Are there any areas of fintech that are particularly strong in your jurisdiction?
Bermuda is one of the world’s leading offshore financial centres with a long history of providing pragmatic financial and professional services to the international business sector and it has more recently been gaining international attention as a leading centre in all areas of fintech.
Due to the advantages noted above, the Cayman Islands has been very successful in attracting fintech businesses to establish Cayman entities and/or a physical presence in the SEZ, there businesses predominantly serve a market outside of the Cayman Islands and includes ICO, investment funds investing in crypto assets and companies involved in fintech research and development.
Two areas of fintech seem particularly strong in Cyprus:
- trading in crypto-assets, bearing in mind the dominance of currency and other asset trading brokers and venues in Cyprus; and
- the contribution of thought contributors such as UNIC to the industry through the organisation of blockchain events and discussions.
The most popular area of fintech in Denmark is payments followed by various management tools for small and medium sized businesses (for managing fi-nances, tax, payroll, accounting, invoicing etc.) and personal finance. Pay-ments and tolls for small and medium sized business are mainly targeting the B2B-market, whereas only a few companies operate in the B2C-market.
The Finnish fintech scheme is, by and large, fairly strong and vivid, and Finland has a long history in fintech.Currently,the Finnish fintech scheme covers lending, crowdfunding, regtech and risk management, tech for tech, trade finance, digital banks, insurtech, wealthtech, payments, cryptocurrencies and blockchain, market analysis and financial management.
Especially crowdfunding platforms and B2B services have been particularly strong. Lately, payment platforms, such as cloud-based payment platform provided by Enfuce Financial Services, and payment and financial services have strengthened. Finnish technology expertise creates a good basis for the development of fintech innovations.
[Answer in question 3.4 above]
Data on this matter are not readily available.
There is a strong market for initial coin offerings, and crypto-exchanges and wallet service providers, which is expected given the introduction of the ground-breaking DLT Regulations and the forthcoming Token Offering Regulations. There is also a strong presence of electronic money institutions and payment services providers which have formed an important element of the financial market in Gibraltar.
Malta is one of the front-running dark horses on the blockchain front. It is was one of the few countries, on a global scale, with the legal and economic foresight to provide a non-intrusive regulatory solution to the delicate market of cryptocurrencies which yearns for certification of quality. Three new legislative acts, featuring a well-matched intersection of law and technology, were enacted, re-confirming the important role which Malta is playing in this field. The momentum is reflected in the market – many big names in the industry are setting up operations in Malta, with announcements of new Malta operations being communicated almost every week. Few examples include: Binance, which recently relocated its business to Malta, and the setting up of a crypto trading platform to be powered by Bittrex technology. A local fintech company has struck an exclusive partnership with Bitfury, one of the largest blockchain infrastructure providers in the world. ICOs have been on the rise as many entities have been utilising DLT as a medium to raise finance.
The payments area is particularly currently strong in Israel and accounted for approximately 30% of fintech funding and over 20% of fintech companies. Payoneer, Zooz and Tipalti are two widely recognized companies that are examples of how the payment area is strong in Israel.
Trading and investing is also a strong area in Israel, with over 20% of fintech companies and as the Fintech’s subsector with the highest number of companies and raised significant funds in 2018, with the US$100 million eToro deal being the highlight.
[AMT to the editor : Is this question appropriately placed? It seems to be unrelated to Insurtech.]
Cryptocurrency-based businesses were notably active in Japan last year. Japan became one of the major cryptocurrency trading centers in the world. Since Japan is the first country to introduce a registration mechanism for cryptocurrency exchange businesses and as the Japanese cryptocurrency market is one of the largest in the world, more than 100 entities, including foreign ones are in the process of applying for registration. Other cryptocurrency-based businesses, such as cryptocurrency/ICO investment funds and mining businesses are becoming popular. Other than cryptocurrency-based-businesses, new types of money transfer and payment services have been multiplying. For instance, Japan Bank Consortium, consisting of more than 60 banks, is launching a project for the creation of a new money transfer system based on distributed ledger technology.
These are basically crowdfunding and e-money institutions.
British Virgin Islands
Although currently, there are no areas that are particularly strong, we would anticipate incumbent insurers to try more technology such as telematics in motor insurance and use of data from internet enabled devices to customise policies and price premiums.
SSEK: As of this writing, it appears the areas of fintech attracting the most investment in Indonesia are in the fields of payment systems and lending. Approximately 69% of all fintech companies currently in Indonesia are providing services in the payment system and lending fields, with a further breakdown of 38% in the field of payment systems and 31% in the lending field.
The somewhat recent entering into force of the crowdfunding legal framework has seen a surge in new players and stakeholders on the market, introducing new crowdfunding (mostly debt crowdfunding) platforms, which in turn have opened up new funding alternatives to either individuals and corporations.
Payments is also a business which has seen an increased relevance, with the introduction of new solutions and platforms, notably, the so-called Mbway, a service by SIBS allowing for instant transfers between bank accounts (SIBS is the incumbent entity responsible for managing the intra-bank transfer and payments systems known as Multibanco)
Most sectors of fintech have strong representation in the US. Payments were an early fintech sector, and as a result there is particular strength in payment providers and systems, with market leaders such as PayPal, Stripe, Apple Pay and others.
To a certain extent, advanced fintech is present in almost every sector of the UAE. As illustrated above, the payment services sector of fintech is particularly strong, with banks and government bodies launching cutting-edge technology in this sector.
The most developed area of fintech in Ukraine is predictably the field of payments presented by dozens of various payment services providers. In the nearest future the number of the similar companies may increase significantly due to the forthcoming amendments to the legislation.
In addition, Ukraine has a strong area of solutions development on the blockchain platforms, which are bought both by the government and business entities.
A study of the Lucerne University of Applied Sciences and Arts about fintech in Switzerland in 2018 concluded that there are significant numbers of projects in the field of investment management and banking infrastructure, followed by projects in analytics, DLT, deposits and lending, and payments. In 2017, Switzerland became known in particular as an ICO location. For 2019, it is expected that security tokens will become a key feature of the fintech scene.
The fintech landscape in India is dominated by digital payments and lending companies, while other segments, such as personal finance, instant credit and enterprise solutions, are rapidly gaining momentum. Efforts by the NPCI to develop inter-operable payments platforms, as mentioned earlier, have provided significant impetus to the growth of digital payments in India. The massive amounts of funding received by digital payments startups and government support goes on to show the immense interest in this space.
It would be difficult to point to any area of fintech that is particularly strong within the UK, given the strong presence of fintech businesses across the board. Fintechs are active within the business- and consumer-credit space, payments (including account information services and the services built on this), e-money (including e-money as a means to authorisation by challenger banks), robo-advice and insurtech. The UK’s financial regulatory system is effective in enabling products and service offerings across a wide range of regulated services, facilitating innovation across the financial sector.
Areas of fintech that are particularly strong in the Netherlands are payments and trading (see
The Mobile payment area is particularly strong in China compared to other countries in the rest of world.
Mobile payments are used by just about everyone in China in their daily life, from making payment in fancy shopping malls, to paying the bills to street vendors. At present, the fintech in payment area is dominated by two giant players. One is Alipay, operated by Alibaba, and the other is Wechat Pay, operated by Tencent. Tencent’s WeChat Pay has 900 million monthly active users, while Alipay, has over 500 million monthly active users.
The major market players in Taiwan have been devoting in the improvement of customer experiences by deploying big data, artificial intelligence and insurance technologies in the fintech industry. Two Taiwan insurance companies were awarded by the Asia Insurance Technology Awards as the 2018 winners of the field of 'digital and omnichannel technologies'. For example, the industry first introduced in 2018 the 'video-based due diligence service' (of which the patent right application has been approved), which has the advantage of simplifying the insurance underwriting process, improving the operational efficiency and reducing waiting time. This innovation was further expanded into 'video-based claims service' whereby it becomes feasible for an insurer to acquire 'proof of survival' from the policyholder by arranging a video conference session between the policyholder and the insurer's medical personnel on the agreed payment date using mobile device. As compared with past practice whereby the insurer is required to conduct on-site due diligence, the approval processes have been expedited through the launch of the relevant technologies and services.
Based on the statistics from BNM, it is clear that online banking is still the dominant channel for Malaysians to perform transaction. Both mobile banking and e-money shows a considerably larger volume in transaction. The data tells a narrative that mobile payments whether through digital wallets or mobile banking is the preferred channel to perform micropayments rather than the traditional way. Both payments and wallets, much like last year’s report, remains the largest representation of the fintech Malaysia scene. Payments represents 19% of the market whereas wallet represents 17% of the market, compared to previous year’s 18% and 12% respectively.
It is likely that the digital wallet growth is caused by a combination of players being aware of the growing demand for mobile payments and others jumping into the bandwagon. AliPay, Boost, Touch ‘N Go, VCash, iPay88 and MOLPay are among the instances of fintech companies’ applications currently available in Malaysia. Nonetheless the space is becoming increasingly crowded, it’s difficult for a month to pass in Malaysia without an announcement of a new wallet player in town.