China was the first major economy to pilot a sovereign digital currency, also known as a CBDC (central bank digital currency).

In fact, it is the only country that has continuously made strides with its new electronic payment system while the rest of the world is still in the research phase. That said, after having run numerous trials over the last two years for its digital yuan, the People’s Bank of China is now aiming for a wider reach by launching an e-CNY wallet app in the country.

To recall, over the past two years, cities throughout China have even been holding lotteries, distributing a total of 10 million digital yuan (worth about US$1.47 million at the time) to people in Shenzhen in October 2020, 20 million digital yuan (or US$3 million) in Suzhou in December 2020, and 40.2 million digital yuan (or US$6.2 million) in Chengdu in February 2021.

For context, e-CNY is essentially physical cash converted into a digital form, and it’s been in the works since 2014.

Distribution of the digital currency takes place using a two-tier system that transfers e-CNY from the PBOC to commercial banks. Banks will then distribute the currency directly to consumers.

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In November last year, PBOC’s Governor Yi Gang had said that China would continue to advance the development of its central bank digital currency and improve its design and usage, including increasing its interoperability with existing payment tools.

As of November 2021, the central banks said around 140 million Chinese citizens have opened digital yuan wallets.

As per the Reuters report, a notice in the app said it is in a research and development pilot phase and is only available to selected users through supported institutions that provide e-CNY services, including major domestic banks.

That said, the new e-CNY app is accessible on both China’s Android and Apple app stores since Tuesday, but only to people in 10 specific cities, including Beijing, Shenzhen, Chengdu, and Shanghai.

Test run at the Winter Olympics for China’s digital yuan

So far, Beijing seems to be focusing on ensuring the release and use of the digital yuan at the Beijing Winter Olympics in February this year — the first chance for the outside world to have a glimpse of the virtual currency.

Foreign visitors will be able to use the digital yuan to pay for things like accommodation and transportation within major venues at the Games, according to the government. 

There will also be ATM machines throughout the Games that can convert foreign currencies, including US dollars, into virtual Chinese money, which will be carried in a digital yuan card.

The Chinese government even urged American companies, including McDonald’s, to accept digital yuan before the 2022 Olympics. 

In fact, according to the Financial Times, the fast-food giant has been forced to expand the digital yuan trial to more of its restaurants in the nation in anticipation of the Winter 2022 Beijing Olympics.

The post China’s digital yuan app now available on Chinese Android, iOS appeared first on Tech Wire Asia.

According to deputy central bank director Kasidit Tansanguan, the pilot project was originally planned for Q2 of 2022 and seeks to test the use of the CBDC in cash-like activities, albeit within a limited scale. 

Said ‘cash-like’ activities include transactions such as deposits, withdrawals, and fund transfers by around 10,000 customers as well as financial institutions. 

According to Kasidit, Thailand will “proceed slowly” after discussions with relevant parties and “careful consideration”.

“Thailand can still take a gradual step in the retail CBDC to ensure efficiency and prudence as it does have a problem with fund transfers or payments as some other countries,” added Kasidit, in a Reuters report.

Thailand began work on a CBDC from as early as 2018, starting with Project Inthanon.

From 2018 to 2020, BoT had been in collaboration with leading financial institutions, to create a proof-of-concept wholesale Central Bank Digital Currency (CBDC) prototype using distributed ledger technology in different use cases. It ranges from enabling automated regulatory compliance processes to tackling high fees in cross-border payments.

Not a CBDC vs crypto thing

Earlier this month, the country’s central bank said it does not want commercial banks to be directly involved in trading digital assets, citing the risks stemming from high price volatility, reported Reuters.

This came on the back of recent movements by commercial banks in the country that has invested in local digital asset exchanges. First was the US$537 million acquisition of Bitkub by Siam Commercial Bank Pcl (SCB), and then a US$41 million investment into Zipmex by Bank of Ayudhya Pcl .

“We don’t want banks to be directly involved in digital asset trading because banks are (responsible) for customer deposits and the public and there is a risk,” said Bank of Thailand (BOT) senior director Chayawadee Chai-Anant.

“The priority should be on technology that promotes financial innovation, enhances the efficiency and security of the payments system, and safeguards the economic and financial systems,” he added.

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Prior to that, the central bank also warned companies about accepting crypto payments. 

“If other currencies are widely used, it will impact the central bank’s ability to oversee the economy,” said BOT senior director Sakkapop Panyanukul.

He added that the bank is not exactly entirely afraid of all cryptocurrencies — just the ones that aren’t backed by assets, such as bitcoin.

Cryptocurrencies that are backed by assets are known as stablecoins. 

The central bank also added that it was working with other agencies on ways to regulate digital assets.

Early last month too, the Tourism Authority of Thailand was reportedly working on its own digital token, the TAT Coin, which will be accepted for travel.

A new unit will also be set up by next year to handle the issuance of Thailand’s own CBDC, produce a wallet, and build a new tourism ecosystem. The Tourism Authority’s governor believes that Thailand must be promoted as a crypto-positive society to welcome crypto millionaire tourists.

Trading and use of cryptocurrencies have gained momentum in Thailand in the last year with retailers and real estate developers accepting digital assets as payments.

Thailand, which has eight licensed cryptocurrency exchanges, saw about 205 billion baht ($6.09 billion) in digital asset transactions in November, data from the Securities and Exchange Commission showed.

The post Thailand pushes against crypto, postpones CBDC pilot appeared first on Tech Wire Asia.

Hong Kong plays an essential role in linking China to the world. In 2020 alone, Hong Kong handled about 10.1% of mainland China’s exports and 14.3% of its imports, valued at US$263 million and US$295 billion, respectively, according to the Hong Kong Trade Development Council Research. 

It also stated that 53% of Hong Kong’s re-exports came from the mainland. The island is also part of the Greater Bay Area, a megalopolis that includes nine Southern China and Macau cities. It is home to around 71.2 million people or 5% of China’s total population.

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As e-commerce and digital banking become the norm, exciting fintech solutions are also rising from the island. Wallyt, a leading digital payment solution provider, recently revealed its partnership with All Link Pay, a cross-border payments platform founded this year and backed by a leading MSO (money service operator) group in Hong Kong. 

Wallyt helped launch the first cross-border payment wallet with the Bank of China (Hong Kong) in 2018 and a cross-border e-commerce payment collection and disbursement solution for banks and financial institutions in 2020. 

The one-stop mobile payment service provider now serves more than 150 banks and financial institutions in over 60 countries and areas, with clients including Uniqlo, Rolex, Lego, Prada, Disney, CIMB Niaga, Bank Muamalat, Marks & Spencer, and more. 

Meanwhile, All Link Pay (ALP) is part of the group with 20 years of foreign exchange service experience in Hong Kong with a large cluster of cooperation networks around the world and tens of thousands of clients in import and export. 

It established All Link Pay to broaden its range of cross-border payment collect and disburse services to serve better its existing clients moving online and attract the increasing numbers of new cross-border merchants. It supports popular platforms such as Amazon, eBay, Wish and more. 

Wallyt and All Link Pay collaboration will allow cross-border e-commerce merchants 

The Wallyt and All Link Pay collaboration will allow cross-border e-commerce merchants in Hong Kong and Mainland China to open one or multiple local currency accounts. 

The collaboration will allow the collection of international payments from online marketplaces, make foreign exchange transactions, withdraw money, and payout funds to suppliers, sellers, and any service providers worldwide. 

“Beside the cross-border payment, All Link Pay and Wallyt also established a deeper collaboration in risk management and financial inclusion. Based on the group’s comprehensive financial service capabilities, All Link Pay will further provide cross-border merchants with extensive overseas channel resources and a diverse set of financing options to grow their business,” Wallyt said in a statement announcing their alliance.

Teaming up with All Link Pay is part of the many partnerships that Wallyt has formed. This year also saw the Hong Kong-based fintech company working with Findora, Nepal’s NIC ASIA Bank, and Indonesia’s Arash Digital and Bank Neo Commerce. It is also listed in IDC China FinTech 50, based on financial industry research on technology, innovation, and financial services trends in China.

The post Wallyt and All Link Pay partner up for payments appeared first on Tech Wire Asia.

Digital and social media marketing have been significant players in the evolution of e-commerce, especially amongst the Gen Z demographic. 

However, according to a new survey of over 600 Generation Zers, 50% of them abandon their online shopping carts if they forget their passwords. This is compared to 16% of millennial shoppers, and 4% of baby boomers. 

Gen Zers not only possess a collective buying power of over US$150 billion but are also a critical demographic for banks and payment systems. That’s a lot of lost business for online retailers.

Gen Z in APAC wield largest economic power

The survey by Transmit Security suggests the economic power wielded by Gen Z is the fastest-growing, globally.  In fact, Gen Zers in the Asia Pacific accounts for 89% of this group, with Singapore and Indonesia topping the list at 91% and 95%, respectively. Earnings are expected to hit US$33 trillion by 2030, which translates into over 25% of the world’s income. 

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Gen Zers in Asia spend more time on social media than any other age cohort. As such, they are a critical demographic for brands as they have so much purchasing power. However, many businesses that fail to provide seamless user experiences, particularly with sign-up and login, stand to really lose out. 

The survey also found that:

• 85.3% of the Gen Z participants use smartphones to do some or all their online shopping 
• 83.3% use smartphones to log in to their banking accounts and payment systems 
• 37% only use their phones for online banking and payments 
• 58.2% have failed to complete website registrations because due to overly complex processes. 
• Over 50% of Gen Zers have left a website, and 50% have abandoned an online purchase because they forgot their password.

Meanwhile, 80% have also admitted that they have used the “Forgot My Password” option within the last few months, and more than 50% confirm they reuse the same password for different accounts. 

According to McKinsey, Gen Zers in the Asia Pacific like to research before they shop, with many interested in finding deals.

In Australia, 66% of Gen Zers surveyed say they always look for discounts before buying, and in China, the share is 50%; that is 10% more than its millennial peers. South Korean and Japanese Gen Zers are less willing than millennials to provide retailers and service providers personal information, however.

Moving towards passwordless authentication

Traditional passwords will not work with this demographic.

Instead, Gen Zers and businesses alike will benefit from offering a passwordless authentication experience that eliminates the use of passwords in the entire customer journey.

“The Gen Z demographic is not just digitally native, they have grown up with the world in their hands, constantly connected on either a mobile phone or tablet,” said Transmit Security CEO and Co-Founder Mickey Boodaei. 

“Our findings confirm they want it all: fast, easy, and secure online experiences. We also discovered many are reckless with their passwords, so businesses need to protect their accounts for them,” he added.

The study suggests that Gen Z is ready for passwordless authentication methods, especially with biometrics — this will be the norm for Gen Z, with 95% using the technology by 2022.

The report indicates this generation will be a driver of change in the market, moving towards more seamless and frictionless security experiences as they enter the workforce.

The post 2022: Going passwordless to capture Gen Z market appeared first on Tech Wire Asia.

This potential is so great, Bain, Google, and Temasek predicted the GMV of ASEAN’s digital economy would hit US$1 trillion by 2030 — a mere eight years away. 

A new report by Mambu’s Findexable called the Asia Pacific Fintech Rankings: Bridging Divides has moved its two more ASEAN nations — Malaysia (Kuala Lumpur) and Indonesia (Jakarta) — into the list of top 20 fintech hubs. 

Top 20 Fintech Hubs in Asia (IMG/Findexable)

This is quite a feat, given how both countries jumped double digits to join their existing ASEAN peers Singapore and Manila, in the top 20. 

Findexable also published the annual Global Fintech Rankings for the past two years, analyzing and comparing 264 cities in over 80 countries, with a total of 11,000+ fintechs. 

For its first regional fintech hub report, the company tracked fintech startups in 16 countries across the Asia Pacific, (except India and China) in order to establish the world’s leading, scaling, and emerging fintech cities and countries. 

Asia Pacific Fintech Nation rankings (IMG/Findexable)

Findexable also sought to understand how fintechs in their respective regions are solving local problems and responding to specific market structures. 

Southeast Asia’s impressive fintech market growth

ASEAN is now a digital powerhouse; a behemoth that won’t stop growing. Underlying a large part of that growth is the presence of fintech in the region. 

Last year alone, foreign investors invested US$1.6 billion in ASEAN fintech startups — an eightfold increase from US$0.2 billion in 2015. Fintech is also the largest venture capital investment category for startups in the region.

With strong market demand for fintech services, the fintech boom is clearly not showing any signs of slowing down — in fact, it’s only going to keep growing. 

And with this growth, we’re seeing surprising results emerge, despite the exceedingly tough times the region has had to deal with. 

Think the pandemic, natural disasters, and tourism-dependent economies crippled by global lockdowns.

Yet, the region has not just survived but thrived. 

Further supporting this growth is the Regional Comprehensive Economic Partnership (RCEP); a proposed agreement between ASEAN nations and its free trade agreement (FTA) partners. 

Six ASEAN nations have ratified the agreement to better integrate the Asia Pacific through the RCEP, namely, Brunei, Cambodia, Laos, Singapore, Thailand, and Vietnam. Non-ASEAN signatory countries include Australia, China, Japan, New Zealand, and South Korea.

But most interestingly, all the three ASEAN countries in the top 20 except for Singapore, namely Malaysia, the Philippines, and Indonesia, have not ratified the RCEP, 

The RCEP, which will come into force on January 1, 2022, should serve as a key engine of trade and economic recovery for the entire region, opines Dr. Sithanonxay Suvannaphakdy, a researcher with the ISEAS-Yusof Ishak Institute, in The Diplomat.

The dance of the fintech ecosystem in ASEAN 

The Findexable report shared some pertinent observations viz how seven countries in the Asia Pacific would interact. There is a dynamic in place that appears promising — could it encourage further investment and growth in the regional fintech ecosystem? 

Or could it develop into something strong and unique, such as a cross-border fintech ecosystem? 

Malaysia, Vietnam, and Thailand present challenges viz a lack of a universal banking infrastructure — and as such, fostering financial inclusion is an opportunity for fintechs to resolve.

Australia and New Zealand (ANZ) — rich, well-developed, and with strong banking sectors come with fintechs that are capable of taking on markets in the US and Europe. 

And the bridge between these two distant worlds? It’s Singapore, according to Findexable — rich and well developed, but also patently aware and capable of helping solve issues its neighbors face.

Emerging business opportunities for fintechs

Fintechs and their solutions differ from country to country. Fintechs in developed countries tends to impact users incrementally. Conversely, in developing countries, fintech can “transform lives and unlock the economic growth potential of a nation”. 

This is true in countries with massive amounts of the underbanked and unbanked, such as the Philippines and Indonesia — fintech solutions such as digital payments, buy now pay later (BNPL), and microloans, among others, unlock opportunities for financial inclusion.

And payments — it is the core driver of the fintech ecosystem at large. In advanced nations, BNPL can serve as mere “consumer financing play”, whereas, in developing countries, it offers underbanked individuals and mSMEs (micro, small and medium enterprises) access to the working capital they would traditionally not be able to access. 

Digital payments are another area that may seem humdrum to the average Australian, but which are transforming the lives of the average citizen in a developing economy. E-Wallets allow users to transfer money via a smartphone without the need for a bank account — ultimately improving financial inclusion for the great unbanked.

Another observation is that cross-border barriers are increasingly being taken down, and this will especially be a highly watched space once the RCEP takes flight next month. 

Southeast Asia is heavily involved in cross-border trade due to the proximity of countries to each other. Similar cultures, environments, cuisines, and complementary resources also make cross-border trade all the more lucrative.

Lastly, localization is key. BNPL, for example, is much easier to implement for consumers in the west who need a little extra cash for that sweet new iPhone. 

But in Indonesia, where mSME merchants are increasing, it’s going to be a unique challenge to cover up-front food purchases for, say, a door-to-door fruit seller. 

This would be something that would-be fintechs need to pay attention to when it comes to scaling up because different ASEAN economies would differ greatly when it comes to achieving economies of scale.  

The post Fintech business opportunities in ASEAN appeared first on Tech Wire Asia.

The Technology Young Talent Programme @ OCBC is a curated, year-long internship for final-year students of NP’s Diploma in Information Technology course, fusing IT with financial knowledge and training to serve the growing sector for fintech jobs. 

The co-designed course comes with opportunities for full-time employment with the bank post-graduation as the Bank seeks to improve its technological innovation. 

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The program is double the time of a typical internship and aims to equip IT students with industry-relevant fintech skills and knowledge and work experience for direct preparation for the workplace post-graduation.

According to a statement, OCBC and NP will collaborate to curate each student’s internship plan according to their area of study, which could include Data Visualisation, Machine Learning, Cloud Technologies or Mobile App Development. 

The student’s final-year core curriculum will be incorporated into internship projects and day-to-day work, which ensures that each student’s learning objectives are met. Grades will be jointly determined by both institutions as part of this industry-in-curriculum pathway. 

Specialist training for fintech jobs

An estimated 2,500 to 3,500 technology-related jobs are expected to be created yearly over the medium term in the financial sector. As such, the Technology Young Talent Programme @ OCBC will accelerate the development of a next-generation tech workforce to meet this rising demand. 

Lim Kok Kiang, Principal & CEO, Ngee Ann Polytechnic, said, “At Ngee Ann Polytechnic, we are intentional in keeping industry at the core of our curriculum. We do this by bringing industry into our campus, as well as taking our classroom to the industry. This is critical for the rapidly-evolving technology sector, where the fastest way to pick up the latest skills is for learners to be immersed in industry. 

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With this industry-in-curriculum pathway that we are pioneering with OCBC, students will have an earlier start and a longer runway to deepen their core skills and explore the latest web technologies in real-world settings. Essentially, they will be on the fast track to seize career opportunities in the dynamic technology field.” 

To do so, the Programme will give students hands-on experience with Web 3.0 technologies such as blockchain and artificial intelligence, and they will gain exposure to banking fields like wealth management, trade finance or cash management. Students will also deepen their understanding of regulatory and banking security requirements. 

 OCBC bank will also provide dedicated career guidance in mapping out students’ career paths by matching them to mentors to help them develop their skills and grow their knowledge. 

20 students will begin their internships with the Bank’s Operations and Technology division in March 2022, when the third and final year of their course commences. 

Praveen Raina, Head of Group Operations and Technology, OCBC Bank, said, “As more companies accelerate their digital transformation efforts, the tech talent crunch has become a significant challenge. 

“We deeply value the partnership with Ngee Ann Polytechnic on this very meaningful programme which will contribute significantly towards tackling this issue. 

“Every internship under the programme is customised according to a student’s strengths and area of study – which is time-consuming to do – but we feel that this is worthwhile in order to develop the right tech talent. We look forward to welcoming our first batch of interns next year and hope to subsequently grow the pool of students under the programme.”, he added. 

Most of these students will be selected from a currently ongoing hackathon organised by NP in close partnership with the bank. Incorporated into the core curriculum of Year 2 students in the Information Technology course, the hackathon features problem statements from the Bank, as well as its tech experts on the judging panel, giving students early exposure to industry challenges and insights to potential solutions. 

 The Programme complements OCBC Bank’s existing line-up of technology talent initiatives including the Professional Conversion Programme (PCP), Technology in Finance Programme (TFIP), and the OCBC Graduate Talent Programme.

These are all part of the bank’s digital transformation strategy which will also see the bank ramp up its investments in technology, beef up its workforce capabilities and create more agile and collaborative processes.

The post OCBC’s new industry program preps S’porean students for fintech jobs appeared first on Tech Wire Asia.

The past few years have seen several sea changes in the higher education sector, not least financial belt-tightening by state and national legislatures, the increasing need for innovative tertiary revenue streams and, of course, the coronavirus’s continuing effects, especially on international student numbers.

The resultant fallout has a significant impact on finance functions. While institutions’ central finance functions have traditionally been the hub of their relatively discrete business units, models are shifting. Today it is possible to centralise data-focused operations across campuses and even beyond, as universities consider partnering and merging to survive and thrive in a post-pandemic world.

Key to this evolution is the need to aggregate available financial information and streamline processes: not only in higher education institutions’ finance departments, but in every cost centre, organisation-wide, and to turn this into meaningful data that cements their authority as a driver of meaningful organisational change and adaptation.

But the crux of the matter is time. There’s never enough of it. Many finance professionals still find themselves engaged in manual and administrative duties that often have little to do with core financial tasks. Depending on automation levels and the maturity of the technologies deployed, these activities are squeezing out more important tasks. As a result, less time-sensitive but more meaningful activities such as strategic planning, policy oversight, impactful reporting and providing guidance and leadership often fall on to the ‘to-do’ pile, but seldom make their way to the ‘have done’ checklist.

By leading the use of advanced financial technology, central finance functions can reduce costs and improve efficiencies internally. And, by amalgamating data sources, meaningful information will flow – putting finance leaders in a position to positively shape other departments’ approaches to financial matters, as well as their conceptions of the central finance department.

Is central control essential?

Almost all enterprise-scale organisations use centralised functions for key operations to reduce duplication of tasks and, therefore, wasted resources. In a shared service model efficiencies abound, but the risk increases as departments are less able to find the information that is meaningful to them. Embracing difference and, therefore, complexity is essential.

Managing financial data begins with technological challenges, but it is not a pure IT exercise. Until the last five years, complex operational procedures have been an anathema to business software. In brief, complex procedures at a significant scale were difficult to mirror in software. This is no longer the case: finance solutions have matured, as have the typical approaches of IT systems in general. With today’s software, multiple so-called point products (specialist solutions capable of doing one thing only, yet doing it well) work in tandem with others, instead of one solution being imposed centrally.

We wondered: how are academic institutions managing this complexity and improving efficiency? And what are the implications on HE staff (academic, administrative, auxiliary) and third parties? When complexity is not fully realised and captured, are clear insights possible?

Centralised processes enable technology like machine learning to interpret POs, invoices, remittances, etc., at scale, without individual departments having to fund this capability. But without appropriate support, institutions who deploy software can still flounder. Using specialist providers who can operate independently whilst still being able to connect data in meaningful ways is essential.

For example, one of Basware’s customers, a Tertiary Education Institution in Australia, says that using a specialist provider for their e-invoicing has allowed them to synchronise activities, while feeling like they are supported every step of the way.

The Basware implementation team has been the most engaged, knowledgeable, and reliable project team of any technology vendor we’ve dealt with. While we’re using a large education-specific ERP vendor, we’re just another number to them. Basware has been with us every step of the way – and continues to add value to us. They’re more than just a software solution.

Customers using software technology to automate previously disparate and disconnected processes are also realising the comfort of improved governance and compliance, especially when the auditors investigate accounts. For example, recent research revealed that only 6% strongly agree that they have deployed automation to monitor and check compliance data across all critical areas of the business. We think this is significantly risky. But what do you think?

Actionable insights begin with accessible data

Businesses making decisions based on outdated information are taking significant risks. Real-time data [1] is a prerequisite for accuracy. In many higher education institutions, like any large business, data flows at necessary speeds. Unfortunately, interpretations of ‘necessary’ vary significantly between departments and functions.

While data collation comprises 12.5 per cent of a person’s average working week or 11 days over the period of one year, [2] information can often reach central finance in a manner timely enough to comply with policies or governance (with a significant amount of manual re-work involved), but no quicker. Operating in discrete business units, academic and administrative departments work to different cadences, determined according to business unit type and internal processes.

We wondered: are universities helping their employees do bigger, higher things than simply moving numbers around? Data siloes may be preventing finance departments from seeing the bigger picture – not to mention delaying decision-making and increasing admin busy-work. The fact is good data provides a foundation for informed decision-making. But it can’t be used if it can’t be obtained. Disconnected systems and processes are a roadmap to stagnation.

Finance is the central hub of a university. In technology terms, data silos are not necessarily problematic, but those silos do need to be filled. Relying on manual processes to achieve this is not ideal.

It’s clear that automation helps central finance get access to (near) real-time data proactively, rather than waiting for the manual receipt of needed information. However, methods of data collation may vary hugely across campus/es. This may include everything from Excel to Google Sheets, .csv, open-source and proprietary software, to isolated and networked applications in local data centres or in cloud repositories.

Leading institutions deploy technology platforms that allow different business units to gain access to financial software that is easy to use. But does it all need to be in one platform? Not necessarily.

It’s worth noting that centralised financial technologies no longer need to rely on a single entity from a single supplier: for instance, spend and cash flow capabilities might be handled by dedicated software but be fully integrated with existing enterprise resource planning (ERP) systems. Similarly, central finance might operate using an e-invoicing platform, a procurement management solution, and a governance and data security management element. These can form part of the institution’s ERP or integrate with them using APIs. But to end-users the interface with which they interact need not be apparent, with seamless data flows from platform to platform the only visual clue.

Does this make finance and procurement teams’ lives easier? Yes. In an ideal world, finance teams should deploy a solution once and let it do its thing, so they can focus on adding more value back to their institutions. For example, another APAC-based Tertiary Education Provider says, of using Basware:

We’re very happy with our e-invoicing software choice. It’s good. It does its thing. It ticks over. We don’t have to look at it. We’re happy.

Those using automated tools to manage financial processes such as e-invoicing – and even procurement – are reaping the rewards: including improved visibility, time-savings, and cost-reductions. This adds up to improving the lives and reducing workloads on finance teams. It seems like a logical choice to many. But what do you think?

Making the case for financial leadership

It’s well-established that non-financial professionals will interpret and engage with financial information quite differently from their finance-trained colleagues. The de facto tools deployed by many finance departments are not optimised for general use, and therefore any content will have less impact than desired. For example, common tools like PowerPoint and Excel are used in most finance presentations, despite these often not presenting information in ways assimilable by non-finance personnel. These tools are also non-interactive and not collaborative.

As a result, a significant percentage of non-financial personnel feel that the ways they are shown relevant information is not appropriate, with academic studies suggesting that best engagement methods may be found outside the institution altogether, such as freely available “Web 2.0” channels. [3]

As in the case with cross-departmental finances being managed by a central location, the same logic applies to being able to present key findings from connected information in a way that genuinely adds value to institutions and academics. This requires standardisation and clear outputs, based on best-practice processes, so that finance teams and leaders can win hearts and minds.

We wondered: is it clear to those financial professionals who are keen to put forward agendas for the greater good, that activities like ring-fencing and defensive attitudes are natural reactions to difficult circumstances? With this realisation comes the knowledge that, in order to change attitudes to financial matters in areas where such concerns are not of primary concern (in academic or research-led areas of the organisation, for example), care needs to be given to how messages are shared, how the mandate for digitisation can be ‘sold in’ and how an attitudinal shift to the necessity of automation is put across.

The answer may lie in a combination of factors such as improved efficiency, visibility, faster payment times and improved supplier relationships. With the right systems in place, it’s possible to get 100% of visibility of supplier data, a deeper sense of cashflow, and knowledge of committed spend 3-6 months further than is currently possible. The right systems also enable institutions to tick the compliance box, reduce auditing pain, and eliminate fraud. Risk reduction is also possible through multi-level approval layers that are quick and easy to approve and audit trails come as standard.

For example, recent research revealed that one of the top three compliance and supplier risk drivers for better data visibility is increased reporting requirements to governments / regulators. In Australia, universities are increasingly concerned about reporting requirements to address regulations such as the Modern Slavery Act and the ABS Survey on Foreign Entities.

One way in which finance can ensure these benefits – including compliance – are realized is by making it easy to implement a solution, as this quote from another Australian-based Basware customer in this sector illustrates:

We love your standardised project delivery and approach. All your systems and processes are standardised, clear, and well documented. It has made it easy to implement your solution and makes us confident that our users will engage with it more easily, so we can get better, more consistent results.

In short, by better synchronising the financial functions in the different parts of the institution – an activity that should be led by central finance – the finance department can show other business units where “quick-win” savings can be made, financial problems alleviated, and difficult decisions made. The decentralised approach to higher education funding is now largely accepted as a cornerstone of financial strategy in the sector. [4] But what do you think?

Polling the professionals

While the questions raised in this article and the solutions suggested (and often observed) to resolve these issues go some way towards addressing the pressures faced by CFOs and senior finance leaders of higher education institutions, we know that because of the rapid changes in financial environments in the last two years, a great deal of information about these issues is now outdated.

That’s why Basware is commissioning independent research in partnership with Tech Wire Asia to ask finance leaders at higher education institutions how they are choosing, using and re-imagining technology tools to achieve their goals: to improve services, streamline processes at data and operational levels, re-position central finance, and change approaches and attitudes to financial matters across the campus.

Participants in the survey from Tech Wire Asia will receive an advanced and exclusive copy of the ensuing research in a condensed report that will enable them to benchmark their own department’s performance against those of their peers.

Register to participate in this research by voicing your opinions and telling us about your experiences.

[1] While “real-time” as an adjective might imply nanosecond precision, in finance, it is interpreted more generally. Information that is weeks out of date might be pertinent; data from months or years ago may not be so. For finance professionals, real-time should be interpreted as less than 24 hours old, in ideal circumstances.

[2] https://blog.statwolf.com/9-key-facts-about-machine-learning-in-2017

[3] https://www.mdpi.com/2071-1050/12/1/331 pp.5

[4] https://www.hanoverresearch.com/media/Financial-Reporting-in-Higher-Education.pdf pp.13

The post Lessons in Higher Education Finance: Lead from the Centre appeared first on Tech Wire Asia.

The rise of financial technology (fintech) in the region has led to a talent crunch, with more than two-thirds (67%) of finance professionals in Southeast Asia saying they are experiencing difficulty finding qualified talent. 

Industry insiders warn that Southeast Asia is on the cusp of a ‘talent tech war’ as financial institutions scramble for tech talent in the region. 

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Cusp of a talent tech war

Global fintech investment surged from $87.1 billion in the second half of 2020 to a record $98 billion in the first half of 2021. Meanwhile, the growth in the fintech market is expected to grow gradually and reach a market value of $US324 billion by 2026.

The growth n in demand for tech talent to support the expansion of this sector leads to this talent war in Southeast Asia, with Singapore emerging as one of the biggest winners and other countries not far behind.

Announcements of new startups related to fintech, especially in Southeast Asia, are commonplace at the moment. Companies and organizations compete with other industries such as e-commerce and digital media. The demand for skilled workers who can contribute to their growth has increased along with the boom of this industry.

In 2021, Southeast Asian startups have raised over US$6 billion from venture investors, and the region is now home to 42 unicorns – companies valued at more than US$10 billion. As Southeast Asia’s startup landscape booms and accelerates to new heights, so are salaries for developers who can help build out fast-growing, innovative businesses. 

Startups in Singapore and Malaysia are now experiencing a talent crunch, with the average salary for software engineers in Singapore is S$5307.

According to data from recruitment agency Michael Page, Southeast Asian unicorns and local startups compete for talent; job switchers can command salary increases of 15% to 20% in Indonesia, Malaysia, Singapore, Thailand and Vietnam.

Sought after roles in Singapore and Malaysia

In 2021, the demand for technology candidates will continue at a rapid pace as the Singapore government appears to be a leading global technology hub. The desire to recruit local talent will continue into the coming year, resulting in ample opportunity for Singapore’s best tech talent. In order to fill the skills gap in the market, there is still a strong demand for foreign talent in emerging or niche technologies.

Software developers are highly demanded and are especially notable in banks and insurance companies.

As companies increasingly pursue digital-centric strategies, the risks involved need to be addressed, which is why cybersecurity candidates are critical for businesses.

Once viewed as a niche speciality, fintech is fast becoming a leading model for Malaysian companies, influencing consumer behaviour in many ways. 

Interest in digital banking increased in 2020, with digital payments and loans being adopted by consumers. However, most banks are still in the implementation phase. In 2021, developers will be hired for in-house applications, while legacy systems will be redesigned to provide a more customer-centric experience. 

 User experience and user interface designers with experience in fintech products such as eWallets and KYC will also see above-average increases in salaries.

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The tech industry is one of the fastest-growing sectors globally.  This is seen in the growth of the digital economy across the region, from e-Commerce to fintech and digital media to logistics.

However, despite these changes created by digital technologies, an undeniable gender gap remains that needs to be addressed. 

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Representation of women as founders, employees and investors is low in Southeast Asia, but they are participating more in tech than most of their global counterparts. 

According to a study by the Boston Consulting Group (BCG) and Singapore’s Infocomm Media Development Authority (IMDA), women now make up 32% of the region’s tech sector. In comparison, the global average is 28%.

Women in the technology sector in the Asia Pacific are still a minority, but they are becoming more visible due to social media and networking events. Thailand has the highest percentage of women in tech at 42 %, followed by Singapore.

Attracting global women in tech

In Australia, the government recently unveiled its ambitious plan to empower Asian female talent to shore up its entrepreneurial talent bench for the future. 

The Global Business and Talent Attraction (Taskforce) partnered with global diversity, equity and inclusion consultancy The Dream Collective to attract global female talent, founders and entrepreneurs from Asia to Australia. 

The Dream Collective will actively promote the Taskforce among its influential networks in Singapore, Hong Kong, and Taiwan to identify valuable career prospects and consider the unique work-life balance in Australia.

This programme will offer eligible individuals and companies a streamlined pathway to permanent residency with Australia’s Global Talent Visa. 

The Australian Government is committed to attracting the world’s best and brightest. In recent years, Australia has attracted more than 6,000 talented individuals through its Global Talent Stream (GTS) visa program each year. 

More than 30% of talent are in the Digitech sector, including experts in quantum computing, blockchain and long-range Wi-Fi. Meanwhile, 20% of visa recipients are pioneers in resources and clean energy, 

Opportunities in future-facing industries

Australia is looking for female tech talent in industries such as clean energy and renewables, cybersecurity, digital games as well as financial services and fintech. 

“Bold and ambitious women with the creative energy and technical expertise need to be given the opportunity to fill critical positions in our future-facing industries,” said Peter Verwer, AO, The Prime Minister’s Special Envoy for Global Business and Talent.

“Our emerging technologies and sciences are powering real world, breakthrough solutions. Innovators in Australia can access some of the world’s best laboratories, research facilities, professional networks and government support. The Global Talent visa makes it easier and faster to plan your next chapter, and build a global career,” he added.

The post Australia seeks to empower women in tech appeared first on Tech Wire Asia.

This industry’s growth has resulted in more and more people getting involved in this sector. These startups are helping local businesses to adopt new technologies and adapt to ever-changing market conditions. 

For years, the country has been at the forefront of financial innovation, from cryptocurrencies to blockchain technology, e-commerce payments, and digital identity.

From pioneering internet banking to the first country to embrace cashless transactions by using the Electronic Funds Transfer at Point of Sale, Kiwis were on the cutting edge of financial innovation early on.

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Innovation hub of fintech companies

The answer is simple: Many Kiwi businesses have embraced the digital revolution and leveraged technology to drive innovation in their industries. The country ranks fourth in the world for internet speed, with an average connection of 12.1 megabits per second (Mbps). 

The country is second only to the United States in venture capital funding for fintech startups. Fintech companies have raised more than US$500 million in venture capital funding since 2013, making it one of the top countries worldwide in this respect.  

New Zealand is currently seventh place in the Asia Pacific, in the global fintech rankings 2021, powered by Mambu. It is 14th globally for fintech strength compared to 20th and 15th, respectively. The report puts a spotlight on New Zealand’s financial technology ecosystem and showcases the country’s achievements in fintech over the last year.

The tech sector in New Zealand

According to the country’s Ministry of Business, Innovation, and Employment (MBIE), the tech industry has grown, and between 2018 and 2019 profitability grew three-fold.

The tech sector in 2019 created 2,148 new jobs, created 555 new companies, and employed 114,000 people, 

MBIE tech industry data revealed that the top 200 Kiwi tech export companies had experienced an increase of US$705 million in revenue over five years.

Fintech companies in New Zealand

Fintech companies in New Zealand have been proliferating over the past few years, and it is expected that firms will grow twice as much as traditional banks by 2020. 

The MBIE report said that the country’s top fintech exports included Pushpay, Xero, Invenco, Vend, and DataTorque.

Healthtech, agritech, and gaming

Healthtech companies generated US$1.9 billion in revenue and grew at a rate of about 9%. In comparison, MBIE data showed that IT services exports exceeded $4 billion, with key markets in the United States, Europe, and Australia.

The agritech industry has become a significant player in the global economy, with exports increasing each year. The New Zealand government has prioritized helping this industry grow by investing heavily in research and developing funding from public and private sectors.

This investment is now paying off as innovation abounds across all areas of agriculture, including plant breeding/genetics, precision farming, and animal health.

New Zealand has the highest rate of gaming technology adoption globally, with 54% of NZers owning a smartphone compared to 32% globally. The country also boasts one of the highest social media usage rates at 83% and is home to some 500 million connected devices, including game consoles, personal computers, and smart televisions.

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