FinTech – Southeast Asia, July 2016 TRACXN REPORT SOUTHEAST ASIA FINTECH - MAY 2016 In collaboration with- East Ventures & Lenddo JUNE 2016
FinTech – Southeast Asia, July 2016
TRACXN REPORT
SOUTHEAST ASIA
FINTECH -
MAY 2016
In collaboration with-
East Ventures & Lenddo
JUNE 2016
FinTech – Southeast Asia, July 20162
TracxnWorld’s Largest Startup Research Platform
FinTech – Southeast Asia, July 20163
Contents
Topic Page
Sectors We Track 04
Overview 05
Experts Speak 07
Tracxn BlueBox 53
Company List 77
Q&A with Industry Experts 189
Team 190
About Tracxn 198
FinTech – Southeast Asia, July 20164
Illustrative Sectors We Track In SEA
CONSUMER DIGITAL
HEALTH TECH
ONLINE RETAIL
TRANSPORT
REAL ESTATE
TRAVEL
LOGISTICS
FOOD
GROCERY
LOCAL SERVICES
HEALTHCARE DISCOVERY
HEALTHCARE DELIVERY
FINTECH
EDTECH
BITCOIN
LENDING
CROWDFUNDING
PAYMENT
INVESTMENT TECH
BANKING TECH
PERSONAL FINANCE
INSURANCE TECH
TUTORING
ONLINE COURSES
TECHNOLOGY
INTERNET OF THINGS
3D PRINTING
WEARABLES
DRONES
SMART BUILDINGS
BLOCKCHAIN APPLICATIONS
ENERGY
ROBOTICS
ENTERPRISE TECH
ADTECH
ENTERPRISE COLLABORATION
MARKETING TECH
HUMAN RESOURCES
ECOMMERCE ENABLERS
LEGAL TECH
SALES FORCE AUTOMATION
SMB SAAS
ONLINE VIDEO
AD NETWORK
AD EXCHANGE
FinTech – Southeast Asia, July 20165
Sector Overview
Scope of report
This report covers companies that provide financial services with the help of technology in Southeast Asia (SEA) region. Thecountries included for this report are Singapore, Indonesia, Malaysia, Thailand, Philippines, and Vietnam. The report takes intoaccount the disclosed funding amount and rounds only. Over $300M has been invested since 2007 with ~ $150M invested in2015 alone. Around 80 rounds of funding happened in the year 2014 & 2015.
Payments and Investment Tech are the top two funded sectors
• Payments - 106 companies - 32 investments worth ~ $80M
• Investment Tech - 63 companies - 20 investments worth ~ $120M
FinTech – Southeast Asia, July 20166
Notable Investments
Notable investments in FinTech – SEA during last few months
• M-DAQ (Investment Tech) - $82M from EDB Investments – Nov’2015.
• Momo (Mobile Wallet) - $28M from Standard Chartered and Goldman Sachs – Mar’2016.
• Ayannah (Remittance) - $3M from 500 Startups, Wavemaker, Golden Gate Ventures, IMJ Investment Partners, Beenos,GREE Ventures – Dec’2015.
• Xfers (Payment Gateway) - $2.5M from Golden Gate Ventures, 500 Startups, GMO Venture Partners, Partech Ventures,BWB Ventures, Convergence Ventures – Jan’2016.
• Claim Di (Insurance Tech) - $2M from CyberAgent Ventures, Golden Gate Ventures, 500 Startups, dtac Accelerate –Nov’2015.
• AlgoMerchant (Investment Tech) - $910K from East Ventures – Jan’2016.
• Lenddo (Lending – Credit Scoring) – Undisclosed amount from Golden Gate Ventures, Omidyar, Life.Sreda etc –Oct’2015.
• Seedly (Personal Finance Management) - Undisclosed amount from East Ventures – Mar’2016.
FinTech – Southeast Asia, July 20167
Experts Speak
Willson CuacaFounding & ManagingPartner,East Ventures
Altona WidjajaVice President,OCBC Bank
“Southeast Asia is definitely an interesting market for Fintech. InSoutheast Asia, many countries like the Philippines and Indonesiahave a large unbanked population. An interesting context is highmobile phone penetration rate and social media adoption. Fintechservices that focus on mobile payments aren't just offering adifferent service, they are solving a societal problem and levellingthe previously unbanked up directly to banking 2.0.”
“It’s time for the banks to co-create with the external eco-systempartner like the Fintech startups. In Singapore, there’s a concertedeffort by the government bodies and eco-system partners to createan environment for innovation to thrive. The market infrastructureand regulatory support would vary with each country in SEA, butthere’s a high chance of replicating the initiatives in other SEAcountries especially in Malaysia and Indonesia.”
FinTech – Southeast Asia, July 20168
Experts Speak
Richard Ian EldridgeCo-founder & CEO, Lenddo
Jeff StewartFounder & CEO, Lenddo
“Central banks are being proactive in allowing new techniques fordriving financial inclusion as long as it is done in a plannedapproach and ensures the stability of the financial systems. Therecent evolution observed in emerging markets show that they areembracing more and more modernisation as a compulsory step toquickly support and help financial institutions.”
FinTech – Southeast Asia, July 20169
FinTech SEA – Active Investors
Neuroware, 2014 PawnHero,2016
iMoney,2013
Omise, 2015
Lenddo,2015
ayannah,2015
Omise,2015
MoneySmart,2015
Jojonomic, 2015
Omise,2015
StockRaders, 2015
Cermati, 2015
MoolahSense, 2015
CodaPay,2013
500 Startups
Claim Di,2015
CoinPip, 2014
Claim Di,2015
Call Levels, 2015
Seedly, 2016
AlgoMerchant, 2016
Jurnal, 2016
Moka, 2015
Xfers,2016
Xfers,2016
ayannah,2015
Xendit,2015
* year reflects the latest round
participated by the investor
FinTech – Southeast Asia, July 201610
Over 520 companies were founded in last 10 years with ~2/3rd companies founded in last 3 years
FinTech – Southeast Asia, July 201611
2015 saw the highest number of new companies and funding by value
• FinTech industry in SoutheastAsia has witnessed anexponential increase in fundingin last 3 years.
• Total funding in 2013 and 2015were ~$64M and ~155Mrespectively, with a decline in2014 in between.
• Number of funding rounds haveincreased consistently YoY,touching ~60 in 2015.
• Investment Tech, Payment,Mobile Payment and Lendingsegments witnessed significantinvestment activity.$7M
$13M
$64M
$20M
$155M
58
25
31
59
0
35
70
0
35
70
105
140
175
2011 2012 2013 2014 2015
No
. of R
ou
nd
s
Fun
din
g A
mo
un
t (i
n M
illio
ns)
Total funding and number of funding rounds between 2011 – 2015
Total Funding No. of Rounds
FinTech – Southeast Asia, July 201612
Number of deals has increased significantly in last three years
FinTech – Southeast Asia, July 201613
FinTech SEA – 2015-16 (YTD)
FinTech – Southeast Asia, July 201614
FinTech SEA – Funded Universe
FinTech – Southeast Asia, July 201615
SingaporeP
enet
rati
on
Source1, Source2
FinTech – Southeast Asia, July 201616
Singapore FinTech – Breakdown
FinTech – Southeast Asia, July 201617
Singapore FinTech – Funding Trend
FinTech – Southeast Asia, July 201618
Singapore FinTech – Payment & Cashless Economy
FinTech – Southeast Asia, July 201619
Singapore FinTech – Investment Tech
FinTech – Southeast Asia, July 201620
Singapore – A Leading Wealth Management Center
FinTech – Southeast Asia, July 201621
Singapore – Banks and FinTech
FinTech – Southeast Asia, July 201622
Singapore – Banks and FinTech Cont’d…
FinTech – Southeast Asia, July 201623
Singapore – Banks and FinTech Cont’d…
FinTech – Southeast Asia, July 201624
Singapore FinTech – Regulation
FinTech – Southeast Asia, July 201625
Singapore FinTech – Regulation Cont’d…
FinTech – Southeast Asia, July 201626
Singapore FinTech – Recent Updates
FinTech – Southeast Asia, July 201627
FinTech – Indonesia
FinTech – Southeast Asia, July 201628
IndonesiaP
enet
rati
on
Source1, Source2
FinTech – Southeast Asia, July 201629
Indonesia FinTech – Breakdown
FinTech – Southeast Asia, July 201630
Indonesia FinTech – Funding Trend
FinTech – Southeast Asia, July 201631
Indonesia FinTech – Regulation
FinTech – Southeast Asia, July 201632
Indonesia FinTech – Regulation Cont’d…
FinTech – Southeast Asia, July 201633
FinTech – Philippines
FinTech – Southeast Asia, July 201634
Philippines
Pen
etra
tio
n
Source1, Source2
FinTech – Southeast Asia, July 201635
Philippines FinTech – Breakdown
FinTech – Southeast Asia, July 201636
Philippines FinTech – Funding Trend
FinTech – Southeast Asia, July 201637
Philippines FinTech – Regulation
FinTech – Southeast Asia, July 201638
FinTech – Thailand
FinTech – Southeast Asia, July 201639
ThailandP
enet
rati
on
Source1, Source2
FinTech – Southeast Asia, July 201640
Thailand FinTech – Breakdown
FinTech – Southeast Asia, July 201641
Thailand FinTech – Funding Trend
FinTech – Southeast Asia, July 201642
Thailand FinTech – Regulation
FinTech – Southeast Asia, July 201643
FinTech – Malaysia
FinTech – Southeast Asia, July 201644
MalaysiaP
enet
rati
on
Source1, Source2
FinTech – Southeast Asia, July 201645
Malaysia FinTech – Breakdown
FinTech – Southeast Asia, July 201646
Malaysia FinTech – Funding Trend
FinTech – Southeast Asia, July 201647
Malaysia FinTech – Regulation
FinTech – Southeast Asia, July 201648
FinTech – Vietnam
FinTech – Southeast Asia, July 201649
VietnamP
enet
rati
on
Source1, Source2
FinTech – Southeast Asia, July 201650
Vietnam FinTech – Breakdown
FinTech – Southeast Asia, July 201651
Vietnam FinTech – Funding Trend
FinTech – Southeast Asia, July 201652
Vietnam FinTech – Regulation & Govt. Support
FinTech – Southeast Asia, July 2016
June 2016Tracxn BlueBox : FinTech - SEA500+ companies in the sector, 92 funded in last 5 years, ~$153M invested in 2015
53
FinTech – Southeast Asia, July 201654
FinTech SEA – Landscape
Payments Mobile Payments
Personal Finance
Investment Tech Lending
Enterprise Finance
Insurance Tech
Banking Tech
BitcoinCrowdfunding
FinTech – Southeast Asia, July 201655
Most Active Investors – Segment Wise
FinTech – Southeast Asia, July 201656
Payments – BM Description
FinTech – Southeast Asia, July 201657
SEA FinTech – Payments
FinTech – Southeast Asia, July 201658
Mobile Payments – BM Description
FinTech – Southeast Asia, July 201659
SEA FinTech – Mobile Payments
FinTech – Southeast Asia, July 201660
Investment Tech – BM Description
FinTech – Southeast Asia, July 201661
SEA FinTech – Investment Tech
FinTech – Southeast Asia, July 201662
Lending – BM description
FinTech – Southeast Asia, July 201663
SEA FinTech – Lending
FinTech – Southeast Asia, July 201664
Personal Finance – BM Description
FinTech – Southeast Asia, July 201665
SEA FinTech – Personal Finance
FinTech – Southeast Asia, July 201666
Bitcoin – BM Description
FinTech – Southeast Asia, July 201667
Insurance Tech – BM Description
FinTech – Southeast Asia, July 201668
Banking Tech – BM Description
FinTech – Southeast Asia, July 201669
Crowdfunding – BM Description
FinTech – Southeast Asia, July 201670
Enterprise Finance – BM Description
FinTech – Southeast Asia, July 201671
Emerging Trends in Global FinTech
FinTech – Southeast Asia, July 201672
P2P Money Transfer – Messaging Apps
• Peer to Peer money transfer service is one of the most common features offered by mobile wallets along with merchantpayments, with companies like Venmo have made a huge Impact in this area, the messaging giants are not far behind to takeadvantage and offer P2P money transfer service via their messaging app. Below is a list of few major messaging app offeringmoney transfer.
Facebook Messenger
The service allows to transfer money bylinking Visa and MasterCard and transfermoney to the beneficiary’s account. Theservice uses Fingerprint authentication.
Line Pay
It is a messaging app in Japan, which allows topay with MasterCard, Visa, Amex, Discover inLine stores. Planned to expand the service toP2P and merchant payments, with a present181 million active users.
The messaging service offered by Tencent,allows to pay by loading money to the MyWallet feature. The advancement plans are formerchant payments and to hail and pay for taxiservices.
Snapcash
Snapchat messaging service offered“Snapcash” to transfer money via privatemessage. Square is the payment processingresponsible for transactions.
Dasher
It is a popular messenger service, hasintegrated its service with Venmo to enablepeer-to-peer money transfer through the chatservice. To make payments, users can click the“Pay” button, enter the amount and send themoney.
BBM Money
BlackBerry has launched its own peer to peermoney transfer service named BBM Money. Thetechnology is developed by Monitise and issuedand managed by Permata Bank. BlackBerry ispartnering with Barclays Bank to enable P2Pmoney transfer service.
FinTech – Southeast Asia, July 201673
Biometric Payments
FinTech – Southeast Asia, July 201674
Tokenization
FinTech – Southeast Asia, July 201675
Ripple – Emerging technology in money transfer
FinTech – Southeast Asia, July 201676
Alternative Credit Scoring
FinTech – Southeast Asia, July 2016
FinTech SEA – Company List
Details of 550 companies (113 Funded & 337 Unfunded companies)
COVERS THE FOLLOWING SECTORS
77
Payments Mobile
PaymentsInvestment
TechConsumer
FinanceBFSI Tech Lending Bitcoin Crowdfunding
Enterprise Finance
Forex
FinTech – Southeast Asia, July 2016
78
Payments (1/22)
Payments Mobile
PaymentsInvestment
TechLending
Personal Finance
Insurance Tech
BitcoinBanking
TechCrowdfunding
Enterprise Finance
Forex
Company Details Funding Investors
Gateway
Paysia [Bangkok, 2015]: Paysia is a Thailand based payments company which gives businesses the service ofintegrating online payments onto their websites and portals. It gives tools such as E-commerce, recurringpayments etc in its package. The company charges flat rates to its clients irrespective of the volume andtransaction amount.
Gateway
FirstPay [Jakarta, 2014]: FirstPay is a payment gateway service provider for online businesses in Indonesia.The company takes the payments for its clients through a credit card, virtual account ATM Bersama, and E-money.
Gateway
Upoint [Jakarta, 2014]: Upoint allows its users to purchase items, credit games and other digital content viaonline media or from Telkomsel mobile number. The company has its products namely speedy billing and spincard.
Gateway
JSC Vietnam Payment Solution [Hanoi, 2007]: JSC Vietnam Payment Solution (VNPAY) is an electronicpayment service provider. The company provides services like mobile banking, phone recharges, bill payments,wallets and payment gateways.
Gateway
Mimopay [Jakarta, 2012]: Mimopay provides payment solution for game publishers and applicationdevelopers to accept various payment methods in SEA region. The company works with telecom operators,banks and convenience stores. It also enables user to make online purchases via Mimo wallet & Mandirie-cash.
78
FinTech – Southeast Asia, July 2016
79
Payments (2/22)
Payments Mobile
PaymentsInvestment
TechLending
Personal Finance
Insurance Tech
BitcoinBanking
TechCrowdfunding
Enterprise Finance
Forex
Company Details Funding Investors
Gateway
1Pay [Hanoi, 2013]: 1Pay is a mobile payment platform which provides full mobile payment solutions to localand overseas merchants including mobile developers, content providers and game studios. It allows itscustomers to pay by SMS, online and prepaid cards for purchases via mobile.
Gateway
Fasa Centra Solutions [Sleman, 2011]: Fasa Centra Solutions, commonly known as FasaPay, is a non-bankingcompany engaged in the business of electronic money transfer, payment gateway and management. Companyprovides payment gateways for enterprises and, through the platform money can also be transacted betweentwo FasaPay accounts.
Gateway
FasPay [Jakarta, 2003]: Faspay, PT. Media Indonusa is a subsidiary of Astel Group which is mobile e-commerceswitching and acts as payment gateway partners. The company include mobile operators, financial institutionsand merchants as its end users.
Gateway
PesoPay [Makati, 2006]: PesoPay is Philippines online payment gateway allowing merchants to accept onlinepayments via credit cards & debit cards and cash over the counter payments. Also provides other relatedservices like recurring payments, tokenization, customized branded payment page.
Gateway
Inpendium [Singapore, 2012]: Inpendium is a provider of payment connectivity and full cycle paymentmanagement services for e-commerce merchants. It also provides different financial services such as riskmanagement & fraud screening, real time reporting and reconciliation of the failed payments. Claims toconnect multiple card acquirers and alternative payment options in 172 currencies across Europe, Middle Eastand Africa, North America, Latin America and Asia Pacific regions.
79
FinTech – Southeast Asia, July 2016
80
Payments (3/22)
Payments Mobile
PaymentsInvestment
TechLending
Personal Finance
Insurance Tech
BitcoinBanking
TechCrowdfunding
Enterprise Finance
Forex
Company Details Funding Investors
Gateway
Square Gate One [Jakarta, 2006]: Square Gate One provides solution in payment and banking channel. Thecompany works on three sectors namely electronic banking, payment systems and business switching.
Gateway
YuuPay Secure [Singapore, 2006]: Yuupay, a subsidiary of Yuuzoo Corp, provides payment service for e-merchants. It started in 2006 as a payment option to the yuuzoo website which is a social commerce platform.The products Foxycart and Magento by yuupay helps to integrate it with the merchant websites. The companyclaims that it processes transactions to over 200 banks all over the world.
Gateway
Siam pay [Bangkok, 2006]: Siam pay is a part of Asia pay operating in Thailand. SiamPay offer business-to-consumer (B2C) services, such as ‘SiamPay eCommerce” to corporations and institutions to facilitate onlinecredit card payments. Siam pay also provide multiple services such as mobile payment, risk managementsoftware and aggregation of the merchants. Its parent company Asia pay was founded in 2000 and claims tocover 12 countries in Asia
Gateway
Doku [Jakarta, 2007]: Doku is one of the first locally built payment gateways in Indonesia providing onlineinternet payment solution to e-commerce, b2c, retailing and b2b business concepts. They also providesolutions like Doku wallet, token payments, subscription payments. Last year, the company processed anestimated $1.5Bn worth of transactions with over 13,000 merchants in its portfolio across various industriessince its launch.
Gateway
helloPay [Singapore, 2014]: helloPay is a payments solution, which allows payments and money transfers,both online and offline. It provides a secure payment platform to send and receive money, both for personaland commercial use. A user can use mobile number and email address to get started and then safely makeonline purchases without revealing payment details. Headquartered in Singapore, the company also hasoperations in Vietnam, Indonesia, Phillipines and plans to expand across Southeast Asia and Africa. helloPayhas investments from J.P. Morgan, Tesco, Rocket Internet, Temasek, Verlinvest and Investment AB Kinnevik.
80
FinTech – Southeast Asia, July 2016
81
Payments (4/22)
Payments Mobile
PaymentsInvestment
TechLending
Personal Finance
Insurance Tech
BitcoinBanking
TechCrowdfunding
Enterprise Finance
Forex
81
FinTech – Southeast Asia, July 2016
82
Payments (5/22)
Payments Mobile
PaymentsInvestment
TechLending
Personal Finance
Insurance Tech
BitcoinBanking
TechCrowdfunding
Enterprise Finance
Forex
82
FinTech – Southeast Asia, July 2016
83
Payments (6/22)
Payments Mobile
PaymentsInvestment
TechLending
Personal Finance
Insurance Tech
BitcoinBanking
TechCrowdfunding
Enterprise Finance
Forex
83
FinTech – Southeast Asia, July 2016
84
Payments (7/22)
Payments Mobile
PaymentsInvestment
TechLending
Personal Finance
Insurance Tech
BitcoinBanking
TechCrowdfunding
Enterprise Finance
Forex
84
FinTech – Southeast Asia, July 2016
85
Payments (8/22)
Payments Mobile
PaymentsInvestment
TechLending
Personal Finance
Insurance Tech
BitcoinBanking
TechCrowdfunding
Enterprise Finance
Forex
85
FinTech – Southeast Asia, July 2016
86
Payments (9/22)
Payments Mobile
PaymentsInvestment
TechLending
Personal Finance
Insurance Tech
BitcoinBanking
TechCrowdfunding
Enterprise Finance
Forex
86
FinTech – Southeast Asia, July 2016
87
Payments (10/22)
Payments Mobile
PaymentsInvestment
TechLending
Personal Finance
Insurance Tech
BitcoinBanking
TechCrowdfunding
Enterprise Finance
Forex
87
FinTech – Southeast Asia, July 2016
88
Payments (11/22)
Payments Mobile
PaymentsInvestment
TechLending
Personal Finance
Insurance Tech
BitcoinBanking
TechCrowdfunding
Enterprise Finance
Forex
88
FinTech – Southeast Asia, July 2016
89
Payments (12/22)
Payments Mobile
PaymentsInvestment
TechLending
Personal Finance
Insurance Tech
BitcoinBanking
TechCrowdfunding
Enterprise Finance
Forex
89
FinTech – Southeast Asia, July 2016
90
Payments (13/22)
Payments Mobile
PaymentsInvestment
TechLending
Personal Finance
Insurance Tech
BitcoinBanking
TechCrowdfunding
Enterprise Finance
Forex
90
FinTech – Southeast Asia, July 2016
91
Payments (14/22)
Payments Mobile
PaymentsInvestment
TechLending
Personal Finance
Insurance Tech
BitcoinBanking
TechCrowdfunding
Enterprise Finance
Forex
91
FinTech – Southeast Asia, July 2016
92
Payments (15/22)
Payments Mobile
PaymentsInvestment
TechLending
Personal Finance
Insurance Tech
BitcoinBanking
TechCrowdfunding
Enterprise Finance
Forex
92
FinTech – Southeast Asia, July 2016
93
Payments (16/22)
Payments Mobile
PaymentsInvestment
TechLending
Personal Finance
Insurance Tech
BitcoinBanking
TechCrowdfunding
Enterprise Finance
Forex
93
FinTech – Southeast Asia, July 2016
94
Payments (17/22)
Payments Mobile
PaymentsInvestment
TechLending
Personal Finance
Insurance Tech
BitcoinBanking
TechCrowdfunding
Enterprise Finance
Forex
94
FinTech – Southeast Asia, July 2016
95
Payments (18/22)
Payments Mobile
PaymentsInvestment
TechLending
Personal Finance
Insurance Tech
BitcoinBanking
TechCrowdfunding
Enterprise Finance
Forex
95
FinTech – Southeast Asia, July 2016
96
Payments (19/22)
Payments Mobile
PaymentsInvestment
TechLending
Personal Finance
Insurance Tech
BitcoinBanking
TechCrowdfunding
Enterprise Finance
Forex
96
FinTech – Southeast Asia, July 2016
97
Payments (20/22)
Payments Mobile
PaymentsInvestment
TechLending
Personal Finance
Insurance Tech
BitcoinBanking
TechCrowdfunding
Enterprise Finance
Forex
97
FinTech – Southeast Asia, July 2016
98
Payments (21/22)
Payments Mobile
PaymentsInvestment
TechLending
Personal Finance
Insurance Tech
BitcoinBanking
TechCrowdfunding
Enterprise Finance
Forex
98
FinTech – Southeast Asia, July 2016
99
Payments (22/22)
Payments Mobile
PaymentsInvestment
TechLending
Personal Finance
Insurance Tech
BitcoinBanking
TechCrowdfunding
Enterprise Finance
Forex
99
FinTech – Southeast Asia, July 2016
100
Mobile Payments (1/11)
Payments Mobile
PaymentsInvestment
TechLending
Personal Finance
Insurance Tech
BitcoinBanking
TechCrowdfunding
Enterprise Finance
Forex
100
FinTech – Southeast Asia, July 2016
101
Mobile Payments (2/11)
Payments Mobile
PaymentsInvestment
TechLending
Personal Finance
Insurance Tech
BitcoinBanking
TechCrowdfunding
Enterprise Finance
Forex
101
FinTech – Southeast Asia, July 2016
102
Mobile Payments (3/11)
Payments Mobile
PaymentsInvestment
TechLending
Personal Finance
Insurance Tech
BitcoinBanking
TechCrowdfunding
Enterprise Finance
Forex
102
FinTech – Southeast Asia, July 2016
103
Mobile Payments (4/11)
Payments Mobile
PaymentsInvestment
TechLending
Personal Finance
Insurance Tech
BitcoinBanking
TechCrowdfunding
Enterprise Finance
Forex
103
FinTech – Southeast Asia, July 2016
104
Mobile Payments (5/11)
Payments Mobile
PaymentsInvestment
TechLending
Personal Finance
Insurance Tech
BitcoinBanking
TechCrowdfunding
Enterprise Finance
Forex
104
FinTech – Southeast Asia, July 2016
105
Mobile Payments (6/11)
Payments Mobile
PaymentsInvestment
TechLending
Personal Finance
Insurance Tech
BitcoinBanking
TechCrowdfunding
Enterprise Finance
Forex
105
FinTech – Southeast Asia, July 2016
106
Mobile Payments (7/11)
Payments Mobile
PaymentsInvestment
TechLending
Personal Finance
Insurance Tech
BitcoinBanking
TechCrowdfunding
Enterprise Finance
Forex
106
FinTech – Southeast Asia, July 2016
107
Mobile Payments (8/11)
Payments Mobile
PaymentsInvestment
TechLending
Personal Finance
Insurance Tech
BitcoinBanking
TechCrowdfunding
Enterprise Finance
Forex
107
FinTech – Southeast Asia, July 2016
108
Mobile Payments (9/11)
Payments Mobile
PaymentsInvestment
TechLending
Personal Finance
Insurance Tech
BitcoinBanking
TechCrowdfunding
Enterprise Finance
Forex
108
FinTech – Southeast Asia, July 2016
109
Mobile Payments (10/11)
Payments Mobile
PaymentsInvestment
TechLending
Personal Finance
Insurance Tech
BitcoinBanking
TechCrowdfunding
Enterprise Finance
Forex
109
FinTech – Southeast Asia, July 2016
110
Mobile Payments (11/11)
Payments Mobile
PaymentsInvestment
TechLending
Personal Finance
Insurance Tech
BitcoinBanking
TechCrowdfunding
Enterprise Finance
Forex
110
FinTech – Southeast Asia, July 2016
111
Investment Tech (1/13)
Payments Mobile
PaymentsInvestment
TechLending
Personal Finance
Insurance Tech
BitcoinBanking
TechCrowdfunding
Enterprise Finance
Forex
111
FinTech – Southeast Asia, July 2016
112
Investment Tech (2/13)
Payments Mobile
PaymentsInvestment
TechLending
Personal Finance
Insurance Tech
BitcoinBanking
TechCrowdfunding
Enterprise Finance
Forex
112
FinTech – Southeast Asia, July 2016
113
Investment Tech (3/13)
Payments Mobile
PaymentsInvestment
TechLending
Personal Finance
Insurance Tech
BitcoinBanking
TechCrowdfunding
Enterprise Finance
Forex
113
FinTech – Southeast Asia, July 2016
114
Investment Tech (4/13)
Payments Mobile
PaymentsInvestment
TechLending
Personal Finance
Insurance Tech
BitcoinBanking
TechCrowdfunding
Enterprise Finance
Forex
114
FinTech – Southeast Asia, July 2016
115
Investment Tech (5/13)
Payments Mobile
PaymentsInvestment
TechLending
Personal Finance
Insurance Tech
BitcoinBanking
TechCrowdfunding
Enterprise Finance
Forex
115
FinTech – Southeast Asia, July 2016
116
Investment Tech (6/13)
Payments Mobile
PaymentsInvestment
TechLending
Personal Finance
Insurance Tech
BitcoinBanking
TechCrowdfunding
Enterprise Finance
Forex
116
FinTech – Southeast Asia, July 2016
117
Investment Tech (7/13)
Payments Mobile
PaymentsInvestment
TechLending
Personal Finance
Insurance Tech
BitcoinBanking
TechCrowdfunding
Enterprise Finance
Forex
117
FinTech – Southeast Asia, July 2016
118
Investment Tech (8/13)
Payments Mobile
PaymentsInvestment
TechLending
Personal Finance
Insurance Tech
BitcoinBanking
TechCrowdfunding
Enterprise Finance
Forex
118
FinTech – Southeast Asia, July 2016
119
Investment Tech (9/13)
Payments Mobile
PaymentsInvestment
TechLending
Personal Finance
Insurance Tech
BitcoinBanking
TechCrowdfunding
Enterprise Finance
Forex
119
FinTech – Southeast Asia, July 2016
120
Investment Tech (10/13)
Payments Mobile
PaymentsInvestment
TechLending
Personal Finance
Insurance Tech
BitcoinBanking
TechCrowdfunding
Enterprise Finance
Forex
120
FinTech – Southeast Asia, July 2016
121
Investment Tech (11/13)
Payments Mobile
PaymentsInvestment
TechLending
Personal Finance
Insurance Tech
BitcoinBanking
TechCrowdfunding
Enterprise Finance
Forex
121
FinTech – Southeast Asia, July 2016
122
Investment Tech (12/13)
Payments Mobile
PaymentsInvestment
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Investment Tech (13/13)
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Lending (1/10)
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Lending (2/10)
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Lending (3/10)
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Lending (4/10)
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Lending (5/10)
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Lending (6/10)
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Lending (7/10)
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Lending (8/10)
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Lending (9/10)
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Lending (10/10)
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Personal Finance (1/15)
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Personal Finance (2/15)
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Personal Finance (4/15)
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Personal Finance (5/15)
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Personal Finance (6/15)
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Personal Finance (7/15)
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Personal Finance (8/15)
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Personal Finance (9/15)
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Personal Finance (10/15)
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143
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Personal Finance (11/15)
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144
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Personal Finance (12/15)
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145
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Personal Finance (13/15)
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146
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Personal Finance (14/15)
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147
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Personal Finance (15/15)
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148
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Insurance Tech (1/10)
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149
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Insurance Tech (2/10)
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Insurance Tech
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150
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Insurance Tech (3/10)
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151
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Insurance Tech (4/10)
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152
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Insurance Tech (5/10)
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153
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Insurance Tech (6/10)
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154
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Insurance Tech (7/10)
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Insurance Tech
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155
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Insurance Tech (8/10)
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Insurance Tech
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156
FinTech – Southeast Asia, July 2016
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Insurance Tech (9/10)
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Insurance Tech
BitcoinBanking
TechCrowdfunding
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157
FinTech – Southeast Asia, July 2016
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Insurance Tech (10/10)
Payments Mobile
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TechLending
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Insurance Tech
BitcoinBanking
TechCrowdfunding
Enterprise Finance
Forex
158
FinTech – Southeast Asia, July 2016
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Bitcoin (1/10)
Payments Mobile
PaymentsInvestment
TechLending
Personal Finance
Insurance Tech
BitcoinBanking
TechCrowdfunding
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159
FinTech – Southeast Asia, July 2016
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Bitcoin (2/10)
Payments Mobile
PaymentsInvestment
TechLending
Personal Finance
Insurance Tech
BitcoinBanking
TechCrowdfunding
Enterprise Finance
Forex
160
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Bitcoin (3/10)
Payments Mobile
PaymentsInvestment
TechLending
Personal Finance
Insurance Tech
BitcoinBanking
TechCrowdfunding
Enterprise Finance
Forex
161
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Bitcoin (4/10)
Payments Mobile
PaymentsInvestment
TechLending
Personal Finance
Insurance Tech
BitcoinBanking
TechCrowdfunding
Enterprise Finance
Forex
162
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Bitcoin (5/10)
Payments Mobile
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TechLending
Personal Finance
Insurance Tech
BitcoinBanking
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163
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Bitcoin (6/10)
Payments Mobile
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BitcoinBanking
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164
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Bitcoin (7/10)
Payments Mobile
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TechLending
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Insurance Tech
BitcoinBanking
TechCrowdfunding
Enterprise Finance
Forex
165
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Bitcoin (8/10)
Payments Mobile
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TechLending
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Insurance Tech
BitcoinBanking
TechCrowdfunding
Enterprise Finance
Forex
166
FinTech – Southeast Asia, July 2016
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Bitcoin (9/10)
Payments Mobile
PaymentsInvestment
TechLending
Personal Finance
Insurance Tech
BitcoinBanking
TechCrowdfunding
Enterprise Finance
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167
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Bitcoin (10/10)
Payments Mobile
PaymentsInvestment
TechLending
Personal Finance
Insurance Tech
BitcoinBanking
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Enterprise Finance
Forex
168
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Banking Tech (1/3)
Payments Mobile
PaymentsInvestment
TechLending
Personal Finance
Insurance Tech
BitcoinBanking
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169
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Banking Tech (2/3)
Payments Mobile
PaymentsInvestment
TechLending
Personal Finance
Insurance Tech
BitcoinBanking
TechCrowdfunding
Enterprise Finance
Forex
170
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Banking Tech (3/3)
Payments Mobile
PaymentsInvestment
TechLending
Personal Finance
Insurance Tech
BitcoinBanking
TechCrowdfunding
Enterprise Finance
Forex
171
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Crowdfunding (1/11)
Payments Mobile
PaymentsInvestment
TechLending
Personal Finance
Insurance Tech
BitcoinBanking
TechCrowdfunding
Enterprise Finance
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172
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Crowdfunding (2/11)
Payments Mobile
PaymentsInvestment
TechLending
Personal Finance
Insurance Tech
BitcoinBanking
TechCrowdfunding
Enterprise Finance
Forex
173
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Crowdfunding (3/11)
Payments Mobile
PaymentsInvestment
TechLending
Personal Finance
Insurance Tech
BitcoinBanking
TechCrowdfunding
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174
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Crowdfunding (4/11)
Payments Mobile
PaymentsInvestment
TechLending
Personal Finance
Insurance Tech
BitcoinBanking
TechCrowdfunding
Enterprise Finance
Forex
175
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Crowdfunding (5/11)
Payments Mobile
PaymentsInvestment
TechLending
Personal Finance
Insurance Tech
BitcoinBanking
TechCrowdfunding
Enterprise Finance
Forex
176
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Crowdfunding (6/11)
Payments Mobile
PaymentsInvestment
TechLending
Personal Finance
Insurance Tech
BitcoinBanking
TechCrowdfunding
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177
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Crowdfunding (7/11)
Payments Mobile
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Insurance Tech
BitcoinBanking
TechCrowdfunding
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178
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Crowdfunding (8/11)
Payments Mobile
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TechCrowdfunding
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Crowdfunding (9/11)
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TechCrowdfunding
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180
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Crowdfunding (10/11)
Payments Mobile
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TechCrowdfunding
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181
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Crowdfunding (11/11)
Payments Mobile
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182
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Enterprise Finance (1/4)
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Enterprise Finance (2/4)
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184
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Enterprise Finance (3/4)
Payments Mobile
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BitcoinBanking
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Enterprise Finance
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185
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Enterprise Finance (4/4)
Payments Mobile
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BitcoinBanking
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186
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Forex (1/2)
Payments Mobile
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187
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Forex (2/2)
Payments Mobile
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FinTech – Southeast Asia, July 2016189
VIEWS FROM INDUSTRY EXPERTS
FinTech – Southeast Asia, July 2016
Tracxn presents an exhaustive Q&A on Southeast Asia FinTech space
In collaboration with
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Willson CuacaFounding & ManagingPartner,East Ventures
Altona WidjajaVice President,OCBC Bank
Richard Ian EldridgeCo-founder & CEO, Lenddo
Jeff StewartFounder & CEO, Lenddo
FinTech – Southeast Asia, July 2016191
Q+A: East Ventures
Willson Cuaca is founding and managing partner of East Ventures, an early stageinvestment fund focus on consumer Internet, mobile and SaaS. With a total of 5offices in Jakarta, Tokyo, and San Francisco, East Ventures has invested in over150 companies across Asia and the US. For Southeast Asia focus, East Ventureshas invested in more than 80 companies in the region. Most of the companiesmanage to get subsequent funding round and ride on top of Indonesia middleclass consumer growth. East Ventures also made exits from its investmentthrough M&A to local and international companies.
Willson sits on advisory board of Code4Nation.id, a pro-bono movement to helpIndonesia government solve problem through software. He brings his expertisein ecosystem building and product/market-fit to accelerate product delivery andvalue proposition.
If we compare with other Asian counterparts like China and India, how do you rate Southeast Asia (SEA) as an investment destination for tech start ups?
#1
SEA is definitely an interesting market for fintech. It is made up of differentcountries, at a different stages of development, each having different cultureand language. Probably one of the most fragmented region yet calledthemselves as one community. For some verticals, like non-collateral loanand payment, for example, government regulation does play a big part forone company to be succeed. In the other hand, we can see couple ofdeveloping countries in the region, like Indonesia, still have a great rate ofunbanked population. As much as it might disrupt the conventional banking,it is also giving a big opportunity for financial inclusion, for a low incomemember of society.
Another interesting context is high mobile phone penetration rate and socialmedia adoption. We see them as distribution platforms and helps toaccelerate fintech adoption. Some people may not have access to financialproduct but they have at least one phone and could start doing transactionvia the phone.
FinTech – Southeast Asia, July 2016192
Q+A: East VenturesWhat are the recent trends that you are observing in Fintech in SEA -like online lending, mobile payment etc.?#3
We already see how’s the industry focus for each pain point in each country.But its also interesting to see companies like Jojonomic, expensemanagement platform, can address opportunity that somehow identical inthe region.
MoolahSense, a P2P lending platform in Singapore, is able to disburse millionof crowdsource capital within hours while still maintaining the quality ofborrower.
Singapore's bank has been in the forefront for innovation and receptive tochange with various incubations and accelerators. Indonesia's bank put theirbet by setting up VC arm.
There are also startups like AlgoMerchant that focuses on improving thecapital markets with tech, helping to scale retail investors trading operationsthat might traditionally not get as much priority as other higher marginbanking ops. They are also using tech to develop their own algorithms tobetter serve the needs of those residing in a financial hub like Singapore.
What factors in your opinion will influence the growth of Fintech scenario in SEA, like increasing digital footprint of SEA, low banking penetration etc.?
#2In Southeast Asia, many countries like the Philippines and Indonesia have alarge unbanked population. Fintech services that focus on mobile paymentsaren't just offering a different service, they are solving a societal problem andlevelling the previously unbanked up directly to banking 2.0.
From what we see, these are some important factors for Fintech success: 1)population size 2) smartphone penetration 3) low banking penetration 4)government policy support - most emerging markets in Southeast Asia have 1 +2. As long as governments don't actively block nascent Fintech ideas or saddlecompanies with excessive regulatory approvals, startups could have thepotential to grow very quickly.
The unique demands of the millennials will also help to drive certain Fintechinnovation. The millennial generation is the largest generation worldwide and asignificant portion of them reside in SEA. They are digital natives - smartphonesand mobile internet are their essentials. In this area we see local startup likeXendit serving their needs with P2P transfers.
Then there is also Seedly, which provides an expenses infographic servicecatering especially to millennials who want to better manage their expenses butdo not have the time to do so.
FinTech – Southeast Asia, July 2016193
Q+A: East VenturesThere is a wide notion that most of the funded companies in SEA are clone of already validated business models from west. Do you think there are Fintech startups coming up which are solving SEA specific problems?
#5While it might have been possible to clone business models for areas such as e-commerce, Fintech is entirely different for most SEA countries. When a significantproportion of the population don't even have a bank account to begin with, thesame model that allowed a company to scale in the West could fail spectacularly ifit is simply copy and pasted in SEA countries. For instance, services like Venmo inthe US might be focusing on greater convenience, similar services like MoMo couldbe solving real problems - in countries where efficient interbank transfers aren't thenorm, or where the need for remittance services is higher than Western countries.Focus on Fintech in the West could be convenience and new innovation, but in SEAit could be more geared towards financial inclusion as well as services to capitaliseon that inclusion.
In this regard, we see startups like Moka and bindo that digitise the retail frontpayment, and are ready to help SMEs start accepting cards as financial inclusiontakes place and more people start going cashless.
Startups like Cermati help to accelerate the inclusion process by providingrecommendations, guides and comparison on the various financial products likecredit cards, loans and insurance. Providing such information in a localised mannerwill help to bridge the gap between complex financial services and people whohave never used them before. We also noted the rise of assisted payment inecommerce platform for unbanked population such as Kudo. the platform isgrowing exponentially in the rural area. none of this solution exist in the west.
How do you think the established financial institutions like banks would react to the Fintech advancement in SEA going forward?#4
Banks are definitely not blind-sided by the development - Citi is developing their ownCiticoin, DBS using IBM Watson, OCBC opening up the Open Vault - and they have thekind of resources that a Fintech startup would probably not have. However, amountbanks spent on IT was still 12x more than Fintech investments in 2014.
In the broader point of view, finance industry is wide and diverse, the pie is big andit's hard any one company to cover all the areas from the beginning. Therefore thereis definitely space for different Fintech ideas serving different niches of the financeindustry. Consumer and SME client segments involving payments and lending are theareas that banks face the most heat from Fintech startups, but banks could also havean edge when developing their own Fintech tools for corporate banking or their ownrobo-advisory arm. Such niches require more than just money, they require security,trust, customisations for each customer and capital intensive investments thatstartups might not be able to afford.
Unlike in the West where Fintech startups can take advantage of consumers' decliningtrust in their banks, Southeast Asian banks have one of the highest consumerconfidence ratings. Trust issues have been a problem, for example, for mPOS startupstrying to onboard traditional merchants in a cash culture - where merchants felt morecomfortable if there were at least partial association with a bank.
FinTech – Southeast Asia, July 2016
Q+A: Lenddo
194
Richard Eldridge, Co-founder and CEO of Lenddo
What have you been seeing in SEA Fintech startup scenario as oflate? How do you perceive the overall investment climate forFintech in SEA?
• Exciting times,
• Singapore becoming the hub for FinTech activities in SEA,
• Majority of activities are happening in payments space.
#1
As Lenddo has been operating in Philippines for quite long, howdo you see the market being different from other SEA countriesas far as online lending is concerned?
We divested ourselves from the Lending business in 2014 and now we serveboth online incumbent banks and alternative online lenders. There are 2 typesor market - Developed economies such as Singapore and developingeconomies such as Indonesia, Vietnam and Philippines. In developing marketseach market is similar. With similar profiles viz a viz:
- Highly digitally connected- Smartphone penetration very high- Low credit bureau penetration- Low % of population with access to formal credit. - Manual process for verification results
#2Lenddo is a provider of social network based credit scoring that empowersthe emerging class to use their online social connections to build theircreditworthiness and access local financial services. Users link their socialnetworking accounts to their Lenndo account and complete their profiles togenerate the LenddoScore. Lenddo enables businesses to simply andsecurely evaluate both the character and identity of customers usingalternative data in order to extend credit and deliver life-improving services.
Jeff Stewart, Founder and Chairman of Lenddo
FinTech – Southeast Asia, July 2016
Q+A: Lenddo
195
How difficult it has been for you to expand beyond SEA? Do youthink SEA is more challenging in comparison to other developingcountries like India?
We have put in a comprehensive plan for our expansion into South Americaand India which is going as per plan. As a SAAS provider, we have also beenable to deploy our solutions quickly and easily in the countries includingAfrica.
#4
How do you think governments or central banks can encourage thealternative way of evaluating the credit score from non-traditionaldata points given the increasing digital footprint of SEA?
From our experience, central banks are being proactive in allowing newtechniques for driving financial inclusion as long as it is done in a plannedapproach and ensures the stability of the financial systems. Certainly nothinghappens overnight, but the recent evolution observed in emerging marketsshow that they are embracing more and more modernisation as a compulsorystep to quickly support and help financial institutions, and especially newplayers such as P2P lenders to scale and become more competitive, moreregulated for the greatest benefit of the consumers.
#6
How has the experience been in expanding to other SEA countries (likeSingapore, Indonesia) from Philippines? Do they pose similarchallenges?
We only operate in Indonesia and Philippines in SE Asia today. These 2markets are very similar with similar challenges facing financial institutions inboth.
#3
How do you see the acceptance for alternative credit scoring model inSEA vis-a-vis the traditional credit scoring models from bank?
The feedback from the market has changed over the last few years. As more andmore success stories from around the world have been shared, Credit RiskOfficers are more open to using new types of data in building models and alsocomfortable using more advanced modelling techniques to build scorecards.These exciting developments must still be validated and managed using internalcredit management policies and frameworks.
#5
FinTech – Southeast Asia, July 2016
Similar to the development in UK and US, the advancement of technology hasenabled nimble players to provide better customer experience and gaintraction. This has prompted many banks to look at how they are able totransform and innovate their business to stay relevant for their customer. InSingapore there’s a concerted effort by the government bodies and eco-system partners to create an environment for innovation to thrive. This is butthe start of the journey and we will expect to see real innovative ideas arebeing implemented in this digital and shared economy.
Q+A: Altona Widjaja, VP OCBC Bank
196
Altona Widjaja works as Vice President withOCBC Bank, Singapore. He has beenassociated with OCBC Bank for more than 9years and presently runs all aspect ofoperations at The Open Vault at OCBC fromfixing coffee machines to curating Fintechstrategy for the bank.
What are the recent trends that you are observing inFintech in SEA - like online lending, mobile payment etc?
What is so unique about Singapore that is prompting manyestablished financial institutions to experiment new concept here -like Finlab from UOB, The Open Vault from OCBC etc.?
#1
According to you, how challenging would it be to replicate theseinitiatives from OCBC to other SEA countries like Indonesia,Malaysia?
Build and transfer has always been OCBC’s regional strategy, the approach inthese initiative would be similar. The market infrastructure and regulatorysupport would vary with each one but we believe there will be a convergencein approach and there’s a high chance of replicating the initiatives in other SEAcountries especially in Malaysia and Indonesia. However, there would stillneed to have local adjustment like any regional initiative.
#2
What do you think the future trend would likely to be - banksdeveloping their own tech-enabled solution or banks acquiring few ofthe startups out there?
I believe that it’s time for the banks to co-create with the external eco-systempartner like the Fintech startups. I think that the bank should be enabler ofsuch players. In this shared and open economy each entity should focus onwhat they do best and leverage on one another. I do not think there will be aone size fit all approach, be it own development or acquisition, differentorganisation have different culture and approach. But what is clear is thateveryone have to be a digital/technology company to stay relevant to theircustomers.
#3
FinTech – Southeast Asia, July 2016
Anjan Ash
Lead Analyst, Southeast Asia,Tracxn
Anand Kumar
Analyst, Southeast Asia,Tracxn
Team
197
Palash Agrawal
Analyst, Southeast Asia,Tracxn
B Karthik
Analyst, Southeast Asia,Tracxn