Latest global banking news

October 19, 2022 11:56 AM

In global news this week, India adds digital banking centers, NAB embraces tap-to-pay and JPMorgan Chase shakes up its management in the Asia Pacific region.

Here's what's happening around the world.

Narendra Modi, India's prime minister.

Dhiraj Singh/Bloomberg

India boosts digital banking initiative

India will soon launch 75 digital banking units, or DBUs, as part of an effort to bring more merchants and consumers to financial services. Like an internet cafe for banking, A DBU is a brick-and-mortar facility that houses computers and kiosks that allow users to open accounts, check balances, transfer funds, apply for loans and credit cards, and perform other financial tasks. Prime Minister Narendra Modi announced the initiative, which he said would promote financial inclusion. India's government has encouraged digital banking adoption for years, including a controversial move to instantly pull 86% of India's cash out of circulation in 2016. But India has also taken a hard line on cryptocurrency and has sparred with U.S. payment companies over India's local data storage requirements.

Patrick T. Fallon/Bloomberg

JPMorgan Chase shakes up Asia Pacific management

JPMorgan Chase has named Madhav Kalyan as its head of Asia Pacific payments, one of several leadership changes the bank has made in the region. Kalyan is based in Mumbai and replaces Sridhar Kanthadia, who will become that bank's co-head of payment rais and payment value-added services. Kalyan has been with Chase since 2009, when he was appointed head of corporate banking for India. Kalyan became senior country officer for India in 2021. Kaustubh Kulkarni has been named the new country officer for India, and will stay in his current job as vice chair of Asia Pacific. In another move, the bank appointed Navin Wadhwani as its head of investment banking in India and promoted PD Singh to head of corporate banking and interim CEO of JPMorgan Chase in India.

Mastercard invests in Egyptian fintech

Mastercard has made an investment in Nclude, a fintech venture capital organization that's aligned with the Central Bank of Egypt. The country's largest banks, including Banque Misr, National Bank of Egypt and Banque Du Caire, are also Nclude partners, and made a separate, initial investment of $100 million. Egypt is attempting to establish a fintech hub for the Middle East and Africa, as well as improve access for the region's underbanked population. The size of Mastercard's investment was not disclosed. The card network has had an international financial inclusion strategy for years, recently expanding it to small businesses in the U.S.

Visa Installments picks up retail support in Canada

Visa's installment lending option has added several new merchants including Simons, Canada Computers, Soft Moc and Trévi. Visa Installments is the card brand's version of buy now/pay later, a form of lending that's become increasingly popular over the past two years, but has also drawn attention from regulators concerned about potential credit risk. Fintechs dominated the BNPL market early on, and more banks have become active during the past year. While BNPL was originally positioned as an alternative to credit card debt, Visa and Mastercard are both active in the market, hoping to add choices for consumers and merchants.

Energy crunch may halt EU crypto mining

The European Commission is asking countries in the European Union to plan for a halt on cryptocurrency mining, given broader pressure on the energy sector due to Russia's invasion of Ukraine. The EU is taking a broad range of steps, including potential efficiency labels for blockchain companies, in an effort to conserve energy ahead of the winter when the war, and cuts to natural gas shipments from Russia, could cause an energy crisis. While there have been some improvements over the past year, cryptocurrency mining uses a large amount of energy to power computer facilities, leading to environmental concerns as the digital asset industry has grown.

Stripe expands its reach in the UAE

Wio Bank PJSC, a state-operated bank in the United Arab Emirates, has entered a partnership with Stripe to make it easier for small businesses to access e-commerce. The bank contends these businesses and independent contractors have faced challenges in signing up for payments and financial products. By using Stripe's gateway, these businesses will be able to sell online within a few minutes, replacing a system that required in-person onboarding. The UAE's government is trying to boost digital banking in the country, a trend that's in line with other countries in the region, which are attracting investment from Western financial technology companies.

NAB adds tap to pay

National Australia Bank has partnered with payment technology company Quest to launch NAB Easy Tap, which allows small businesses and sole proprietors to use Android phones to accept contactless payments without requiring a dongle or other hardware. The bank is offering the service with no minimum purchase requirement or upfront cost, and envisions farmers markets and open-air vendors as users. Westpac also offers Android tap to pay. Apple's Tap to Pay, which launched in February, has attracted Adyen among its early users. The technology, which is still in its early stage, could eventually become an alternative for physical point of sale terminals.