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Cambodia Strengthens Responsible Microfinance with 22 New Actions

Phnom Penh, Cambodia, The National Bank of Cambodia (NBC) and the United Nations (UN) have agreed to accelerate the implementation of 22 priority actions. These measures are designed to enhance consumer protection and promote responsible lending within Cambodia’s microfinance industry.

The agreement follows a meeting in Phnom Penh between Chea Serey, Governor of the National Bank of Cambodia, and Vladanka Andreeva, the UN Resident Coordinator in Cambodia. The discussions focused on the progress made since the NBC-UN Multi-Stakeholder Consultation Process on Microfinance began, a collaborative effort tackling emerging challenges in the sector.

Building a Transparent Financial Sector

The 22 priority actions were adopted as part of previous consultations aimed at fostering a fair, transparent, and inclusive financial sector for all Cambodians. Governor Serey noted that this initiative builds on earlier progress, emphasizing responsible lending and consumer protection as core objectives.

Key participants in the recent meeting included Deputy Governor Yim Leat and other senior officials from the National Bank of Cambodia. Both Governor Serey and UN Resident Coordinator Andreeva commended the commitment of various ministries, institutions, and stakeholders in advancing these actions.

Continued Cooperation and Future Consultations

The NBC and UN have committed to ongoing preparations for the Fourth High-Level Multi-Stakeholder Consultation on ‘Microfinance in Cambodia’. This upcoming forum will provide another opportunity for stakeholders to review achievements, address persistent challenges, and identify new strategies to further a transparent, responsible, and inclusive financial environment.

The collaboration seeks to safeguard borrowers while ensuring the sustainable growth of Cambodia’s financial system. This focus on consumer welfare and regulatory oversight mirrors broader trends across Asia, where regulators are increasingly scrutinizing consumer lending practices to prevent over-indebtedness and promote financial stability, a development RetailNews Asia continues to monitor across the region’s diverse markets.

August 21, 2026
DBS Leads Singapore Banks in $1B Synthetic Securitization Deal: Unveiling a New Era of Corporate Lending

DBS Group, the largest bank in Southeast Asia in terms of assets, recently completed a pioneering synthetic securitization transaction. This transaction, which is tied to a corporate loan portfolio worth $1 billion, marks the first of its kind to be carried out by a Singaporean bank.

A New Approach to Risk Management

The transaction, known in the financial sector as a significant risk transfer transaction, provides an opportunity for investors to shoulder a portion of the loan portfolio’s credit risk. This was confirmed in a statement released by DBS on Tuesday. DBS retains and services the loans, but this new approach reduces the amount of regulatory capital that the bank is required to hold against them.

This innovative transaction is expected to assist DBS in managing its capital more efficiently. It is also intended to bolster client financing as the bank continues to grow its presence across Southeast Asia.

According to DBS, the deal also sets a precedent for future transactions of a similar nature. The bank plans to selectively undertake more such transactions in the future.

Maintaining a Robust Balance Sheet

Philip Fernandez, the Group Corporate Treasurer at DBS, expressed that this new approach would facilitate the bank in maintaining a strong balance sheet while simultaneously pursuing growth opportunities. DBS also confirmed that its capital ratios are comfortably exceeding regulatory requirements.

Questions & Answers

What is a synthetic securitization transaction?
A synthetic securitization transaction, also known as a significant risk transfer transaction, allows investors to assume part of the credit risk of a loan portfolio.

How does this transaction benefit DBS?
The transaction assists the bank in managing capital more efficiently, supports more client financing, and reduces the regulatory capital DBS must hold against the loans.

What does this transaction mean for the future of DBS?
The successful completion of this transaction paves the way for DBS to selectively perform more of these transactions in the future. It also indicates the bank’s commitment to maintaining a strong balance sheet while seeking out growth opportunities.

July 2, 2026
BNP Paribas Switzerland Pivots to Wealth Management, Targeting Swiss Entrepreneurs and High-Value Lending Market

BNP Paribas, the French multinational bank, has recently finished the restructuring of its Swiss operations, with a primary emphasis on Wealth Management. From this point onwards, the bank’s primary concern will be to expand its wealth management sector, focusing especially on Swiss entrepreneurs. A key component of this strategy is the lending business.

Aligning the Swiss Operations

Over the years, BNP Paribas has been realigning its operations in Switzerland. Today, Wealth Management and entrepreneurial services form the bedrock of their strategy. Since May 2025, the Swiss unit has been operating as a branch of BNP Paribas Paris. As a result of this change, separate financial figures will no longer be made public. Enna Pariset, Swiss head of BNP Paribas, stated, “The retreat from commodity trade finance was finalized in 2022, and we concluded 2025 positively, intending to continue our growth.”

Swiss Client Growth

The bank intends to concentrate primarily on Swiss entrepreneurs. Pariset mentions that “Four years after the launch of the initiative, roughly 30% of the assets under management are from Swiss clients.”

The Corporate and Investment Banking (CIB) unit is another important aspect of the company. In 2024, revenues from Swiss clients totaled €1 billion globally and saw further growth in 2025. According to the new growth plan, these figures are projected to increase to approximately €1.5 billion by 2030.

Lending as a Key Strategy

Lending forms a fundamental part of the Wealth Management strategy. BNP Paribas positions itself as a purveyor of intricate financing solutions for entrepreneurs and affluent private clients. Yusuf Savmaz, CEO of Wealth Management Switzerland, stated, “Not many banks offer a €150 million single-stock loan in Switzerland. Owing to our robust balance sheet and expertise, such transactions are integral to our core operations.”

Another area of focus is the expansion of the mortgage franchise. Pariset explained, “This is a relatively new business for us. We see immense potential here, especially considering that our collaboration with AXA Investment Managers has enriched our knowledge of the real estate market in Switzerland.”

AXA Investment Managers Integration

BNP Paribas anticipates additional momentum from integrating AXA Investment Managers, which currently manages CHF 75.5 billion in assets for Swiss clients, including CHF 52.4 billion in Switzerland. The Swiss asset management business of AXA IM will maintain its independence, with its own CEO. However, Pariset assured that they will collaborate closely to offer clients a wider range of products.

Private Banking Positioning

In classic private banking, the entry threshold in Switzerland is approximately CHF 5 million. BNP Paribas adopts a tailored approach based on the client segment. For Swiss clients, the entry threshold is somewhat lower, while for new relationships with Middle Eastern clients, it’s higher due to increased regulatory requirements, explained Savmaz.

Artificial Intelligence Initiatives

A key aspect of BNP Paribas’ model is its integration with Corporate and Investment Banking. This deep understanding of firms through Corporate and Investment Banking helps them assess risks, noted Savmaz.

While BNP Paribas utilizes traditional strategies in the investment management area, digital assets currently do not play an active role. Pariset stated, “We are not the right bank for that.” However, the bank is investing in new technologies and is working with Zurich fintech Unique on several AI projects.

Questions & Answers

What is the focus of BNP Paribas in Switzerland?
BNP Paribas is focusing on expanding its Wealth Management sector, especially serving Swiss entrepreneurs.

What is BNP Paribas’ approach to private banking in Switzerland?
In private banking, BNP Paribas adopts a differentiated approach based on the client segment with an entry threshold of approximately CHF 5 million.

Does BNP Paribas have plans to invest in digital assets?
Currently, BNP Paribas does not see an active role for digital assets in its investment management area.

April 8, 2026
OCBC Pioneers New Securities Financing Division to Optimize Lending Solutions

Singapore’s OCBC Bank has established a new division that is committed to providing loans against idle securities in customer accounts.

Enabling Efficient Use of Idle Securities

OCBC Bank has introduced a dedicated securities financing unit that will operate within the global markets division. This unit’s main function will be to activate lendable securities like equities and fixed income, which are held by customers of OCBC Bank and its affiliate businesses OCBC Securities, Bank of Singapore, and Great Eastern.

The financing unit will be under the leadership of Jansen Chua, the newly appointed head of securities finance. Chua, who officially joined the bank on January 2, will directly report to Kenneth Lai, the head of global markets.

Chua brings to the table 25 years of international experience spanning across the United States, Europe, Middle East, Africa, and the Asia Pacific. His most recent role was at State Street Bank & Trust Company, where he was the senior managing director and head of financing solutions for the Asia Pacific region. He has led teams in trading, sales, customer management, and product development.

The Increasing Demand for Securities Financing

Globally, there has been a noticeable increase in the demand for securities financing. More and more buy-side firms are looking for ways to optimize liquidity, fulfill collateral requirements, and put in place hedging strategies in fluctuating markets.

In 2025, global securities lending revenues hit an all-time high of $15.3 billion, according to EquiLend Data & Analytics.

Accessing liquidity and effectively deploying capital has become crucial, especially given the current high market volatility. As a result, securities financing has become increasingly important, and there has been a correspondingly significant rise in demand from institutional customers, according to Lai.

With Chua’s leadership, the bank is well-positioned to assist its customers as they implement trading and hedging strategies, meet settlement obligations, and optimize capital usage.

Questions & Answers

What is the purpose of the new securities financing unit?

The new unit has been established to mobilize lendable securities such as equities and fixed income held by customers, allowing for lending against these idle securities.

Who will lead the new securities financing unit?

The unit will be under the leadership of Jansen Chua, the head of securities finance at OCBC.

What factors have contributed to the increased demand for securities financing?

The growing demand is largely due to buy-side firms seeking to optimize liquidity, meet collateral obligations, and implement effective hedging strategies amidst volatile market conditions.

January 22, 2026
Philippine Thrift Banks Surge to $19.5 Billion in Assets, Marking 6% Growth in 2024

The Philippine thrift banking sector revealed strong performance indicators as it reported total assets reaching $19.5 billion (PHP1.1 trillion) by the end of 2024, marking a 6% increase from the previous year. The data, released by the Chamber of Thrift Banks (CTB) in July 2025, spotlighted significant growth in lending activities, with core loan portfolios expanding by an impressive 14.7% to $13.8 billion (PHP777.28 billion).

Deposits on the Rise

Meanwhile, deposit liabilities in the sector also saw an upswing of 4.7%, reaching $14.67 billion (PHP826 billion). This growth reflects a resilient demand for thrift banking services, even as the economy faces various challenges. The sector’s capital base remains robust at $3.08 billion (PHP174 billion), boasting a capital adequacy ratio of 17.88%, comfortably above the regulatory benchmarks.

A Commitment to Progress

“We are pleased to report that the Chamber of Thrift Banks has continued to demonstrate remarkable growth and adaptability through the years,” stated CTB President Mary Jane Perreras. Under her leadership, the CTB is advocating for crucial regulatory adjustments, including a proposed reduction of the Minimum Liquidity Ratio from 20% to 16%, to better align with the realities of thrift banks.

Digital Innovation Takes Center Stage

Perreras noted that many member banks have successfully enhanced their digital infrastructure and adopted advanced cybersecurity protocols. “In today’s interconnected financial landscape, offering digital literacy programs is essential to protecting consumers,” she asserted. Collaborations with fintech firms and low-code platform providers have allowed thrift banks to introduce customized digital services with greater efficiency—a move that has infused new energy into traditional banking practices.

Looking Ahead

As the sector looks to the future, the CTB remains focused on promoting sound risk management, operational excellence, and sustainable growth. “Our goal is to strengthen the thrift banking sector’s contribution to inclusive economic development, ensuring our members remain key providers of financial access in communities across the country,” Perreras emphasized, hinting at a vision where thrift banks not only survive but thrive in the evolving market landscape.

Questions & Answers

What growth rate did Philippine thrift banks achieve in lending activities?
Philippine thrift banks recorded a significant growth rate of 14.7% in core loan portfolios, totaling $13.8 billion (PHP777.28 billion).

What initiatives is the CTB pursuing for regulatory changes?
The Chamber of Thrift Banks is advocating for a reduction in the Minimum Liquidity Ratio from 20% to 16% to better reflect the operational realities of thrift banks.

How are thrift banks enhancing their services in the digital age?
Many member banks are upgrading their digital infrastructure, adopting cybersecurity measures, and collaborating with fintech firms to offer customized digital services, thus improving consumer protection and service efficiency.

July 2, 2025
A Swiss Crypto Lender Partners with Major US Bank
Zurigg-based crypto lender Nexo is looking to take advantage of the consolidation in the crypto world. With help from a US bank, it sees itself as financially well equipped to take over the assets of struggling competitors.

In what is increasingly looking like a repeat of the consolidation of companies following the burst of the dot-com bubble, quite a few crypto companies are unlikely to survive the current crash or at the very least have been severely hobbled in the wake of the collapse. Other companies, however, will emerge stronger from the crypto winter.

Zug-domiciled crypto lending platform Nexo plans to provide liquidity during the current market turmoil by acquiring the assets of struggling crypto companies. In doing so, it intends to play a key role in the upcoming consolidation of the blockchain space.

To that end, the crypto platform is enlisting support from a major US bank. In a blog post, Nexo announced that the company is being advised by banking giant Citigroup. Acquisitions are expected to help crypto investors regain access to blocked funds. Nexo is already in contact with a number of troubled crypto companies and has offered them various options for help.

Celsius, which is threatened with insolvency and suffering from a huge liquidity crisis, recently froze withdrawals and transfers between accounts as a result of cryptocurrencies’ rapid downward slide. According to media reports, Celsius is also seeking help from Citigroup, last week having hired the bank to advise on possible financing.

To paraphrase Shakespeare, for many firms this is the winter of their crypto discontent.
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June 24, 2022
UOB Ups Stake in Troubled Chinese Lender
United Overseas Bank is buying more shares in troubled Chinese mid-sized lender Hengfeng Bank with a subscription of 1.86 billion shares for a sum of 1.86 billion yuan (S$360.4 million).

The purchase comes as part of a capital-increase exercise undertaken by Shandong-based Hengfeng Bank through private placement to raise 100 billion yuan. The move reverses a stance taken in May, where local newspapers reported that United Overseas Bank (UOB) had wanted to sell its 13 percent stake in Hengfeng Bank, which it purchased back in 2008.

The initial intention of UOB was to grow its presence in Shandong with more of its own branches. This time, the increased shares are in line with United Overseas Bank (UOB)’s «focus on driving regional connectivity and building ecosystem partnerships to facilitate business and investment opportunities opening up across the region,» according to a filing on the Singapore Exchange.

Funding the subscription of additional shares in cash using internal resources, UOB said the subscription is not expected to have a material impact on earnings or net tangible assets of the group for the current financial year. Post the transaction, UOB will hold a total of 3.34 billion shares in Hengfeng Bank.

The majority of the shares, or 96 billion, will be subscribed by Chinese state-owned investment company Central Huijin Investment and Shandong Financial Asset Management Co, to become controlling shareholders of the bank, as part of state rescue efforts to prop up floundering lenders as the Chinese economy slows.

Concerns about private company debts in the region have risen in recent months with the default or near-default of six private companies in Shandong. Banks affected by defaults could see more capital raising exercises.

UOB explains that the collaboration with Hengfeng Bank will help businesses benefit from Shandong’s economic progress and financial liberalization, and is in tandem with the partnership between Singapore and Shandong to promote business flows into South-east Asia with Singapore as a regional hub.
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December 27, 2019
Xiaomi Launches Online Lending in India
Chinese smartphone giant Xiaomi expands its footprint in India – its largest overseas market – with the launch of online lending services.

The firm will connect users with financiers, offering quick access to loans of up to 100,000 rupees ($1,400), Xiaomi’s India head Manu Jain said, according to a report. The online lending solution, «Mi Credit» rely on a partnership with five finance and fintech firms to audit the creditworthiness of customers and disburse loans.

Xiaomi first entered India’s financial sector in March with «Mi Pay» which enables bill payments and money transferals. The latest online lending launch marks another move to further expand in the market.

For now, India definitely is our biggest market outside China, not only in credit but pretty much in everything else, said Feng Hong, Xiaomi co-founder, and senior vice president. «We need to focus ourselves to make it really successful. We need to bring in more partners, bring more products, bring more users to make it really scale up. That’s our focus for the next 12 months

Xiaomi’s financial unit in Indonesia shut down in 2018 and a report said it was due to its banking partner’s decision to pull out over concerns about invasive data collection practices. Documents unveiled tracking of a wide array of activities and disclaimers which require users to agree to share a myriad of personal data including message and browser history.

During its launch, Xiaomi’s India head assured the public that data protection would be robust though the country has yet to establish law on the matter.

We have strong data protection agreements with each of our partners that they cannot use this data for any other purpose, apart from giving loans to users, Jain said, adding that data would be 100 percent encrypted.
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December 13, 2019
DBS Issues $180 Million Sustainability-Linked Loan

DBS has issued a S$250 million ($180 million) three-year loan to real estate group City Developments Limited with interest rate discounts linked to the firm’s sustainability-related performance.

The loan will be used for general working capital and corporate funding focused on improving CDL’s property quality, performance and method of building.

Interest rate discounts can be achieved by CDL when it achieves mutually agreed on sustainability-related performance targets including innovations that contribute to the United Nations «Sustainable Development Goals» as determined by an independently appointed expert panel. CDL must also remain listed on at least one «leading global sustainability index.»

The CDL loan is part of DBS’s ongoing efforts to promote the UN SDGs with this loan aiming to tackle three of the goals: industry, innovation and infrastructure; sustainable cities and communities; and climate action. Elsewhere, DBS has poured S$6.9 billion ($5 billion) into diverse sustainable financing in the last two years to more resource-efficient firms and green industries such as green real estate development and renewable energy.

DBS and CDL’s move is aligned with ongoing efforts by Singapore’s government to promote sustainability, including in green property development.

The green financing initiative is a commendable effort given the increasing need to build more environmentally friendly buildings and infrastructure to mitigate the impact of climate change, said Tai Lee Siang, executive director of BuildSG at the Building and Construction Authority.

In addition to DBS’s loan requirements, CDL itself also pledged commitment to sustainability by achieving «an average of two innovations or new technology adoptions» per year by 2030.

September 19, 2019
Jack Ma’s Online Bank Changes China’s SME Lending Space
Unlike traditional banks which could take days to approve loan applications, Jack Ma’s online bank usually takes a few minutes. At Jack Ma’s MYbank operating in China, borrowers only need a few taps on their smartphones to receive cash almost instantly, if they are approved. The whole process takes three minutes and involves zero human bankers. Using real-time payments data and a risk-management system, Ma’s four-year-old MYbank has dished out 2 trillion yuan (S$398 billion) in loans to nearly 16 million small companies.

Small and medium enterprises are really the boiler room of the economy, said Keith Pogson, a senior executive in charge of banking and capital markets at Ernst & Young LLP in Hong Kong. It used to be a segment that banks thought was too difficult and too risky. But now they run their model and work out what the risks are so they feel more comfortable, said Pogson.

MYbank and its peers are getting more comfortable with smaller borrowers previously shunned by traditional banks because of their ability to analyze stacks of data from payment systems, social media, and other sources. The default rate at MYbank is only about one percent.

One unique source of information for lenders in China – the government-administered social credit system. It is being tested in cities across the country as a way to reward good borrowers and punish misbehaving ones.

Another big advantage that lenders have in China, is the relaxed stance towards privacy versus other jurisdictions; lenders or app developers can get data of borrowers much more easily. Hence, big payments provider such as the one operated by Ma’s Ant Financial, the biggest shareholder of MYbank, can get their hands on huge reams of personal data.

Once authorizations from borrowers are obtained, MYbank analyses real-time transactions to gain insights into creditworthiness. For example, a drop in customer payments at a retailer’s flagship store might be an early indicator that the company’s prospects are deteriorating.

As a result, the loan approval rate at MYbank is four times higher than at traditional lenders, which typically reject 80 percent of small-business loan requests and take at least 30 days to process applications, according to MYbank president Jin Xiaolong. The Hangzhou-based firm’s operating cost per loan is about three yuan, versus 2,000 yuan at traditional rivals.

MYbank, which earned 670 million yuan last year, is far from the only lender using technology to boost small-business lending. Units of Tencent Holdings and Ping An Insurance Group both have similar offerings, while state-owned China Construction Bank Corp is dramatically ramping up its presence in the space.
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August 14, 2019
DBS Inks Sustainability-Linked Loan in Indonesia
The export financing sustainability-linked loan is the first of its kind in Indonesia. DBS Bank Indonesia has signed a sustainability-linked export financing loan with wooden door manufacturer PT Sumatera Timberindo Industry (STI), the bank said in a press release on Wednesday.

DBS said the loan is evaluated based on a target of obtaining timber and raw materials from sources certified by the Forest Stewardship Council (FSC). Its interest rate will be reduced for each shipment of raw material that has an FSC certification that the raw material is responsibly sourced.

STI is a FSC-certified company focused on responsible sourcing, manufacturing and exporting of sustainable-certified products. According to director Hidayat Ang, STI’s synergies with DBS in advancing sustainability support the company’s long-term growth and empower the local community to do good for the environment.
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August 9, 2019
ICBC Singapore Issues Bank’s First Green Bond

State-owned bank offers green Silk Road bond in three currencies one week after a similar exercise by rival Bank of China. Acting through its Singapore branch, the Industrial and Commercial Bank of China (ICBC), the world’s biggest bank by assets, has issued its first green bond offering in three currencies totalling $2.2 billion equivalent, Reuters reported on Wednesday.

The U.S. dollar-denominated tranche includes $900 million three-year floating rate notes priced at three-month Libor plus 72 basis points and $600 million five-year floating rate notes priced at three-month Libor plus 83 basis points. They received over $2.4 billion and $1.5 billion in orders respectively, with Asia buying 92 percent of the deal and the rest coming from EMEA in both cases, according to Reuters.

The 1 billion yuan ($149 million) three-year tranche was priced at 3.3 percent. The 500 million euro tranche received over 1.8 billion euros in orders.

DBS Bank was the only Singapore bank among the issue’s joint global coordinators, which also include ICBC, Credit Agricole, HSBC and Standard Chartered Bank. DBS was also the joint book runner and joint lead manager of the issue. There were 22 underwriters for the bond issue, which intends to support green projects under China’s Belt and Road Initiative.

According to Clifford Lee, DBS Bank head of fixed income, said that ICBC Singapore’s successful issuance of its first green bond is underpinned by its commitment to financing sustainable development along the Belt and Road, «The Business Times» reported.

A week before, Bank of China raised $3.8 billion equivalent across five currencies and eight tranches from its fifth Silk Road bond offering.

May 13, 2019
Credit growth limited at 15% for best banks in 2019

HÀ NỘI The State Bank of Vietnam (SBV) has assigned a credit growth limit to each commercial bank in 2019, with priority given to those who met Basel II’s capital safety and risk management standards ahead of schedule.

According to the current regulation, the SBV sets a credit growth limit for the entire year for each bank – depending on its health – to ensure the credit growth target of the entire banking system during the year (14 per cent for 2019).

This year, the highest credit growth limit of 15 per cent was assigned to the group of banks which met the Basel II’s standards earlier than the SBV’s deadline of 2020. The remaining banks, meanwhile, were allocated a lower rate of below 12 per cent.

Last year, most banks were assigned higher credit growth limits, ranging from 14 per cent to 16 per cent.

The credit growth target of the entire banking system and of each bank has tended to slow in the past two years. Experts attributed the slowdown to the SBV’s policy changes. Previously, due to the underdevelopment of the local stock market, banks, which should act only as intermediaries in the monetary market, had to function to fund medium- and long-term capital for the economy.

However, the SBV has tried to gradually change the role of banks so as to make them fund only short-term capital for the economy through the provision of working capital loans for businesses and households.

To make the change, the SBV required banks to lower the ratio of short-term funds for medium and long-term loans from 45 per cent in 2018 to 40 per cent since early this year.

Experts have also agreed with the credit growth slowdown, saying it was necessary to improve banks’ credit quality and risk management.

Nguyễn Xuân Thành from Fulbright University Vietnam said currently, the pressure on credit growth to support economic growth was not so high, so the allocation of a credit limit to each bank depending on its health was reasonable. Accordingly, banks should only boost credit in case of good control of risks, in order to ensure sustainable growth.

To offset the revenue reduction from lending activities, banks said they plan to increase profits through cutting operating costs and promoting digital services.

Đỗ Minh Phú, chairman of TPBank, said digital banking would play a major role in reducing operating costs and increasing the cost-to-income ratio (CIR) efficiency, contributing to improving the bank’s profits this year.

Phú said the biggest costs in banking operations were the costs of network investment and development, along with the costs for personnel, which could be solved by the application of digital banking. Attracting customers to non-credit services and service fee collection was also becoming a trend.

Sharing the same view, Nghiêm Xuân Thành, chairman of Vietcombank, said that 2019 would be the year of digital banking for Vietcombank. In the past three years, the bank had focused on investment and implementation of a new core banking system to boost service development and shift the revenue structure instead of relying heavily on credit.

Developing digital banking combined with retail banking in a potential market of 95 million with a high percentage of young people means commercial banks were quickly accumulating a customer base and large payment needs, Thành said.

The focus on digital banking combined with retail banking has also helped some banks, like Vietcombank, Techcombank and HDBank, increase their number of individual customers rapidly in recent years, which has also contributed to raising the banks’ current account savings accounts (CASA) significantly.

Reports showed some banks last year raised CASA to 28-30 per cent in the total structure of deposits. The large proportion of low-interest rate deposits has helped banks reduce mobilisation and operating costs, increasing profits and improving marginal interest in lending.

May 3, 2019
Singapore Fintech Launches Platform for Personal Loans

The new digital platform, which offers lower lending rates and encourages prompt debt repayment, could compete with banks’ personal loan facilities. Singapore fintech company Credit Culture has announced the launch of its moneylending platform, making it the first licensee from a pilot by the Ministry of Law for new business models in the personal loans industry, to do so.

Promising transparent loan terms with no late interest and no early repayment fees, Credit Culture says its platform allows 24/7 access to personal loans with monthly interest capped at 1 percent, disbursed within only 10 minutes.

We have seen how inefficiencies have affected the industry for years and the move to use technology to improve the system is long overdue. This is a win-win situation whereby improving the ecosystem, customers will be able to gain better access and management of their finances, said Edmund Sim, founder and CEO of Credit Culture.

New Models for Loans

Credit Culture’s credit scoring and application process is simpler, cheaper and more transparent than the manual processes offered by traditional banks. Its platform is built on the Amazon Web Services (AWS) cloud and taps on MyInfo, the central data repository of Singapore citizens’ information to populate loan applications.

A proprietary credit-scoring engine then uses this data to assess the creditworthiness of a customer instantly. Apart from lower backend costs, the AWS approach is also scalable depending on customer demand, allowing the firm to grow quickly and roll out in new markets with ease.

The rates charged by Credit Culture are significantly lower than those charged by banks on overdue credit card payments, which average 24 percent per annum, or more than 2 percent per month. However, the effective interest rate could turn out higher than personal loan rates offered by some banks.

Ministry of Law Pilot

Credit Culture was founded by a group of banking industry veterans with knowledge of the consumer credit and technology space. In December 2018, the firm was among six selected by the Ministry of Law as part of a pilot to professionalize the personal loans space in Singapore.

April 9, 2019
KoinWorks Indonesia Announces Investment From Quona Capital

Indonesian peer-to-peer lending platform KoinWorks said in a statement on Monday that it has received an investment from US-based venture capital firm Quona Capital. “We’re very happy we could collaborate with Quona as one of our investors,” said Benedicto Haryono, chief executive and co-founder of KoinWorks. “With the inclusion of Quona among our line of investors, it will further help develop KoinWorks in becoming a responsible peer-to-peer lending firm and continue to innovate and provide a positive impact for society,” Benedicto added.

Quona Capital focuses on investment in financial technology companies it deems to have potential in facilitating access to financial products. The Washington-based company provides financial access in various regions, including Latin America, Africa, Britain and Asia.

KoinWorks said in the statement that the collaboration between itself and Quona Capital is based on a mutual understanding that technology has a strong role in improving quality and access to financial access for those beyond the reach of traditional banks.

The Jakarta-based fintech company, which has 100,000 investors on its platform, is one of the first fintech companies in the country to have obtained a license from the Financial Services Authority (OJK).

KoinWorks bridges the gap between investors and investees through its online platform and provides unbanked individuals with access to financial services.

The company focuses on business and educational loans. It won Bisnis Indonesia’s Most Innovative Fintech of the Year award in 2017.

January 11, 2019