The financial sector has started the earnings release and they look crap, zero loan growth, profit down, lots of write off’s. Amusingly the only decent looking bank in this quarter was KTB (note: BAY was good too, but quite illiquid), but that’s because of the massive write off’s they took in 2018.

  1. With everybody using smartphones, how long it will take before FB, Tencent or another social become a mega global banks?

    And what will happen to “traditional” banks in the future?

    I can see government concerns on Libra but many big names are betting on it and are ready to join the party.

    • China has it already internally, when was the last time you went there? You’ll think the rest of the world is far behind in terms of payment technology.

      I see facebook being broken up by the US government and doubt their libra will work, but like I may have posted here on Bitcoin in the past, I wouldn’t be surprised to see a derivative form it being used to replace paper money. At the end of the day most of our money is digital anyways.

      • Pon, they will soon be seeing heavy regulation just like the banks do, there have been many P2P lending platforms who have fallen over due to lax regulations, the problem is lawmakers are always playing catch up with technology.

        When wechat pay first started you could just use it freely, then 2017 they started mandatory ID linking to your national ID card number, the QR payment barcode can literally be screenshotted by anyone or printed onto paper and then scanned to make payments from other people’s account, It is surprising how lax the security is when it is real money involved.

        • yes more regulations coming but the convenience and wide use case of it in China today makes the rest of the world look ancient in terms of payment tech adoption.

    • Traditional banks will need to adapt like any brick and mortar business and move into the digital age. I think there is great potential there given the high costs associated with physical branches and staff.

      I walked into A KBank branch once and had 2 staff members greet me at the door and one pressed the queue ticket machine for me. Now if that wasn’t redundancy at its finest then I don’t know what is.

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