Nova Credit
NEWS
25
NOV
2021
Full Event recap - Nova Credit X Accenture X FTAHK Webinar “Fintech 2025: Transforming Customer Experience” “Fintech 2025” is the new strategy unveiled by the Hong Kong Monetary Authority (HKMA) in June, 2021, which aims to encourage the financial sector to adopt technology comprehensively by 2025. Nova Credit as a close partner and fintech enabler for banks, with Accenture and the Fintech Association of Hong Kong jointly organized the webinar "Fintech 2025: Transforming Customer Experience" on 24 September, 2021. This webinar gathered experts from banks, fintech consultants and solution providers, to share current achievement and future development of Fintech adoption in the banking and finance industry. Webinar started with the opening speech given by Samuel Ho, CEO of Nova Credit. He first described the increasing demand for cross-boundary fintech solutions from banks, and the recent cross-boundary KYC solutions provided by Nova Credit. Thereafter, Samuel invited Mr. Shu-Pui Li, Independent Non-Executive Director of Nova Credit and an expert in financial infrastructure development, outlined the global trends in fintech development through overseas live streaming. To explore the current fintech adoption in the Hong Kong banking industry and understand banks’ views on the prospect of fintech development in the near future, the panel discussion started with topics of remote customer onboarding, Open API and the recent Cross-boundary Wealth Management Connect (WMC) Scheme. Fintech firms opportunity for banks to success Johnny Chung, General Manager, Head of Product Innovation Management Division of China Construction Bank (Asia) Corporation expressed that the COVID-19 pandemic has accelerated the digital transformation of traditional banks. As banks move to digitize their core banking platform and develop mobile applications (Apps), digital onboarding can fulfill customers demand in finance service and enhance customer experience. He pointed out that the development of digital banking services not only helped to control operating costs, but also gained a group of young customers aged 25-40. Current low interest rate environment encourages the young customer group to demand for investment and wealth management products. In line with the national policy of capital interaction and common prosperity, banks launched products of Cross-boundary Wealth Management Connect. He believes that data security and circulation of Cross-boundary WMC products can be ensured by fintech, which further achieve seamless connection of cross-boundary financial services. Young customers look for Customer Experience Excellence Fanny Yuen, Managing Director, Accenture Greater China Financial Services Client Group, referred to Accenture’s yearly customer surveys which indicated that youngsters are especially impressed by awesome user interface design and operation smoothness of e-banking platform and mobile apps when they use the bank's online platform and mobile apps. She believes that "customer experience" and "speed" are definitely the key to the success of traditional banks in digital transformation. Renovation of traditional bank operation by Fintech Ronald Iu, Chief Executive of Airstar Bank said that besides attracting new customers, fintech applications like remote onboarding and eKYC, enable instant online loan application. Utilizing artificial intelligence (AI) technique in big data analysis facilitates straight-through approval processing, so that customers no longer need to apply for loans at branches or over the phone. The strategy of moving the loan service into apps can protect customers' privacy and provide considerable degree of flexibility to customers, thereby further promoting VB personal and SME credit products. Ronald added “Fintech is reshaping SME financing with transaction data and documents through open API with partners platform.” Leverage AI power to boost banks efficiency Hardy Liu, Co-founder & Co-CEO of Apoidea Group and Managing Partner of Altive responsed "Nowadays AI and natural language processing (Natural Language Processing, NLP) technologies can be applied to analyze massive text data. For example, we can leverage on the novel techniques in document recognition, as well as domain knowledge and understanding in accounting to effectively evaluate SMEs’ commercial data for banks. In the past, manual review of company financial documents took 2 to 3 days, now the timeliness is greatly shortened to a few hours by embedding with AI.” Fintech development always put Cybersecurity first Executive Director and Chief Technology Officer of Tradelink, Mr. Andrew Cheng pointed out that other than finance sector, even government and sports gambling industry also practice remote onboarding on their mobile applications. “While our clients wish to leverage digital onboarding to enhance customer experience, they have to step up the defense to mitigate the increased risk of identity fraud such as fake ID/selfies or zombie accounts.” said Andrew. “Our prime consideration, as a solution provider, is to strike a balance between convenient customer experience and security. After all, it’s about making sure the cyber space a safe place for our clients to conduct business.” For the highlight video, please click here.
07
SEP
2021
20210913QR code Nova Credit X Accenture X FTAHK Webinar “Fintech 2025: Transforming Customer Experience” (Completed) Under the megatrend of fintech, global business models have transformed radically. Technology is expected to be adopted comprehensively by the financial sector in Hong Kong by 2025 and will bring new experiences and tremendous benefits to the public. As a close partner and fintech enabler for banks, Nova Credit is organising a webinar jointly with Accenture and the Fintech Association of Hong Kong. The webinar "Fintech 2025: Transforming Customer Experience" aims to introduce pragmatic fintech solutions for banks and institutions for transforming their customer experience as the most powerful competitive advantage. “Fintech 2025: Transforming Customer Experience” WebinarDate: 24 Sep 2021 (Friday)Time: 14:30 – 16:00 HKTMode: Live via Zoom meetingLanguage: CantoneseWebinar will also feature keynote speakers, including (in alphabetical order of surname): Andrew Cheng, Executive Director & Chief Technology Officer of Tradelink Electronic Commerce Limited Johnny Chung, General Manager, Head of Product Innovation Management Division of China Construction Bank (Asia) Corporation Samuel Ho, Chief Executive Officer of Nova Credit Limited Ronald Iu, Chief Executive of Airstar Bank Jenny Li, Senior Managing Director (and Lead) - Operations, Asia Pacific, Africa & Middle East, Accenture Shu Pui Li, Independent Non-Executive Director of Nova Credit Limited Hardy Liu, Co-founder & Co-CEO of Apoidea Group and Managing Partner of Altive Fanny Yuen, Managing Director - Financial Services,  Accenture Greater China Agenda: 14:30 – 14:35 Welcoming Remarks and Introduction 14:35 – 14:50 Global Trends of FintechKeynote speech by Nova Credit 14:50 – 15:05 Intelligent Operations for BanksKeynote speech by Accenture 15:05 - 15:45 Panel Discussion - Fintech 2025: Transforming Customer Experience 15:45 - 16:00 Q&A Session   Thank you for your support. The webinar has been completed. Click here for the highlight video. Stay tuned for more exciting events!
06
SEP
2021
7. Group Thumbs Up Nova Credit first join HKGCC Business School Partnership Programme On Friday, July 9 2021, twelve energetic Form 5 students from Buddhist Fat Ho Memorial College spent an eventful afternoon with a team of enthusiastic Fintech professionals from Nova Credit. The activity was part of the Hong Kong General Chamber of Commerce’s Business-School Partnership Programme, which aims to connect schools with businesses.   Introducing Privacy and Personal Data SecurityAs a Credit Reference Agency supported by leading financial institutions, with aims to take the credit bureau industry to the next level in Hong Kong and contribute to the Greater Bay Area, Nova Credit embraces the values of privacy and personal data security; the team especially designed a focus group activity aiming to raise secondary school students’ awareness on Data Privacy, Cyberbullying, and Intellectual Property. Real life examples were drawn from social media and YouTube videos to stimulate engagement. The students actively participated in the games, quizzes and discussions and managed to grasp some important basic concepts from the Personal Data (Privacy) Ordinance and Copyright Ordinance.   Widening of Horizon Another key message of the focus group was to bring out the importance of career planning, and its dependence on one’s evolving interests and capabilities. Three speakers from different departments of Nova Credit shared with the students about how their career journeys unfolded and ideas that went through their minds when they were 16 year-olds and beyond. Remarkably, to everyone’s surprise, one of the speakers aspired to be a dancer and was accepted into The Hong Kong Academy for Performing Arts before switching her course of higher education to study Mathematics and subsequently led to 20+ years of fulfilling career in Business Analytics. The students then had an opportunity to discuss and present to the facilitators and their peers regarding their own career aspirations.   The afternoon was wrapped up with a tour around Nova Credit’s office – the students were thrilled to visit a real business and as a result were more inspired!
02
SEP
2021
image_2 At mid-2021 Nova Credit estimated bankruptcy rate 0.139% Since 2020, Nova Credit started to release predictions of bankruptcy rates for the coming 12 months regularly. Hong Kong's economy has been gradually recovering due to the improving year-on-year GDP change and the decreasing unemployment rate announced recently. As of August 2021, Nova Credit estimated the bankruptcy rate for the next 12 months will be 0.139%.  Based on the 5.4 million Hong Kong population with credit profile, the estimated number of bankruptcy cases will be approximately 7,506, which is fewer than the annual total of 8,693 bankruptcy petitions received by the Official Receiver’s Office in 2020.   "Improvement in the gross domestic product (GDP) and the drop in unemployment rate are two important macro-economic indicators that affect the estimated bankruptcy rate we announced at mid-2021," said Albert Lo, Chief Architect of Nova Credit. According to the Census and Statistics Department (C&SD), real GDP continued to grow notably by 7.6% in the second quarter over a year earlier, total exports of goods grew strongly by 20.2% year-on-year in real terms in the second quarter.  Positive impacts from the global economic recoveries lead by Mainland China and the United States, Hong Kong's exports of goods in the upper-year increased significantly. In addition, the adaption of Covid vaccinations in Hong Kong also encourages HK retail markets. Our economy certainly welcomes the adjusted social distancing measures with a "vaccine bubble" to enable certain resumption of social and economic activities. According to the Half-yearly Economic Report 2021 released by the HKSAR government, consumption and investment demand gathered further steam, private consumption expenditure grew by 6.8% year-on-year in the second quarter and positively impacted the labour market. Overall investment expenditure saw accelerated growth of 23.8% year-on-year in real terms, reflecting significantly improved business sentiment.   The seasonally adjusted unemployment rate declined visibly, from the peak of 7.2% in December 2020 – February 2021 to 6.8% in the first quarter of 2021 and further estimated at 5% in May 2021 – July 2021. The unemployment rates of retail, accommodation and food services, construction, and arts, entertainment, and recreation sectors fell significantly. The underemployment rate likewise decreased from the peak of 4.0% to 3.8% and further to 2.5%. The performance of GDP and unemployment rate carry significant information value to the estimation of bankruptcy rate.   Hong Kong's economy continues to recover along with the epidemic situation. The government announced various multi-pronged measures, coordinated with the banking sector, and encouraging banks to back up SMEs at this difficult moment. We believe this will bring positive impacts to Hong Kong and we welcome such appropriate measures to further safeguard this important economic sector.   We look forward to the positive impact expected from direct fiscal policies such as the Consumption voucher scheme and Cross-boundary Wealth Management Connect and the knock-on effect that should boost our economy. Notwithstanding the uncertainties of international relationships and the economies of Hong Kong's key business partners, we are looking forward to more measures from HK and GBA that can help drive a strong recovery from the pandemic including the lift of travel restrictions.    Nova Credit will continuously monitor the macro-economic environment and update bankruptcy rate prediction accordingly, leverage innovative technology for sharing valuable findings with the banking sector, allowing more accurate and timely business decisions.
19
AUG
2021
Capture002 Nova Credit launches innovative cross-boundary KYC to help advance cross-boundary financial services With the continuous growth of the financial market in the Guangdong-Hong Kong-Macao Greater Bay Area, cross-boundary KYC (Know Your Customers) is being regarded as a key component for prevention of various financial risks. Nova Credit and The Institute of Compliance Officers had therefore jointly organized a webinar on “Cross-Boundary KYC – A New Perspective", which was successfully held in the afternoon of June 24. The esteemed guest speakers included Eva Kwok, Risk Advisory Partner, Deloitte and Stephen Kai-yi Wong, a practising barrister, ex-Privacy Commissioner for Personal Data. Cross-boundary KYC-related issues were elaborated and discussed with more than 300 financial professionals in the webinar.   The first survey in the webinar revealed that two-thirds of the participants believed “unable to validate customer identity and information, lack of customer profile and information, and complicated procedures” were the biggest challenges for cross-boundary KYC. The second survey looked into how well the industry understands the legislation of cross-boundary KYC. 90% of the participants were not familiar with the content and scope of application of Mainland laws and regulations. Meanwhile they also found it difficult to adapt to the rapid development of Central Government’s policies.   Eva Kwok, Risk Advisory Partner at Deloitte, added that the Mainland, Hong Kong and Macau are yet to share any personal data because of the different data and privacy regulations. Banks generally lack reliable and secure digital channels to verify the information provided by customers to meet KYC compliance requirements. As an example, for a Mainland customer opening a local bank account, the traditional KYC methodology is applied to verify the customer's identity information. Cross-boundary verification supported by documents which would usually takes 8 to 10 working days to complete the basic approval process. However, if banks can deploy eKYC by verifying customer identity and information online with stringent network security and privacy protection measures, the approval process can be drastically shortened to approximately 20 minutes.   In addition, ex-Privacy Commissioner for Personal Data Stephen Wong Kai-yi, a practising barrister, analyzed the current principles for free and secure flow of cross-boundary information and the compliance framework that allows cross-border/ boundary data transfer from a legal perspective. He explained that despite Section 33 of the Personal Data (Privacy) Ordinance that regulates cross-border/ boundary data transfer is not in force, financial institutions in Hong Kong should adopt good practices when transferring personal data in the Greater Bay Area outside Hong Kong by obtaining the written consent of the data subject first and adopt the standard contract clauses recommended by the Privacy Commissioner’s Office. He also talked about the recent data protection laws in the Mainland including the Draft Personal Information Protection Law of China. It states that when personal information processors transfer personal data outside China (including Hong Kong), prior consent of the data subject must be obtained. Furthermore, the relevant authorities’ cyber-security evaluation or examination, the official authorization and the use of standard contract clauses must be complied with. He pointed out that these new regulatory measures are consistent with the guidelines recently issued by the European Union (EU), and would facilitate information flow in the Greater Bay Area. He also suggested companies should consider adopting standard contract clauses that comply with the requirement of the laws in the Mainland and the EU after consulting professional advice.    Oscar Cheng, Business Strategy General Manager of Nova Credit, wrapped up the webinar by sharing the company’s innovative cross-boundary KYC solution. He elaborated that it will allow financial institutions in Hong Kong to verify identity and conduct customer due diligence through legitimate data sources in Mainland with explicit consent of Mainland customers. Apart from minimizing enquiry to customers and speeding up data verification process, it also ensures correct data entry and reflects the current status of customers. Nova Credit believes that the KYC solution will promote the overall development of the financial industry in the Greater Bay Area and speed up cross-boundary financial connectivity in the Guangdong-Hong Kong-Macao Greater Bay Area.   For the highlight video, please click here.