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digital banking

Fintech Ant Group Affiliate MYbank Is Planning to Expand Operations in China to Serve More Rural SMEs

China-based MYbank, an online private commercial bank and an affiliate of the Ant Group with a special focus on working with rural areas and SMEs, has revealed that it will be doubling the number of rural counties it serves in the coming years.

MYbank and its business partners plan to provide financial services in 2,000 rural counties in China within the next four years (by 2025). This should coincide with the bank’s 10th year since its launch. The initiative will ensure that rural clients are able to access the same modern financial services that are offered in some of China’s largest cities. The initiative should also help with addressing the last-mile problem in the rural finance sector.

This latest announcement from MYbank has come along with the release of the firm’s 2020 annual report, which reveals that MYbank had been serving 70% more (year-on-year) SMEs in 2020 when compared to 2019. This rise in activity has mainly been driven by MYbank’s expansion into rural areas.

Since launching operations 6 years back, MYbank has managed to serve clients in over 750 different counties across China.

Xiaolong Jin, President of MYbank, stated:

“We have continued to record remarkable growth in customer base for five consecutive years. We expect rural finance to play a significant role in advancing financial inclusion, and will further our efforts to make rural finance more accessible with our financial institution partners.”

MYbank has reportedly kept its non-performing loan ratio at around 1.52%, which is a lot lower than the 2.99% average for Chinese SME loans (as of June of last year).

MYbank had teamed up with the All-China Federation of Industry and Commerce and the China Banking Association (in March 2020) in order to introduce a “Contactless Loans” initiative, in which 118 Chinese banking institutions had come together to provide supportive loans for small and medium-sized businesses as they tried to maintain operations.

The initiatve reportedly offered more than RMB 870 billion worth of loans to many different SMEs in sectors that were negatively impacted by the COVID-19 outbreak (including local dining and retail outlets).

During the 6 months since the campaign began, MYbank and its partner banks have waived RMB 665 million in interest payments for Chinese SMEs.

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Philippines based Digital Bank Tonik Reports $20M+ in Deposits in Less than A Month After Launch, Announces Partnership with PESONet

Earlier this week, Philippines based digital bank Tonik partnered with PESONet in order to support safe and secure digital fund transfers to its account from other banking service providers.

Tonik clients now have the option to send money from a PESONet participating bank directly to their bank accounts.

This new service is currently available through CIMB, PSBank, Landbank, and RCBC. Other PESONet member banks are expected to add the service in the foreseeable future.

As mentioned in the announcement, interbank transfer services through PESONet will be available with more banks within the next few weeks.

The announcement has come shortly after Tonik’s official launch in March 2021. The digital bank revealed that it has managed to secure more than 1 billion pesos ($ 20 million) in retail deposits in less than a month.

Tonik’s management also mentioned that they intend to introduce their loan offers and further expand their payment options during this year.

Greg Krasnov, CEO and Founder at Tonik, remarked:

“The response we got when we introduced the app last month was overwhelmingly positive. It’s a testament to the fact that Filipinos are thirsty for a financial enabler that cuts the red tape, makes banking less complicated, and lets their hard-earned money work better for their future. Allowing easier and bigger interbank transfers to Tonik accounts through PESONet is just one of several features that we are introducing in our app that I’m sure will make our customers love us more.”

Long Pineda, President at Tonik Digital Bank, Inc, stated:

“This is another chapter in our journey of growth and driving financial inclusion in the local banking industry. By making in-demand banking transactions such as interbank transfers safer and more seamless with PESONet, we hope to encourage more Filipinos to manage and maximize their finances with Tonik in the #neonormal.”

As covered, Tonik had started working with several companies in 2020 so it would be ready for a successful launch. After acquiring $6 million in capital in early 2020, Tonik chose Singapore’s online security firm V-Key as its mobile security partner.

As reported in July 2020, Tonik had selected Mastercard as its payments partner.

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Malaysian Fintech MyMy Given Conditional Approval from Bank Negara as Company Prepares for Digital Wallet Launch

MyMy revealed on Monday (April 26, 2021) that it has obtained conditional approval for a large scheme E-money license from Bank Negara Malaysia, the nation’s central bank. The Fintech firm is now planning to launch its digital wallet services in the coming year.

Until all required conditions are met (as specified by Bank Negara), MyMy will remain reserved regarding its plans for its complete product offering, according to the company’s anouncement.

The MyMy team noted that there are many digital wallet providers currently in the market, which is why they intend to offer additional services.

MyMy has previously stated that it will offer Shariah-compliant products and services within its online wallet.

In September of last year, MyMy secured RM12 million (appr. $2.92 million) in capital from Koperasi Tentera in order to expand its operations. The Fintech firm has also teamed up with Sukaniaga to establish a Shariah-compliant digital banking consortium.

MyMy Chairman, Tunku Dato’ Ahmad Burhanuddin, who’s also an experienced banker and sits on the board of Bank Rakyat, stated:

“Our plans to become the world’s first Shariah-compliant digital bank is still within our sights and will take its form with the right conditions set by our committee and our consortium partners. Since receiving our investment from Koperasi Tentera, we have been working diligently on utilising digital financial services for the betterment of the co-operative community and the larger population covering the different segments of our multicultural Malaysians.”

MyMy’s co-founders Kishore Samuel and Joe McGuire noted that the company is pleased to get conditional approval from the central bank.

The company’s management believes this is a key step in MyMy’s goal of becoming the country’s first Unicorn. The management team also said they’re commited to keeping all high-skill jobs in Malaysia. They added that they want to “become the Revolut” of the ASEAN region. They pointed out that they began operations in Malaysia and are focused on building the local industry and remaining a key player in the region.

MyMy’s beta program is currently available for pre-registration. But access will only be provided after Bank Negara has determined that all conditional requirements have been met (after which it may give its final approval).

MyMy, which aims to become the world’s first Shariah-compliant digital bank, and digital loan platform Sukaniaga Sdn Bhd confirmed (in March 2021) their partnership which focuses on establishing a virtual banking consortium. They’re also planning to apply for one of the five digital banking licenses that will be provided in 2022 by Bank Negara Malaysia.

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Digital Banking Challenger Chime Now Allows Users to Send Money to “Anyone and Everyone”

Earlier this week, digital bank Chime revealed that you can use their platform to pay anyone. Chime users can send money to anyone, “even if they’re not on Chime.” As noted by the banking challenger, the users can claim funds to their bank account “instantly and for free.”

As mentioned in a blog post by Chime:

“Pay Friends is this awesome way Chime members can send and receive money fee-free. Up until now, Chime members could only give and get money with friends that had a Chime account. That all changes today (as of April 13, 2021). Because Chime is better with friends, members can spread the love (and money) to anyone regardless if they have a Chime account or not.”

Chime confirmed that you can send funds to “anyone and everyone.” The banking challenger also addressed some potential concerns and questions from consumers by noting:

Ok, we know what you might be thinking:

  • “They have to be on Chime to receive money?” “Nope. They don’t need to be on Chime or download an app. They can claim funds instantly¹ to their bank account using a valid debit card.”
  • “I still have to use other payment apps.” “Again, nope. You can send money to anyone, whether they’re on Chime or not, all within the Chime app.”
  • “One of us will be charged a fee.” “Gasp, no! Fee-free means no fees to you for sending and no fees for them to claim funds instantly.”

To learn more about how this all works and certain terms and conditions, check here.

As previously reported, Chime has been holding discussions with investment banks regarding a potential stock market flotation, which may value the Fintech at over $30 billion. This deal could materialize at some point later this year, according to Reuters which cited sources familiar with the matter.

Since beginning operations back in 2012, Chime has become one of the fastest-growing Fintechs in the US.

San Francisco-headquartered Chime CEO Chris Britt had noted in September 2020 that he was planning to get ready for a possible IPO in the coming year. It now seems that these preparations have started so that Chime can capitalize on the growing trends towards digital banking.

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Barclays Appoints Helen Kelly as Head of Europe Corporate Banking

Barclays recently announced it has appointed Helen Kelly as Head of Corporate Banking, Barclays Europe. According to Barclays, Kelly has more than 30 years of experience in banking with Barclays. She previously was Head of international Corporate Banking – Ireland and Country Manager – Ireland.

Speaking about the appointment, David Farrow, Head of International Corporate Banking at Barclays, stated:

“Helen’s appointment as Head of Corporate Banking for Barclays Europe is an important step forward in our commitment to supporting businesses operating on the continent. Helen has a proven track record in delivering for our colleagues and clients, and will play a key role in continuing to expand our presence in Europe over the years ahead.”

Barclays went on to add that it has continued to develop its digital banking platform in Europe. The platform has already been rolled out in Portugal, France, Spain, Ireland, Germany, the Netherlands, Luxembourg, and Belgium. The banking group added:

“The benefits of the digital platform include streamlined KYC and account opening, digital on-boarding, improved self-help capabilities, and multilingual servicing. By working closely with partners across the Group, including in investment banking, Barclays will build on the momentum generated by this growing European footprint in order to deliver for clients – and to support the bank’s wider growth ambitions through its Barclays Europe entity.”

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