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  • Amazon and Flipkart Set to Disrupt India’s Banking Sector with Innovative Consumer Loan Products

    Amazon and Flipkart Set to Disrupt India’s Banking Sector with Innovative Consumer Loan Products

    E-commerce heavyweights, Amazon and Flipkart, are planning to venture into the financial services sector in India, by offering loans and buy-now, pay-later (BNPL) options. This strategic move is poised to challenge the traditional banking sector.

    Amazon’s Plans

    Earlier this year, Amazon purchased Axio, a non-bank lender based in Bengaluru. The company primarily focuses on BNPL and personal loans. However, with Amazon’s acquisition, Axio is expected to recommence providing credit facilities for small businesses and initiate cash management services.

    Mahendra Nerurkar, VP for payments for emerging markets at Amazon, emphasized the potential for expanding credit growth, especially among digitally engaged customers and small businesses operating outside of major cities. He further revealed that the company has plans to develop specialized lending propositions to enhance cash flow management efficiency and unlock capital for merchants and small businesses.

    Flipkart’s Interest

    Flipkart, which boasts a significant stake by Walmart, has registered Flipkart Finance, its non-bank lending branch. The company is awaiting final approval from the Reserve Bank of India (RBI) for its business strategy. The plans feature two types of pay-later offerings:

    1. No-cost monthly installment loans for online shoppers ranging from 3 to 24 months.
    2. Loans for consumer durables at an interest rate of 18 per cent–26 per cent per annum.

    Typically, interest rates on loans for consumer durables from traditional lenders oscillate between 12 per cent and 22 per cent. A confidential source revealed that Flipkart aims to launch these financial products in the coming year.

    Growth of the Consumer Loan Market

    Data from credit bureau CRIF High Mark shows that India’s consumer loan market has expanded from nearly US$80 billion in March 2020 to approximately US$212 billion by March 2025. However, there are indications of a slowdown in recent quarters. Consumer loans encompass unsecured personal loans, credit cards, and loans for consumer durables.

    Both Amazon and Flipkart operate apps ranking in the top 10 platforms for payments via India’s Unified Payments Interface. Earlier this year, the RBI granted them the ability to lend directly to customers, marking a significant step towards opening India’s financial services market to foreign-backed tech firms.

    Rohan Lakhiyar, partner at consultancy Grant Thornton Bharat’s financial services risk division, stated that given their access to both supply-side and demand-side customer data, both Amazon and Flipkart have immense potential to disrupt the sector. However, he stressed that execution would be crucial as they expand beyond core retail.

    Amazon has also partnered with several local lenders to offer fixed deposit savings products with minimum amounts of 1000 rupees (US$11) to customers on its Amazon Pay platform, according to Nerurkar.

    Questions & Answers

    What are Amazon’s plans in the financial services sector in India?
    Amazon plans to offer credit to small businesses and provide cash management services through Bengaluru-based non-bank lender Axio. They also aim to develop specialized lending propositions to help improve cash flow management efficiency and release capital for merchants and small businesses.

    What types of financial products is Flipkart planning to offer?
    Flipkart intends to offer two types of pay-later offerings – no-cost monthly installment loans for online shoppers, and loans for consumer durables at an interest rate of 18 per cent–26 per cent per annum.

    What is the current status of the consumer loan market in India?
    The consumer loan market in India has grown from nearly US$80 billion in March 2020 to around US$212 billion by March 2025, according to data from credit bureau CRIF High Mark. However, recent quarters have shown signs of a slowdown in growth.

  • Singapore’s Top-Paying Job Now Boasts a Median Monthly Salary Over $15,500!

    Singapore’s Top-Paying Job Now Boasts a Median Monthly Salary Over $15,500!

    In a recent Occupational Wage Survey released by Singapore’s Ministry of Manpower, flying instructors emerged as the highest-paid professionals in the city-state. Their remarkable median monthly salary of S$21,000 leaves other professions in the dust, with foreign exchange brokers following closely at S$19,750, and in-house legal counsel earning a respectable S$17,972.

    Salaries of Singapore’s Elite and Economy Insights

    Commodities traders, excluding those in oil and bunker sectors, secured the fourth spot with a median pay of S$16,000, while chief information, technology, and security officers earned S$15,258 on average, according to Yahoo! News Singapore. Interestingly, managing directors and CEOs only managed to snag the tenth position, with a median wage of S$13,000. Clearly, the sky is the limit for flying instructors, but their dependency on altitude might just be a metaphor for the highs and lows of their pay scale.

    The comprehensive survey, conducted between July and December of last year, evaluated 4,286 private sector firms employing approximately 407,800 full-time resident workers. Notably, this analysis excludes public sector employees. The wage figures reflect total earnings, including overtime pay, commissions, and bonuses, although they are calculated before accounting for Central Provident Fund contributions or income tax.

    Pay Gaps and Gender Disparities

    While the soaring salaries of flying instructors grab attention, the survey also shed light on more sobering statistics. Bus attendants and manual laborers such as building painters and waiters inhabit the lower end of the salary spectrum, earning a mere S$1,400 to S$1,600. Notably, differences in pay within professions indicate potential disparities; while the highest-paid flight instructors can earn anywhere from S$8,050 to S$30,000, economists noted a broader wage range from S$4,848 to S$20,000 for other occupations.

    The survey also uncovered a complex landscape of gender pay gaps across different sectors. Male economists and human resources consultants often earn significantly more than their female counterparts, while women excel in roles like security operations specialists and attractions managers, typically outpacing male earnings in those fields. Meanwhile, positions such as executive search consultants and auxiliary police officers exhibit no gender-based salary discrepancies.

    Wage Growth Trends Amid Global Challenges

    According to a preceding report from the manpower ministry, real wages experienced a significant uptick of 3.2% last year, marking the fastest growth since 2019. This increase followed a period of easing inflation, which dropped to 2.4% from 4.8%. Approximately 80% of companies raised salaries last year, a noteworthy rise from 65.6% in 2023, as many firms returned to profitability. However, the ministry cautioned about possible economic headwinds from global trade uncertainties and geopolitical tensions that could dampen wage growth moving forward.

    Ang Boon Heng, head of the ministry’s manpower research and statistics department, indicated that although wage growth could slow down in 2025, the labor market is expected to remain tight. “Demand for services in community and social sectors continues to be robust,” he said, suggesting optimism amid cautious forecasts.

    Questions & Answers

    What professional sector achieved the highest median pay in Singapore’s recent survey?
    Flying instructors topped the list with a median monthly salary of S$21,000.

    How did the wage growth in Singapore compare to previous years?
    Real wages rose by 3.2% last year, the fastest increase since 2019, marking a significant improvement compared to the previous year’s growth of just 0.4%.

    Which professions showed notable gender pay gaps and what were some exceptions?
    Male professionals, particularly in economics and human resources, often earned more than their female counterparts, while women in certain roles like security operations specialists earned more than men, and several professions showed no pay gap at all.

  • India’s Banks Thrive Amid Infrastructure Boost and Rising Demand

    India’s Banks Thrive Amid Infrastructure Boost and Rising Demand

    Weak loans in India’s banking sector are projected to climb to 3.1% by March 2026, a trend that S&P Global Ratings attributes to both ongoing economic pressures and specific vulnerabilities within certain retail lending segments. Nonetheless, the overall outlook for India’s financial institutions remains optimistic, buoyed by substantial infrastructure investments and a steady rise in private consumption.

    Economic Outlook Despite Challenges

    According to Deepali V Seth Chhabria, a primary credit analyst at S&P Global Ratings, India is well-positioned to navigate upcoming challenges in the global market. The country’s limited exposure to U.S. trade significantly lessens potential tariff risks, a point that instills confidence in the financial landscape over the next few years. However, areas such as steel and chemicals may face setbacks if trade relations deteriorate, as highlighted in S&P’s midyear outlook for 2025.

    Retail Loans Show Signs of Stress

    While the banking sector may face headwinds, Seth Chhabria notes that certain segments, particularly unsecured loans and microfinance, are under pressure. She highlights that the quality of underwriting for secured retail loans remains robust, keeping delinquencies in a manageable range. The anticipated rise in weak loans is largely a reflection of these vulnerable areas.

    Mitigating Risks with Stronger Regulations

    In response to these challenges, tightening regulations and enhanced underwriting standards in microfinance are expected to help stabilize asset quality. “India’s sound growth prospects, alongside decreasing interest rates, will also play a crucial role in supporting the banks’ asset quality,” Seth Chhabria stated, shedding light on the financial system’s resilience.

    Proactive Measures for the Future

    To further bolster stability, strengthening internal controls and risk management practices in sectors like unsecured personal loans is essential. Addressing the risks associated with low-income borrowers will be pivotal, especially as the growth of household leverage continues to slow. Seth Chhabria predicts that non-performing loans (NPLs) will likely peak in fiscal 2026, presenting both a challenge and an opportunity for lenders to recalibrate their approaches.

    Questions & Answers

    What are the projected weak loan rates for India’s banking sector by March 2026?
    Weak loans are expected to reach 3.1% in March 2026, reflecting pressures in specific retail segments.

    Which sectors might be impacted by potential trade reductions?
    Sectors such as steel and chemicals could face significant challenges if trade relations deteriorate.

    What strategies are being implemented to mitigate risks in unsecured loans?
    Strengthened regulations and improved risk management practices are key strategies to address the accumulation of risks in unsecured personal and microfinance loans.

  • Malaysia’s Private Sector Loans Surge 5.4% in May, Boosting Economic Confidence

    Malaysia’s Private Sector Loans Surge 5.4% in May, Boosting Economic Confidence

    Asia’s retail landscape is brimming with innovation, and nowhere is this more evident than in the rise of omnichannel strategies among major players. As consumers in the region demand seamless shopping experiences that integrate both online and physical interactions, retailers are stepping up to meet these expectations with creativity and precision.

    Transforming Customer Experience

    Leading the charge is JD.com, which is redefining the shopping experience through cutting-edge technology. In a recent initiative, the e-commerce giant has begun experimenting with augmented reality (AR), allowing customers to visualize products in their own space before making a purchase. This playful and immersive approach not only enhances engagement but also boosts buyer confidence—a win-win in today’s competitive market.

    Revamping Traditional Outlets

    Meanwhile, traditional retailers aren’t sitting on the sidelines. With the pandemic having propelled a shift towards digital shopping, brands like 7-Eleven are redesigning their brick-and-mortar stores to cater to a hybrid shopping model. These new outlets emphasize convenience, featuring smart kiosks and dedicated pickup areas for online orders, making the in-store experience just as appealing as e-commerce. It’s not just a store; it’s an experience!

    Personalization at the Forefront

    In a world awash with choices, personalization has emerged as a powerful driver of customer loyalty. Retailers like Sephora have leaned into this trend by harnessing data analytics to offer tailored product recommendations. This level of customization not only enhances the shopping experience but also cultivates a connection between the customer and the brand, ensuring that shoppers feel seen and valued.

    Innovative Strategies in Payment Solutions

    Asia’s retail sector is also witnessing a revolution in payment solutions. The proliferation of mobile wallets, particularly in markets like China and Southeast Asia, is reshaping the way transactions are conducted. Companies such as Alibaba and Grab are leading the charge, enabling seamless transactions that often bypass traditional banking systems altogether. It’s as if cash is making a quiet exit, and digital currencies are gleefully taking center stage.

    Looking Ahead: Sustainability Matters

    As the spotlight on sustainability grows ever brighter, retailers are taking action. Brands are investing in eco-friendly practices and products to appeal to a more environmentally conscious consumer base. The challenge lies not only in meeting these expectations but also in communicating their sustainability efforts effectively. Retailers that navigate this tricky terrain will likely lead the pack in the years to come, as consumers increasingly prioritize ethics in their purchasing decisions.

    Questions & Answers

    How is JD.com using technology to enhance customer experience?
    JD.com is integrating augmented reality into its shopping platform, allowing customers to visualize products in their own environments before purchasing, thereby boosting engagement and buyer confidence.

    What changes are traditional retailers making to adapt to the rise of e-commerce?
    Traditional retailers like 7-Eleven are redesigning their stores to support hybrid shopping models, featuring smart kiosks and dedicated pickup areas for online orders to enhance convenience for customers.

    Why is personalization important in retail today?
    Personalization is crucial as it helps forge a deeper connection between the customer and the brand. Retailers like Sephora leverage data analytics to provide tailored product recommendations, enhancing customer loyalty.

  • Thailand Boosts Bangkok Minimum Wage to $12 Daily, Enhancing Economic Opportunities for Workers

    Thailand Boosts Bangkok Minimum Wage to $12 Daily, Enhancing Economic Opportunities for Workers

    The recent announcement by the National Wage Committee heralds a significant shift for workers in Thailand’s hospitality and entertainment sectors, as reported by Bangkok Post. About 700,000 employees are set to benefit from an impending 7.5% increase in the minimum wage—an enhancement that will bring the daily wage from THB372 to THB400 in Bangkok and the surrounding provinces.

    New Wage Structure Expands Nationwide

    Currently, the THB400 rate is restricted to tourist-heavy areas like Phuket, Chon Buri, Rayong, Chachoengsao, and the island of Koh Samui. After a three-hour debate, the wage augmentation garnered a two-thirds majority support among committee members, as affirmed by Boonsong Thapchaiyut, both the committee chairman and permanent secretary of the Ministry of Labour.

    “This wage increase is focused initially on the tourism and service sectors, where we believe employers will feel less financial strain,” Boonsong stated, clarifying that the THB400 daily wage will apply to hotels rated two stars and above, as well as any establishments with over 50 rooms or a restaurant.

    Support for Businesses Amid Changes

    To ease any potential financial burden on businesses—especially amid these changes—the Ministry of Labor has collaborated with six commercial banks to provide THB30 billion in soft loans. Additionally, discussions about further relief measures are underway.

    Analysts at Finansia Syrus Securities, as reported by Kaohoon International, expect that the minimum wage adjustment will have a minimal impact on Thailand’s retail industry, particularly in Bangkok. This is largely because the capital’s wage figures only account for around one-third of the overall sales in the sector. Most major retail businesses in the city are already exceeding the current minimum wage levels.

    As this wage increase takes effect, one can only wonder: will ice cream cones start costing a fortune as prices rise to cover the new wages?

    Questions & Answers

    What is the new minimum wage for Bangkok and surrounding provinces?
    The minimum wage will increase from THB372 to THB400.

    How many workers are expected to benefit from this wage increase?
    Approximately 700,000 workers nationwide will benefit.

    What sectors will the new wage apply to?
    The THB400 daily wage will apply to the tourism and entertainment sectors, including hotels rated two stars and above, and establishments with over 50 rooms or a restaurant.

  • Understanding Online Loans: Benefits, Process, and Key Considerations

    Understanding Online Loans: Benefits, Process, and Key Considerations

    In today’s digital age, obtaining financial assistance has become more convenient than ever. One of the most popular options for borrowing money is an online loan. This type of loan allows borrowers to apply, receive approval, and access funds entirely through the internet, eliminating the need to visit a physical bank or lender’s office. Understanding how online loans work, their advantages, and what to consider before applying can help individuals make informed financial decisions.

    What Is an Online Loan?

    An online loan is a form of borrowing where the entire process — from application to disbursement — takes place on a digital platform. Unlike traditional loans, which often require face-to-face meetings and paperwork, online loans streamline the borrowing experience through automated systems and electronic documentation.

    Key Benefits of Online Loans

    1. Speed and Convenience The application process for an online loan is typically fast and accessible 24/7. Borrowers can complete forms at their convenience without visiting a bank, which saves time.
    2. Minimal Documentation Many lenders require fewer documents for online loans compared to traditional loans, often verifying information through automated credit checks and digital identity confirmation.
    3. Wide Range of Options Online platforms offer various loan products, including personal loans, payday loans, and installment loans, tailored to different financial needs.
    4. Transparency Loan terms, interest rates, and repayment schedules are usually clearly presented on the platform, allowing borrowers to compare offers easily.

    The Online Loan Process

    Understanding the typical steps involved in securing an online loan can help borrowers prepare:

    1. Application Submission The borrower fills out an online form providing personal information, income details, employment status, and the loan amount requested.
    2. Verification and Approval The lender verifies the information, often using automated systems to assess creditworthiness and confirm identity. This can include soft credit checks and document uploads such as pay stubs or bank statements.
    3. Loan Offer Upon approval, the borrower receives an offer detailing the loan amount, interest rate, fees, and repayment terms.
    4. Acceptance and Disbursement If the borrower accepts the terms, funds are transferred electronically, sometimes within hours or a few business days.
    5. Repayment Borrowers repay the loan in accordance with the agreed schedule, typically via online payments or automatic bank withdrawals.

    Important Considerations Before Applying

    • Interest Rates and Fees Interest rates on online loans can vary widely depending on the lender and the borrower’s credit profile. It is important to review all fees and understand the total repayment amount.
    • Loan Terms Pay attention to repayment periods, monthly installment amounts, and penalties for late or missed payments.
    • Lender Reputation Choose lenders that are licensed and transparent about their terms to avoid predatory practices.
    • Security of Personal Data Ensure the online platform uses secure encryption methods to protect sensitive information during the application and transaction process.

    Conclusion

    Online loans offer a flexible and efficient alternative to traditional borrowing methods by leveraging technology to simplify the loan process. They provide quick access to funds with minimal paperwork and greater convenience. However, borrowers should carefully evaluate loan terms, interest rates, and lender credibility to ensure they select the best option for their financial situation. With proper understanding and caution, online loans can serve as a valuable financial tool.

  • Bitcoin broker Relai has launched a new offering in collaboration with Sygnum Bank.

    Bitcoin broker Relai has launched a new offering in collaboration with Sygnum Bank.

    Those looking to access short- to medium-term liquidity from their Bitcoin holdings can now do so through Lombard loans.

    Relai is introducing the possibility for private, qualified investors to take out Bitcoin-backed loans. The aim is to provide clients with liquidity in euros or Swiss francs without having to sell their Bitcoin holdings.

    According to a statement from the startup, founded in 2019, the offering provides wealthy private clients and SME customers with a new level of financial flexibility. With this product, Relai becomes the first broker in Europe to enable Bitcoin-backed loans. No details regarding the loan conditions were disclosed.

    Milestone For A Startup

    This setup allows clients to continue betting on a potential upward trend in Bitcoin’s value or to avoid triggering taxable events, the company adds.

    This partnership with Sygnum Bank is a major milestone for us as a startup, said Julian Liniger, CEO and co-founder of Relai. Bitcoin-backed loans are a groundbreaking innovation for our high-net-worth clie

  • PLDT Secures Social Loan for Fiber Expansion

    PLDT Secures Social Loan for Fiber Expansion

    Social loans are financing solutions that are implemented to generate positive social outcomes, such as improving access to affordable basic infrastructure and essential services.

    In a filing with the Philippine Stock Exchange, PLDT announced that its recently secured social loan will facilitate the expansion of its fiber network infrastructure to fourth through sixth-class municipalities across the Philippines. This initiative aims to improve internet connectivity in geographically isolated and disadvantaged areas (GIDAs) that currently lack access to reliable internet services.

    PLDT reported that its fiber network currently reaches 59% of the fourth through sixth-class municipalities. However, out of more than 7,000 geographically isolated and disadvantaged areas (GIDAs) in the country, only 767 have been connected to fiber.

    The company has announced plans to further extend its fiber services to additional municipalities in the coming years, focusing on areas with the greatest need for improved connectivity.

    President Ferdinand R. Marcos Jr. has urged the telecommunications industry to prioritize connectivity in geographically isolated and disadvantaged areas (GIDAs) as part of a comprehensive strategy to advance the government’s digitalization objectives. The emphasis has largely been on improving wireless connectivity.

    In April 2024, the Private Sector Advisory Council (PSAC), created by Marcos Jr. two years ago to encourage public-private collaboration, suggested that the government set aside at least PHP 240 billion to build 35,000 new tower sites for GIDAs. However, installing these towers will also need fiber infrastructure.

    According to PLDT’s Chief Sustainability Officer, Melissa Vergel de Dios, fiber will not only enhance wireless connectivity but also play a vital role in ensuring equitable access to education, healthcare, and economic opportunities for underserved communities.

    “By expanding our presence in GIDAs and low-income municipalities, we are helping to foster inclusive growth and development in some of the most remote parts of the country,” Vergel de Dios said in a statement.

    HSBC Philippines’ Head of Wholesale Banking, Mimi Concha, noted that the deal represents the bank’s inaugural approval of a social loan for a telecommunications company in the Philippines.

    Concha emphasized that the project aims to enhance internet access for Filipinos in underserved areas, enabling them to actively engage in, and compete within, the digital economy.

    This financing agreement marks PLDT’s second collaboration with HSBC this year, following a PHP 1 billion (USD 17.2 million) green loan approved in March 2024. This earlier loan aims to facilitate the upgrade of PLDT’s network from copper to fiber, as fiber networks are considered more environmentally friendly due to their lower electricity consumption compared to copper.

  • Loans to small businesses a booming business

    Loans to small businesses a booming business

    The business of providing loans to small and medium firms is booming in Vietnam with the rise of several platforms offering more accessible credit than traditional banks.

    Bonbon shop, a platform that helps 35,000 grocery stores connect with over 24 major manufacturers, recently launched a credit option of up to VND200 million ($8,563) for stores to buy supplies.

    The operator of the platform, DMSpro, has partnered with e-wallet SmartPay and lender VPBank to make the loans accessible.

    EVNFinance, a credit provider unit of the national utility Vietnam Electricity, recently launched loan packages of up to VND500 million for 36 months.

    It said borrowers could receive the money within eight hours of making their requests.

    Several foreign credit platforms have been making their way into Vietnam since earlier this year.

    Singapore-based fintech firm Validus entered Vietnam in January and appointed Dinh Van Binh, former vice chairman of Sacombank Investment, as its CEO.

    Vishal Shah, chairman of Validus’ emerging markets, said Vietnam was one of its main markets and the company will continue to invest to expand its presence.

    Also in January, Funding Societies, which claims to be the largest digital financing platform for small and medium companies (SMEs) in Southeast Asia, said that it had disbursed $20 million in loans in Vietnam and targets to increase this to $90 million this year and $1.3 billion in 2025.

    The company estimates that Vietnam has a credit “gap” of around $58 billion in funding SMEs, referring to the amount of money that small and medium businesses have not been able to borrow because of administrative and other blocks.

    Nearly 46.8 percent of companies in Vietnam reported difficulties in accessing traditional bank loans last year, compared to 40.7 in 2020, according to a report by the Vietnam Chamber of Commerce and Industry (VCCI).

    Small companies often have to borrow money from friends or family or even assets to submit as collateral to raise capital, it added.

    Because of these challenges, the SMEs credit market is set to be the next race of many finance organizations, said Hoang The Hung, deputy director of EVNFinance.

    VPBank leaders said they have seen its funding for SMEs rising in the last six months as businesses restarted their operations and needed funds. They expect even stronger growth in the near future.

  • StanChart Profits Rise from Improved Loan Impairments

    StanChart Profits Rise from Improved Loan Impairments

    Pre-tax profit at Standard Chartered rose in the first half and beat analyst estimates, resulting in the resumption of interim dividend payments.

    Standard Chartered registered $2.68 billion in pre-tax profit, according to its latest first-half results, marking a 37 percent increase compared to $1.95 billion in the same period last year.

    The bank’s $2.55 billion in statutory pre-tax profit beat its compailed average analyst estimate of $2.23 billion.

    Despite lower income (5 percent decrease) and higher operating expenses, Standard Chartered still saw profits rise due to improved loan impairments fuelled by the economic recovery.

    The bank posted a net release of $47 million in credit impairments – including a net release of $67 million in the second quarter – marking a $1.61 billion decrease year-on-year.

    The Asia-focused British lender also announced the resumption of interim dividend payments of $94 million – or 3 cents per share – alongside a $250 million share buyback.

    I am encouraged by our positive performance in the first half of 2021 despite an uneven recovery from Covid-19,» said Standard Chartered group chief executive Bill Winters.

    We are more confident in achieving our return on tangible equity targets and we are pleased to announce today an additional share buy-back program together with the resumption of our interim dividend payment.

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  • Reduced Loan Provisions Boost Citi Profits

    Reduced Loan Provisions Boost Citi Profits

    Citigroup’s profits in the second quarter comfortably beat market estimates in part due to significantly reduced loan provisions driven by an outperforming global economic recovery.

    Citi posted $6.19 billion in net income for the second quarter, according to its latest results, marking a nearly six-fold increase compared to last year.

    Profits in the quarter exceeded the average analyst expectation of $4.26 billion, according to Refinitiv IBES data, though revenues fell 12 percent year-on-year to $17.5 billion.

    This was due in no small part to a $2.4 billion reduction in loan reserves for losses that did not occur. Last year, the bank added $5.9 billion to its loan reserves.

    By segment, the global consumer bank saw revenues shrink 7 percent due to decreased lending through cards resulting in $1.83 billion in income.

    The institutional business saw revenues fall 14 percent to $10.4 billion which led to $3.8 billion of income.

    Corporate and other divisions posted $532 million of income from $267 million of revenue, an 8 percent decrease.

    Within Asia, the consumer bank generated $171 million of income from $1.57 billion of net revenue.

    The investment bank posted $823 million of income from $2.24 billion of revenue.

    The pace of the global recovery is exceeding earlier expectations and with it, consumer and corporate confidence is rising, said Citi’s chief executive Jane Fraser in a statement.

  • Alibaba Co-Founders Pledge Shares for Loans

    Alibaba Co-Founders Pledge Shares for Loans

    Alibaba co-founders Jack Ma and Joseph Tsai are reportedly pledging their shares in the Chinese e-commerce giant in exchange for significant loans from global banks.

    The two tech billionaires have pledged their shares to banks including UBS, Credit Suisse, and Goldman Sachs, according to a «Financial Times» report citing company documents.

    The shares pledged were made by offshore companies controlling more than half of Ma and Tsai’s stake in Alibaba – 5.8 percent as of December valued at $35 billion – through the documents did not disclose the number of shares pledged.

    The share-backed loans mark a stark contrast with Jack Ma’s positioning just nine months ago when he was originally due to be a beneficiary of Ant’s listing before Beijing stepped on the brakes for what would have been the world’s largest IPO in history.

    Since then, regulators have ordered heavy restructuring for Ant while Alibaba saw its share prices drop one-third alongside a $2.8 billion fine in April over monopolistic practices.

    Ma and his affiliates currently do not have any loans outstanding collateralized by the company’s shares. Tsai’s outstanding share-backed loans were easily manageable with prudent loan-to-value ratios to provide a substantial cushion against a potential margin call.

  • AirAsia launches airasia money, partners RinggitPlus to provide loan application services in app

    AirAsia launches airasia money, partners RinggitPlus to provide loan application services in app

    AirAsia Bhd has expanded its airasia super app to provide financial products and services under the “airasia money” banner, beginning with a partnership with financial comparison platform RinggitPlus.

    Through its partnership with the platform, airasia money currently provides credit card and loan application services. The financial marketplace will also allow users to obtain the best personal finance news, information, guidance and make the best choices for their immediate needs.

    Today’s launch of airasia money, said AirAsia Group Bhd chief executive officer Tan Sri Tony Fernandes, marks the final piece of the puzzle for the airasia super app, a concept that was aggressively pushed since October 2020.

    “airasia money is the third vertical after travel and e-commerce. It is the last piece of our app, and with this, the plan for our digital app is virtually complete and is set to grow from strength to strength moving forward,” Fernandes said at the launch today.

    Targeting millennials, the platform will soon also include an array of other financial products for insurance, investments, top-ups, gaming credits, as well as other services including remittance and zakat payments, said head of airasia money Mohamad Hafidz Mohd Fadzil.

    “Elsewhere, the expertise provided by other platforms have been very product-specific, be [it] loans, insurance and the like, as opposed to a channel that provides simplicity and bundled propositions.

    “There must be something for everyone with airasia money,” said Mohamad Hafidz. “The goal is to provide bite-sized financial solutions that are curated through fintech assets as well as external strategic partners like RinggitPlus,” he said.

    “While AirAsia was democratizing the airline industry, we at RinggitPlus have talked about democratizing the finance industry, to offer banking and insurance products that anyone could apply,” RinggitPlus co-founder and CEO Siew Yuen Tuck said.

    “The opportunity to bring the two brands together with a shared vision to help Malaysians make better financial decisions and get easier access to financial products is really a dream come true, and we thank the AirAsia team for making this happen,” Siew said.

    Following today’s launch in Malaysia, airasia money is also set to launch in Singapore in 2Q21, the Philippines in 3Q21, and Thailand in 4Q21 with localized offerings that cater to the different needs of the different markets, said Mohd Hafidz. AirAsia’s other financial services include e-wallet platform BigPay and Tune Insurance under sister company Tune Protect Group Bhd.

    At the time of writing, AirAsia was down two sen or 2.2% to 89 sen, valuing the group at RM3.39 billion.

  • Alumak to provide working capital loans to Lazada’s online sellers

    Alumak to provide working capital loans to Lazada’s online sellers

    Lazada has partnered with Southeast Asian fintech startup Alumak to provide online merchants with working capital during the Covid-19 pandemic.

    Business owners selling through Lazada for at least six months can apply online using their Lazada account in place of the need to submit formal paperwork, in a process that takes less than 10 minutes.

    Alumak says it can provide working capital of up to 75 million IDR (US$5000) within three hours, sourcing funds from its credit partners. That’s a vastly shorter time frame from the industry standard of one-to-two weeks processing time.

    Once approved, the funds can be downloaded in full or in part with interest charged only on drawn funds.

    Stefan Hadjidetschev, co-founder and GM of Alumak, says the program, which has no end date at this time, is intended to help businesses operate in the “new normal” of Covid-19 and during Ramadan.

    Haikal Bekti Anggoro, senior VP, traffic operations at Lazada, said the company wants to support the economy through its sellers.

    “Lazada aims to ensure that our sellers will be able to have a sustainable business and our Service Market Place offerings are geared towards that goal, providing services that sellers need to build, boost and strengthen their business. The cooperation with fintech companies like Alumak, enables our sellers to get access to funding and keep their business going.”

    Alumak describes itself as an SME-focused fintech company serving digital-savvy businesses with a mobile-first digital business account across four countries: Singapore, Indonesia, Thailand and Vietnam).

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  • Indonesia AirAsia’s growth halted due to coronavirus and economy

    Indonesia AirAsia’s growth halted due to coronavirus and economy

    Indonesia AirAsia has been forced to halt its growth plan for this year, as a result of the coronavirus pandemic and economic challenges faced by Indonesia.

    The plan for 2020 was for the low-cost carrier to increase its market share by adding three new aircraft and launching new services, having recorded a 28% growth in revenue for 2019 as compared to 2018, says parent company AirAsia Indonesia.

    The viral outbreak has led to travel restrictions imposed by neighboring countries and is affecting the demand for domestic and international air travel. AirAsia Indonesia says that Indonesia’s “economic situation has become more challenging”, noting that the exchange rate for rupiah against the dollar is now at more than Rp16,000 ($0.97), and it continues to fluctuate.

    “By considering these factors carefully and deeply, the company is forced to suspend international and domestic flights until the situation improves, and demand for air travel picks up. The measure will certainly have a significant influence on the company’s operating and financial performance in the first half of 2020,” says AirAsia Indonesia.

    Indonesia AirAsia suspended operations on 1 April. Domestic flights are suspended until 21 April and international flights until 17 May.

    Meanwhile, AirAsia Indonesia’s plan to resume trading on Indonesia Stock Exchange (BEI) by offering new shares to the public was also affected, although it did not offer any other details.

    It was suspended from trading in August 2019 for not complying with BEI’s requirement for a company to have at least 7.5% of its paid-in capital available as free float in order to remain listed. As of 29 February, it only had 1.6% of shares available for trade.

    AirAsia Indonesia’s priority for the group over the next six months is to reduce its operating cost base by renegotiating with suppliers and key stakeholders, and to ensure that it can continue to operate during this period, it says. This will then be followed by working to “restore” its finances after the outbreak is declared over.

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