As Fintech starts becoming the hot topic in the startup and technology industry, the insights team in 1337 Ventures decided to launch a thorough investigation in the Fintech scene in Malaysia, and publish a short report of the scene locally, listing current market players and concentrated verticals. The insights team took data available from our latest Alpha Startups to understand the current shift in the market and predict future trends and opportunities. To keep up with the fast moving industry, sign up for our demo day, or follow our facebook page. Original Report: https://1337ventures.typeform.com/to/JrFORK Facebook: https://www.facebook.com/1337Ventures/

1. THE
MALAYSIAN
FINTECH
OPPORTUNITY
REPORT 2018
The way forward and
untapped opportunity
gaps for Fintech
startups in Malaysia

2. This report is brought to you by the Leet Insights Team at 1337 Ventures,
a technology accelerator and early stage venture capital focused on doing
pre-seed and seed stage investments in Southeast Asia. It is the
culmination of statistical data compiled from industry insights and
research in the Fintech space.
It also highlights trends and opportunity gaps gathered from analysing a
diverse pool of submissions to the Alpha Startups Fintech Opportunity
Map—a collaborative diagram designed to list current Fintech startups and
companies in the Malaysian financial technology sector as nominated by
the Malaysian public via a simple Survey form.
Alpha Startups is an intensive pre-accelerator bootcamp formed by 1337
Ventures to help entrepreneurs put running shoes on their ideas, validate
their MVPs, and provide startups with the baseline tools, mentorship and
funding required to take their businesses to the next level. The
industry-validated programme has successfully graduated top startups all
over Southeast Asia that have gone from idea to exit within just 12 months.
For more information, further enquiries or collaboration opportunities,
email 1337 Ventures at info@1337.ventures
Overview
Though the Fintech scene right now is heavily populated with
customer facing products such as Payment Processing
Infrastructure and E-Wallets, it's just the tip of the iceberg.
Much opportunity is still available in the Fintech Space, ranging
from spaces like Islamic Finance and SME Solutions, as can be
seen in our Fintech Opportunity Map.
Bikesh Lakhmichand, CEO of 1337 Ventures
Malaysian Fintech Opportunity Report 20182
IDEA
ALPHA STARTUPS
PRE-ACCELERATOR
MVP +
VALIDATED
STARTUPS

3. Data Source: Aggregation of
Application Submissions to
1337 Ventures’ Alpha
Startups Fintech Edition
programme in May 2018.
Since applications were opened to the public, the programme has
received positive response and submissions from a surprisingly
diverse array of fintech verticals and countries. Popular fintech
verticals in order of highest-to-lowest count by vertical groups
include Insurtech (17.3%), Personal Finance Management
(13.3%), Trading (8%), E-wallet (5.3%), Payments (4%), Blockchain
(4%), Foreign Exchange (4%), SME solutions (4%), KYC (4%) and
Micro Loans (4%), among others.
While one might expect to see more ideas surrounding famous
topics like e-wallet, payments and blockchain, the actual diversity
of applications was eye-opening, demonstrating a strong
participation by Fintech startups of all types and hunger to
introduce new solutions to the financial industry.
Diversity Of Fintech
Champions In SEA
CASE STUDY SUMMARY:
Malaysian Fintech Opportunity Report 2018 3
MPos
4%
Big Data
8%
Lending
12%
E-Wallet
8%
KYC
4%
Payments
4%
Insurtech
20%
FX
4%
PFM
20%
Chatbox
4%
Investment
12%
Startup Trends: Fintech Verticals

4. DataSource:GeneralFintechstartupandcompanynominationsbytheMalaysian
publicandFintechinfluencerssubmittedviaSurveyformatbit.ly/myfintechdiagram
AIKYC
Wallets
InsuranceBlockchain/Cryptocurrency
ProcessingPaymentsInfrastructure
RealEstate
CapitalMarketing&Trading
Regulator&Compliance
WealthCompaniesPersonal&ConsumerLendingHedgeFunds/AlternativeData
MoneyRemittance/CurrencyExchange
CrowdFunding
CapitalMarkets&Trading
IslamicFinance
IslamicFinance
Lending-ECF
Lending-P2P
ComparisonSites
BusinessLending
PersonalFinance&MobileBanking
MobilePointofSales
FinancialService&Infrastructure
CreditScore&Analytics
1337VenturescreatedtheMalaysianFintechOpportunityMap
2018bydistributingandsharingasimpleSurveythroughits
socialmediachannelsandstartupnetworks.Theresultofthis
collaborativeprojectshowsthatourcountryisheavilypopulated
insomeverticals(i.e.,Payments,WalletsandComparisonSites),
andlackinginothercategories(i.e.,RegulatoryCompliance&AI).
TheDiagramisavisualnon-quantitativewayofdemonstrating
theopportunitiesavailabletofintechstartupswhoarekeento
breakintothespace.Whilemajorplayersmaycontinueto
dominatethemarketand/orfundsincertaincongested
verticals,otherblueoceanpocketsremainwideopenforbrave
startupstopenetrate.
Justaseverystartupisajourneyofconstantvalidation,reiteration
andimprovementbasedonfeedback,sowasthisOpportunity
Map.Newverticalswereaddedasmoreformsubmissionsrolled
in,andsomesegmentationswerealteredbasedonfeedback
fromthepublic.Feelfreetoshareyourinputinthegrowthofthis
collaborativeOpportunityMap,bynominatingnewFintech
startupsherebit.ly/myfintechdiagram
PopularVerticalsVs.
UntappedGoldMines
CASESTUDYSUMMARY:
MalaysianFintechOpportunityReport20185
MalaysianFintechStartupsV1.1
MalaysianFintechOpportunityReport20184

5. Fintech Trends 2018
Blockchain
Increase in blockchain project funding, with more verticals
and use cases explored, together with the rapid adoption by
technology giants.
Insurtech
Companies to explore this vertical deeper with the emphasis
of capturing the millennial market.
Personal Finance Management
Increased emphasis of Personal Finance Management and
integration with financial products.
Investments
The rise of high yield investments to cater to the demands of the
millennial market, as can be seen in the case study of Bitcoin.
Digital Transactions
Continued increase in digital transactions with the rise of
digital products and e-commerce.
Rise of B2B solutions
With fintech consumer products being saturated, the need
for B2B solutions will rise to support the growth and the
paradigm shift of fintech verticals.
(+603) 2733 0337
info@1337.ventures
C-L19-08, KL Trillion, 338, Jalan Tun Razak,
50400 Kuala Lumpur, Malaysia
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A :
1337 Ventures Sdn Bhd