The Hong Kong Monetary Authority (HKMA) has launched its new ‘FiNETech’ series, in an effort to bolster opportunities for collaboration across the fintech industry.

FiNETech will look to provide financial institutions with one-stop access to the latest information about sourcing options provided collectively by the technology community.

HKMA gathered around 100 banks, securities and insurance companies, as well as technology firms to explore next-level collaboration in the likes of wealthtech, insurtech, greentech, artificial intelligence (AI), and distributed ledger technology (DLT).

Financial institutions, alongside strategic technology partners connected via FiNETech, can jointly approach HKMA’s Fintech Supervisory Chatroom, which looks to provide supervisory feedback to banks and tech firms at an early stage when new technology applications are considered.

Building on the Tech Baseline Assessment under its ‘Fintech 2025’ strategy, the HKMA hopes to capitalise on the vast growth opportunities in the five fintech sub-sectors and technology types, as well as the substantial benefits that the wider financial services sector can derive from an expanded network of local fintech solutions.

Increasing fintech adoption

Financial regulators HKMA, the Securities and Futures Commission, the Insurance Authority, and the Mandatory Provident Fund Schemes Authority are all supporting FiNETech; alongside the Hong Kong Association of Banks and the Fintech Association of Hong Kong.

The Hong Kong Science and Technology Parks Corporation will also back the initiative, which is powered by KPMG and Quinlan & Associates, an independent strategy consulting firm.

The HKMA’s Fintech Supervisory Sandbox 2.0, will also be available for testing and obtaining early supervisory feedback on the proposals before full adoption.

In the next six to twelve months, the HKMA will expand the joint efforts in fintech areas through the FiNETech series: AI, including generative AI, as well as DLT and greentech through further FiNETech sessions.

HKMA also hopes to increase fintech adoption by banks and other financial institutions; to follow up on innovative cases and share good industry practices; and to issue further practical guidance for the priority themes via the FiNETech series.

Payments giant Mastercard is joining forces with Nairobi-based Equity Bank, to enable customers based in Kenya to send money safely and securely to 30 countries.

Through Mastercard Cross-Border Services, Equity Bank customers can now send funds through any Equity branch location in Kenya. This platform offers a suite of benefits including faster transaction times, enhanced security measures, and competitive pricing, making cross-border transactions accessible to consumers across Equity Bank’s expansive market network.

Remittances remain a key economic driver in Sub-Saharan Africa with a reported $53billion flowing into the region in 2022. In Kenya, the Central Bank of Kenya reported $5.77 billion worth of foreign currency inflows in 2022.

Cross-border remittances unlock financial inclusion by empowering individuals to access formal financial services, ultimately fostering economic growth, as well as stability in the region.

Mark Elliott, president for Africa at Mastercard, explained: “Providing innovative solutions that deliver the choice, security, and flexibility that customers transacting from Kenya need and expect is a factor we take pride in. Mastercard is delighted to collaborate with Equity Bank to make this level of payment ingenuity a reality for Equity Bank customers, giving Mastercard an opportunity to bring millions of people from underserved communities into the financial and digital economy.”

This collaboration also ensures full value for recipients as there are no landing fees. The charges linked to this innovative service are significantly lower than traditional international payments, making it a more affordable and accessible option for customers. This development aligns with the evolving payments landscape, catering to customer demands for cost-effective and efficient international transactions.

‘Fostering inclusive growth across the region’

This collaboration also forms part of a decade-long alliance between Equity Bank and Mastercard, as they aim to enhance payment experiences for consumers across the region, setting a precedent for innovation and customer satisfaction in the world of financial services.

James Mwangi, group managing director and CEO of Equity Group Holdings Plc, also said: “We are excited to launch this initiative with Mastercard, which stands as a beacon of progress in financial services.

“This facilitates money transfers and more importantly connects lives and empowers our customers. This collaboration underscores our commitment to providing accessible financial solutions that meet the evolving needs of our customers and solidifies our role in fostering inclusive growth across the region.”

This initiative hopes to dramatically impact various stakeholders, including hardworking senders who will benefit from reduced costs and the opportunity to shift remittances from informal, less regulated channels to a secure and formal platform.

By leveraging Mastercard’s global brand and delivery network, this strategic alliance ensures the safety and security of remittances, contributing to financial inclusion and the overall well-being of migrants and beneficiaries.

Kigali International Financial Centre, a financial centre aiming to transform Rwanda into a leading financial destination for investors seeking opportunities across the African continent, is partnering with Abu Dhabi Global Market, the international financial centre supporting economic diversification in the UAE.

Both Kigali International Financial Centre (KIFC) and Abu Dhabi Global Market (ADGM) have signed a Memorandum of Understanding (MoU) establishing a comprehensive framework for collaboration, aiming to develop skills, as well as support sustainable and Islamic finance in both Rwanda and the UAE.

Sustainability is also set to become a major focus, as both financial centres eye future collaborations in green and sustainable finance, ESG, green bonds, Corporate Social Responsibility, and Sustainable and Responsible Investments.

Salem Mohammed Al Darei, CEO of ADGM Authority, also said: “ADGM and KIFC coming together through this memorandum of understanding mark a pivotal moment in ADGM’s ongoing efforts to develop robust partnerships with international financial centres worldwide and particularly in the African continent.

“It is a significant step towards our endeavour to strengthen our cooperation in advancing the interests of both financial centres, facilitating collaborative efforts in various areas and knowledge exchange. This partnership not only strengthens our commitment to innovation and inclusivity but also paves the way for unprecedented opportunities for substantial economic advancement, prosperity, and new avenues for business expansion, within our respective financial ecosystems in both markets.”

Cultivating ‘new opportunities for business growth in both markets’

Furthermore, the regulatory authorities of each of the financial centres will explore mutual recognition agreements for regulated entities based in either country with a view to opening opportunities in both markets.

These agreements will also extend to sharing best practices and experiences in the development of financial centres and fostering a culture of continuous improvement within the financial landscape through knowledge exchange and customised training programs.

Nick Barigye, CEO of Rwanda Finance Limited, the agency mandated to develop the Kigali International Financial Centre, commented: “Today’s signing represents a significant milestone in KIFC’s journey toward forging strategic partnerships with globally renowned international financial centres such as ADGM.

“This MoU marks a positive step forward as we strive to deepen our collaboration in promoting both KIFC and ADGM, which will foster joint capacity-building initiatives and the exchange of expertise across key domains, including sustainable finance.

“Through this partnership, we anticipate substantial economic benefits within our respective financial ecosystems through job creation and increased investments, to cultivate new opportunities for business growth in both markets.”

Nexi, the European paytech firm, has partnered with Mastercard to enhance its open banking account-based payments. Through the partnership, Mastercard Open Banking will facilitate e-commerce payments across Nexi’s gateways serving merchants across Europe.

Mastercard and Nexi are joining forces to build an integrated digital payment ecosystem by advancing Mastercard Open Banking-powered solutions that offer secure, seamless payment experiences with more choices for consumers when shopping online.

Bart Willaert, EVP of international open banking at Mastercard, explained how the partnership could improve payment experiences across Europe: “We are excited to lead the development of an account-based payment method that will make online purchases more seamless and secure as well as expand payment choice in partnership with Nexi.

“We have been powering and protecting our global payments network and the broader digital ecosystem for more than five decades, and now Mastercard’s innovative open banking technology will offer consumers and businesses across Europe access to more innovative payment experiences.”

Unlike more traditional payment options, open banking enables consumers with a bank account to initiate swift digital payments to a merchant’s account. Payments are initiated directly through existing authentication protocols with a consumer’s bank, including biometrics, to retrieve the necessary information to execute a payment, making the experience easy and efficient.

Enhancing number of payment options

Omar Haque, head of e-commerce at Nexi, also added: “We are thrilled to announce our strategic collaboration with Mastercard, through which we will harness the power of its open banking solutions in Europe to scale and enhance our capabilities, and boost customer convenience in payments.

“By partnering with Mastercard and capitalising on its leadership and expertise in open banking, as well as its trusted payments infrastructure, we further enhance our ability to facilitate the transition to a digital-first payments landscape in Europe.”

Benefits for merchants include real-time payment authorisation and settlement, enabling quick access to funds and improved management of cash flow and revenue streams. By leveraging innovative technologies and payment methods, merchants can better align with heightened customer expectations for fast and frictionless payment experiences in the digital landscape.

The news follows shortly after Nexi partnered with the open e-commerce platform Woo to enable Woo merchants to offer customers a wider range of payment options.

Visa Canada is partnering with Plug and Play, the venture capital and accelerator firm, by supporting its entrance into the Canadian fintech market and jointly creating a platform helping local fintechs to flourish.

Through the new collaboration with Plug and Play, fintechs in Canada will gain access to the scale, trust, and security of the Visa global network. Invited fintechs can also attend exclusive, interactive events where they can learn, collaborate, network, and connect with new partners to grow their business.

The Canadian fintech industry is currently significant growth with an expected compound annual growth rate of 25 per cent through 2029.

The new partnership builds on Visa’s previous successful collaboration with Plug and Play in the US: which saw the two organisations launch an Inclusive Fintech Accelerator programme, to help foster diversity and inclusivity in the sector by addressing some of the unique challenges faced by diverse founders in the tech industry.

Saeed Amidi, founder and CEO of Plug and Play, explained: “Our joint efforts with Visa will amplify the impact of fintech startups across the region in Canada. Together, we will showcase our dedication to fostering innovation and supporting the growth of groundbreaking ideas within the global entrepreneurial community.”

Shaping ‘the future of payments through strategic collaborations and product offering’

The partnership also aligns with Visa’s commitment to enhancing the payment ecosystem by working alongside fintechs through several programmes created to support the industry.

Chris Ferron, head of digital partnerships and fintech at Visa Canada, also gave his view on the partnership: “Fintechs spark and enable innovation – they can enhance our capabilities, help clients reach new audiences and constructively challenge us. At Visa, we embrace fintechs – large and small.

“As a leader in digital payments, we work with fintechs to shape the future of payments through strategic collaborations and product offerings that help push the boundaries of payment technology and user experiences. We look forward to working with Plug and Play to advance the mission of fintechs, as well as making money movement easy.”

Visa’s ‘Fintech Fast Track‘ programme is one example of the initiatives it offers: which was designed to help fintech and crypto companies bring new payment solutions to market – by harnessing the capabilities and security of VisaNet, Visa’s global payment network.

Through this programme, approved fintech startups can significantly strengthen global payout service offerings, expand capabilities, and gain access to Visa’s growing partner network of 4.1 billion cards and 80 million merchant locations worldwide in over 200 countries and territories.

Crypto exchange platform Bybit has launched ‘Keyless Wallet’, a new self-custody solution looking to positively impact digital asset security and accessibility.

Built using Multiparty Computation (MPC) technology, the Bybit Keyless Wallet looks to empower users with enhanced control over their assets, by removing the need for more vulnerable private keys and third-party trust.

Keyless Wallet eliminates the need for users to memorise or store private keys, mitigating the risk of loss and compromise. Instead, private keys are distributed and processed in secure enclaves, significantly enhancing security.

The Bybit Keyless Wallet is currently undergoing a security audit by security-focused ranking platform CertiK, which monitors blockchain protocols and DeFi projects.

The new Bybit wallet boasts three-factor authentication, requiring users’ Bybit account, recovery password, and personal cloud storage to ensure secure account retrieval.

Bybit is also celebrating reaching 1 million users on its Bybit Web3 wallet and has plans to introduce a seed phrase wallet in February. Ben Zhou, co-founder and CEO of Bybit, commented on the developments: “At Bybit, we believe Web3 holds immense potential, but complexity and security concerns remain significant barriers to entry. Keyless Wallet is an important milestone of our Web3 vision to build a simpler, open, and equal ecosystem for everyone, where security isn’t sacrificed for convenience.

“We are also thrilled with the overwhelming support from the Web3 community as our Bybit Web3 wallet reaches one million users, marking a celebratory achievement in our journey towards a more inclusive digital landscape.”

Bybit Web3 offers a suite of Web3 products designed to make accessing, swapping, collecting and growing Web3 assets as open and simple as possible. The Bybit crypto exchange platform has around 20 million users globally.

Dominic Williams, founder and chief scientist at Dfinity, says blockchain technology and its decentralized and trustless nature, gives it a unique ability to assist in the fight against climate change. 

Williams told Cointelegraph there are three ways in which blockchain can address climate challenges. Blockchain networks can support the creation of trustless infrastructure that offers incentives for climate action, increases efficiency and provides an alternative to traditional information technology, which has a “huge carbon footprint.” 

ICYMI: #ICP will be a part of Voluntary Recycling Credits (VRC)

This is the first ever global standard to incentivize multi-material recycling #ICP is being adopted by global institutions as we watch pic.twitter.com/c1buH2buS7

— Internet Computer (@ICPinfinite) December 9, 2023

As an example of how blockchain can be used for the environment, Williams highlighted the Voluntary Recycling Credits (VRC) initiative. VRC is an incentive system to counteract the solid waste footprint. The platform was recently presented at the COP28 summit and is built on the Internet Computer (ICP) network. Williams said: 

“The VRC runs on the Internet Computer in its entirety. That is, it is fully on-chain and has no dependencies on traditional tech like cloud services. This means there are no backdoors or gatekeepers, and its international participants, who mint and purchase recycling credits, can absolutely trust what they see.”

According to Williams, blockchain networks like the ICP provide trustless infrastructure that eliminates third parties and allows for secure and transparent data verification. “This can be leveraged to ensure proper recycling and handling of waste materials by tracking them from origin to destination,” he added. 

Related: COP28: Blockchain projects make push to decentralize climate markets

In the case of the Voluntary Recycling Credits exchange, the ICP powers auditable and secure transactions between waste offsetters and recycling companies. With this, waste producers and recyclers can “trust the veracity of the credits they purchase, sell or trade. 

Williams noted that the “ICP guarantees the VRC operates in a transparent and tamper-proof manner.” The executive told Cointelegraph that credits that are minted and sold are auditable and secure records of recycling credits and transactions. 

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