Banking and Finance News & Trends: Nov Week 3

Banking and Finance News & Trends: Nov Week 3

Banking and Finance News & Trends: Nov Week 3

Table of contents

  1. Banking and Finance Industry News
  2. Investment, PE & VC News
  3. People Moves

 

Banking and Finance Sector News

1. Market Sentiments

i. Bankers Expect a Relief from Asia’s Deal Slump as IPO Activity Gains Momentum

Asia’s IPO market is seeing signs of recovery after a lean period, with several key developments in 2024:

  • Hong Kong Market Recovery: Chinese companies are increasingly considering IPOs in Hong Kong, with significant listings already taking place, such as Midea Group’s US$4.6 billion offering. The Hang Seng Index is up nearly 20%, indicating renewed investor confidence in Hong Kong, partly due to China’s economic stimulus policies.
  • India’s Record Year: India has experienced a record year for IPOs, raising US$49 billion, driven by strong demand from both local and international investors. India’s IPO pipeline for 2025 is promising, with companies like Hyundai Motor India and LG Electronics leading the way.
  • Japan’s Steady Growth: Japan’s IPO market is also showing solid growth, highlighted by Tokyo Metro’s US$3 billion listing and upcoming offerings like CVC Capital Partners’ FineToday Holdings.

Takeaway: The IPO recovery signals a potential rebound in the financial services and investment banking sectors, especially for firms focused on Asia. However, risks persist, including potential geopolitical tensions, market volatility, and regulatory hurdles in China that may affect IPO execution and require firms to adapt their strategies accordingly.

 

2. Trends

i. Tech Expertise and Diverse Skills Essential for Fintech Careers

At the Singapore FinTech Festival, industry leaders highlighted key trends that are shaping the talent landscape in the fintech and financial services sectors.

  • A cautious hiring outlook is evident, with 57% of financial institutions either freezing hiring or reducing headcounts for tech roles.
  • However, fintech firms show slightly more optimism, with 27% planning to increase their tech workforce.
  • Firms are adopting flexible workforce models and outsourcing non-core capabilities while focusing on internal talent development for strategic, long-term roles.
  • AI adoption is widespread, with 94% of banks and asset managers exploring its use in sales, marketing, and data management.
  • The industry is also focusing on refining employee benefits to attract and retain top talent. This includes offering learning and development budgets, flexible leave policies and work arrangements, health benefits, lifestyle discounts, and employee recognition and engagement.

Takeaway: For fintech professionals, it’s no longer enough to possess technical skills alone. There is increasing demand for “techno-functional connectors”—individuals with both strong technical AI expertise and business acumen, along with critical soft skills such as creativity, leadership, and people management.

 

3. Business Moves

i. Crypto Data Provider Kaiko Buys Vinter, Eyes European ETP Market

Cryptocurrency data provider Kaiko acquired Vinter, a prominent European crypto index provider that offers digital asset indices and reference rates to multiple Europe-listed ETPs. These include those from 21Shares and Sygnum Bank. The acquisition is Kaiko’s third acquisition to date.

Takeaway: This move is part of Kaiko’s plans to target the growing European crypto Exchange Traded Product (ETP) market, which lags behind the US in size but is expected to expand significantly. The deal also comes amid a broader trend of US companies entering the European digital asset market as pro-crypto sentiment grows in the US following Trump’s victory. Examples include Bitwise’s purchase of ETC Group and Robinhood’s acquisition of Bitstamp.

 

ii. DBS Interested in Malaysian Bank Stakes as It Pushes for Expansion

DBS Bank, Singapore’s largest lender, is exploring opportunities to expand into Malaysia by acquiring stakes in local banks. The bank is eyeing the purchase of a 29.1% stake in Alliance Bank Malaysia, which is currently held by Singapore’s Temasek and valued at approximately US$460 million. Other options include acquiring the Malaysian retail banking assets of Kuwait Finance House, valued at over US$500 million.

Takeaway: Unlike its local competitors OCBC Bank and UOB, DBS has traditionally been absent in Malaysia’s retail banking sector. The move comes as Malaysia’s economy shows signs of strong growth, with infrastructure projects and a booming currency expected to drive up the demand for credit. It signals the bank’s intention to strengthen its regional foothold.

 

iii. ADB Boosts Climate Finance After First-Ever Sovereign Guarantees from US, Japan

The Asian Development Bank (ADB) is increasing its climate-related lending by up to US$7.2 billion, supported by sovereign guarantees from the US and Japan. The guarantees are part of a broader strategy to boost climate finance for developing countries, with a target of US$100 billion in cumulative lending from 2019 to 2030.

Takeaway: This move marks the first-ever use of sovereign guarantees for climate finance, enabling ADB to lend more for climate projects without requiring politically sensitive capital increases. This approach offers a scalable model for development banks to expand their lending capacity for climate projects, potentially reshaping how financial institutions address climate challenges. This strategy could influence how both public and private sectors collaborate on large-scale climate financing, particularly in emerging markets.

 

iv. Mizuho to Buy 15% of Rakuten’s Credit Card Arm for ¥165b

Mizuho Financial Group has agreed to acquire a 14.99% stake in Rakuten Card for ¥165bn ($1.06bn), with the transaction scheduled for 1 December 2024. Despite the sale, Rakuten Card will remain a subsidiary of Rakuten Group, continuing its operations within the Rakuten ecosystem. Rakuten expects a ¥159.35bn ($1.02bn) special profit from the sale. The collaboration includes launching a co-branded credit card and a digital instalment payment option for consumers, as well as simplifying payment and settlement processes for Rakuten Card’s 900,000 affiliate stores.

Takeaway: This follows Mizuho’s prior stake increase in Rakuten Securities as part of their broader partnership. The third-largest bank in Japan already has a business and capital alliance with Rakuten’s online securities division, and the partnership will enable it to attract new customers. This sale, which will provide Rakuten with a one-time gain of ¥159.4 billion, also aims to improve Rakuten’s liquidity, ease domestic rating pressure, and create room for future fundraising. The move may allow Rakuten to cover 2025 bond maturities and address financial pressures from its mobile unit. The deal highlights Rakuten’s ongoing efforts to stabilise its finances after incurring losses in its mobile business and its entry into Japan’s capital-intensive wireless market.

 

Investment, PE & VC News

tax incentive and fintech talent market

1. Business Moves

iv. BlackRock in Talks for Getting Minority Stake in Hedge Fund

BlackRock is reportedly in early discussions to acquire a minority stake in hedge fund Millennium Management, which manages $70 billion and has delivered a 10% return year-to-date.

Takeaway: While the potential strategic rationale remains unclear, the talks align with BlackRock’s broader acquisition-driven strategy to consolidate its position as a comprehensive investment platform. This year, BlackRock has already completed a $12.5 billion acquisition of Global Infrastructure Partners and is finalising a $3.2 billion deal for private markets data provider Preqin. The firm is also expanding into private credit and establishing a regional HQ in Riyadh to grow its Middle East footprint.

 

ii. US VC Hemisphere Launches First SEA Outpost in Singapore

US-based Hemisphere Ventures, known for early-stage investments in frontier technologies like space, biotech, and robotics, has opened its first Southeast Asian office in Singapore. Chip Whittemore, newly promoted to managing partner, will lead the Singapore office and focus on forging ties with regional investors and founders.

Takeaway: Singapore’s position as a financial hub, supported by its stable regulatory framework and increasing foreign investment, offers a strategic gateway to Southeast Asia’s booming markets. Amid shifting capital flows and global uncertainties, Singapore is also emerging as a preferred destination for advanced technology investments. The move positions Hemisphere Ventures to tap into the region’s dynamic startup ecosystem and connect it with its US network. Above all, it enables the firm to leverage the rapid growth of Singapore’s family office sector, which has expanded significantly in recent years.

 

iii. Investment Firms Compete for Talent in Japan Amidst Deals Boom

Major global investment firms like Carlyle, Warburg Pincus, and Advent International are increasing their workforce and establishing new offices in Tokyo. Carlyle has set aside approximately 100 billion yen for annual investments and plans to expand its local team by 40% to manage these transactions.

Takeaway: This expansion comes amidst a surge in private equity (PE) deal activity, particularly in take-private transactions, which saw Japan accounting for 30% of the region’s total deal value and becoming the largest PE market in Asia Pacific (APAC) last year. Despite this growth, the talent pool in Japan remains shallow due to the country’s historically low buyout activity, which creates intense competition for experienced professionals. PE and infrastructure funds are aggressively recruiting for roles ranging from entry to senior levels, with new entrants and established firms doubling their presence over the past decade. However, as recruitment lags behind capital inflows, limited expertise could impede PE firms’ ability to fully capitalise on Japan’s burgeoning deal opportunities.

 

iv. DeepRoute.ai Gets $100m in Series C1 led by Great Wall Motor

Shenzhen-based autonomous driving startup DeepRoute.ai, led by Tsinghua-educated Dr. Zhou Guang, recently secured a $100 million strategic investment from Great Wall Motors in its Series C1 funding round. This brings the company’s total fundraising to over $500 million since its inception in 2019. DeepRoute.ai has pioneered innovative solutions like “map-free” autonomous driving and aims to scale Robotaxi operations through mass-market vehicles. The funds will accelerate R&D of its “end-to-end” DeepRoute IO model, bolster partnerships with global automakers, and advance its robotaxi initiatives.

Key Milestones and Innovations:

  • Technology: The DeepRoute-Driver system integrates sensors, vision cameras, and 5G-enabled cloud monitoring, offering scalable, cost-effective autonomous driving solutions adaptable to various environments.
  • Partnerships: Collaborations with OEMs such as Lincoln, Geely, and Ford support its expansion, with over 20,000 vehicles delivered since August and 10 new models planned for next year.
  • Market Potential: Aimed at reshaping global transportation, DeepRoute.ai’s autonomous systems are priced competitively at $1,000-$2,000 per vehicle for OEM clients.

Takeaway: Dr Zhou’s return to China highlights Shenzhen’s appeal as a hub for intelligent automotive innovation, given its robust supply chains, favourable policies, and vibrant talent pool. Shenzhen’s ecosystem has been a key enabler of the company’s growth, mirroring the city’s transformation into a global leader in smart and connected vehicles. The company has weathered funding challenges, including a near cash-flow crisis in 2020, but rebounded to achieve unicorn status in 2021. It is now positioned to lead the next wave of autonomous driving commercialisation, with IPO aspirations aligning with its long-term goals.

 

2. Markets

i. Singapore Rolls Out New Investment Incentives Ahead of Global Minimum Tax

Singapore passed a Bill to enhance its tax incentives ahead of the implementation of a global minimum tax rate of 15% in 2025, which will affect MNCs investing in the country. The key changes introduced include:

  • An additional 15% concessionary tax rate for companies under the Development and Expansion Incentive (DEI) scheme.
  • Expanded eligibility for a DEI award tenure of up to 40 years. This amendment allows non-headquarter service companies, such as those in payment technologies, AI, or aircraft maintenance, to qualify.
  • The DEI scheme is also extended until 2028.

Takeaway: The Bill reflects Singapore’s strategic push to remain competitive in attracting foreign investments, especially as firms brace for the implementation of the OECD’s Base Erosion and Profit Shifting (BEPS) rules. These adjustments enable companies, including SMEs, to benefit from tax incentives as long as they contribute to Singapore’s economic development through high-value activities, skilled employment, and technological capabilities.

 

People Moves

i. Banks: DBS and Thai Central Bank

DBS: DBS nominated Rajat Verma, its head of institutional banking in India, as the next CEO of DBS India, pending regulatory approval from the Reserve Bank of India (RBI). Verma is expected to succeed Surojit Shome, who has led DBS India since 2015 and is set to retire. Verma joined DBS last year and has over 26 years of experience from HSBC, where he served as the head of commercial banking in India.

Thai Central Bank: The Thai government nominated former Finance Minister Kittiratt na Ranong to chair the Bank of Thailand’s board, a move that has raised concerns about potential political interference in the central bank’s operations. This nomination follows months of government pressure on the central bank to reduce interest rates. While Kittiratt’s selection still requires approval from the finance minister, Cabinet, and the king, it is expected to pass. His selection has been met with opposition from former central bank governors and economists who warn that political influence over the bank could harm long-term economic stability.

 

ii. Wealth: Goldman, Capital Group, Fiera, Manulife, AIA, Saxo

Goldman Sachs: Goldman Sachs promoted three senior bankers from Japan to partner, marking the largest such promotion in over a decade. This includes Kazuya Iketani, Kosuke Kurosawa, and Teppei Takanabe. The bank also promoted three bankers in Hong Kong and two in Singapore. These moves come as part of Goldman’s strategy to replenish its partnership pool and capitalise on the recent boom in bond trading in Japan.

Capital Group: Capital Group appointed Marketa Dvorak as managing director for global financial institutions in the APAC region. Dvorak, who previously led Southeast Asia for Wellington Management’s global wealth management group, will be based in Singapore.

Fiera Capital: Fiera Capital, a Canadian asset management firm with over $122.5 billion in assets under management, appointed Bradley Bester as Director of Investor Relations in Hong Kong. Bester has more than 10 years of experience. He will focus on growing investor relationships for Fiera’s ANZ Real Estate Debt strategy, which targets senior real estate-backed loans in Australia and New Zealand.

Manulife IM: Manulife Investment Management appointed Charlie Dutton as Chief Investment Officer (CIO) of global emerging market equities, a newly-created role to align the firm’s Asia ex-Japan and emerging market equity teams.

  • Specialisation: Dutton has over 27 years of investment experience, including more than 25 years specialising in Asian equities. He has worked in Hong Kong, South Africa, and London, with a strong background in managing Asian-focused equity funds.
  • Experience: Before joining Manulife Investment Management earlier this year, Dutton was a fund manager at Ninety One and a founding partner at Coupland Cardiff. His career also includes roles as Director of Asia-Pacific Research at JPMorgan and a Hong Kong/China consumer analyst at JF Securities, starting at HSBC as a Hong Kong/China analyst.
  • Responsibilities: He will oversee the integration of local insights and resources across these regions to enhance research, decision-making, and tailored client solutions.

AIA IM: AIA Investment Management appointed Ernest Low as its new head of funds selection. Low will be based in Singapore. He has over 20 years of experience in financial services and specialises in funds. He previously served as UOB’s regional head of funds and has also held a position at AXA.

 

iii. Fund: QIA and SoftBank Vision Fund

QIA: Qatar appointed Mohammed Al Sowaidi as the CEO of its $510 billion sovereign wealth fund, the Qatar Investment Authority (QIA), following the tenure of Mansoor Al Mahmoud. Al Sowaidi has been with QIA since 2010 and was previously the Chief Investment Officer for the Americas. He will lead the fund as it anticipates significant growth from Qatar’s expanding natural gas output, which could potentially add $30 billion to state revenues. This appointment signals QIA’s focus on strategic asset allocation, especially as Gulf wealth funds increasingly influence global finance, with QIA ramping up investments in sectors like technology, healthcare, and infrastructure. The fund also focuses on further expansion into Asia and the US while diversifying away from Europe.

SoftBank Vision Fund: Rajeev Misra, once the key deputy to SoftBank’s founder Masayoshi Son, has officially resigned as co-CEO of SoftBank’s Vision Fund, ending his influential role in the venture capital giant. Misra was instrumental in the Vision Fund’s launch in 2017 and helped secure nearly $100 billion in funding, largely from Middle Eastern investors. However, his aggressive investment strategy, coupled with high-profile failures such as WeWork, led to significant losses for the fund. Following a period of heavy losses in 2022, SoftBank adopted a more cautious investment approach, significantly reducing its investments. Misra’s departure marks the end of SoftBank’s most audacious investment era. Despite setbacks, the shift to a more defensive strategy has shown positive results, with the Vision Fund reporting a $4.6 billion profit in fiscal 2023 after a string of losses. The wider venture capital landscape is also feeling the pressure, with a significant slowdown in investments globally due to challenges in exits and market conditions.

 

Discover More Industry Trends with JC

For the latest industry trends or to explore new career opportunities, connect with our financial services recruitment consultants for a chat. With executive search firms in Singapore and China, and operations in key business hubs like Hong Kong, you can count on our team for timely access to regional insights that can create synergy for your career and operations.

For employers: Beyond the banking and financial services industry, we also have dedicated desks for several sectors that enables us to meet your varied recruitment needs:

Image Credits:

  • Reuters
  • ST File
  • Singapore Fintech Association
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