#39 – RegTalks with Oliver Wai Aleta Planet

Transcript

Welcome to RegTalks, the podcast dedicated to the latest trends from the world of regtech, fintech, and financial regulations.

My name is Claus Christensen, and I’m the CEO and co-founder of the award-winning regtech provider Know Your Customer Limited.

Today, it’s my great pleasure to welcome Oliver Wai, the Director of Operational Risk at Aleta Planet as my guest.

Oliver heads the Operational Risk department in Aleta Planet to provide a broad risk oversight across the firm’s operating activities. Prior to that, he spent nine years with major banks such as DBS and Citibank in various risk management roles that span across areas of regulatory, project management, and product governance, with special expertise in complex investment products. In his appointment with Global Functions, Oliver focused on the APAC and EMEA regions, looking after seventeen countries across the consumer and private bank segments. Oliver graduated with a BSc in Economics and Finance from the University of London and was awarded with academic achievements by the institution.

Warm welcome to you, Oliver. Thanks for joining us.

Thanks, Claus. Thanks for having me on the podcast. Really great to be here speaking with you.

My pleasure. First question: After your experience in major banks, what inspired you to pursue a career in the payments industry?

So as I came from a traditional finance background, payments have always been the core of the product suite and services that are provided and offered to the consumer or clients. Having spent some time of my banking career on system architecture and related initiatives, I’ve observed that there was a trending emphasis placed on technological innovation. And this is really across the way we work, the way we operate, as well as the way that we communicate. While these innovations may be subtle and not drastic, one example that I can think of is the gradual shift away from a traditional call hotline to a more robo-advisor or advisory that is automated on a twenty-four-seven basis. And so this transition opens up further opportunities and possibilities just by leveraging the use of technology.

I think joining Aleta Planet and being part of the fintech and payments industry allows a direct participation in driving innovation and making an impact on the payments industry, which I personally find exciting and intellectually fulfilling as well.

Yeah. I agree. It’s an interesting journey.

Years from another side, and my own journey here in technology. My journey started from the tech side. I have a degree in computer science, and I worked in tech implementations in different ways.

So going into regtech from the other side, I really experienced that the experience from banking was missing in our company. In the early days, that was actually a big challenge for us to understand our customers, which are usually large banks and payment institutions like yourself. But to understand them and to be able to work with them took a while to learn, and that is when you come from the other side, a challenge that you didn’t have. And I absolutely understand that you wanted to be more at the cutting edge and implement the latest in payments and not sit in a traditional banker during this time. It is an exciting time. Absolutely.

What do you see as the latest biggest trends in the global payments landscape today? What is changing here?

So I think that the global payments landscape is undergoing a rapid transformation at this very moment. I think it’s driven by a combination of technological push, demand factors, evolving consumer expectations, as well as regulatory developments. I can think of three examples that I can cite. Firstly, there is an increased adoption of digital wallets such as Apple Pay and Google Pay, which are household names, as well as regional players such as Alipay for the Greater China region. I think consumers now prefer a really fast, seamless, as well as a secure method of payment.

And that, in part, has driven the growth of contactless card payments as well as QR code-based transactions, particularly in the emerging markets region. The second one is real-time fund transfer and settlement networks that are really expanding globally. And this enables immediate fund transfers as well as improvements in liquidity for businesses and consumers.

Some examples of this would be UPI for Greater China as well as FTX for the US.

And thirdly, regtech or regulatory technology is becoming increasingly important as companies grapple with more compliance regulations and requirements that come with new ventures as well as business developments.

As many regtech solutions use AI and machine learning to automate compliance monitoring, fraud detection, as well as regulatory reporting, these technologies enable faster and far more accurate adherence to rules, which ultimately means that there is a reduced risk associated with non-compliance to such rules. For Aleta Planet, we are leveraging Know Your Customer as part of our onboarding KYC process that has helped us streamline the onboarding process and also increased our operational efficiency by reducing the amount of manual intervention that is required.

Absolutely. Thanks. So to mention, fascinating developments in payments are something, obviously, we witnessed in our own personal lives as well. I was back in Shanghai in China after, like, five years of absence last year.

So towards the end of last year, I went to Shanghai for a few days. That was a very interesting experience. Again, after five years, imagine how much more ingrained the payments are in the Chinese daily life there. If you want to buy coffee, if you even want to buy fruit at a street-side vendor, you use one of those payment systems.

And it’s actually a bit of a challenge for Westerners to come over now because we are usually not on those platforms. Now I was lucky with a Hong Kong-based Alipay account, and I could use that. But if you’re from Europe and don’t have that, you’re actually a bit stranded there because nobody really wants to take cash anymore. Right?

Absolutely. Absolutely.

You mentioned regulatory frameworks and regulations as one of these parts that influence the development. How do you navigate all those different frameworks in Singapore, Malaysia, and China, all areas where you’re active, especially with the recent developments in China’s regulations? How does Aleta Planet manage all that?

So Aleta Planet has a presence in the locations that you have mentioned, and we have offices in over five locations, namely Singapore, Malaysia, Hong Kong, China, as well as the UAE. The office here in Singapore is our main headquarters, and we are a regulated and licensed entity with the Monetary Authority of Singapore as the major payments institution. I think generally, operating in multiple regions with nuances in the regulatory requirements will mean that we need to take the most stringent stance out of all of the regions and new business ventures and developments will have to take into consideration the additional complexities, size components, as well as other operating factors to be included in meeting with the country’s regulations. Conceptually, some of these may mean how do we safeguard our clients’ funds or enhance the existing controls and operational measures to meet with the local laws and regulators.

This could also mean additional regulatory reporting and adoption of a risk-based approach to bifurcate and tailor the risks involved in our operations into different levels.

It is complex, but it’s probably not that complex because all regulations in our areas ultimately derive from the same core ideas.

In our case, it’s actually a bit simpler than in yours because we concentrate on one area, which is anti-money laundering. And there, it’s the FATF global organizations’ recommendations that are implemented slightly differently in every country’s regulations.

And the good thing is they all follow the FATF recommendations ultimately. So the basic ideas behind it are the same even though the implementation can vary. But, yeah, when I heard you talk through that, I kind of it cut back into my mind how complex an environment this really is for both of us.

I guess it’s just bad and bad for us. It’s the daily life. We deal with it, and we’re gone. Yeah.

Regulations, on the one hand, we learn to follow them, and we learn to embrace them. And it’s a big part of our business. But internally, both our businesses operate with a startup mentality.

So there’s a slight disconnect already there. And Aleta Planet, especially, is still evolving with a really strong startup mentality. I saw that when I spoke with your team in Singapore. How is this affecting your strategies in collaboration and innovation?

So that’s a very good question. As well as I think we have a lot of similarities in terms of our approach internally with the team members and team structure.

So as the company grows with its people, I think a startup mindset will foster agility as well as adaptability.

Being lean in structure will mean that there is an emphasis placed on each individual, emphasising that they are an essential role in shaping the company’s cultures, values, as well as its shared objectives.

Aleta Planet is a young, vibrant, and dynamic team that really brings diverse insights and experiences across the table, which then naturally fuels innovation and fresh perspectives. In terms of decision-making that is essentially quite decentralised as well. And this empowers team members to take ownership of their roles and experiment with new approaches. This environment not only nurtures creativity but also promotes a sense of accountability.

And also this approach has allowed us to be more customer-centric and solution-oriented. Ultimately, I think that a startup mindset will enable Aleta Planet to stay competitive in the ever-rapidly evolving payments industry.

Yeah. I fully agree. It is essential. Here’s one little counter example, though. That is from our own experience.

I am catching myself. Now we’re nine years in, and we’re working with very large banks and financial institutions, very dynamic ones like yourself.

I do see sometimes, even in our own company, the limitations of the startup mindset, and those limitations are space, time, and funds. We cannot actually follow all the ideas we have. We have so many more that we have to focus on specific execution as well. And that kind of brings us nearer to how large established companies operate than we sometimes think.

Yes. That’s correct. Absolutely all thoughts.

But at the moment, there’s still a lot of innovation going on. Can you share some examples of how Aleta Planet is driving innovation in the payment space? What are the specialties that you’re doing there?

So Aleta Planet is at the forefront when it comes to innovation in the payments industry.

We are constantly exploring new projects and new technologies to enhance convenience, as well as bring value to our clients. As part of our commitment to staying ahead, we are gearing up for several initiatives in 2025 this year.

Please tell.

Among these is the introduction of points of sale, or POS for short, offline payments that are tailored for local merchants, enabling a seamless transactional experience in areas that have limited connectivity.

Additionally, full circle. I love that.

Yes.

So you’re going back to the basics really where it happens in the merchants. Very good. Thanks.

Yeah. That’s correct. So we started with the merchants, and we would continue to foster that client base as well as experience for our merchant clients. Additionally, we are integrating cutting-edge eSIM capabilities into our app. And this offers the flexibility as well as connectivity worldwide.

So these enhancements really underscore our dedication to transforming the payments industry by empowering our clients with innovative solutions.

Just one follow-up question there. So you’re also a mobile SIM operator now. What’s the connection to the payment? How does mobile SIM connect to payments?

So I think a mobile app itself or payments app itself traditionally drives payments for consumer-to-consumer or business-to-consumer type of transactional flow. But having an app to include a phone number and allowing one app to have multiple functionalities at utility for the end consumer when it comes to, for example, tourists going into another country that would like to make a payment for certain goods or purchases.

At the same time, it’s a one-stop shop where they can use the app for connectivity purposes as well that comes with data as well as a phone number in the local country.

I guess when you are in a new country, you do need the data connectivity on your mobile now as well anyway as essentials for the payment. So it’s actually a great combination. Yeah. You’re right. I noticed that a little traction has quite impressive traction in the market. Do you have any story that illustrates how Aleta Planet’s impact is there in the market?

Yes, Claus. Actually, last year in the quarter three of 2024, we secured a significant milestone investment deal with National Palace, which is a Dubai-based company that is renowned for making investments into technologically driven businesses.

This partnership represents a transformative moment for Aleta Planet as it enables us to expand beyond our regional footprint into a truly global segment. Aleta Planet’s partnership with National Palace is the result of our ability to adapt, innovate, as well as create meaningful impact in the payments industry. It also exemplifies how strategic alliances can amplify growth and establish a solid foundation for long-term success on a global scale.

That is brilliant. Congrats on the investment. That is always a major milestone, and I’m absolutely sure the Aleta Planet team will be able to digest that and use that in good ways. I’ve seen investment in the space sometimes go astray a bit where people don’t have the background and the ability to really use it efficiently.

That shouldn’t be a problem with your team. I’m absolutely sure. But let’s bring the conversation back to technology a bit again. How does your in-house tech team use the latest technology solutions to enhance Aleta Planet’s payment infrastructure across different platforms and regions? How do you use tech?

So Aleta Planet has an in-house technology team, and the team has been a cornerstone of the company since its inception and founding.

The team consists of experienced front-end developers as well as back-end developers. We also have specialists in the information technology field that plays a pivotal role in designing developments, as well as the maintenance of our payments infrastructure that powers our operations across multiple regions and platforms. In today’s payments ecosystem, security is paramount in both the regulatory as well as the reputational angle. From the regulatory angle, for example, consumer data loss preventive measures are a requirement as part of our payment services act by the regulators.

So our technology team employs various encryption methods as well as two-factor authentication methods and intrusion prevention measures that are aligned with global standards, such as the PCI DSS standards, to ensure data protection as well as data integrity. This, coupled with our commitment to delivering an intuitive user experience on the payments app, ensures that our clients and users stay protected while providing them with the best payment solution.

Very good. Yeah. Obviously, security is always very important. I’m impressed that you had to go, but, of course, you did go through PCI DSS.

We’re only doing ISO 27001, so that’s the general broader one, but the specifics for the payment industry are quite a bit harder. So well done getting that done. We obviously use technology everywhere. We are a technology company, and I kind of have to channel what we do into certain areas that we want to focus on.

One area that we focused on recently is generative AI. That is quietly in the background revolutionising a lot of our products as well. We are kind of a hardcore, very tangible tech company that provides a part of data that isn’t replaceable by generative AI. And you can’t just ask ChatGPT, can I onboard this company? Is it okay according to money laundering laws? You need hard data, and that’s the sort of thing we provide. But inside that, there are many, many applications. And so we’re going that way now with analysing source documents with generative AI, extracting data.

That needs a lot of safeguards as well, by the way, additional security things. Are you using generative AI in your products as well already?

I would say that we are definitely open to using generative AI.

It’s something that would help us to build controls and enhance the current operational risk in terms of reduction of those risks and increase some of those efficiencies. So it’s something that we as a company are keen to explore in that regard.

And in any case, with our functions inside your tech solutions, you are ready to be in generative AI. Alright. I have one last question that I ask all my guests. And that is, if you were to switch roles and become the global regulator tomorrow, what would you do with that power?

So this is indeed an interesting question. I recently had the chance to read a report that was published by the Global Fintech Institute about navigating the complexities and regulatory challenges in the digital asset industry. The summarised version of the report depicts the current taxonomy of digital currencies as well as the regulatory hurdles that exist due to the segmented regulatory framework, which then often hinders the industry’s potential to innovate responsibly.

So I think if I were to become the global regulator tomorrow, I would focus on several key areas to address these portions by first introducing a methodology that is harmonised on the classification of the digital assets. And secondly, I would establish a coherent framework for digital asset service providers or DASPs to promote the concept of same activity, same risk. So early on, Claus, you mentioned the FATF being one of the core guiding organisations or bodies. And at Aleta Planet, we also take the FATF’s recommendations. I think for digital assets, one of the concepts that they are encouraging firms to take is with the travel rule.

And that means that for a regulated entity that has digital assets in their transaction, we’ll have to establish the end-to-end transactions between the originator of the funds to the beneficiary of the funds.

So I think by taking a proactive approach, regulators globally can meet with the ever-changing and evolving payments landscape while promoting responsible innovation.

I like that. And the harmonising would be on the top of my own agenda if I were to be asked that question as well. I guess this is a wish that we from the industry have in a world that is unfortunately not that harmonised and is in parts even drifting apart and setting up different environments.

So it’s probably going to stay a wish for a long time and won’t be all that harmonised and seamless. But that’s just what we have to deal with and what we deal with in the cross-border situations. And I think it’s an important job to stay on and work with all these different regulations, to provide at least the consumers and the business customers in our case with the ability to cross borders because that’s what promotes understanding and cooperation worldwide. Well, Oliver, thank you so much. This has been an absolute pleasure. I love how you thought about your questions and had fantastic answers and follow through every time.

Looking forward to meeting up in person in Singapore again shortly.

Thanks, Claus, for having us on the podcast. It’s been a pleasure, and it’s been great speaking with you.

Thank you.

Thank you for listening to this episode of RegTalks. My name is Claus Christensen, and I’m the CEO and co-founder of the award-winning regtech provider Know Your Customer.

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