Welcome to the latest edition of Protiviti’s Asia-Pacific Financial Services Insights. In this monthly newsletter, we provide a summary of important developments, including those related to the ever-changing regulatory landscape, across the Asia-Pacific financial services sector.
Fintech development, regulatory oversight and change management are themes highlighted throughout our latest newsletter. Examples include the increased spending across APAC on blockchain, technology firms offering online financial services in Hong Kong and the Financial Services Agency’s proposed rules to expand its oversight of regional banks in Japan.
In its latest projection, International Data Corporation has predicted that total spending on blockchain and its related solutions in the APAC region will reach $2.4B USD by 2022, a compounded annual growth rate of 77.5%.
(IBINEX News, 23/04/2019)
Asia’s internet firms are leveraging their massive user networks to offer online consumer finance services and challenge traditional banks across APAC.
Risk management in private banking is undergoing a metamorphosis. Increasingly so, focus is shifting to the strengthening of organisational risk culture as a proactive deterrent to misconduct.
(Regulation Asia, 09/04/2019)
APAC banks are struggling with challenges relating to risk, regulations and regulatory reporting, cost, and managing data with respect to how they operate the business and how they react to changes in the regulatory environment.
(Money Control, 03/04/2019)
With the growth of bitcoin and other cryptocurrency markets over the years, Hong Kong is trying to restrict the mining of Bitcoin and other cryptocurrencies. There are currently no statutory regulations that apply directly to cryptocurrencies.
(Cryptoline News, 24/04/2019)
China's top internet companies are experimenting with online banking in Hong Kong as they focus on expanding their services overseas. Operations are expected to start by the end of the year and the companies will provide online banking services targeting businesses and individuals who have trouble getting loans from traditional banks and those without bank accounts.
Hong Kong’s FinTech sector is set to be a major game-changer in the world’s financial industry thanks to dedicated government team with offices in London and San Francisco.
(Milbank Monitor, 10/04/2019)
Assets under management declined across the industry in Asia, with the 20 largest private banks, excluding China, seeing a decrease of 3.6%. In contrast, two of Singapore's largest banks, DBS and OCBC, saw their private banking assets rise 6% and 3%, respectively.
(Business Times, 16/04/2019)
Technological changes are reshaping the finance industry. During the Future of Fintech Forum in China, participants said that artificial intelligence (AI) is transforming finance.
The International Monetary Fund director Christine Lagarde on Thursday praised China's plans to address the debt risks of the country's Belt and Road Initiative while highlighting the need for sound fiscal policies.
(The National, 25/04/2019)
The Financial Action Task Force issued a report finding that China needs to increase oversight of non-financial organisations to close the gaps in its anti-money laundering and terrorist financing programs and address deficiencies in dealing with online lenders, property agencies, and other non-financial institutions.
(CX Live, 19/04/2019)
Huobi and Fisco, two cryptocurrency exchange companies, were investigated by Japan’s Financial Services Agency (FSA). The FSA conducted compliance checks of the companies' anti-money laundering and consumer protection systems amid management and ownership changes at both companies.
(FX Street, 23/04/2019)
Japan’s financial regulator proposed rules to expand its oversight of regional banks to focus on future profitability. The new regulations would include verifying banks’ core net income and capital adequacy under certain stress conditions for up to five years into the future. This would be performed each fiscal year.
Australia will establish its first blockchain incubator program in Adelaide. The aim of the program is to assist blockchain start-ups with getting their businesses up and running and will offer free co-working space and mentoring services. Companies will also receive blockchain technology training and broader business advice on how to run a start-up.
(Technology Decisions, 11/04/2019)
To restore trust in its financial sector, Australian lawmakers have introduced reforms that require financial firms to design and distribute products that meet clients’ needs. They have also given the Australian Securities and Investments Commission new product intervention powers.