Parties, media call for justice for telecomfraud victims. Political parties and media outlets from Chinese Mainland and Taiwan have denounced a telecomfraud case, and said the suspects must be brought to justice. This is after Taiwan police on Saturday released 20 suspects who were deported from Malaysia....
Malaysia repatriated a group of telecom fraud suspects Friday, including
20 Taiwanese. Taiwan authorities maneuvered to have them sent to
Taiwan.
To the surprise of the outsiders, these Taiwanese
suspects were released in a few hours after arrival at Taoyuan
International Airport.
When Kenya last week sent a batch of
telecom fraud suspects to the Chinese mainland, also including
Taiwanese, it triggered a public outcry in Taiwan. Pro-independence
media and leading figures, including Tsai Ing-wen, protested against the
mainland for "illegal abduction." Now Taiwan is showing that it is more
lenient to fraud suspects than anywhere in the world.
Taiwan's
judicial authorities expressed that the crime was committed in Malaysia
and victims were mainlanders. Since they do not hold evidence against
these suspects, they have to release them first.
However last
week, the same department stated that it was in accordance with
international law that Kenya repatriated Taiwan suspects to the
mainland, and "only the mainland can hold them in control."
Pro-independence forces would not admit the change was a result of
pressure they exerted.
To the outside world, protests against the
mainland and releasing suspects show the ugly side of Taiwan politics
when it is taken hostage by radical public opinion.
The Democratic Progressive Party (DPP) is manipulating and coping with populism.
The release of the 20 suspects has disgraced the Taiwanese media and Taiwan's rule of law.
The
mainland is clear how the DPP is manipulating public opinion to
instigate "anti-China" sentiments. Swayed by such sentiments, Taiwan
politics prioritizes stance over facts.
Western democratic
politics can easily provide a hotbed for radicalism and extremism.
Taiwan and Hong Kong both have demonstrated this tendency.
A
judiciary case, which should be fact-oriented, is turned into a
political event across the Straits. The suspects even applauded Taiwan
for its "human rights" after being released. Should the mainland feel
indignant or treat it with disdain?
The key is that the mainland
should stick more firmly to its principles, and resolutely resist the
rascally demands by Taiwan's twisted politics.
Taiwan's poor
performance in handling the suspects is also teaching a lesson to other
countries. Malaysia is proved wrong in repatriating the fraud suspects
back to Taiwan. Kuala Lumpur should learn from the case and not be
tricked by Taiwan in the future.
Taiwan, which is an inseparable
part of China, is always eager to prove it is a "country." Taiwan's
ingrained sense of inferiority and paranoia have permeated into its
politics, resulting in its self-righteous performances, of which
Taiwan's public should be aware.- Global Times
Women in China who don't get married after a certain age
are often called 'leftover women'. By telling what many of these single
women are really thinking, a cosmetics ad has gone viral.
Now for more discussion, we are joined in the studio by social affairs critic Han Hua. Ms.
Marriage isn’t the only path to bliss
“I AM a sheng nu,” Jenny Yan, 30, proclaimed.
The car sales executive has been single for about a year after breaking up with her boyfriend of three years.
“I am now searching for my life partner with the frame of mind of a sheng nu,” she said.
Literally “leftover women”, sheng nu is a derogatory term in China for single women who, in the eyes of society, have passed the ideal time to get married and still remain unattached in their late 20s and beyond.
The term sheng nu suggests that Chinese society sees the singletons as undesirable, almost like the coarser particles that are left on a sieve.
Single men, on the other hand, are known as sheng nan (leftover men) or guang gun (bare sticks).
The situation seems to be more dire for men, as they will outnumber women by 24 million by 2020 due to the country’s gender imbalance, but they are less stigmatised than single ladies in the patriarchal society.
While Yan said her parents look forward to her settling down, they are not putting too much pressure on her. She is taking the initiative to search for a suitor.
“When I was in my 20s, I relied solely on feelings and paid no heed to all the realistic factors, but now I won’t have too much expectations,” Yan said.
“To create more chances for myself, I’ll agree to meet and get to know the other person whenever friends recommend possible suitors to me.”
The stigma surrounding sheng nu often leads to heated discussions, with single ladies determined to shake off the shame and outdated judgment that society forces on them.
A recent advertisement by Japanese beauty products brand SK-II rightly triggered a flood of support from women in China.
Themed “Change Destiny”, the four-minute long clip walked viewers through the humiliation single ladies faced in China, which more often than not resulted in self-doubt and self-criticism.
“Maybe I should give up on someone I love for someone who’s suitable,” one of the ladies said to the camera, dabbing her eyes with a tissue.
Their parents were a major source of pressure, urging them to stop being so choosy and quickly settle down. Instead of being supportive, they were critical of their daughters.
“I used to think my daughter has great personality.
“She is not too pretty, just average. That’s why she is a leftover,” a mother said with a light chuckle, while her daughter, who was sitting next to her, tried hard to contain her tears.
A father said: “As long as you are not married, I cannot die in peace.”
One of the single women featured in the advertisement said remaining single is considered not filial in China.
“Maybe I am being selfish. I want to say sorry to them,” she said, breaking down in sobs.
In the advertisement, the ladies decided to attend the Shanghai Marriage Market, a weekend fair at the People’s Park where parents “promote” their single and available daughters and sons with details such as age, height, profession, income and assets.
In a turn of events, it was revealed that the ladies were not there to look for partners but to tell their parents that marriage isn’t the only path to happiness.
Professional portraits which depicted them as confident and glowing women were exhibited in the park, along with a personal message.
“I don’t want to get married just for the sake of marriage. I won’t live happily that way,” one of them, identified as Li Yuxuan, 33, said.
Another lady, whose mother has previously dismissed her as just average-looking, said to the camera: “Even if I am alone, I can be happy, confident and have a good life.”
Since it was posted on SK-II’s official Weibo account, the video has recorded two million views and was shared 25,000 times.
Sindy Huang, 36, said she was touched by the advertisement.
“The details in the advertisement were moving, such as their skin condition, their sleep-deprived look, and the helplessness in their eyes. I feel like I am watching myself,” she said.
The Beijing-based journalist who hailed from Zhejiang province said Chinese society has the tendency to sympathise with single ladies.
“Many people think sheng nu is the main cause of an unstable society, and parents are desperate for us to get married because they don’t want us to grow old alone,” she said.
Both Yan and Huang said while they yearn for true love and a family of their own, they would not rush into a relationship and preferred to wait for the right person to come along.
Huang said girls have to have a strong inner centre to help them face the pressure from society.
When ridiculed by married friends, she said she would retort by asking them if they are in a state of perfect happiness.
“That shuts them up. Some of them even conceded that I was right,” she added.
However, not everyone held the SK-II advertisement in high regard.
Some were in the opinion that the short film has exploited single women’s weaknesses to boost views.
A writer identified as Gu Yingying likened the advert to “a bottle of dirty water splashing onto (women’s) independence and confidence”.
Towards the end of the short film, one of the mothers exclaimed, “Sheng nu should be proud!”
In taking an apparent jab at this particular line, Gu wrote on her WeChat official account: “Sheng nu is not an honour, and neither is marriage. This is just a life choice and has nothing to do with honour.”
She said the women yearned for marriage and love but had to emphasise, with teary eyes, in front of the camera that they are okay being single.
Huang disagreed with the comments that dolling the ladies up in the advertisement is just a typical way to confront the dominant ideology of patriarchy.
“There isn’t anything wrong with dressing up. Those who are not sheng nu will never understand the pain of singletons.
“I am okay with the creative execution of the advertisement. It isn’t targeted at men or housewives, after all,” she said.
As for Yan, she said she won’t search blindly, but she won’t slack either in finding a suitor.
“Since I have reached the appropriate age to get married and get pregnant, I should be more proactive,” she said.
“I am planning to participate in mass dating events. Let’s see how it goes.”
China urges Taiwan to give fraud suspects "punishment they deserve"
20 fraud suspects from Taiwan arrive in Taoyuan airport in Taiwan on Friday, April 15, 2016 after being deported from Malaysia. [Photo/IC]
A Chinese mainland spokesman on Saturday urged Taiwan to give fraud suspects "the punishment they deserve," stressing that the release of them will only make fraud more rampant and harm cross-Straits law enforcement cooperation.
Taiwan police earlier on Saturday released 20 fraud suspects who were deported from Malaysia Friday evening, citing a lack of evidence. They were among 52 people from Taiwan arrested in Malaysia for suspected telecommunication fraud.
"By releasing the suspects, Taiwan authorities disregarded many victims' interests and harmed them a second time. It also harmed the two sides' cooperation in jointly cracking down on crimes," said An Fengshan, the spokesman with the State Council Taiwan Affairs Office.
Taiwan phone scammers come clean
Phone scams are nothing new, and yet the people behind this faceless crime continue to swindle billions of yuan from hapless victims every year.
Boiler rooms run by scammers from Taiwan were responsible for over 50 percent of all telecom fraud in China's mainland. Nearly all major cases with reported losses in excess of 10 million yuan ($1.54 million) were organized by scammers from Taiwan, according to the Ministry of Public Security (MPS).
In the past seven days, 77 alleged fraud syndicate members, including 45 from Taiwan, were repatriated to China's mainland from Africa.
In interviews with Xinhua, some of the suspects from Taiwan came clean about this illicit practice.
WHO, HOW ?
20 fraud suspects from Taiwan arrive in Taoyuan airport in Taiwan on Friday, April 15, 2016 after being deported from Malaysia. [Photo/IC]
One suspect from Taoyuan in Taiwan, identified only by his surname Jian, traveled to Kenya to join a boiler room in 2014.
According to Jian, the organization he worked for divided its members into first-, second- and third-tier groups according to their roles. All worked off pre-written scripts when talking to their "clients."
The first-tier group, a team of about a dozen people, masqueraded as managers of medical insurance accounts to acquire their victims' personal information, Jian explained.
In the calls, the victims were told that they were victims of identity theft, and their "case" would be transferred to the police after they had confirmed certain information.
Then it was time for the second-tier group, the "police officers," to take over the case. This team informed the victims that their identities had been used to facilitate money laundering, said Jian, who was one of the "police officers."
The victims were then pressed for more information, such as family background, occupation, income and bank account details. The second-tier group would then try and wheedle out how much cash the victims had in their bank accounts.
"If there was not much money, we would talk the victims into transferring their balance to us," said Jian, "however, if they were holding large deposits we would transfer the case to the third-tier group."
Another suspect, who was identified by the surname Xu, was a member of this third-tier group. His bluff was that he was the director of the financial crime department.
"We told the victims that their money must be transferred to our 'safe account' for investigation, and instructed them how to do this at an ATM," said Xu.
The fraudsters used software that changed the numbers they called from to those registered to mainland police stations.
"Any 'savvy' victim could check the number while we were on the phone," he said, "and they would be reassured."
The gang even played recordings of police stations or hospitals as background noise during the calls to further win the trust of their unsuspecting victims.
According to the police, members of the gang received a monthly salary based on their performance. The third-tier group, usually the most skilled fraudsters, earned the most, getting up to eight percent of the money earned in each deal.
Police said that the bosses and core members of many fraud rings were from Taiwan. In Jian and Xu's case, only members of the first-tier groups were from the mainland, who were usually new to the world of telecom scams.
Investigators found that during recruitment, fraud rings often favored those with criminal records.
"I am familiar with how phone scams work, so that was why the boss asked me to join," said Xu, who served a seven month sentence for fraud in Taiwan's Taichung City in 2010.
Mainland urges Taiwan to give fraud suspects 'punishment they deserve'
EXPORTING FRAUD
20 fraud suspects from Taiwan arrive in Taoyuan airport in Taiwan
on Friday, April 15, 2016 after being deported from Malaysia. [Photo/IC]
The people of Taiwan have been aware of phone scams and for this reason, around 2002, fraud rings from Taiwan began to target mainlanders.
These fraud gangs are oldhands at writing convincing scripts and devising new methods to cheat victims out of their money and information, said Zhang Jun from the criminal investigation department of the MPS. Some, he added, even create mirror websites of mainland judicial agencies to further support their back stories.
Authorities on the mainland and Taiwan worked hard to improve cooperation and stamp out telecom fraud across the Strait. However, rather than packing up and "going straight," many gangs just relocated to Southeast Asia, Africa and Oceania.
Since 2011, police from both sides have arrested more than 7,700 suspects implicated in telecom fraud gangs working in Southeast Asia, with about 4,600 of them from Taiwan.
"To hide from the police, many telecom fraud rings established themselves far from Chinese eyes, like Kenya in this case. But we are confident that we will find them, no matter where they are," said Zhang. - Xinhua)
Chinese telecom fraud suspects repatriated from Kenya
BEIJING, April 13, 2016 (Xinhua) -- Chinese telecom fraud suspects deported from Kenya get off a plane after arriving at the Beijing Capital International Airport in Beijing, capital of China, April 13, 2016. Kenyan police deported 77 Chinese telecom fraud suspects, including 45 Taiwanese, to the Chinese mainland. The first group of 10 people had been repatriated on Saturday and the remaining 67 were sent back by a chartered plane on Wednesday. (Xinhua/Yin Gang)
The first 10 people were repatriated on Saturday and the remaining 67 on Wednesday, the Ministry of Public Security (MPS) has confirmed. It is the first time that China has repatriated such a large group of telecom fraud suspects from Africa.
In recent years, syndicates led by suspects from Taiwan and based in Southeast Asia, Africa and Oceania have been falsely presenting themselves as law enforcement officers to extort money from people on the Chinese mainland through telephone calls, according to Chinese police.
In one case cited by the MPS in a statement, a person surnamed Yang from Duyun City of Guizhou Province was cheated by a syndicate, led by a Taiwan suspect, of 117 million yuan (18.1 million U.S. dollars) in December 2015.
Victims in other cases included migrant workers, teachers, students and elderly people from the Chinese mainland, and some of them committed suicide under the pressure of their economic losses, according to the statement.
The MPS said judicial organs on the Chinese mainland have legal rights of jurisdiction over the repatriated suspects.
Mainland police will investigate Taiwan suspects in strict accordance with the law and keep Taiwan authorities informed, the statement added.
The 77 suspects are from two telecom fraud syndicates. On Nov. 29, of 2014, Kenyan police arrested 48 people from the Chinese mainland and 28 from Taiwan over telecom scams. On April 8 of 2016, 19 suspects from the mainland and 22 from Taiwan were apprehended on similar charges.
In the past few years, police from the mainland and Taiwan have arrested more than 7,700 suspects, about 4,600 of them from Taiwan, in 47 joint operations to fight telecom frauds based in Southeast Asia.
However, in many of the cases handled by Taiwan judicial organs, Taiwan suspects were not brought to justice and victims on the mainland were unable to retrieve their lost money, An Fengshan, spokesperson for the State Council's Taiwan Affairs Office, told a news conference on Wednesday.
Quite a few Taiwan suspects were released as soon as they were returned to Taiwan and some resumed their wrongdoing soon after, An said.
"They have caused a tremendous loss to people on the Chinese mainland... triggering strong discontent," according to the spokesperson.
An said the office's director Zhang Zhijun informed Taiwan's mainland affairs chief Andrew Hsia about the repatriation on Tuesday.
The legal rights and interests of the repatriated Taiwan suspects will be guaranteed in accordance with the law, he said.
"Judicial departments from Taiwan are welcome to visit the mainland to explore ways of strengthening cooperation between the two sides in cracking down on such international telecom fraud," said the MPS. - Xinhua
Kenya right to extradite Taiwan suspects to mainland
Taiwan's "Ministry of Foreign Affairs" criticized the Chinese mainland Monday after eight out 23 Taiwanese people were deported from Kenya to the Chinese mainland following their acquittal on telecommunications fraud charges. The news, hyped up by the Taiwanese media, soon became a focus of attention on the island. The Taiwan government has demanded the mainland immediately return the eight to Taiwan.
Taiwan's public opinion sphere has launched strong protests and criticism against the mainland's "illegal abduction." However, Taiwan's judiciary authority acknowledged Tuesday that although the eight Taiwanese were acquitted of unlicensed business activities related to telecommunications, they still face charges of fraud, and the mainland's extradition conforms to international laws.
It is not news that some Taiwanese involve themselves in telecommunications fraud, with mostly mainland people as victims. Mainlanders' losses reached NY$500 million ($15.4 million) reportedly.
The responses from the Taiwanese public opinion sphere, especially the pro-independence media, is politicized, which, to a large extent, has contributed to the local authorities' attitude. The pro-independence camp always associates cross-Straits disputes with the mainland "suppressing" Taiwan, provoking "anti-mainland" sentiments on the island to the maximum.
It is indisputable, both in law and in the One China policy, that the Chinese mainland can extradite the eight Taiwanese involved in the fraud charges. The mainland's handling of the case is supported by international laws.
As the Democratic Progressive Party (DPP) will take office soon, the radical forces on the island are increasingly active and arrogant. Targeting the mainland and the One China policy, they are responsible for the surging number of petty actions on the island.
The mainland needs to respond firmly to the radical pro-independence forces of Taiwan. The mainland has many more tools at its disposal now to punish these forces, compared with 16 years ago when Chen Shui-bian came to power. The mainland won't intentionally seek trouble with the other side, even after the DPP assumes power.
But the new Taiwan administration must hold itself with dignity, exercising restraint and opposition to the extreme show of radical forces. The mainland will be able to see clearly if the new administration is appeasing them.
As the DPP moves closer to taking office, Taiwan is shrouded in an aggressive atmosphere.
Whether Taiwanese are allowed to use a "Republic of Taiwan" sticker on their passport is being debated in the legislative body. Now Taiwan is making a fuss about the mainland extraditing Taiwan suspects from abroad. Don't expect the mainland to yield to these disgraceful acts.
Taiwanese society should pursue dignity from development and progress, not from "national sovereignty." The latter is an illusion to Taiwan which the DPP is trying to sell.
Taiwan should approach this latest incident from a cross-Straits judiciary cooperation perspective and negotiate with the mainland. It is important that the Taiwan side does not politicize the matter. - Global Times
Experts defend mainland's jurisdiction over Taiwanese fraud suspects
Kenya's deportation of Taiwanese telecom fraud suspects to the Chinese mainland within the past week was lawful and reasonable, according to legal observers on the mainland.
There were 45 Taiwanese among 77 Chinese alleged fraud syndicate members who arrived in the mainland on Saturday and Wednesday. It is the first time that China has such a large group of telecom fraud suspects repatriated from Africa.
"As all victims are from the mainland, judicial organs on the mainland have legal rights of jurisdiction over the repatriated Taiwanese suspects, according to the principle of territorial jurisdiction required in international criminal litigation," said Lin Wei, vice president of China Youth University of Political Studies.
The deportations have sparked debate in Taiwan about the mainland's jurisdiction in the case. Mainland authorities said Taiwan has been too lenient in its handling telecom fraudsters in the past.
In many of the cases handled by Taiwan's judicial organs, suspects were not brought to justice and victims on the mainland were unable to retrieve their lost money, according to the Ministry of Public Security.
Quite a few Taiwanese suspects were released as soon as they were returned to Taiwan and some resumed their wrongdoing soon after, said Liu Huawen, assistant director of the Institute of International Law under the Chinese Academy of Social Sciences.
"They have caused a tremendous loss to people on the Chinese mainland," said Liu.
"Telecom fraud has been regarded as quite a petty act of swindling in Taiwan, with short prison sentences and light financial penalties," said Fan Chongyi, a professor at China University of Political Science and Law.
Taiwanese authorities should be tougher on such criminals, Fan said. - Xinhua
Software rules: Less than 20 of the iPhone comprises hardware and labour costs. The real profit is in software, which is all about knowledge and mindsets. – Bloomberg
WHO dominates the phone dominates the Internet. The whole world of information is now available in your hand, replacing your own mind as a memory base for instant decision-making.
The reason why traditional bank shares are dropping like a stone is that mobile phone companies and financial technology (FinTech) platforms “get it”. Banks and conventional financial institutions are stuck with so much legacy hardware (branches and outdated mainframes) and complex regulation that their CEOs feel beseiged by bad news – cyberattacks, privacy leakages (like the recent Panama leak), capital requirements and huge fines.
No wonder top bank talent is leaving the industry. In Silicon Valley they get fat bonuses to become “cool” without regulations. Regulated bank CEOs are held personally responsible for everything that goes on in their bank, having to deal with soul-destroying staff and expenditure cuts, on top of their own pay cuts.
I was at the Singapore Forum this month moderating a panel on FinTech when the Alibaba strategist mentioned that the current battle for market share is all about “mindset and handset”. The mindset of the Internet age is that you do not need to own any assets – you simply share or rent them from those who have excess capacity. The mobile handset is where most of the world’s population is moving towards doing business, from dating to buying a house, phone, using your fingerprint and retina as digital signature.
Finance today is an information business and FinTech (see below) can deliver payment services at 1-2 cents per transaction compared with US$10-US$12 per paper-based payment. Increasingly, we spend more on apps and software than on the actual hardware.
Did you know that the fastest adopters of technology in the world are porn, gambling and politics, in that order?
The financial consultants Oliver Wyman have come up with a major report on “Modular Finance”, which argues that technology has transformed finance into modular parts – modular supply (provision of financial services by specialists); modular demand (buying new services from such specialists).
Oliver Wyman’s report begins with a cartoon about a customer buying a house, arranging a mortgage and insurance, selling stocks and wealth products for the downpayment and paying for all fees through a single mobile phone. Equipped with the latest encryption, digital signatures and right apps, the mobile phone has empowered the customer to everything what used to take several visits and weeks to the bank, the lawyer, real estate agent and even land registry to complete the transaction.
In short, the game of finance is being fought by one super-bank to rule them all (Goldmans?) or one phone to rule them all.
The global supermarket model (one brand to rule them all) is having a serious re-think about being labelled G-SIFIs (global systemically important financial regulations), requiring special regulatory attention and additional capital and liquidity requirements. Increasingly, these universal banks do not need to own and supply all services in-house – they simply outsource the back-office or even key services to trusted specialists.
On the other hand, FinTech aims to change our lifestyles through different types of technology.
First, frictionless and seamless inter-operability integrates businesses like logistics with payments, such as Alibaba, making it easier to buy, pay and deliver in one pass.
Second, Big Data analytics, which Amazon uses suggest to you what to buy next and understand how customers are changing.
Third, Blockchain and Distributed Ledger technology, which makes systems more secure.
Fourth, artificial intelligence, such as robo-advisers on investments.
Fifth, data secrecy and unique identity codes that ensures privacy and confidentiality.
FinTech platforms have less staff, less legacy assets, less regulation and more flexible mindsets. These barbarians at the gate are only stopped by regulations that currently protect the banking franchise. This is not to say that they don’t have defects, such as lack of attention to anti-money laundering, terrorist funding and cyberattacks. When they reach super-scale, they are also Too Big to Fail.
The rapid evolution of FinTech means that Asia now has the money and the technology to transform our antiquated financial systems into the 21st century.
The Asian population is young, tech-savvy, mobile and willing to experiment with new services and equipment, which we are creating in Asia. The good news is that if our young startups get it right, the world is their market. The bad news is that if our regulatory and government support services don’t allow our startups to compete, our markets and jobs will be someone else’s lunch.
What is holding back this transformation to FinTech Asia is still mindsets. Look at how Jakarta taxi drivers are protesting against Uber. Regional banks are expanding their footprints by buying the franchises of retreating European and American banks in investment and private banking. But they and their regulators have not thought through how to use FinTech to cut back their legacy systems, many of which are obsolete and operating under-scale, because many regulators still insist on each bank owning and running their own hardware and branches. To be fair, not all regulators think that way.
Barriers to FinTech are sometimes regulatory mindsets. Asian regulators are more willing to accept the entry of financial institutions from outside the region than from their neighbours. Without regulatory concurrence, many banks and financial institutions do not dare to experiment with new technology.
We now have Asian customers moving to global service providers like Apple, Google and Amazon, if Asian financial service providers do not get their act together. Compe-tition is good – look at how Sri Lanka is negotiating with Google to provide balloon-suspended cheap high-speed wifi coverage.
Asian bankers and regulators need to think hard about what Asian customers really want to achieve global scale in terms of efficiency, stability and trust.
FinTech and mobile handsets are not the solution to all our problems, but they will change how the problems are resolved. The real problem is our mindset. Less than 20% of the iPhone comprises hardware and labour costs. The real profit is in software, which is all about knowledge and mindsets.
That belongs to the realm of politics and education, which is another story.
Andrew Sheng writes on global issues from an Asian perspective.
Fintech, the healthy disruptors of forex
SINCE the global financial crisis of 2008-2009, investment banks have spent much of their time and energy on regulatory compliance, leaving them “on the back foot” innovation wise.
Faced with growing regulatory demands in recent years, investment in new technology has had to take a back seat. This does not come as a surprise given the lack of deals and flows as well as the broad-based decline in commodity prices. That little space innovation wise has been quickly filled by fintech firms.
There are traditional fintech firms that act as ‘facilitators’ (larger incumbent technology firms supporting the financial services sector) and there is emergent fintech firms who are “disruptors” (small, innovative firms disintermediating incumbent financial services firms with new technology).
The fintech space can be further broken down to four major sectors – payments, software, data and analytics and platforms.
In the foreign exchange market environment, a typical trading would include sourcing for the best price either via electronically or via the voice broker.
In Malaysia’s financial market landscape of foreign exchange trading, the wholesale price or in other words interbank market is dominated by investment banks facilitated by money brokers who source the best available price to match foreign exchange trades.
With the wholesale market dominated by firms with deep pockets and ample liquidity, customers are subject to a spread cost, whereby prices they receive naturally takes into account a spread from the screens and a spread from the interbank price as well as a spread that is subject to the credit profile of the customer.
Global fintech firms however are altering this process or at least are gradually making inroads.
These firms provide a platform that offers a comprehensive foreign exchange solutions, including live mid-market exchange rates updated in real-time, customised foreign exchange rate alerts, a fully automated transaction information dashboard, multi-user and multi-subsidiary control panel as well as on-demand forex reports.
The best part is, these firms charge a flat fee of which is detailed before each currency trade with absolutely no additional or hidden fees.
Until recently, SMEs have had little choice in terms of where to go, other than to the banks, but now it seems a different foreign exchange model is emerging in the fintech sector, giving banks a run for their money.
The crux of these business models by fintech firms in the foreign exchange business is service via the use of technology.
The automation of the process, eliminates the middlemen and therefore reducing cost, fintech has enabled companies to be more transparent with their pricing.
In the case of Malaysia, SME’s play a vital role in Malaysia’s economy, with foreign exchange risks increasingly being a volatile variable in their cost structure.
These form of fintech solutions are likely to witness exponential growth, but the cost would be, a gradual erosion of SMEs foreign exchange business that are currently held by our local investment banks.
Fintech firms’ foreign exchange model broadly encompasses four major steps, namely, the SME firm carries out their foreign exchange transaction by selecting the currency, the amount, delivery date and beneficiary account and confirm the exchange rate.
Once this is done, the next step is, the SME firm sends the fund to the fintech firm whereby the fund is segregated and held in a local bank.
Bear in mind these funds don’t form the part of the assets of the fintech firm and are held separately to ensure full client fund security at all times.
The third step is, the fintech firm’s matching engine will proceed to the exchange, matching the SME firm’s fund with another company or through the wholesale foreign exchange market.
Throughout the process, the SME firm is provided full transparency on prices, giving the SME firm the liberty to be fully in control.
Once the trade is matched, the funds are sent to the chosen beneficiary account of the SME firm, either its own, a subsidiary or directly to its supplier.
A four-step approach that uses the middle rate of the foreign exchange, removes the so called spread cost that is usually charged by banks to these SME firms and finally gives full transparency on the whole process itself.
With the clout and importance of these fintech firms, the Monetary Authority of Singapore recently announced the formation of a new FinTech & Innovation Group (FTIG) within its organisation structure.
FTIG will be responsible for regulatory policies and development strategies to facilitate the use of technology and innovation to better manage risks, enhance efficiency, and strengthen competitiveness in the financial sector. The upcoming Singapore FinTech Festival, to be held in Singapore from Nov 14 to Nov 18 will be an event to watch.
Organised in partnership with the Association of Banks in Singapore, the week-long event, which is the first of its kind in Asia will bring together a series of distinct, back-to-back fintech events.
Bottom-line, Malaysia’s financial sector, in particular its foreign exchange market needs vibrancy and fintech firms are likely to add spice to the local foreign exchange market, aside from creating value added business processes and technology intensive jobs, it would provide a healthy competition to the local investment banking scene.
Suresh Ramanathan believes gone are the days when foreign exchange trading was noisy, loud and unruly. It’s more about savvy technology driven trading. He can be contacted at skrasta70@hotmail.com
The market is saying that this recovery
in oil prices will be pretty positive for the Malaysian economy," said
Kelvin Tay, chief. Exchange rates | Rightways
SAN FRANCISCO: Facebook on Tuesday extended its reach beyond online socializing by building artificial-intelligence powered “bots” into its Messenger application to allow businesses to have software engage in lifelike text exchanges.
The move announced at the leading online social network’s annual developers conference in San Francisco came as the number of monthly users of Messenger topped 900 million and the Silicon Valley company works to stay in tune with mobile Internet lifestyles.
“We think you should be able to text message a business like you would a friend, and get a quick response,” Facebook co-founder and chief Mark Zuckerberg said as he announced that developers can build bots that could even be better than real people at natural language text conversations.
Bots are software infused with the ability to “learn” from conversations, getting better at figuring out what people are telling them and how best to respond.
The bots could help Facebook over time monetize its messaging applications and get a start on what some see as a new way of interacting with the digital world, potentially shortcutting mobile applications and sidestepping search.
“Our goal with artificial intelligence is to build systems that are better than people at perception -- seeing, hearing, language and so on,” Zuckerberg said while laying out a long-term vision for Facebook.
A look at the number and types of services that titans such as Facebook, Google and Apple have rolled out in the last couple of years, it appears the companies are “trying to dominate the customers’ mobile moments,” Forrester analyst Julie Ask told AFP.
Getting smarter
Artificial intelligence is already used in Messenger to recognize faces in pictures, suggesting recipients for messages and for filtering out spam texts.
“Soon, we are going to be able to do even more,” Zuckerberg said.
He promised a future in which Facebook AI would be able to understand what is in pictures, video or news articles and use insights to recommend content members of the social network might like.
Bot-building capabilities will be in a test mode with Facebook approving creations before they are released, according to vice president of messaging products David Marcus.
Some of the latest tools include one for the creation of “high-end, self-learning bots,” along with ways for them to be brought to people’s attention at Messenger, Marcus said.
“If you want to build more complex bots, you can now use our bot engine,“ Marcus told a packed audience of developers.
“You feed it samples of conversation, and it’s better over time. You can build your bot today.”
The list of partners launching Messenger bots included Business Insider, which said it will use the technology to deliver news stories to people in real-time.
“We are excited about this new offering because we know that messaging apps are exploding in popularity,” Business Insider said in a story at its website announcing the move.
Cloud computing star Salesforce planned to use the platform to help businesses have “deeper, more personalized and one-to-one customer journeys within the chat experience,” said Salesforce president and chief product officer Alex Dayon.
Bridges, not walls
Zuckerberg laid out a future for Facebook that, aside from Messenger, included ramping up live video streaming and diving into virtual reality.
“We think we are at the edge of the golden age of video,” Zuckerberg said.
Facebook opened its Live platform to allow developers to stream video content from their applications to audiences at the social network.
Zuckerberg demonstrated with a drone that flew over those seated, streaming live video to Facebook while he spoke.
Messenger and Live will be built out further in coming years, along with virtual reality technology at Facebook-owned Oculus, according to Zuckerberg.
When his daughter takes her first steps, Zuckerberg said he planned to record it in 360-degree video so family and friends can experience it in virtual reality as if they were there for the moment.
At one point, Zuckerberg’s comments took on a political tone, with the Facebook chief maintaining that the mission to connect the world is more important than ever given rhetoric about building walls and fearing those who are different.
“If the world starts to turn inward, then our community will have to work even harder to bring people together,” Zuckerberg said.
“Instead of building walls, we can build bridges,” he added, in an apparent reference to the fiery rhetoric of Donald Trump. - AFP
