Asia-Pacific Financial Services Insights - July 2019

Asia-Pacific Financial Services Insights - July 2019
Asia-Pacific Financial Services Insights - July 2019

Welcome to the latest edition of Protiviti’s Asia-Pacific Financial Services Insights. In this monthly newsletter, we provide a summary of important developments across the Asia-Pacific financial services sector, including those related to the ever-changing regulatory landscape.

Financial news across APAC was extremely diverse in the topics covered during July. There was an announcement by Deutsche Bank on a massive restructuring plan that has been followed up by some additional notable banks; the continued evaluation of the opportunities and disruption that virtual banks will bring to the market; and remarks by Central Banks to address the growing popularity of cryptocurrency.

APAC

Deustche Bank focuses on APAC in global restructuring

Deutsche Bank announced a series of measures to restructure the bank’s operations. The strategic transformation plan aims to enable Deutsche Bank to focus on, and invest, in its core, market-leading businesses.

(Connected to India, 09/07/2019)

APAC banks revise conduct scorecards in culture push

APAC banks are making structural changes to the way they measure employee performance, taking into account metrics such as client satisfaction and ethical behaviour, alongside financial targets.

(Risk.net 10/07/2019)

Intense competition push APAC bank race to digitisation

APAC region bankers are racing to digitise due to threats from digital and non-traditional banks. Bankers are acutely aware of the race they find themselves in against technology giants that have the capital and scale to take market share from established players.

(Business Chief 26/07/2019)
 

Hong Kong

Will virtual banks benefit foreign small and medium sized enterprises in Hong Kong? 

With virtual banking licenses granted by the HKMA now totalling eight, small and medium sized enterprises seek to understand both the advantages and disadvantages of these new banks. 

(China Briefing, 09/07/2019)

Hong Kong names Eddie Yue as new HKMA chief

Eddie Yue will be the next chief executive of the HKMA, succeeding Norman Chan. Mr. Yue who is a deputy at the central bank, oversees reserves management will now be in charge of the city's $4 trillion (HKD) exchange fund. 

(Business Times, 26/07/2019)

Hong Kong protests not yet causing 'big movement of money' to Singapore

Ongoing demonstrations in Hong Kong, have ignited concerns about the city’s reputation, with several reports saying the rich have started to move funds to Singapore. However, Piyush Gupta, CEO of Singaporean bank DBS, said that such fund flows are only happening at the margin.

(CNBC, 29/07/2019)
 

Singapore

Singapore virtual banks to service Asia's unbanked millions

Low-cost digital banks in Singapore are set to capture up to 2% of the country's domestic banking sector worth about $24.3 billion, according to an estimate by Moody's Investors Service.

(Nikkei Asian Review, 16/07/2019)

Singapore chosen as innovation hub for central banks

The Bank for International Settlements has picked Singapore as one of three sites where it will set up the first wave of innovation hub centres. In addition to Singapore, hubs will open in Basel, Switzerland and Hong Kong.

(Finews.asia, 01/07/2019)
 

China

China's response to Facebook's Libra could be 'Hong Kong style' cryptocurrency

China could learn a lesson for its possible digital currency issuance from the Hong Kong monetary system that allows “commercial entities” to issue banknotes backed by their own private currency assets, former central bank governor Zhou Xiaochuan said.

(SCMP, 11/07/2019)
 

Japan

Bank of Japan: Adopting central bank crypto would mean dropping cash

An official at the Bank of Japan (BoJ) has ruled out the use of central bank digital currencies because to do so may require the country to abandon cash. 

(Coin Desk, 05/07/2019)

Bank of Japan stands pat ahead of Fed decision

The Bank of Japan maintained its easy monetary policy as economic uncertainties cloud the global outlook. The move comes with central banks around the world expected to return to rate cuts, including the effects of US trade policies.

(France 24, 30/07/2019)
 

Australia

Australia's Consumer Data Right to finally make its way through Parliament 

The Consumer Data Right (CDR) allows individuals to own their data by granting them open access to their banking, energy, phone, and internet transactions, in addition to gaining the right to control who can have it and who can use it. 

(ZD Net, 23/07/2019)

Insurtech Gateway launches Australian incubator programme

Insurtech Gateway, the London-based insurtech incubator announced the launch of its first international program: Insurtech Gateway Australia. Insurtech Gateway offers a hands-on business incubation to a selection of early state insurtech founders.

(Which 50, 31/07/2019)

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