the bank’s official website before making any transactions.

Wee Ee Cheong, Chairman of The Association of Banks in Singapore said, “As an industry, we have always focused on the need to ensure robust security measures while meeting customers’ expectations for convenient and swift services. Together with the MAS and ecosystem players, the banking industry will continue to strengthen consumer protection measures. We also ask that the public stay vigilant given that scams continue to evolve and are executed quickly. We remain committed to upholding the confidence with which customers can transact online safely, while still maintaining a high level of service.”

Meanwhile, Ravi Menon, managing director at MAS, commented, “MAS is deeply concerned about the recent spate of scams and the financial losses suffered by victims. The threat of scams will not go away, but we can reduce our vulnerabilities. This requires a multi-pronged response across the ecosystem. MAS, together with the police, IMDA and other relevant government agencies, is working closely with the financial industry, the telco industry, consumer groups, and other stakeholders to strengthen our collective resilience against scam attacks. We will ensure that digital banking remains secure, efficient, and trusted.”

Manila, Philippines – Bank ING Philippines is launching a one-of-a-kind partnership with Krispy Kreme – the two have just launched a limited-edition donut to celebrate the bank’s 31st anniversary. 

The donuts are rightly created, glimmering with a bright orange color – the bank’s trademark hue. It is presented with two variants – one plain and the other adorned with sprinkles. 

ING said that for its anniversary, it didn’t want to go with the usual ‘birthday cake’. 

ING is a global banking service with Dutch origins. The firm established itself in the Philippines in 1990, providing wholesale banking services to international and local corporations. Just like any brand and consumer service today, the bank has also added digital to its proposition, forging a name in digital and mobile banking.

Alongside the customized treats, there will also be a special ING x Krispy Kreme Birthday Blowout Promo, where ING customers will be eligible for two free Original Glazed doughnuts at Krispy Kreme for a minimum ₱200 single-receipt purchase using their ING Pay Visa physical debit card for dine-in and take-out transactions.

The bank shared that they chose to commemorate the anniversary through the theme due to Filipinos’ love for sweet desserts and delicacies 

“It also aligns with a core thrust of ING – to deliver delightful feeling and bring smiles to its customers,” said ING in a press release. 

The limited-edition donuts will only be available to select partners. Meanwhile, the Birthday Blowout Promo has started running on 21 October and will last until 31 October. Customers can avail of the promo from any of the 93 participating Krispy Kreme branches nationwide excluding delivery transactions.

ING Philippines shared that other fun activities will be announced on its social media pages and website.