Fintech, Payments and Asia Focused Articles
Your online, mobile, and social behaviour are now data-points used by fintech startups and governments in scoring credit-worthiness
Imagine a world where authoritarian governments and fintech companies monitor everything you do, amass huge amounts of data on almost every interaction you make, and award you a single score that measures how ‘trustworthy’ you are. China has been pushing to develop a nationwide social credit system that aims to generate a score for individuals and institution in the country based on data from tax filings and driving demerits. The score will also function as a signal mechanism for authorities about whom or what deserves to be penalized.
3 Reasons Banks are collaborating with Fintech Startups
Technology is impacting every sector including finance, contributing to the popularity of fintech startups – businesses that leverage AI and machine learning to create better financial services. Large financial corporations are starting to invest and partner with fintech to ensure digital advancement and growth. The 3 main benefits banks gain when investing in fintech companies include faster innovation, more accurate decisions and solving industry specific problems.
Australian Fintech Payments Startup Airwallex Raises A$17 Million from Mastercard, Tencent, Sequoia China
Australian cross-border payments Fintech startup Airwallex has raised a A$17 million in a Series A funding round that saw participation from Mastercard, Tencent and Sequoia Capital China, in a bid to fuel its international expansion. Airwallex enables SMEs to make cross-border transactions at mid-market interbank exchange rates that are effectively cheaper than traditional wire transfers. The platform uses big data analytics, quantitative models and a sophisticated foreign exchange and payment engine to avoid volatility and inflated margins in foreign exchange markets.
How other countries can learn from China’s digital payment platforms
At a macro level, digital payment services have the potential to dramatically improve living standards for large sections of the population, especially in developing countries, through increased transparency, security, cost savings, and financial inclusion, particularly for women. For payment providers, e-commerce firms and social networks, one lesson they could apply is to attract users by building on existing e-commerce platforms and social networks, using strategic incentives to deepen usage.
API Innovation coming from inside and outside banking
For the last several years, the financial services industry has been undergoing a transformation that has led to changes in business models, delivery mechanisms, clients, and more. Consumer needs and expectations have shifted as new demographics of clients enter the market and existing clients demand digital offerings. As financial services regulations have tightened, the burden on financial services institutions has increased, putting pressure on them to adopt APIs from Fintech companies and third party providers.