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US AND CANADA

EUROPE

AFRICA

ASIA AND OCEANIA

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BANCA CHIP

October 2023 Issue No: X1 Issue design: Italian

TABLE OF

Contents 1

12

US and CANADA

EUROPE

19

26

AFRICA

34

OCEANIA

ASIA

LETTER FROM THE EDITOR

News period May - October 2023

I am excited to launch Banca Chip's first edition. This epublication shares banking news from all regions. Providing banking news, updates, and articles in a concise and simple manner allows you to get more in a short amount of time. The magazine will keep getting better with new sections. I hope you enjoy this publication. Please feel free to share feedback on www.amrwebbox.com.

making it better for all...

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Chief Editor (CE) Aamir Sheikh Founder of the kingdom of @mr This publication belongs to the kingdom of @mr (www.amrwebbox.com) and Aamir Sheikh. Copying from the publication is allowed only with a reference to its source. (Example: amr webbox (202X), ‘[Insert page title]’ [Online], Retrieved from: http://www.amrwebbox.com/ [Accessed On: Day (XX) Month (XX) Year (XXXX)] Reliable and authentic sources were used to gather information for this publication as part of the collective research effort.

US and Canada Banking updates...

Canada's financial watchdog optimistic about economy's resilience amidst higher interest rates

Peter Routledge, the Superintendent of Financial Institutions in Canada, has stated that the country's economy has proven to be more resilient than expected in the face of higher interest rates and increased debt service costs. He believes that Canada's financial system is wellprepared to withstand a potential recession, although he does not predict one. The Office of the Superintendent of Financial Institutions (OSFI) has taken measures to enhance financial market stability, such as raising the Domestic Stability Buffer (DSB) in June.

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This buffer requires systemically significant banks to hold more capital to cover potential losses during economic hardships. OSFI has increased the Common Equity Tier 1 ratio as well.

While Routledge did not reveal whether another hike is imminent, he expressed confidence in the current safeguards and emphasized the importance of monitoring the macroeconomic landscape for potential changes. Overall, he believes that regulators have established robust buffers globally to handle financial system volatility over the past 15 years.

JPMorgan settles Epstein-related allegations for $75 million, Ends major litigation

JPMorgan Chase will pay $75 million to settle allegations from the U.S. Virgin Islands that it was involved in aiding Jeffrey Epstein's sex trafficking. The bank also reached a confidential settlement with Jes Staley, a former executive linked to Epstein. These settlements resolved a scandal that weighed on JPMorgan and ended major litigation related to Epstein's sexual abuse. The bank faced accusations of inadequate client oversight, and the settlements come after a $290 million payment to Epstein's accusers in June.

While not admitting any wrongdoing, JPMorgan agreed to donate and combat human trafficking as part of the settlement. The U.S. Virgin Islands Attorney General called it a "historic victory." Epstein died in 2019 while awaiting trial, and the U.S. Virgin Islands sought at least $190 million from JPMorgan. The bank, in turn, pointed to the territory's role in the matter.

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Wells Fargo will pay a $35 million civil penalty to settle charges brought by the Securities and Exchange Commission (SEC). The charges relate to overcharging advisory fees totaling over $26.8 million in more than 10,900 investment advisory accounts. Some financial advisers at Wells Fargo and its predecessor firms agreed to lower standard advisory fees for certain clients, but these reductions were not properly reflected in the company's billing systems due to errors in the accounts processing unit.

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Wells Fargo also failed to implement written compliance policies to prevent overbilling. The bank reimbursed affected account holders approximately $40 million. Wells Fargo neither admitted nor denied the claims but settled the issue. The bank faces various legal challenges, including penalties, and is under regulatory scrutiny. In May 2023, it agreed to pay $1 billion in a lawsuit over its 2016 fake account scandal. Wells Fargo's shares have declined, and it remains under close regulatory supervision.

Wells Fargo settles SEC charges, agrees to $35 million civil penalty for overcharging advisory fees

Citigroup announces major restructuring to streamline operations and bolster stock performance under CEO Jane Frase

Citigroup is undergoing a major restructuring, eliminating a layer of management and cutting jobs in an effort led by CEO Jane Fraser to simplify the organization and boost its stock performance. The heads of the bank's five divisions will now report directly to the CEO, and regional leadership roles outside North America will be reduced.

While the exact number of job cuts and their financial impact remain uncertain, these changes are part of Fraser's strategy to improve profits and streamline the bank's operations.

Citigroup's stock price has lagged behind its peers, and it continues to address regulatory issues stemming from a 2020 consent order. The bank aims to enhance accountability within the organization through these measures.

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Morgan Stanley raises compensation thresholds for Financial Advisors by 10% in 2024

Morgan Stanley is increasing the incentive compensation grid by 10% for its financial advisors starting in January 2024. This change means that advisors will have to generate 10% more revenue than they did this year to maintain the same percentage of take-home pay. The move is part of the firm's efforts to enhance profitability and reflects the first adjustment to its pay grid levels since 2020. While some financial advisors may face reduced payouts if their production remains flat, Morgan Stanley is also increasing business plan development allowances by 10% to help soften the impact. Additionally, the firm will no longer provide payouts to advisors serving clients with less than $250,000 in assets, encouraging a focus on more affluent clients.

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RBC injects capital into City National to boost liquidity and address borrowing costs

Royal Bank of Canada (RBC) has injected capital into its subsidiary, City National, based in Los Angeles, as part of efforts to enhance the unit's liquidity and address higher borrowing costs. RBC acquired City National in 2015 for $5.4 billion. While the specific amount of capital injection was not disclosed, RBC stated it aims to strengthen the subsidiary's capital and liquidity position while reducing expensive borrowing. This move is part of RBC's strategy to improve City National's profitability. Analysts suggest that the outlook for City National remains challenging due to the potential for prolonged higher interest rates. The recent intercompany sale of certain debt securities by City National will result in realized losses at the unit but will be eliminated at the consolidated level of RBC. The proceeds from this transaction were reinvested in new securities to benefit net interest margins. City National's assets were $95 billion as of June 2023, and it faced losses in the May-July quarter, largely attributed to various factors, including a credit loss on a real estate item and increased costs.

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Stocks of marijuana companies see volatile response to Senate Committee's SAFER Banking Act vote

Shares of marijuana companies initially rose after a U.S. Senate committee voted to advance the Secure and Fair Enforcement Regulation Banking Act (SAFER Banking Act), which would grant legal cannabisrelated companies access to banking services. However, many of these stocks reversed course and closed lower after the initial gains. Canopy Growth, Aurora Cannabis, Cronos Group, and SNDL Inc saw declines, while Curaleaf Holdings and Tilray Brands had mixed results. Cannabislinked exchange-traded funds (ETFs) also experienced mixed performance.

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Analysts view the Senate committee's vote as a positive first step but anticipate more significant moves in the future, as the bill faces additional legislative hurdles. The legislation aims to provide financial services to legal marijuana companies and address the challenges they face due to federal cannabis prohibition in the U.S.

Canada boosts Mortgage-Bond program by 50% to spur apartment construction amid housing costs surge

The Canadian government, led by Prime Minister Justin Trudeau, is increasing the size of its mortgage-bond program by 50% to support apartment construction and mitigate rising housing costs. The annual limit for Canada Mortgage Bonds will be raised to C$60 billion ($44 billion), with an additional C$20 billion allocated to finance rental housing projects. This move represents a reversal of the government's earlier proposal to phase out the mortgage-bond program, although Finance Minister Chrystia Freeland mentioned that such a phase-out is still under consideration.

The announcement caused spreads on certain mortgage bonds to widen, raising concerns among market participants. The Canadian government aims to stimulate the construction of up to 30,000 additional rental apartments annually through this initiative, while addressing affordability issues in the housing market.

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Canada's OSFI aims to curb proliferation of ultra-long mortgages amid rising concerns

Canada's banking regulator, the Office of the Superintendent of Financial Institutions (OSFI), is concerned about the prevalence of ultra-long mortgages in the country. These mortgages have amortization periods of 35 years or longer and are becoming increasingly common. OSFI is working with lenders to address this issue and plans to release draft guidelines in October to regulate and reduce the prevalence of such loans. Peter Routledge, superintendent of financial institutions, believes that both banks and borrowers would benefit from a decrease in the use of these mortgages.

The ultra-long mortgages have caused concern because homeowners with variable-rate mortgages that have fixed monthly payments are facing significantly higher interest payments as interest rates rise. The outstanding mortgage debt with amortization periods of 35 years or longer is around C$250 billion ($185 billion), although it has decreased from C$280 billion earlier in the year. OSFI is actively discussing ways to manage this issue with banks.

Routledge emphasized that negatively amortizing mortgages make up a relatively small portion of Canada's total residential mortgage debt, which stands at C$2.1 trillion. The Bank of Canada's efforts to raise interest rates have not significantly impacted housing prices, and OSFI's stress test ensures that borrowers can handle higher interest rates before obtaining uninsured loans.

Some experts, such as Evan Siddall, CEO of Alberta Investment Management Co., suggest that the government should make it more challenging for Canadians to buy homes by increasing minimum down payment requirements and potentially taxing capital gains on home sales. However, these measures could be unpopular.

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TD Bank launches free accessibility tool to personalize online experience and promote inclusivity

Toronto-Dominion Bank (TD) has introduced the TD accessibility adapter tool, a browser plug-in that allows users to personalize their online experience, particularly benefiting those with accessibility issues. The tool, which offers features like reading guides, adjustable font size, dark mode, a dyslexia-friendly font, and monochrome mode, aims to enhance productivity and reduce the need for sick days. TD made this tool available to the general public for free, allowing users to avoid disclosing disabilities and promoting inclusivity.

The tool has received positive feedback from employees, including those without disabilities. About 20% of the population relies on assistive technologies to access the internet, according to reliable sources, making such tools valuable for a wide range of users. Initially developed for TD employees, the tool has now been launched publicly in Canada and the U.S. after a successful internal pilot.

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Europe Banking updates...

Deutsche Bank tops list of least costefficient European Banks in Q2 2023, faces challenges amid rising expenses and acquisition

In the second quarter of 2023, Deutsche Bank AG ranked as the least cost-efficient major European bank due to a high cost-to-income ratio of 75.62%, which increased significantly compared to the previous quarter. This decline in efficiency was attributed to rising non-operating expenses, litigation charges, restructuring costs, and job cuts. Deutsche Bank expects its full-year noninterest expenses to exceed the previous year, partly due to the acquisition of UK brokerage firm Numis Corp. PLC, set to close in late 2023.

French banks Société Générale SA and Groupe BPCE had the second and third highest cost-to-income ratios in the same period, with modestly rising operating expenses and lower revenues. BNP Paribas SA, the largest eurozone bank by assets, had a comparatively lower ratio, but its operating expenses increased slightly while revenues dipped.

In contrast to some European peers benefiting from rising interest rates, French banks faced challenges in net interest income but showed improved efficiency ratios from the previous quarter.

Several other European banks recorded weaker efficiency ratios, while some, like Türkiye Cumhuriyeti Ziraat Bankasi AS, KBC Group NV, ABN Amro Bank NV, and Crédit Agricole Group, improved their ratios significantly.

On a country-by-country basis, banks headquartered in Denmark, Belgium, and Finland had higher average cost-to-income ratios in 2022 compared to 2021. UBS Group AG, which was excluded from this sample, was set to publish its second-quarter financial results later.

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European Government bond prices plunge amid Italy's budget deficit woes and Central Bank rate concerns"

European government bond prices fell sharply due to concerns about Italy's larger-than-expected budget deficit and worries that central banks would maintain high interest rates for an extended period. Italian 10-year government bond yields surged to 4.96%, the highest in a decade, after Italy's government increased fiscal deficit targets and lowered growth forecasts. This sell-off spread to the UK, with 10-year yields rising to 4.57%, driven by concerns that the US Federal Reserve would keep rates high.

The rise in oil prices contributed to these concerns about inflation, leading investors to question whether inflation was still a threat. In France, criticism from the fiscal watchdog about insufficient public spending cuts caused France's 10-year bond yield to jump to over 3.5%, its highest since 2011. The spread between Italian and German bond yields widened significantly, indicating increased market risks in the eurozone.

Elevated borrowing costs exacerbated the turmoil in the bond market, which was already unsettled by expectations of prolonged high interest rates. German and Spanish bond yields reached multi-year highs.

Central banks indicated that while rate increases were ending, borrowing costs would remain elevated to bring down inflation before considering rate cuts.

The bond market's sharp moves, especially in the UK, were attributed to investors who had positioned for lower yields amid expectations of the Bank of England ending its rate hikes. This prompted a rush to sell as the market turned against them.

Overall, these developments reflect a challenging environment for bond markets, driven by concerns about budget deficits, rising oil prices, and the expectation of higher interest rates.

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EIB commits €1.7 billion for 5.6 GW solar project by 2028, backed by InvestEU, supporting green transition and job creation

The European Investment Bank (EIB) has approved framework financing of up to €1.7 billion for Solaria to support the construction of around 120 photovoltaic power plants, primarily in Spain, Italy, and Portugal. These plants will have a combined capacity of about 5.6 GW and are expected to generate 9.29 TWh annually, with operations commencing by the end of 2028. This project, backed by the InvestEU program, aligns with the European Green Deal's objectives and aims to provide electricity for approximately 2.5 million households while reducing CO2 emissions by around 3 million tonnes annually.

More than one-third of the capacity will be located in less developed regions, supporting economic growth and creating around 11,100 jobs during the construction phase. This initiative is part of the EIB's commitment to the REPowerEU Plan, which focuses on reducing fossil fuel dependence, improving energy efficiency, and promoting renewables.

The EIB has been actively supporting the energy transition, and in 2022, it committed over €17 billion for energy transition projects in Europe. Spain received significant financing for sustainable energy projects. In July 2023, the EIB board decided to increase funding for REPowerEU to €45 billion and expand eligible sectors to advance net-zero technologies and the recycling of critical raw materials. This additional funding is expected to mobilize over €150 billion in investments in the targeted sectors.

Solaria, the recipient of this financing, is a leader in solar photovoltaic power generation in southern Europe and has a strong commitment to sustainability and reducing its carbon footprint.

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BNP Paribas commits to 80% cut in oil financing by 2030, boosts funding for LowCarbon Energy

BNP Paribas has committed to reducing its outstanding financing with the oil extraction and production industries to less than €1 billion by 2030, representing an 80% decrease from its current balance of €5 billion. While the bank ceased financing oil projects in 2016, this new commitment aims to expedite the reduction of financing for oil extraction and production in line with carbon emission reduction and climate goals. BNP Paribas has also increased its target for financing "low-carbon, primarily renewable, energies" to €40 billion by 2030, up from the previous goal of €30 billion by 2025. The bank plans to reduce outstanding financing for gas extraction and production by more than 30% by 2030. Many banks are setting similar targets to transition to lower-carbon sectors and reduce support for fossil fuels as the world races to meet climate goals set in the 2015 Paris Agreement.

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ING to cut 7,000 jobs and invest €800 million in Tech to counter regulatory costs and low rates

ING, the largest financial services company in the Netherlands, is cutting 7,000 jobs and investing €800 million in its technology platform as part of a plan to save €900 million annually by 2021. The move is driven by the rising costs of regulation and low interest rates impacting profits. Worker representatives criticized the plan, but ING stated it is necessary to adapt to the changing financial landscape. The bank also intends to expand its online banking presence in Spain, Italy, France, Austria, and the Czech Republic. Similar job cuts and restructuring efforts have been announced by other European financial institutions, including Commerzbank, Deutsche Bank, Banco Popular Espanol, and ABN Amro.

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Santander tops Fortune's 2023 change the world list for education and social progress

Santander has been recognized on Fortune Magazine's 2023 Change the World list, ranking as the highest bank among the top 50 companies. The accolade comes in recognition of the bank's 27 years of commitment to education, employability, and entrepreneurship through its universities program. Santander has invested over €2.2 billion in the program since its inception in 1996, benefitting over 1 million individuals. In 2022, the bank dedicated €100 million to support scholarships, internships, and entrepreneurship programs for more than 250,000 beneficiaries. Santander plans to invest an additional €400 million between 2023 and 2026 in these initiatives, highlighting its dedication to education and social progress.

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Africa Banking updates...

Afreximbank maintains BAA1 credit rating by Moody's with stable outlook, citing strong financial profile

The African Export-Import Bank (Afreximbank) has maintained its BAA1 credit rating by Moody's with a stable outlook in its annual credit analysis. Moody's noted that Afreximbank's credit profile is supported by its critical role under the African Union umbrella and the ongoing provision of capital by member states. The agency also cited the bank's specialization in African trade finance, sound profitability, and favorable market access. Afreximbank's President, Prof. Benedict Oramah, emphasized the bank's disciplined approach to financial health and its ability to fulfill its mandate in challenging economic environments. In June 2023, Fitch Ratings also affirmed the bank's credit ratings, highlighting its strong capital and liquidity position.

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South African Central Bank raises interest rates to 14-Year High amid inflation concerns

South Africa's central bank has raised its benchmark interest rate to 8.25%, a 14-year high, in its 10th consecutive rate hike. This move comes as the South African Reserve Bank seeks to rein in inflation. The central bank has been increasing rates since November 2021, with the latest hike being 0.5 percentage points. The country is facing persistent price pressures and ongoing power shortages, known as "load-shedding," which have hampered economic activity. While inflation had dropped to its lowest level in almost a year in April, it remains a concern, especially regarding food prices. The central bank now anticipates inflation to average 6.2% in 2023, slightly higher than previous forecasts. This rate hike comes in the context of global inflationary pressures driven by factors such as surging energy and food prices following Russia's invasion of Ukraine.

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African Development Bank Group issues 15-Month debarment to Joycot contractors over fraudulent activities in Kenyan project

The African Development Bank Group has imposed a 15-month debarment on Joycot General Contractors Ltd., effective from September 8, 2023. This action follows an investigation by the Bank's Office of Integrity and Anti-Corruption, which found that Joycot General Contractors engaged in fraudulent practices during a tender for the construction of sewers in Kenya as part of the Nairobi Rivers Basin Rehabilitation and Restoration Programme: Sewerage Improvement Project Phase II. The debarment means Joycot General Contractors will be ineligible to participate in Bank Group-financed activities during this period. To become eligible again, the company must implement an integrity compliance program in line with the Bank's guidelines after the debarment period expires.

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African Development Bank and EBRD launch joint taskforce to boost entrepreneurship and job creation in North Africa

The African Development Bank Group and the European Bank for Reconstruction and Development (EBRD) have established a joint taskforce to promote entrepreneurship, job creation, and economic growth in Egypt, Morocco, and Tunisia. This taskforce, operating under the Framework Partnership Agreement signed in May 2021, will work to address the challenges faced by micro, small, and medium-sized enterprises (MSMEs). It will develop knowledge products and innovative solutions, support startups, businesses led by women and youth, and link MSMEs and startups to regional and local value chains. As a part of its first activity, the taskforce will support a special cohort from the Souk At-Tanmia initiative under the EBRD Star Venture Programme, aiming to help high-potential startups scale their operations. The initiative is facilitated by the African Development Bank's Entrepreneurship Innovations and AdviceNorth Africa (EInA) Initiative and the EBRD’s SME Finance and Development Group.

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African Development Bank president pledges full support for UN's early warning and climate adaptation initiatives

Dr. Akinwumi Adesina, the President of the African Development Bank, has pledged full support for the United Nations Secretary-General's "Early Warning for All" initiative and the "Systematic Observations' Financing Facility." The African Development Bank serves as the implementing entity for the Facility in Africa. Speaking at the United Nations Climate Ambition Summit, Adesina highlighted the devastating impact of climate change on African economies.

Despite Africa contributing only 3% of total global emissions, it is losing $7-$15 billion annually due to climate change, a figure expected to rise to $50 billion in the next seven years.

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The continent receives only 3% of total global climate finance, resulting in a climate finance gap of $213 billion through 2030.

The African Development Bank is actively working on climate adaptation in Africa through initiatives such as the Africa Adaptation Acceleration Programme, the Desert to Power program, a Climate Insurance Facility for Adaptation, the Alliance for Green Infrastructure in Africa (AGIA), and a Climate Action Window through the African Development Fund.

Adesina assured the UN of the bank's full support in delivering climate adaptation and early warning systems for all.

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Asia Banking updates...

S&P Global Ratings anticipates 7% increase in Credit Losses for AsiaPacific Banks in 2023

Asia-Pacific banks are expected to face a 7% increase in credit losses in 2023, reaching $485 billion. This figure is expected to further increase by 9% to $528 billion in 2024. However, S&P Global Ratings believes that these credit losses should remain within their current rating boundaries for most banks, thanks to their strong provisioning, stable revenue generation, and capitalization. The region's banking sector is expected to maintain a stable outlook, driven by stronger growth relative to other regions, along with robust buffers and support. Asia-Pacific is expected to experience better economic growth compared to other parts of the world, providing a foundation for the region's banks to weather potential asset quality pressures.

Factors contributing to these credit losses vary across different markets in the region, including factors such as economic recovery, credit costs, and risk factors. While Chinese banks are on the path to normalization, they may experience higher credit losses, particularly in the property and small business sectors. Meanwhile, in India, credit losses are expected to trend down, and nonperforming assets are likely to improve. Japanese banks may maintain low credit costs for the next few years, though low profitability remains a challenge. Australian banks are expected to have strong earnings and low credit losses due to low unemployment. Overall, the Asia-Pacific region's growth outlook is more favorable than other regions, contributing to the resilience of its banking sector.

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Asia-Pacific's largest banks poised for lending income growth in 2023 despite margin pressure

Most of Asia-Pacific's largest banks are expected to see growth in lending income in 2023 and 2024 due to higher interest rates and positive economic prospects. Analysts predict that 12 of the region's 21 largest banks will experience year-over-year increases in net interest income (NII) in 2023. This is attributed to higher interest rates in many banking jurisdictions and the positive economic outlook in the region. However, some Chinese and Japanese banks are expected to have declining NII in 2023, while other Asia-Pacific banks are forecasted to see increases. China's central bank has cut lending rates to stimulate demand, which could affect banks' lending income and margins. For 2024, 17 of the 21 banks in the sample are expected to have year-over-year growth in lending income, but most are anticipated to experience declines in net interest margins (NIMs) as interest rates peak.

Among the largest Chinese banks, all 11 are expected to record NIM declines, while some Australian and Singaporean banks could see NIM expansion in 2023.

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Alternative payments dominate India's Ecommerce landscape, making up 60% of transactions

Alternative payment methods, including mobile and digital wallets, now account for nearly 60% of e-commerce payments in India, according to data and analytics firm GlobalData. As India's e-commerce market is poised to reach $117.3 billion in 2023 and is expected to continue growing at a compound annual growth rate (CAGR) of 28.2% since 2018, e-commerce payments are projected to grow at a CAGR of 22.4% between 2023 and 2027, reaching $263.6 billion in 2027. Factors contributing to this trend include increasing internet and smartphone penetration, discounts, faster delivery options, and consumer preferences for online shopping. The Indian government's initiatives like Startup India and Digital India have also played a role in driving e-commerce growth.

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Digital wallets and Alternative Payments gain momentum in Asia-Pacific as Ecommerce soars

The use of digital wallets and alternative payment methods is rapidly growing in the Asia-Pacific (APAC) region.

By 2025, it's expected that 72% of online payments in Asia will be made through e-wallets. Digital wallets are gaining popularity due to their safety, security, and user-friendliness, and they are becoming a preferred method for cross-border business-to-consumer (B2C) and consumer-to-consumer (C2C) transactions, particularly in markets with limited access to credit cards.

In APAC, factors such as smartphone penetration, digitalization, and governments promoting digital payments are propelling the transition from cash-heavy to digital and contactless payments. However, payment preferences vary across countries, with consumers in some regions opting for local and regional wallets they perceive as safer and more convenient.

The use of QR codes and buy now, pay later (BNPL) services is also on the rise. QR code-based payments are particularly popular in China and India due to their cost-effectiveness. BNPL appeals to Gen Z customers who appreciate deferred payments.

As the economy rebounds post-pandemic, industries like travel, retail, and hospitality are expected to witness increased adoption of digital and contactless payments, with digital wallets playing a central role. Social commerce, the development of Web 3.0 in payment technology, and central bank digital currencies (CBDCs) are also expected to shape the payment landscape in APAC. To remain competitive and adaptable in this evolving payment landscape, businesses should focus on payment optimization, integration, and the evolution of application programming interfaces (APIs). Variable recurring payments (VRPs) offer precise payment forecasting, while artificial intelligence (AI) is set to further accelerate the digital payments revolution in the financial services and digital banking sector.

Overall, APAC presents a dynamic and diverse payment landscape with a growing emphasis on digitalization and technological innovation, creating both challenges and opportunities for businesses in the region.

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Singapore emerges as Asia's Fintech Hub beating Chinese cities in VC investments

Singapore has solidified its status as Asia's fintech hub, outperforming Chinese cities, thanks to its stable regulatory environment and significant venture capital investments. The city-state attracted the highest level of VC investments from 2019 to 2022, totaling $34 billion, making it a prime destination for fintech innovation. The Monetary Authority of Singapore has established regulatory agreements with eight regulators worldwide, enhancing its global regulatory stability.

The Savills 2023 Tech Cities Index ranks cities based on their business environment, tech environment, city buzz and wellness, talent pool, and depth across different tech subsectors. Singapore was ranked fourth globally, behind New York, San Francisco, and London.

In contrast, Chinese cities faced challenges climbing the rankings due to tightening government policies and the dominance of a few large tech companies. On the other hand, cities in the United States, including Boston, Chicago, Miami, Atlanta, and Charlotte, leveraged North America's economic position to provide opportunities for fintech startups to secure major clients while minimizing costs.

Fintech startups have disrupted traditional workplace trends in the financial industry, pioneering flexible working arrangements and collaborative office spaces. These innovative businesses have also contributed significantly to the flexible workspace sector's growth.

Overall, Singapore's fintech ecosystem's success showcases the city's appeal for tech innovation and investment, positioning it as a major global fintech hub.

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Mox Marks 3rd anniversary with unlimited CashBack for Mox Credit Customers and expansion into Wealth Management

Hong Kong virtual bank Mox is celebrating its 3rd anniversary by offering Unlimited CashBack rewards to Mox Credit customers. Between September 26 and December 31, 2023, Mox Credit customers can earn 3% cashback up to HK$600 at selected CashBack merchants, including HKT, Trip.com, 7-Eleven, Circle K, Mannings, and Watsons.

Mox is also entering the wealth management space with Mox Invest, piloting its Hong Kong and U.S. equity trading service in the sandbox and exploring other portfolio investment solutions. A new app interface and features like "Smart Swipe" and "Dedicated Hubs" are also being introduced to enhance the customer experience.

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Techcombank unveils iconic headquarters designed by Foster + Partners in Hanoi and Ho Chi Minh City, reflecting modernity and tradition

Techcombank, Vietnam's Technological and Commercial Joint Stock Bank, has unveiled its new headquarters in Hanoi and Ho Chi Minh City, designed by Foster + Partners. The buildings are the first in Vietnam designed by the architectural firm. The Techcombank Tower in Hanoi blends traditional Vietnamese materials with modern design, while the Techcombank Head Office in Ho Chi Minh City features an innovative design reflecting the city's dynamic movement. Both buildings prioritize sustainability, incorporate open workspaces, and offer modern amenities. Techcombank's vice chairman highlighted the bank's vision to "Change Banking, Change Lives" through these iconic structures.

MUFG Bank Appoints Benjamin Lam as Head of Global Corporate and Investment Banking for China

MUFG Bank has appointed Benjamin Lam as Managing Director and Head of Global Corporate and Investment Banking (GCIB), China, and Head of the China Business Division for its wholly-owned subsidiary MUFG Bank (China). Lam, who joins MUFG from JPMorgan Chase Bank China, will be based in Shanghai. In his new role, he will oversee the growth of MUFG China's non-Japanese corporate and investment banking businesses, serving both local and global corporates, Chinese state-owned enterprises, and financial institutional clients. With over 30 years of experience in banking, Lam has worked in various senior positions at JPMorgan Chase Bank China since 2012, including Deputy President and Head of Trade China.

He began his career with HSBC in 1989 and has also worked for other institutions like Deutsche Bank and ANZ Bank in China.

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Oceania Banking updates...

Westpac unveils digital banking tools to help customers navigate cost-of-living pressures

Westpac is introducing new digital banking features to assist customers in managing their spending amid growing cost-of-living pressures. Recent research from the bank found that 90% of Australians have cut back on expenses in the past year, with 47% creating a household budget for the first time. Westpac's new tools aim to help customers identify potential savings and better understand when their bills are due. These tools will provide personalized insights to enable more informed financial decisions. Over 450,000 Westpac customers access the bank's budgeting tools each month, indicating a strong demand for managing finances more efficiently.

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Commonwealth Bank expands Green financing for home energy efficiency and electric vehicles

Commonwealth Bank is expanding its green financing options to help customers enhance the energy efficiency of their homes and purchase electric and hybrid vehicles.

They offer a Green Loan, a 10-year secured fixed-rate loan at 1.99% p.a., with no fees.

Customers can use it to purchase and install small-scale renewables like solar panels and battery packs. The maximum loan size for the Green Loan will increase from $20,000 to $30,000, and the range of eligible products will expand. Commonwealth Bank also offers personal loan discounts of up to 7.49% p.a. for various sustainable products, including electric or hybrid cars and solar panels. This initiative aims to make eco-friendly options more accessible to customers and support Australia's energy transition.

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BNZ Campaign highlights expertise in Home Loan solutions for new zealanders

Bank of New Zealand (BNZ) has launched an integrated campaign emphasizing its expertise in helping homeowners navigate the complexities of their home loans. Titled 'Let's find a way,' the campaign playfully highlights the unsolicited mortgage advice often received from various sources. It aims to demonstrate that BNZ's expertise can provide clarity amidst the multitude of opinions homeowners encounter. The campaign also promotes BNZ's digital tool, MyProperty, which helps customers calculate how interest rate and repayment changes impact their home loans. As the cost of living rises, BNZ seeks to guide customers through financial uncertainty.

The campaign was launched in June 2022 across multiple channels, including TV, digital, and social media.

Australian Banking Association proposes enhanced Banking Code with expanded customer protections and entitlements

The Australian Banking Association (ABA) is proposing a new version of the Banking Code, which offers enhanced customer protections and entitlements beyond the law. The proposed changes include expanding the definition of small businesses to provide protection to an additional 10,000 small business customers, introducing new obligations for banks when customers act as guarantors, creating a definition for vulnerable customers, and offering free support services such as interpreters. The updated Code also provides clearer information on customer protections under Australian law through a new "Customer Guide." The ABA aims to streamline and simplify the Code while maintaining high standards. The updated Code is expected to be implemented in early 2024 after further consultation and regulatory approval.

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New Zealand's banking sector faces inquiry amid profit concerns and Australian dominance

New Zealand's government has initiated an inquiry into the country's banking sector, which is largely dominated by Australian banks. The inquiry, planned as a response to concerns about excessive bank profits, will focus on aspects such as profits, margins, account switching, and competition. Notably, this move comes in an election year in New Zealand and allows the government to defer addressing banking issues until after the upcoming elections. The inquiry aims to ensure the banking sector is functioning effectively for New Zealanders and will be conducted by the Commerce Commission, with a preliminary report expected by August next year. Critics are particularly interested in why New Zealand subsidiaries of Australian banks generate higher profits per customer than their parent companies in Australia.

However, this inquiry differs significantly from Australia's Hayne Royal Commission, which delved into broader issues of conduct and behavior in the financial sector.

Commonwealth Bank incurs a historic $3.55 million fine for spam law violations involving millions of emails.

The Commonwealth Bank of Australia has been fined $3.55 million for violating spam laws, marking the largest penalty of its kind in the country's history. The Australian Communications and Media Authority (ACMA) imposed the fine after the bank sent 65 million emails to customers that breached the Spam Act. Over 61 million of these marketing emails unlawfully required customers to log in to unsubscribe, violating regulations that came into effect in April 2021, requiring easy and log-free email unsubscribes. Most breaches occurred after CBA updated its terms and conditions, inadvertently removing language that exempted it from the Spam Act changes. The bank has since strengthened its systems and provided a court-enforceable undertaking to independently review its marketing practices and compliance reporting.

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