src='https://pagead2.googlesyndication.com/pagead/js/adsbygoogle.js?client=ca-pub-2513966551258002'/> Rightways: Smartphone Infolinks.com, 2618740 , RESELLER

Pages

Share This

Showing posts with label Smartphone. Show all posts
Showing posts with label Smartphone. Show all posts

Thursday, June 13, 2019

Huawei files to trademark mobile OS around the world after US ban

https://youtu.be/i3kl47rknYQ https://youtu.be/5qQVCLR_0m8
https://youtu.be/jUuevdZsVkA

LIMA/SHANGHAI: China's Huawei has applied to trademark its "Hongmeng" operating system (OS) in at least nine countries and Europe, data from a U.N. body shows, in a sign it may be deploying a back-up plan in key markets as U.S. sanctions threaten its business model.

The move comes after the Trump administration put Huawei on a blacklist last month that barred it from doing business with U.S. tech companies such as Alphabet Inc, whose Android OS is used in Huawei's phones.

Since then, Huawei - the world's biggest maker of telecoms network gear - has filed for a Hongmeng trademark in countries such as Cambodia, Canada, South Korea and New Zealand, data from the U.N. World Intellectual Property Organization (WIPO) shows.

It also filed an application in Peru on May 27, according to the country's anti-trust agency Indecopi.

Huawei has a back-up OS in case it is cut off from U.S.-made software, Richard Yu, CEO of the firm's consumer division, told German newspaper Die Welt in an interview earlier this year.

The firm, also the world's second-largest maker of smartphones, has not yet revealed details about its OS.

Its applications to trademark the OS show Huawei wants to use "Hongmeng" for gadgets ranging from smartphones, portable computers to robots and car televisions.

At home, Huawei applied for a Hongmeng trademark in August last year and received a nod last month, according to a filing on China's intellectual property administration's website.

Huawei declined to comment.

CONSUMER CONCERNS

According to WIPO data, the earliest Huawei applications to trademark the Hongmeng OS outside China were made on May 14 to the European Union Intellectual Property Office and South Korea, or right after the United States flagged it would stick Huawei on an export blacklist.

Huawei has come under mounting scrutiny for over a year, led by U.S. allegations that "back doors" in its routers, switches and other gear could allow China to spy on U.S. communications.

The company has denied its products pose a security threat.

However, consumers have been spooked by how matters have escalated, with many looking to offload their devices on worries they would be cut off from Android updates in the wake of the U.S. blacklist.

Huawei's hopes to become the world's top selling smartphone maker in the fourth quarter this year have now been delayed, a senior Huawei executive said this week.

Peru's Indecopi has said it needs more information from Huawei before it can register a trademark for Hongmeng in the country, where there are some 5.5 million Huawei phone users.

The agency did not give details on the documents it had sought, but said Huawei had up to nine months to respond.

Huawei representatives in Peru declined to provide immediate comment, while the Chinese embassy in Lima did not respond to requests for comment.

(Reporting by Marco Aquino in Lima and Brenda Goh in Shanghai, Additional Reporting by Sijia Jiang in Hong Kong; Shanghai Newsroom and Mitra Taj in Lima, Editing by Himani Sarkar)

Source: Reuters

Read more:

With stepped up cyberattacks on China, US seeks online hegemony


On the question of the US girding to launch a cyber war, experts said there is not enough information to support the conjecture. However, what is clear is that there will be no winner in cyber warfare, and China will not be crushed given its might.


Related posts:



Huawei’s Hongmeng will be 60% Faster than Android Huawei OS: A secret OS history, development and future https://youtu.be/i3kl4.


..
https://youtu.be/VaREP75PlSA https://youtu.be/YWdNP2u7voo Global financial markets are facing a stark wake-up call that they need t...


Friday, May 24, 2019

Huawei could end up challenging Google


Google Ban Huawei 谷歌封杀华为 || Epic Asian

https://youtu.be/b0M2ZGyZV7U

Surprising Facts About HUAWEI - Is it Evil?

https://youtu.be/QzzbwBvXds0

Interview With Ren Zhengfei, Founder And CEO Of Chinese Telecom Giant Huawei | TIME

  https://youtu.be/Nl2jCWDwE8w

BY imposing restrictions on Huawei Technologies Co, the administration of US President Donald Trump may force the Chinese company to do something that no one in tech has dared to do for a long time: Challenge Google’s control of the Android universe, which earned the US company a huge European fine last year.

Huawei faces two big threats from US technology export restrictions. One is the loss of American components for its products, a blow it cannot parry immediately if it wants to keep making top-flight smartphones.

The other is the potential withdrawal of its Android license, which would stop Huawei from preinstalling the latest Google-approved version of the operating system and some key services Western users see as necessary - above all Google’s Play Store, the biggest repository of Android apps.

This particular obstacle could, under the right conditions, turn into a Huawei strength in Europe, a market that accounts for almost a third of the company’s smartphone unit sales, according to market analytics company IDC.

Last July, the European Commission fined Google €4.34bil for imposing illegal restrictions on smartphone manufacturers. In exchange for the right to preinstall the Play Store, they had to agree, among other things, not to sell devices running versions of Android not approved by Google: so-called Android forks. These operating systems are developed from the open source version of Android, which anyone can use, including Huawei if the US bans it from using American technology. Amazon.com Inc’s Fire OS is the best-known Android fork today, though there are others around.

The commission wrote that by obstructing the development of Android forks, Google and its parent company Alphabet Inc “closed off an important channel for competitors to introduce apps and services, in particular general search services, which could be pre-installed on Android forks.”

In its ruling, it made a strong case for forks as platforms for Google-independent innovation that, if they were allowed to spread widely, could have curbed Google’s market dominance in various areas.

Google has appealed the ruling, but it has also removed restrictions on handset makers to avoid further fines. This, however, hasn’t led to the proliferation of alternative platforms based on open-source Android: Big phone makers are locked into comfortable relationships with Google and see no need to experiment. Days after the European Union fined Google, Huawei, at the time the biggest phone manufacturer that provided an easy opportunity to install alternative Android-based operating systems on its devices, ended the programme without explanation.

If Google takes away the Android license, it’ll yank Huawei out of its comfort zone. The company isn’t likely to give up the European market without a fight, after spending billions of dollars developing a customer base. Consumers in some European countries now appear to be put off Huawei by the US attack, although, paradoxically, it appears to have fuelled the brand’s popularity in France.

France for Huawei

Percentage* of consumers who say they'll consider buying a Huawei device when they're next in the market for a smartphone
Source: YouGov BrandIndex

The company has said it developed its own operating system (likely an Android fork), and it’s been trying to lure developers to its app store.

If the US stops Huawei from preinstalling the Play Store, the Chinese manufacturer probably won’t spend much time educating consumers on how to install it on their own (the way people do now with phones bought in China).

That’s not what most users expect on a new, expensive device. Instead, Huawei will want to offer developers an easy way to sell apps not just in the Google store but also in one preinstalled on Huawei devices - to “multi-home” them.

Huawei hasn’t been eager to get into an open confrontation with Google, which was a valued partner.

But a breakup ordered by the US government changes things. Huawei, with plenty of resources of its own (and most likely with support from the Chinese government, determined to fight back against the US), could soon be investing heavily in the marketing and improvement of an Android fork. Given Huawei’s marketing potential, the effort isn’t necessarily doomed. And it could boost Asian and European developers deterred from competing in some areas - such as mapping, video services or even search - by Google’s enormous power.

Given the pushback in recent years against US tech companies’ relentless data collection and the widespread mistrust of Trump’s administration in Europe, there could well be demand for a Google-free phone from a major manufacturer known for superior hardware.

I know I’d be interested, and the French would probably lap it up, judging by their reaction to the US threats. The EU regulators, too, might be intrigued to see evidence that perhaps the Google antitrust ruling didn’t come too late.

This is something of a utopian scenario, I know. Huawei may never need to go on the warpath against Google: The US and China could strike a trade deal that would make the specter of restrictions go away.

Or, if Huawei is banned from buying US technology, it could find itself unable to produce marketable phones for a while. And, of course, it is a company from Communist China, making it difficult for European regulators, and even for private developers, to embrace it as a savior from the overly dominant US tech companies.

Monopolies in tech don’t last forever, however.

Sometimes they just need a push to start showing cracks. If the US moves against Huawei, it might be unknowingly giving such a push to Google in the smartphone market. — Bloomberg Viewpoint

Source link



Read more:

China will emerge victorious from US tech crackdown folly


But it needs a lot of time. During this process, China cannot avoid paying a price and will have a difficult time. But Huawei still has a domestic market of more than a billion Chinese people and the market of the Third World countries. When the Trump administration cracks down on Huawei, the US also goes through hard times. The final victory will certainly be China's, but China must have adequate determination and endurance.

Huawei Accuses U.S. of Bullying as It Seeks Support From Europe - WSJ

Govt seeks Asian support  

Even with trade war, Asia bond investors sleep better at night


Related posts:

 

 
The TRUTH about Trump HUAWEI BAN ! What is Huawei really guilty of ? Can't beat them, ban them, tell lies !

 
  https://youtu.be/nzhZGUfaZhI China-U.S. trade tensions | Mideast tensions take turn for worse    https://youtu.be/eQbQbvGBDaM
...
Huawei Technologies CEO Ren Zhengfei says Huawei would be "fine" even if Qualcomm and other American suppliers would not sell ..

.
 
KUALA LUMPUR: It looked like the start of semiconductor manufacturers’ nightmare when US President Donald Trump fired another salvo in t...

Monday, December 25, 2017

Protect your IoT devices

The Internet of Things is a big, juicy target for criminals. — Dreamstime/TNS

As more and more devices connect to the Internet, the risk of them being targeted by criminals is also increasing.


Internet-connected devices are nearly ubiquitous, with ­computer circuitry now found in a variety of common appliances. They can include security cameras, DVRs, printers, cars, baby monitors, and refrigerators – even “smart” lightbulbs and clothing. Collectively those devices are called the Internet of Things.

The Internet of Things is a big, juicy target for criminals. Up to a million devices were hijacked to create the Mirai botnet which was used to extort companies and bring a university computer system in New Jersey to its knees. The botnet was later exploited to bring down vast swaths of the Internet in a ­sustained attack on Oct 21, 2016.

Paras Jha, a former Rutgers University student, pleaded guilty Dec 8 with two other men who admitted they wrote the Mirai code. Named after an obscure anime film character, Mirai scoured the Internet for unsecured devices and easily found them.

Once discovered, the Internet of Things devices were hijacked by the Mirai malware and became part of a botnet that launched assaults on Internet service providers and scores of websites. Jha, 21, allegedly monetised the botnet by demanding ransom to call off the attacks, using it to inflate the number of advertising clicks on websites, and renting it out to other hackers for their own nefarious ends.

The attacks on Rutgers’ computer system may have cost the school US$9mil (RM36.70mil), prosecutors said. Rutgers officials told NJ.com the cost of enhancing security was one of the reasons the school hiked tuition in 2016.

When Jha discovered federal investigators were closing in, he released the Mirai source code to the world to cover his tracks. The code is still circulating online and causing damage, according to Brian Krebs, of KrebsOnSecurity.com.

Krebs advises taking these precautions to keep your Internet of Things devices protected:

– Avoid connecting your devices directly to the Internet.

– Change the default credentials to a complex password that only you will know and can remember. – Check the defaults, and make sure things like UPnP (Universal Plug and Play – which can easily poke holes in your fire wall without you knowing it) are disabled.

– Avoid Internet of Things devices that advertise built-in Peer-to-Peer (P2P) capabilities. P2P Internet of things devices are notoriously difficult to secure, and research repeatedly has shown that they can be reachable even through a fire wall remotely over the internet. That’s because they’re configured to continuously find ways to connect to a global, shared network so that people can access them remotely.

– When it comes to Internet of things devices, cheaper is definitely not better. There is no direct correlation between price and security, but history has shown that less expensive devices tend to have the most vulnerabilities.

The US Department of Justice also offers these tips to protect Internet-connected devices.

– Do your research. Consider the security features of your Internet of things devices before buying. If the device uses a password, make sure it allows you to change it.

– Update firmware when available. Internet of Things devices can be susceptible if not regularly patched. Only install updates from known and reputable sites.

– Disconnect your insecure Internet of Things devices. Outdated security? Can’t update passwords? Then unplug it. – Turn off Internet of Things devices when not in use, or periodically if otherwise always on. Malware is stored in memory and can often be erased by turning the device off and back on.

– Protect routers and WiFi networks. Use your router’s built-in fire wall, confirm it’s enabled.

– Avoid using public WiFi to check Internet of things devices from a smartphone.

– Use antivirus and intrusion-detection products.

– Ask for help, or hire help, if you can’t figure out fire walls or how to “segment” your network of Internet of things devices.

Some free online resources can help determine whether your devices are susceptible to being accessed by Mirai or other malware. Be cautious and use only well-known sources.

If you suspect your Internet of things device is infected, turn it off and on again to purge the device’s memory. Change the password. — The Philadelphia Inquirer/Tribune News Services

Source: By Sam Wood Tech News

Related Links:

New digital ‘hurricane’ churns, gathering strength to land blow on the Internet

Just as hurricane trackers chart storms in the Atlantic before they make landfall, cybersecurity researchers track viral infections that threaten mayhem. They've found a doozy.
A massive zombie robotic network, or botnet, has expanded to infect "an estimated million organizations" and could bring corners of the internet to its knees, Check Point Software says. — Sipa USA/TNS

Sunday, August 14, 2016

The tyranny of Pokemon Go, more addictive than other games

No prizes for guessing what these folks at a public park in the centre of Hanoi are doing. Yes, the Pokemon Go craze has spread far and wide. Photo: AFP

It's repetitive. The 'game play' is puerile. But it does cast a spell on players.


Malaysia, a plague has just arrived in your land and, if the rest of the world is any indication, it will infect every corner of your society. I’m talking of course about the infectious tyranny that is Pokemon Go. Really.

This is a game with very little in actual game play. You throw Pokeballs at Pokemon that spawn seemingly all over your neighbourhood, on your friends, and even in your own home. You capture them to fight other Pokemon, then you wash, rinse, repeat.

The battle aspect comes down to swiping right and tapping your screen a bunch of times. It’s not exactly the most nuanced or skilled or even fun game play in the world but yet, Pokemon Go has taken over the world.

I didn’t quite understand it until it arrived in Hong Kong, but suddenly on the street people were face down in their phones even more so than usual. And whenever I snuck a look there was a little critter bouncing around on their screens that they were trying to capture by tossing Pokeballs at it.

Silly. Ridiculous. So of course, yours truly had to try it.

And of course, yours truly got addicted just like everyone else.

Really, the game should be called Pokecrack or something a little more indicative of its addictive nature. Walking the dog at night, I seek out the local gyms – Pokemon Go locations where you can train or battle other Pokemon, but only at certain locations in the city – see, that’s why it’s got the “Go” in its name, this isn’t a game you can play from home – and at all these locations, even at midnight, I find people milling around in their pyjamas outside, with their faces stuck to their phones. Me included.

I went to a bar to meet a friend the other day and of course we started hunting Pokemon while there, which quite a few others were already doing. On the way out to the pay the bill the barkeep invited us back on Saturday because they would be “buying lures all day to attract more Pokemon”. Yes, Pokemon is now a way to attract people to your business.

Pikachu, I choose you.

But why is this game so addictive? I just said the game play was infantile. So simple that it boggles the mind. And it is. But everything in Pokemon Go centres on the rewards of new and exotic Pokemon and levelling up.

Basically it’s a game that hinges on the Random Reward Schedule.

The Random Reward Schedule is a tenet of behavioural psychology. It’s a form of reinforcement. Reinforcement, of course, “strengthens an organism’s future behaviour whenever that behaviour is preceded by a specific antecedent stimulus”. That’s a mouthful.

Basically, what it’s saying is that you will continue to do a thing if you get positive feedback.

This all goes back to the research of B.F. Skinner, who noted that the variable reward schedule or the random reward schedule resulted in the most compulsive and addictive behaviour in mice. Basically, mice were trained to press a lever that would dispense treats.

The mice that were rewarded with a treat every time were less inclined to keep pressing the lever, than the mice that were rewarded with a large treat at random intervals. The idea being that when a mouse thinks there could be a nice reward just around the corner, it will keep performing the same action.

The same goes for humans.

In Pokemon Go you’re constantly checking for Pokemon appearing in your vicinity. Most times they are common ones like Pidgeys or Caterpies, but every once in a while, you find something exciting like a Vaporean or an Electabuzz. And yes, I know how nerdy this sounds right now. Those rare and exotic Pokemon are just like large treats to a mouse.

The random reward schedule is linked to the Hook Model which is a technique employed by social media and mobile game designers and, of course the designers of Pokemon Go. Its mission – the name gives it away – is to hook you.

It goes beyond simple reinforcement of behaviour; it’s all about creating habits so that we’ll continue doing something the designers want us to do. In this case, it’s to continue searching for Pokemon and hopefully spend a few of our hard-earned dollars for gear that will help us do just that.

Pokemon Go also employs another aspect of the model, and that is our need to hunt. In the evolutionary sense, we are hunters, hunting for food in the wild. Pokemon Go employs a tracking system to find those rare and exotic Pokemon so that we are literally hunting down little virtual critters. All. Day. Long.

But we’re not hunting for sustenance, now we’re just hunting for the sake of hunting. Our genetic urges are misfiring all over Pokemon Go.

And knowing that I’m being manipulated on the most fundamental level by this game, I’m still checking my phone periodically to see if any rare Pokemon have showed up. And it’s not even fun.

So what to do, now that Pokemon Go has come for … to us? It really depends. It does make you walk more, and it can make your daily commutes a little more enjoyable (depending on your definition of enjoyable) – but if you don’t like having your face stuck in your phone, then you’re better off treating Pokemon Go like drugs, and not even trying it.

 By Jason Godfrey -

Catch Jason Godfrey on The LINK on Life Inspired HD (Astro Ch 728).

More addictive than other games


CATCHING virtual critters on Pokémon GO has a tendency to be more addictive than other online games.

Experts say the risk of being addicted to the highly-popular game is increased because it is a feast for the senses.

This is especially since it is an augmented reality game, which requires players to have a live direct or indirect view of their physical surroundings.

“The risk of addiction is increased as there are multiple sensory bombardments that sustain playing Pokémon GO.

“Such sensory bombardments are continuous, leading to pleasure and satisfaction highs once players level up in the game and are motivated to continue,” explains Universiti Sains Malaysia criminologist and psychologist Dr Geshina Ayu Mat Saat.

She says this can be dangerous as it makes individuals dependent on the game for pleasure or happiness and some people may confuse the two.

“It could also lead to despair when the game is concluded, when they experience problems, or when a level objective could not be met.

“These are similar responses that an addict experiences. Normal functioning is disrupted, the least being in terms of sleeping and eating patterns,” Dr Geshina says.

Other aspects that could be affected are family interaction, work-life balance, carrying out responsibilities and daily tasks.

Dr Geshina finds that there are pros and cons to playing the game.

“On one hand, players will get more physical exercise, apply problem-solving skills, and have some social interaction when they meet other players in real life,” she says.

But on the other hand, too much focus on their phones may narrow their perception, leading to selective attention on the immediate environment to fulfil the needs of the game rather than a genuine appreciation of the outdoors.

“Social interaction may be limited to brusque questions of where the characters are, rather than polite or pleasant queries to initiate meaningful conversation,” says Dr Geshina.

She also notes that there is also a possibility that players, especially children, will be unable to separate between reality and the game as it blurs the lines and makes players a living game avatar.

Malaysian Mental Health Association deputy president and consultant psychiatrist Datuk Dr Andrew Mohanraj Chandrasekaran says people are generally eager to embrace new technology and will surely warm up to augmented reality games like Pokémon GO.

Describing the game as “taking it one step further”, he says one positive point of the game is that it can motivate people to get out more and connect with others with common interests.

“This is particularly relevant to people with introverted personalities and those suffering from depression.”

Dr Andrew, however, points out that the game can be a double-edged sword and could also work negatively in making people more engrossed in their phones.

“Ultimately, technology must be embraced for the right purpose – be it for recreational, therapeutic or competitive purposes.

“Technology can also be harmful, destroy interpersonal relationship, affect social cohesion, blur the lines between appropriate and inappropriate behaviour and cause confusion between reality and the virtual world.

“Knowing how to embrace technology in a balanced manner is the answer,” he says.

Sources:  The Star/Asia News Network

Saturday, May 21, 2016

Fintech - disruptive technology

https://youtu.be/2Z5RXuRx1B4



http://www.thestar.com.my/business/business-news/2016/05/21/fintech-disruptive-technology/

Businesses are embracing it by coming up with their innovations and startups


A BUZZWORD growing in popularity in the financial world today is “fintech”, short for financial technology, which in a nutshell refers to the use of technology to deliver faster and cheaper financial services.

Going by some predications, fintech could take a big chunk of business away from traditional banks as it is being run by smaller more nimble start-ups. But the debate is still out there as to how much that chunk will be. In Malaysia in particular, fintech’s presence is still nascent and small. Fintech transactions totalled a mere US$6.37mil this year compared with a global figure of US$769.3bil, according to Statista, an online statistics provider.

It however predicts that fintech transaction values to grow to US$14.4bil by 2020. A significant number of fintech companies, especially those in the digital payments space, actually work alongside local banks.

Still, fintech is not to be taken lightly. Top bankers themselves are speaking of its imminent threat to their business. Former Barclays CEO Anthony Jenkins referred to it as banking’s “Uber moment” to describe technological advances that could see bank branches close down and people laid off.

Last April, Jamie Dimon the CEO of the US’ largest bank JP Morgan in his letter to shareholders warned that “Silicon Valley is coming.” “There are hundreds of start-ups with a lot of brains and money working on various alternatives to traditional banking,” Dimon wrote.

On the home front, just last month prominent banker Datuk Seri Nazir Razak echoed such views. Speaking at the Star Media Group’s PowerTalk: Business Series held at Menara Star, Nazir opined that fintech companies are disrupting banking.

“Bankers must respond to this Uber moment. People actually dislike banks today, since the global financial crisis. Recent data suggests that in the US, the cost of banking intermediation has not changed for 100 years in real terms. This simply means banks have not gotten more efficient over the years, so its right that banks get attacked by ‘Silicon Valley’, which has identified banking as an industry that is very ‘ripe’ or juicy to disrupt.”

Even the central bank is echoing these views.

In his maiden keynote address at an Islamic finance conference in Kuala Lumpur last week, Malaysia’s newly-appointed Bank Negara governor Datuk Muhammad Ibrahim gave a grim reminder to banks of the threats posed by fintech. In particular, Muhammad quoted from a report by McKinsey that 10% to 40% of banking revenue is possibly at risk by 2025 due to innovations outside banking institutions that are able to offer a significant pricing advantage and that technologically-driven applications had spread to nearly every segment of the financial sector, with the number of fintech start-ups having doubled in the last year. “Fintech is challenging the status quo of the financial industry,” he said.

To be fair, Malaysian banks are quick to point out that while fintech does represent a disruption to business, they are embracing the movement, by coming up with their own fintech innovations or by working with fintech startups.

So what is fintech?

In a nutshell, fintech is an economy of companies using technology to improve efficiencies and effectiveness in the financial services industry. To illustrate the offerings of fintech companies, consider the business model of homegrown start-up MoneyMatch, which is modelled after UK-based TransferWise which began in 2011 and today moves US$10bil a year through its platform.

MoneyMatch has created a platform to match individual buyers and sellers of currencies, with the attraction of both sides enjoying better exchange rates than what banks and even money changers offer. The rate used by the MoneyMatch site is the middle rate of the currency exchange spread. So an individual for example, willing to buy US$100 for his travels will be matched with someone wanting to change his US$100 into ringgit. The parties will be matched on this application and then proceed to make their exchange in an agreed location. MoneyMatch is also entering the area of cross border fund transfers.

“For example, someone in Singapore wishing to transfer money to Malaysia can be matched with someone here wishing to send an equal amount of money across the Causeway. Hence the parties can make the respective transfers to local accounts of their choice after an exchange of information. This means the transfer is done minus any cross-border transfer fees,” explains MoneyMatch co-founder Naysan Munusamy, who had spent many years as a forex trader with a number of banks before venturing out to start MoneyMatch.

Peer lending

One key growth area in fintech is peer to peer or P2P lending, online platforms that match borrowers with lenders, bypassing the traditional financial institutions. The business had even attracted big names such as Goldman Sachs. The most notable name in this space is Lending Club, which had launched its service as far back as 2007 and became the US’ largest technology IPO in 2014, raising around US$1bil.

Lending Club claims that its platform – which enables borrowers to get unsecured loans of US$1,000 to US$35,000 – has now helped originate close to US$16bil in loans.

Locally, last month the Securities Commission (SC) launched a regulatory framework for P2P lending, paving the way for small and medium-sized companies to access this new avenue of debt funding. Under SC’s rules though, individuals are not allowed to raise money on the local P2P platforms. Rather it is meant to only fund projects and businesses and a number of safeguards are in place. For example, those behind the operator of the P2P platform need to pass the “fit and proper” test; the rate of financing cannot be more than 18% (as that would be deemed predatory lending) and that the P2P operator has to disclose information related to the issuer and the risk assessment and credit scoring parameters adopted by the operator. There is no authorized P2P platform in Malaysia yet as parties wishing to run such platforms have to submit their application to the SC soon.

In China, P2P lending has virtually exploded. As a recent report by Citibank highlights, “China is past the tipping point”, with fintech companies having similar number of clients as the major banks. The report notes that China is the largest P2P lender in the world, with transactions topping US$66bil, compared with the US with only US$16.6bil.

 Regulating fintech

But there are problems. Some unregulated P2P platforms in China had run scams. Others helped fuel an equity roller-coaster by offering funding for stock investments. This led to the Chinese benchmark index rallying more than 150% in the 12 months to last June before abruptly crashing. The Chinese authorities are now cleaning up the P2P sector.

So what are the risks of fintech regulation in Malaysia? And do companies like MoneyMatch need be regulated and licensed?

In an emailed reply to StarBizWeek, Bank Negara says: “Fintech start-ups that engage in activities under the purview of the central bank must comply with existing laws”. Bank Negara explains that regulated businesses include banking, insurance or takaful, money changing, remittance, operating a payment system or issuing payment instruments.

“A fintech company that engages in any activity that falls within the definition of a regulated business must be properly authorised to do so under the relevant laws.

“As an example, collecting deposits via a fintech platform would require approval from Bank Negara.

“A fintech company that is authorised to conduct a regulated business under the laws that Bank Negara administers will be subject to the oversight of Bank Negara pursuant to those laws.”

What this indicates is that Bank Negara is going to regulate fintechs the same way it does banks. But exactly how, it still isn’t clear.

But the good news is this: Bank Negara says it is engaging with firms in this space (and presumably that includes the likes of MoneyMatch), “to understand and where appropriate facilitate their business and provide guidance on aspects on regulation that would be applicable to them.”

Bank Negara adds that it is in the process of formulating a framework that “encourages innovation without undermining financial stability, the integrity of the financial system or the adequate protection for financial consumers.”

The SC has also been pushing for fintech innovation to develop in Malaysia. Last year, Malaysia became the first country in the region to introduce the regulatory framework for equity crowd funding. (While P2P is about companies raising debt, crowd funding is for entrepreneurs to sell equity to investors.)

The SC has also launched aFINity@SC, a fintech community aimed at industry engagement and more recently launched the P2P financing framework, which is aimed at addressing the funding needs of small businesses.

Chin Wei Min, the SC’s new head of innovation and digital strategy, says: “We think fintech can provide solutions to some of the unserved and underserved needs in the capital market.”

Chin adds: “We are also mindful of the risk, fraud and all the pitfalls. We continue to enhance our engagement model. We want to remain very close to the industry.”

Fintech’s hiccups

Some recent developments in the fintech space, however, point to weaknesses in fintech companies. LendingClub, the poster boy company for P2P lending has seen its shares tumble, wiping out about a third of its market value.

This came as it faces scrutiny after its founder and CEO resigned following an investigation into improper loan sales.

The US Treasury has released a report criticising the P2P lending business, recommending it to be more tightly regulated. Some commentators are liking P2P lending to the early days of the subprime mortgage bubble of 2006-07.

It is more likely though that the experiences of fintech in mature markets like China and the US will serve as good guides as to how this business will grow in this part of the world, with the requisite regulations put in place.

And the jury is still out as to whether traditional banks here will lose significant parts of their businesses to fintech start-ups.

Or as one industry observer puts it, fintech is more likely to usurp the business of the shadow banking market here, as some unserved borrowers now have the option to move away from loan sharks or “Ah Longs” and into the crowd funding or P2P platforms. But after that, banks could be next.

By Risen Jayaseelan, Wong Wei-Shen, a Zunaira Saieed The Star


Related story:


Zafrul: ‘We want to anticipate and capitalise on opportunities.’Banking on fintech  



Related post:

Apr 16, 2016 ... WHO dominates the phone dominates the Internet. The whole world of information is now available in your hand, replacing your own mind as a ...

http://www.infolinks.com/join-us?aid=2618740