TABInsights

RMB internationalisation gains strong momentum despite uncertainties Read the full article: https://bit.ly/3OCircY The Global RMB Internationalisation Survey 2024 reveals that usage in cross-border trade has surged, accounting for over half of China’s cross-border payments. The results show high engagement from financial institutions and companies in RMB-based transactions, with notable growth in cross-border cash management, trade financing and investments. The renminbi (RMB) has made significant progress towards internationalisation over the past decade, driven by China's economic strength and strategic initiatives. Key developments include the establishment of the CIPS Co.,Ltd. for RMB transactions and the growing role of offshore RMB hubs like London. The potential of the digital RMB for cross-border payments could further strengthen the RMB’s long-term prospects for greater global use. According to Swift, the RMB’s share of global payments rose to 4.7% in August 2024, reflecting its growing appeal, particularly in emerging markets. Though still behind dominant currencies like the United States (US) dollar and the euro, this growth is particularly notable in emerging markets, where countries facing currency volatility are turning to the RMB as a more stable alternative. China Construction Bank (Asia), The Asian Banker, LSEG (London Stock Exchange Group), People's Bank of China, Mastercard, American Express Hugh Zeng, TAB Global #RMBInternationalisation #CrossBorderPayments #TradeFinancing #DigitalRMB #CurrencySwapAgreements #GlobalTrade #FinancialInstitutions #OffshoreRMB #ChinaUKRelations #RMBGrowth #BRICS #BondConnect #StockConnect #PandaBonds #CapitalMarketReform #TheAsianBanker #TABGlobal

Financial institutions accelerate GenAI adoption despite quality and compliance hurdles Read the full article: https://bit.ly/3YM2ghE The transformative potential of generative artificial intelligence (GenAI) and large language models (LLMs) to streamline processes across the value chain and accelerate automation had led to rapid adoption across the financial sector. Compared to analytics-focussed traditional AI, GenAI stands out for its ability to generate new content and innovation based on natural language inputs. GenAI applications across business operations are already showing improvements in operational efficiencies by saving costs and time, innovation in processes, and reducing manual workloads for employees. However, given the infancy of the technology and the reliability of the outcome and inherent risks, most financial institutions (FIs) have use cases primarily for internal business users rather than customer-facing roles. Francis Ng, OCBC; Norman Sasono, DANA Indonesia; Simon CK Wong,  China CITIC Bank International Limited; KASIKORNBANK Neeti Aggarwal, CFA, Chris Kapfer, TAB Global #GenAI #FinancialInstitutions #OperationalEfficiency #CustomerService #RiskManagement #Compliance #Cybersecurity #DataGovernance #Innovation #CloudStorage #Automation #AIAdoption #MLOps #DigitalTransformation #BankingIndustry #TABInsights #TheAsianBanker #TABGlobal

✨ Wishing you all a joyous and prosperous Diwali! ✨ May this Festival of Lights illuminate your life with health, wealth, and happiness. Let’s celebrate new beginnings and the triumph of light over darkness. From all of us at TAB Global, Happy Diwali! 🪔🌟 #HappyDiwali #FestivalOfLights #Diwali2024 #TABGlobal #NewBeginnings #LightOverDarkness

The riddle of a poem can take this form And it is expressed in three lines in both English and Chinese. With golden light held in our hand, The full moon graces the Western Tower’s stand, Together at this moment, love’s strand. 金光闪闪手中握， 月满西楼共此时， 心心相印情自连。 #PoemRiddle #GoldenGlimmer #MoonlitVerse #WesternTowerElegance #LoveInWords #BilingualBeauty #CulturalHarmony #PoetryInTwoLanguages #MoonlightMagic #HeartfeltConnection #ElegantExpressions #ArtisticFusion #TheAsianBanker #TABGlobal

Recent outages highlight urgent need for technology risk and resilience management Read the full article: https://bit.ly/4dO1WWg The global outage of Microsoft Windows systems across airlines, banking, and healthcare sectors in July 2024 was an eye-opener for the industry. The corrupted software release, ironically, from the cybersecurity company CrowdStrike, that was tasked with protection, led to crashes and disruptions across 8.5 million computers. Internal systems at several banks became inoperable, trades were stalled, and channels, tellers, and ATMs were affected. Financial institutions (FIs) increasingly rely on multiple vendors for a range of enabling technologies, making outsourcing and vendor risk management extremely important. There have been several other vendor-led outages that have disrupted the operations of institutions in recent years. The Asian Banker conducted a survey across 10 leading FIs in APAC to assess their current challenges in technology risk management and how their strategy is evolving following the recent outage. It reveals several key challenges in technology risk and vendor management, especially as supply chains are widening and banks have limited visibility into third- and fourth-party vendors. The lack of transparency in vendors’ technology development and testing is rated as the biggest challenge by 40% of FIs. Inadequate testing and risk measures by vendors is considered the most challenging issue by 30% of FIs, while interdependence of systems is considered a significant challenge by 60%. John Howard Medina, Tushar Vartak Neeti Aggarwal, CFA Parametrix, SGX Group, Philippine Bank of Communications (PBCOM), RAKBANK, Monetary Authority of Singapore (MAS), European Union #GlobalOutage #CrowdStrike #Microsoft #JohnHowardMedina #TusharVartak #CyberCube #Parametrix #FinancialInstitutions #BusinessContinuity #DisasterRecovery #SystemInterdependence #CloudResilience #OperationalResilience #RiskManagement #SingaporeExchange #TABInsights #TheAsianBanker #TABGlobal

Southeast Asian fintechs prioritise cost management for sustained profitability Read the full article: https://bit.ly/3SJhylj Leading platform players Grab, GoTo, and Sea Group have intensified cost management efforts since 2023, aiming for profitability by the end of 2024. While all three have reduced expenses and streamlined operations, Sea Group has notably outperformed its rivals, showing strong growth into 2024. Fintech companies Grab and GoTo were forced to significantly reduce expenses during the pandemic years due to rising operating costs, reflecting a broader trend of fiscal prudence. In contrast, Sea Group, a consumer internet company founded in Singapore, turned its fintech segment profitable in 2023, allowing it to continue its growth trajectory with greater financial stability and strategic investments. Patrick Walujo, Anthony Tan Grab Financial Group, Grab, GXS Bank, GXBank, Superbank, Singtel, 카카오뱅크 Kakaobank, GoPay Indonesia, PT Bank Jago Tbk, SeaMoney, MariBank TAB Global #SoutheastAsia #PlatformPlayers #Grab #GoTo #SeaGroup #Operations #Profitability #Growth #Fintech #CostManagement #DigitalPayments #FinancialServices #Expansion #Investment #ConsumerCredit #DigitalBanking #TheAsianBanker #TABGlobal

Rapid developments in institutional crypto in recent months Read the full article: https://bit.ly/4bBm4cR Anith Daniel, group head of transaction banking services at Emirates NBD, said: "Tokenisation and digital currency are seeing a lot of interest and are likely to fuel the next wave of innovations. While the technology has progressed in leaps and bounds, use cases have still not progressed to commercial usage at scale pending clarity on regulations and interoperability. There are very interesting prospects with respect to 24/7 [availability], instant [transactions], programmability, etc. These are exciting prospects and certainly something to keep track of." Subscribe to TABInsights for more research notes and relevant articles: https://bit.ly/3MYtxsp International Monetary Fund, Financial Stability Board (FSB), Ripple, J.P. Morgan, Banco Santander Colombia, Juniper Research, Financial Action Task Force (FATF), Animoca Brands, Stiftung Landesbank Baden-Württemberg, Bitpanda, PayPal, New York State Department of Financial Services, Paxos Kamil Kaczmarski, James Wallis, Yat Siu, Papuna Lezhava, Kristalina Georgieva, Kenneth O. D. Okwor, Mahmut Kutlukaya, PhD, FRM, Mengxin Xie, Fozan Fareed, Sonia Boulad, Jennifer Fowler, Ada Ziemyte, Alessandro Barbera, Maneesha Baljekar-Trees, Ada Ziemyte, Mitul Shah, Preetish Rao, Radha Madhuri Chakka, Saurabh Khandelwal,CQF, Srivatsan R., Bhaskar Gupta, Madhav Vora Kumardev C., Chris Kapfer, TAB Global #crypto #blockchain #digitalassets #financialservices #institutionalinvestors #bitcoin #ethereum #stablecoins #CBDCs #tokenisation #DeFi #regulation #crossborderpayments #micropayments #digitaltransformation #tabinsights #theasianbanker #tabglobal

Asia Pacific consumer finance sees diverse growth due to economic shifts Read the full article: https://bit.ly/3KT4h5k Consumer finance contributes less to total retail lending in most Asia Pacific markets, with the exception of the Philippines and India. Hong Kong and South Korea saw notable declines in the share of consumer finance relative to total retail lending from 2019 to 2023. Conversely, the Philippines experienced a significant increase in its proportion of consumer finance. In 12 key markets across Asia Pacific, 10 reported a decrease in the proportion of consumer finance relative to total retail lending from 2019 to 2023. Consumer finance encompasses unsecured loan categories such as credit card loans and personal loans. However, in Australia, Hong Kong, Japan, and South Korea, the data refers to non-mortgage lending that includes auto loans. Subscribe to TABInsights for more research notes and relevant articles: https://bit.ly/3MYtxsp Bank of Korea, HDFC Bank, Housing Development Finance Corporation Plc Wendy Weng Meng Jiao, Chris Kapfer, TAB Global #consumerfinance #economicshifts #retaillending #unsecuredloans #creditcardloans #personalloans #nonmortgagelending #autoloans #marketvariations #privatespending #interestrates #householddebt #economicgrowth #inflation #pandemicimpact #tabinsights #theasianbanker #tabglobal

#ICYMI: Rapid developments in institutional crypto in recent months Read the full article: https://bit.ly/4bBm4cR Financial institutions are swiftly adopting blockchain and cryptocurrencies, catalysing regulatory discussions and heralding a significant shift in the global financial system. International Monetary Fund, Financial Stability Board (FSB), Ripple, J.P. Morgan, Banco Santander Colombia, Juniper Research, Financial Action Task Force (FATF), Animoca Brands, Stiftung Landesbank Baden-Württemberg, Bitpanda, PayPal, New York State Department of Financial Services, Paxos, Mastercard Kamil Kaczmarski, James Wallis, Yat Siu, Papuna Lezhava, Kristalina Georgieva, Kenneth O. D. Okwor, Mahmut Kutlukaya, PhD, FRM, Mengxin Xie, Fozan Fareed, Sonia Boulad, Jennifer Fowler, Ada Ziemyte, Alessandro Barbera, Maneesha Baljekar-Trees, Ada Ziemyte, Mitul Shah, Preetish Rao, Radha Madhuri Chakka, Saurabh Khandelwal,CQF, Srivatsan R., Bhaskar Gupta, Madhav Vora Kumardev C., Chris Kapfer, TAB Global #crypto #blockchain #digitalassets #financialservices #institutionalinvestors #bitcoin #ethereum #stablecoins #CBDCs #tokenisation #DeFi #regulation #crossborderpayments #micropayments #digitaltransformation #tabinsights #theasianbanker #tabglobal

Happy Dragon Boat Festival! 🐉🚣♂️🍃 May your day be filled with happiness and good fortune. Share your celebrations with us in the comments! #DragonBoatFestival #DragonBoatFestival2024 #Festive #Fun #Zongzi #Traditions #Celebration #Culture #FamilyTime #GoodFortune #Unity #JoyfulMoments