Global news roundup

April 6, 2022 11:10 AM

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In global news this week, HSBC goes deeper into the metaverse; Visa has a new innovation hub in Kenya; Google may run afoul of South Korean payments law; and more.

Here's what's happening around the world.

HSBC launches portfolio on metaverse

HSBC Holdings has launched a fund for metaverse opportunities for its private banking clients in Hong Kong and Singapore, as the U.K. lender wades further into the $800 billion virtual reality market. The discretionary portfolio managed by HSBC Asset Management focuses on investing in companies within the metaverse ecosystem and “aims to capture the growth opportunities globally over the next decade,” the London-based bank said in a statement. HSBC last month made its debut in the metaverse after buying a site aimed at sports, esports and gaming enthusiasts. —Denise Wee, Bloomberg News

South Korea warns Google against blocking payments

Google's plan to remove links to external payment methods in Android apps — thus driving people to use Google's own payment methods — has run afoul of South Korean lawmakers. The Korea Communications Commission has issued legal guidance saying the move would violate a law passed last year, which Google had agreed to comply with at the time through a system that still allowed the tech giant to take a cut of payments made through third parties, Engadget reports. —Daniel Wolfe

Bloomberg

Visa opens innovation hub in Africa

Visa has launched an innovation studio in Kenya to foster collaboration among developers, clients and partners. The studio is the global card brand's first in Africa and its sixth globally, TechCrunch reports. Its others are in Dubai, London, Miami, San Francisco and Singapore. Visa's other innovation labs helped the card network create a link to Kenya's Safaricom, enabling merchants that use M-Pesa to accept card payments. —Daniel Wolfe

Bloomberg

South Africa central bank urges blockchain use

South African policymakers, legislators and regulators need more engagement with the fintech industry before distributed-ledger technology can be incorporated into the nation’s financial markets, according to a new report by the central bank and the Intergovernmental Fintech Working Group. With legislative reforms in the payment system underway in South Africa, it’s an opportune time to consider how to treat distributed ledger-based platforms and the use of tokenization in financial markets, though efforts should be made to ensure rules are technology-neutral, principle-based and borne out of collaboration, the Reserve Bank and the working group said in a statement Wednesday. —Prinesha Naidoo, Bloomberg News

Signage is displayed outside of a Royal Bank of Canada (RBC) branch.

Bloomberg

Royal Bank of Canada to acquire U.K. firm

The $1.4 trillion-asset (CA$1.7 trillion) RBC in Toronto said Thursday that it will purchase the U.K.-based wealth management firm Brewin Dolphin Holdings, pending regulatory approval and confirmation from the firm’s shareholders. RBC's recommended cash offer included in the deal amounts to $2.1 billion (£1.6 billion). “The U.K. is a key growth market for RBC, and Brewin Dolphin provides us with an exceptional platform to significantly transform our wealth management business in the region,” said Doug Guzman, group head of RBC Wealth Management, RBC Insurance and RBC Investor and Treasury Services. —Frank Gargano

Citi to sell Bahrain unit to Ahli United Bank

Citigroup agreed to sell its consumer banking operations in Bahrain to Ahli United Bank BSC as part of the lender’s continued push to simplify. The transaction includes Citigroup’s retail banking, credit card and unsecured-lending businesses, and excludes the firm’s institutional businesses, according to a statement. New York-based Citigroup said the deal is expected to close by the second half of the year, noting that Ahli United Bank was selected as part of a competitive auction process. —Jenny Surane, Bloomberg News