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Tracxn FinTech SEA Startup Landscape, July 2016

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Our FinTech SouthEast Asia Report covers FinTech trends and investments in Singapore, Indonesia, Malaysia, Thailand, Philippines, and Vietnam, with exhaustive Q&A’s with the leadership team at East Ventures and Lenddo.

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Tracxn FinTech SEA Startup Landscape, July 2016

  1. 1. FinTech – Southeast Asia, July 2016 TRACXN REPORT SOUTHEAST ASIA FINTECH - MAY 2016 In collaboration with- East Ventures & Lenddo JUNE 2016
  2. 2. FinTech – Southeast Asia, July 20162 Tracxn World’s Largest Startup Research Platform
  3. 3. 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
  4. 4. 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
  5. 5. 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. The countries included for this report are Singapore, Indonesia, Malaysia, Thailand, Philippines, and Vietnam. The report takes into account the disclosed funding amount and rounds only. Over $300M has been invested since 2007 with ~ $150M invested in 2015 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
  6. 6. 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.
  7. 7. FinTech – Southeast Asia, July 20167 Experts Speak Willson Cuaca Founding & Managing Partner, East Ventures Altona Widjaja Vice President, OCBC Bank “Southeast Asia is definitely an interesting market for Fintech. In Southeast Asia, many countries like the Philippines and Indonesia have a large unbanked population. An interesting context is high mobile phone penetration rate and social media adoption. Fintech services that focus on mobile payments aren't just offering a different service, they are solving a societal problem and levelling the previously unbanked up directly to banking 2.0.” “It’s time for the banks to co-create with the external eco-system partner like the Fintech startups. In Singapore, there’s a concerted effort by the government bodies and eco-system partners to create an environment for innovation to thrive. The market infrastructure and regulatory support would vary with each country in SEA, but there’s a high chance of replicating the initiatives in other SEA countries especially in Malaysia and Indonesia.”
  8. 8. FinTech – Southeast Asia, July 20168 Experts Speak Richard Ian Eldridge Co-founder & CEO, Lenddo Jeff Stewart Founder & CEO, Lenddo “Central banks are being proactive in allowing new techniques for driving financial inclusion as long as it is done in a planned approach and ensures the stability of the financial systems. The recent evolution observed in emerging markets show that they are embracing more and more modernisation as a compulsory step to quickly support and help financial institutions.”
  9. 9. 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
  10. 10. FinTech – Southeast Asia, July 201610 Over 520 companies were founded in last 10 years with ~2/3rd companies founded in last 3 years
  11. 11. FinTech – Southeast Asia, July 201611 2015 saw the highest number of new companies and funding by value • FinTech industry in Southeast Asia has witnessed an exponential increase in funding in last 3 years. • Total funding in 2013 and 2015 were ~$64M and ~155M respectively, with a decline in 2014 in between. • Number of funding rounds have increased consistently YoY, touching ~60 in 2015. • Investment Tech, Payment, Mobile Payment and Lending segments witnessed significant investment activity.$7M $13M $64M $20M $155M 5 8 25 31 59 0 35 70 0 35 70 105 140 175 2011 2012 2013 2014 2015 No.ofRounds FundingAmount(inMillions) Total funding and number of funding rounds between 2011 – 2015 Total Funding No. of Rounds
  12. 12. FinTech – Southeast Asia, July 201612 Number of deals has increased significantly in last three years
  13. 13. FinTech – Southeast Asia, July 201613 FinTech SEA – 2015-16 (YTD)
  14. 14. FinTech – Southeast Asia, July 201614 FinTech SEA – Funded Universe
  15. 15. FinTech – Southeast Asia, July 201615 Singapore Penetration Source1, Source2
  16. 16. FinTech – Southeast Asia, July 201616 Singapore FinTech – Breakdown
  17. 17. FinTech – Southeast Asia, July 201617 Singapore FinTech – Funding Trend
  18. 18. FinTech – Southeast Asia, July 201618 Singapore FinTech – Payment & Cashless Economy
  19. 19. FinTech – Southeast Asia, July 201619 Singapore FinTech – Investment Tech
  20. 20. FinTech – Southeast Asia, July 201620 Singapore – A Leading Wealth Management Center
  21. 21. FinTech – Southeast Asia, July 201621 Singapore – Banks and FinTech
  22. 22. FinTech – Southeast Asia, July 201622 Singapore – Banks and FinTech Cont’d…
  23. 23. FinTech – Southeast Asia, July 201623 Singapore – Banks and FinTech Cont’d…
  24. 24. FinTech – Southeast Asia, July 201624 Singapore FinTech – Regulation
  25. 25. FinTech – Southeast Asia, July 201625 Singapore FinTech – Regulation Cont’d…
  26. 26. FinTech – Southeast Asia, July 201626 Singapore FinTech – Recent Updates
  27. 27. FinTech – Southeast Asia, July 201627 FinTech – Indonesia
  28. 28. FinTech – Southeast Asia, July 201628 Indonesia Penetration Source1, Source2
  29. 29. FinTech – Southeast Asia, July 201629 Indonesia FinTech – Breakdown
  30. 30. FinTech – Southeast Asia, July 201630 Indonesia FinTech – Funding Trend
  31. 31. FinTech – Southeast Asia, July 201631 Indonesia FinTech – Regulation
  32. 32. FinTech – Southeast Asia, July 201632 Indonesia FinTech – Regulation Cont’d…
  33. 33. FinTech – Southeast Asia, July 201633 FinTech – Philippines
  34. 34. FinTech – Southeast Asia, July 201634 Philippines Penetration Source1, Source2
  35. 35. FinTech – Southeast Asia, July 201635 Philippines FinTech – Breakdown
  36. 36. FinTech – Southeast Asia, July 201636 Philippines FinTech – Funding Trend
  37. 37. FinTech – Southeast Asia, July 201637 Philippines FinTech – Regulation
  38. 38. FinTech – Southeast Asia, July 201638 FinTech – Thailand
  39. 39. FinTech – Southeast Asia, July 201639 Thailand Penetration Source1, Source2
  40. 40. FinTech – Southeast Asia, July 201640 Thailand FinTech – Breakdown
  41. 41. FinTech – Southeast Asia, July 201641 Thailand FinTech – Funding Trend
  42. 42. FinTech – Southeast Asia, July 201642 Thailand FinTech – Regulation
  43. 43. FinTech – Southeast Asia, July 201643 FinTech – Malaysia
  44. 44. FinTech – Southeast Asia, July 201644 Malaysia Penetration Source1, Source2
  45. 45. FinTech – Southeast Asia, July 201645 Malaysia FinTech – Breakdown
  46. 46. FinTech – Southeast Asia, July 201646 Malaysia FinTech – Funding Trend
  47. 47. FinTech – Southeast Asia, July 201647 Malaysia FinTech – Regulation
  48. 48. FinTech – Southeast Asia, July 201648 FinTech – Vietnam
  49. 49. FinTech – Southeast Asia, July 201649 Vietnam Penetration Source1, Source2
  50. 50. FinTech – Southeast Asia, July 201650 Vietnam FinTech – Breakdown
  51. 51. FinTech – Southeast Asia, July 201651 Vietnam FinTech – Funding Trend
  52. 52. FinTech – Southeast Asia, July 201652 Vietnam FinTech – Regulation & Govt. Support
  53. 53. FinTech – Southeast Asia, July 2016 June 2016Tracxn BlueBox : FinTech - SEA 500+ companies in the sector, 92 funded in last 5 years, ~$153M invested in 2015 53
  54. 54. FinTech – Southeast Asia, July 201654 FinTech SEA – Landscape Payments Mobile Payments Personal Finance Investment Tech Lending Enterprise Finance Insurance Tech Banking Tech Bitcoin Crowdfunding
  55. 55. FinTech – Southeast Asia, July 201655 Most Active Investors – Segment Wise
  56. 56. FinTech – Southeast Asia, July 201656 Payments – BM Description
  57. 57. FinTech – Southeast Asia, July 201657 SEA FinTech – Payments
  58. 58. FinTech – Southeast Asia, July 201658 Mobile Payments – BM Description
  59. 59. FinTech – Southeast Asia, July 201659 SEA FinTech – Mobile Payments
  60. 60. FinTech – Southeast Asia, July 201660 Investment Tech – BM Description
  61. 61. FinTech – Southeast Asia, July 201661 SEA FinTech – Investment Tech
  62. 62. FinTech – Southeast Asia, July 201662 Lending – BM description
  63. 63. FinTech – Southeast Asia, July 201663 SEA FinTech – Lending
  64. 64. FinTech – Southeast Asia, July 201664 Personal Finance – BM Description
  65. 65. FinTech – Southeast Asia, July 201665 SEA FinTech – Personal Finance
  66. 66. FinTech – Southeast Asia, July 201666 Bitcoin – BM Description
  67. 67. FinTech – Southeast Asia, July 201667 Insurance Tech – BM Description
  68. 68. FinTech – Southeast Asia, July 201668 Banking Tech – BM Description
  69. 69. FinTech – Southeast Asia, July 201669 Crowdfunding – BM Description
  70. 70. FinTech – Southeast Asia, July 201670 Enterprise Finance – BM Description
  71. 71. FinTech – Southeast Asia, July 201671 Emerging Trends in Global FinTech
  72. 72. 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 merchant payments, with companies like Venmo have made a huge Impact in this area, the messaging giants are not far behind to take advantage and offer P2P money transfer service via their messaging app. Below is a list of few major messaging app offering money transfer. Facebook Messenger The service allows to transfer money by linking Visa and MasterCard and transfer money to the beneficiary’s account. The service uses Fingerprint authentication. Line Pay It is a messaging app in Japan, which allows to pay with MasterCard, Visa, Amex, Discover in Line stores. Planned to expand the service to P2P and merchant payments, with a present 181 million active users. WeChat The messaging service offered by Tencent, allows to pay by loading money to the My Wallet feature. The advancement plans are for merchant payments and to hail and pay for taxi services. Snapcash Snapchat messaging service offered “Snapcash” to transfer money via private message. Square is the payment processing responsible for transactions. Dasher It is a popular messenger service, has integrated its service with Venmo to enable peer-to-peer money transfer through the chat service. To make payments, users can click the “Pay” button, enter the amount and send the money. BBM Money BlackBerry has launched its own peer to peer money transfer service named BBM Money. The technology is developed by Monitise and issued and managed by Permata Bank. BlackBerry is partnering with Barclays Bank to enable P2P money transfer service.
  73. 73. FinTech – Southeast Asia, July 201673 Biometric Payments
  74. 74. FinTech – Southeast Asia, July 201674 Tokenization
  75. 75. FinTech – Southeast Asia, July 201675 Ripple – Emerging technology in money transfer
  76. 76. FinTech – Southeast Asia, July 201676 Alternative Credit Scoring
  77. 77. 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 Payments Investment Tech Consumer Finance BFSI Tech Lending Bitcoin Crowdfunding Enterprise Finance Forex
  78. 78. FinTech – Southeast Asia, July 2016 8 Payments (1/22) Payments Mobile Payments Investment Tech Lending Personal Finance Insurance Tech Bitcoin Banking Tech Crowdfunding Enterprise Finance Forex Company Details Funding Investors Gateway Paysia [Bangkok, 2015]: Paysia is a Thailand based payments company which gives businesses the service of integrating online payments onto their websites and portals. It gives tools such as E-commerce, recurring payments etc in its package. The company charges flat rates to its clients irrespective of the volume and transaction 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 via online media or from Telkomsel mobile number. The company has its products namely speedy billing and spin card. Gateway JSC Vietnam Payment Solution [Hanoi, 2007]: JSC Vietnam Payment Solution (VNPAY) is an electronic payment 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 application developers 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 & Mandiri e-cash. 78
  79. 79. FinTech – Southeast Asia, July 2016 9 Payments (2/22) Payments Mobile Payments Investment Tech Lending Personal Finance Insurance Tech Bitcoin Banking Tech Crowdfunding Enterprise Finance Forex Company Details Funding Investors Gateway 1Pay [Hanoi, 2013]: 1Pay is a mobile payment platform which provides full mobile payment solutions to local and overseas merchants including mobile developers, content providers and game studios. It allows its customers 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-banking company engaged in the business of electronic money transfer, payment gateway and management. Company provides payment gateways for enterprises and, through the platform money can also be transacted between two FasaPay accounts. Gateway FasPay [Jakarta, 2003]: Faspay, PT. Media Indonusa is a subsidiary of Astel Group which is mobile e-commerce switching and acts as payment gateway partners. The company include mobile operators, financial institutions and merchants as its end users. Gateway PesoPay [Makati, 2006]: PesoPay is Philippines online payment gateway allowing merchants to accept online payments via credit cards & debit cards and cash over the counter payments. Also provides other related services like recurring payments, tokenization, customized branded payment page. Gateway Inpendium [Singapore, 2012]: Inpendium is a provider of payment connectivity and full cycle payment management services for e-commerce merchants. It also provides different financial services such as risk management & fraud screening, real time reporting and reconciliation of the failed payments. Claims to connect multiple card acquirers and alternative payment options in 172 currencies across Europe, Middle East and Africa, North America, Latin America and Asia Pacific regions. 79
  80. 80. FinTech – Southeast Asia, July 2016 0 Payments (3/22) Payments Mobile Payments Investment Tech Lending Personal Finance Insurance Tech Bitcoin Banking Tech Crowdfunding Enterprise Finance Forex Company Details Funding Investors Gateway Square Gate One [Jakarta, 2006]: Square Gate One provides solution in payment and banking channel. The company 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 company claims 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 online credit card payments. Siam pay also provide multiple services such as mobile payment, risk management software and aggregation of the merchants. Its parent company Asia pay was founded in 2000 and claims to cover 12 countries in Asia Gateway Doku [Jakarta, 2007]: Doku is one of the first locally built payment gateways in Indonesia providing online internet payment solution to e-commerce, b2c, retailing and b2b business concepts. They also provide solutions like Doku wallet, token payments, subscription payments. Last year, the company processed an estimated $1.5Bn worth of transactions with over 13,000 merchants in its portfolio across various industries since 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 personal and commercial use. A user can use mobile number and email address to get started and then safely make online purchases without revealing payment details. Headquartered in Singapore, the company also has operations in Vietnam, Indonesia, Phillipines and plans to expand across Southeast Asia and Africa. helloPay has investments from J.P. Morgan, Tesco, Rocket Internet, Temasek, Verlinvest and Investment AB Kinnevik. 80
  81. 81. FinTech – Southeast Asia, July 2016 1 Payments (4/22) Payments Mobile Payments Investment Tech Lending Personal Finance Insurance Tech Bitcoin Banking Tech Crowdfunding Enterprise Finance Forex 81
  82. 82. FinTech – Southeast Asia, July 2016 2 Payments (5/22) Payments Mobile Payments Investment Tech Lending Personal Finance Insurance Tech Bitcoin Banking Tech Crowdfunding Enterprise Finance Forex 82
  83. 83. FinTech – Southeast Asia, July 2016 3 Payments (6/22) Payments Mobile Payments Investment Tech Lending Personal Finance Insurance Tech Bitcoin Banking Tech Crowdfunding Enterprise Finance Forex 83
  84. 84. FinTech – Southeast Asia, July 2016 4 Payments (7/22) Payments Mobile Payments Investment Tech Lending Personal Finance Insurance Tech Bitcoin Banking Tech Crowdfunding Enterprise Finance Forex 84
  85. 85. FinTech – Southeast Asia, July 2016 5 Payments (8/22) Payments Mobile Payments Investment Tech Lending Personal Finance Insurance Tech Bitcoin Banking Tech Crowdfunding Enterprise Finance Forex 85
  86. 86. FinTech – Southeast Asia, July 2016 6 Payments (9/22) Payments Mobile Payments Investment Tech Lending Personal Finance Insurance Tech Bitcoin Banking Tech Crowdfunding Enterprise Finance Forex 86
  87. 87. FinTech – Southeast Asia, July 2016 7 Payments (10/22) Payments Mobile Payments Investment Tech Lending Personal Finance Insurance Tech Bitcoin Banking Tech Crowdfunding Enterprise Finance Forex 87
  88. 88. FinTech – Southeast Asia, July 2016 8 Payments (11/22) Payments Mobile Payments Investment Tech Lending Personal Finance Insurance Tech Bitcoin Banking Tech Crowdfunding Enterprise Finance Forex 88
  89. 89. FinTech – Southeast Asia, July 2016 9 Payments (12/22) Payments Mobile Payments Investment Tech Lending Personal Finance Insurance Tech Bitcoin Banking Tech Crowdfunding Enterprise Finance Forex 89
  90. 90. FinTech – Southeast Asia, July 2016 0 Payments (13/22) Payments Mobile Payments Investment Tech Lending Personal Finance Insurance Tech Bitcoin Banking Tech Crowdfunding Enterprise Finance Forex 90
  91. 91. FinTech – Southeast Asia, July 2016 1 Payments (14/22) Payments Mobile Payments Investment Tech Lending Personal Finance Insurance Tech Bitcoin Banking Tech Crowdfunding Enterprise Finance Forex 91
  92. 92. FinTech – Southeast Asia, July 2016 2 Payments (15/22) Payments Mobile Payments Investment Tech Lending Personal Finance Insurance Tech Bitcoin Banking Tech Crowdfunding Enterprise Finance Forex 92
  93. 93. FinTech – Southeast Asia, July 2016 3 Payments (16/22) Payments Mobile Payments Investment Tech Lending Personal Finance Insurance Tech Bitcoin Banking Tech Crowdfunding Enterprise Finance Forex 93
  94. 94. FinTech – Southeast Asia, July 2016 4 Payments (17/22) Payments Mobile Payments Investment Tech Lending Personal Finance Insurance Tech Bitcoin Banking Tech Crowdfunding Enterprise Finance Forex 94
  95. 95. FinTech – Southeast Asia, July 2016 5 Payments (18/22) Payments Mobile Payments Investment Tech Lending Personal Finance Insurance Tech Bitcoin Banking Tech Crowdfunding Enterprise Finance Forex 95
  96. 96. FinTech – Southeast Asia, July 2016 6 Payments (19/22) Payments Mobile Payments Investment Tech Lending Personal Finance Insurance Tech Bitcoin Banking Tech Crowdfunding Enterprise Finance Forex 96
  97. 97. FinTech – Southeast Asia, July 2016 7 Payments (20/22) Payments Mobile Payments Investment Tech Lending Personal Finance Insurance Tech Bitcoin Banking Tech Crowdfunding Enterprise Finance Forex 97
  98. 98. FinTech – Southeast Asia, July 2016 8 Payments (21/22) Payments Mobile Payments Investment Tech Lending Personal Finance Insurance Tech Bitcoin Banking Tech Crowdfunding Enterprise Finance Forex 98
  99. 99. FinTech – Southeast Asia, July 2016 9 Payments (22/22) Payments Mobile Payments Investment Tech Lending Personal Finance Insurance Tech Bitcoin Banking Tech Crowdfunding Enterprise Finance Forex 99
  100. 100. FinTech – Southeast Asia, July 2016 0 Mobile Payments (1/11) Payments Mobile Payments Investment Tech Lending Personal Finance Insurance Tech Bitcoin Banking Tech Crowdfunding Enterprise Finance Forex 100
  101. 101. FinTech – Southeast Asia, July 2016 1 Mobile Payments (2/11) Payments Mobile Payments Investment Tech Lending Personal Finance Insurance Tech Bitcoin Banking Tech Crowdfunding Enterprise Finance Forex 101
  102. 102. FinTech – Southeast Asia, July 2016 2 Mobile Payments (3/11) Payments Mobile Payments Investment Tech Lending Personal Finance Insurance Tech Bitcoin Banking Tech Crowdfunding Enterprise Finance Forex 102
  103. 103. FinTech – Southeast Asia, July 2016 3 Mobile Payments (4/11) Payments Mobile Payments Investment Tech Lending Personal Finance Insurance Tech Bitcoin Banking Tech Crowdfunding Enterprise Finance Forex 103
  104. 104. FinTech – Southeast Asia, July 2016 4 Mobile Payments (5/11) Payments Mobile Payments Investment Tech Lending Personal Finance Insurance Tech Bitcoin Banking Tech Crowdfunding Enterprise Finance Forex 104
  105. 105. FinTech – Southeast Asia, July 2016 5 Mobile Payments (6/11) Payments Mobile Payments Investment Tech Lending Personal Finance Insurance Tech Bitcoin Banking Tech Crowdfunding Enterprise Finance Forex 105
  106. 106. FinTech – Southeast Asia, July 2016 6 Mobile Payments (7/11) Payments Mobile Payments Investment Tech Lending Personal Finance Insurance Tech Bitcoin Banking Tech Crowdfunding Enterprise Finance Forex 106
  107. 107. FinTech – Southeast Asia, July 2016 7 Mobile Payments (8/11) Payments Mobile Payments Investment Tech Lending Personal Finance Insurance Tech Bitcoin Banking Tech Crowdfunding Enterprise Finance Forex 107
  108. 108. FinTech – Southeast Asia, July 2016 8 Mobile Payments (9/11) Payments Mobile Payments Investment Tech Lending Personal Finance Insurance Tech Bitcoin Banking Tech Crowdfunding Enterprise Finance Forex 108
  109. 109. FinTech – Southeast Asia, July 2016 9 Mobile Payments (10/11) Payments Mobile Payments Investment Tech Lending Personal Finance Insurance Tech Bitcoin Banking Tech Crowdfunding Enterprise Finance Forex 109
  110. 110. FinTech – Southeast Asia, July 2016 0 Mobile Payments (11/11) Payments Mobile Payments Investment Tech Lending Personal Finance Insurance Tech Bitcoin Banking Tech Crowdfunding Enterprise Finance Forex 110
  111. 111. FinTech – Southeast Asia, July 2016 1 Investment Tech (1/13) Payments Mobile Payments Investment Tech Lending Personal Finance Insurance Tech Bitcoin Banking Tech Crowdfunding Enterprise Finance Forex 111
  112. 112. FinTech – Southeast Asia, July 2016 2 Investment Tech (2/13) Payments Mobile Payments Investment Tech Lending Personal Finance Insurance Tech Bitcoin Banking Tech Crowdfunding Enterprise Finance Forex 112
  113. 113. FinTech – Southeast Asia, July 2016 3 Investment Tech (3/13) Payments Mobile Payments Investment Tech Lending Personal Finance Insurance Tech Bitcoin Banking Tech Crowdfunding Enterprise Finance Forex 113
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  120. 120. FinTech – Southeast Asia, July 2016 0 Investment Tech (10/13) Payments Mobile Payments Investment Tech Lending Personal Finance Insurance Tech Bitcoin Banking Tech Crowdfunding Enterprise Finance Forex 120
  121. 121. FinTech – Southeast Asia, July 2016 1 Investment Tech (11/13) Payments Mobile Payments Investment Tech Lending Personal Finance Insurance Tech Bitcoin Banking Tech Crowdfunding Enterprise Finance Forex 121
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  123. 123. FinTech – Southeast Asia, July 2016 3 Investment Tech (13/13) Payments Mobile Payments Investment Tech Lending Personal Finance Insurance Tech Bitcoin Banking Tech Crowdfunding Enterprise Finance Forex 123
  124. 124. FinTech – Southeast Asia, July 2016 4 Lending (1/10) Payments Mobile Payments Investment Tech Lending Personal Finance Insurance Tech Bitcoin Banking Tech Crowdfunding Enterprise Finance Forex 124
  125. 125. FinTech – Southeast Asia, July 2016 5 Lending (2/10) Payments Mobile Payments Investment Tech Lending Personal Finance Insurance Tech Bitcoin Banking Tech Crowdfunding Enterprise Finance Forex 125
  126. 126. FinTech – Southeast Asia, July 2016 6 Lending (3/10) Payments Mobile Payments Investment Tech Lending Personal Finance Insurance Tech Bitcoin Banking Tech Crowdfunding Enterprise Finance Forex 126
  127. 127. FinTech – Southeast Asia, July 2016 7 Lending (4/10) Payments Mobile Payments Investment Tech Lending Personal Finance Insurance Tech Bitcoin Banking Tech Crowdfunding Enterprise Finance Forex 127
  128. 128. FinTech – Southeast Asia, July 2016 8 Lending (5/10) Payments Mobile Payments Investment Tech Lending Personal Finance Insurance Tech Bitcoin Banking Tech Crowdfunding Enterprise Finance Forex 128
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  134. 134. FinTech – Southeast Asia, July 2016 4 Personal Finance (1/15) Payments Mobile Payments Investment Tech Lending Personal Finance Insurance Tech Bitcoin Banking Tech Crowdfunding Enterprise Finance Forex 134
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  189. 189. FinTech – Southeast Asia, July 2016189 VIEWS FROM INDUSTRY EXPERTS
  190. 190. FinTech – Southeast Asia, July 2016 Tracxn presents an exhaustive Q&A on Southeast Asia FinTech space In collaboration with 190 Willson Cuaca Founding & Managing Partner, East Ventures Altona Widjaja Vice President, OCBC Bank Richard Ian Eldridge Co-founder & CEO, Lenddo Jeff Stewart Founder & CEO, Lenddo
  191. 191. FinTech – Southeast Asia, July 2016191 Q+A: East Ventures Willson Cuaca is founding and managing partner of East Ventures, an early stage investment fund focus on consumer Internet, mobile and SaaS. With a total of 5 offices in Jakarta, Tokyo, and San Francisco, East Ventures has invested in over 150 companies across Asia and the US. For Southeast Asia focus, East Ventures has invested in more than 80 companies in the region. Most of the companies manage to get subsequent funding round and ride on top of Indonesia middle class consumer growth. East Ventures also made exits from its investment through M&A to local and international companies. Willson sits on advisory board of Code4Nation.id, a pro-bono movement to help Indonesia government solve problem through software. He brings his expertise in ecosystem building and product/market-fit to accelerate product delivery and value 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 different countries, at a different stages of development, each having different culture and language. Probably one of the most fragmented region yet called themselves as one community. For some verticals, like non-collateral loan and payment, for example, government regulation does play a big part for one company to be succeed. In the other hand, we can see couple of developing countries in the region, like Indonesia, still have a great rate of unbanked population. As much as it might disrupt the conventional banking, it is also giving a big opportunity for financial inclusion, for a low income member of society. Another interesting context is high mobile phone penetration rate and social media adoption. We see them as distribution platforms and helps to accelerate fintech adoption. Some people may not have access to financial product but they have at least one phone and could start doing transaction via the phone.
  192. 192. FinTech – Southeast Asia, July 2016192 Q+A: East Ventures What 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, expense management platform, can address opportunity that somehow identical in the region. MoolahSense, a P2P lending platform in Singapore, is able to disburse million of crowdsource capital within hours while still maintaining the quality of borrower. Singapore's bank has been in the forefront for innovation and receptive to change with various incubations and accelerators. Indonesia's bank put their bet by setting up VC arm. There are also startups like AlgoMerchant that focuses on improving the capital markets with tech, helping to scale retail investors trading operations that might traditionally not get as much priority as other higher margin banking ops. They are also using tech to develop their own algorithms to better 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.? #2 In Southeast Asia, many countries like the Philippines and Indonesia have a large unbanked population. Fintech services that focus on mobile payments aren't just offering a different service, they are solving a societal problem and levelling 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 saddle companies with excessive regulatory approvals, startups could have the potential to grow very quickly. The unique demands of the millennials will also help to drive certain Fintech innovation. The millennial generation is the largest generation worldwide and a significant portion of them reside in SEA. They are digital natives - smartphones and mobile internet are their essentials. In this area we see local startup like Xendit serving their needs with P2P transfers. Then there is also Seedly, which provides an expenses infographic service catering especially to millennials who want to better manage their expenses but do not have the time to do so.
  193. 193. FinTech – Southeast Asia, July 2016193 Q+A: East Ventures There 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? #5 While 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 significant proportion of the population don't even have a bank account to begin with, the same model that allowed a company to scale in the West could fail spectacularly if it is simply copy and pasted in SEA countries. For instance, services like Venmo in the US might be focusing on greater convenience, similar services like MoMo could be solving real problems - in countries where efficient interbank transfers aren't the norm, 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 SEA it could be more geared towards financial inclusion as well as services to capitalise on that inclusion. In this regard, we see startups like Moka and bindo that digitise the retail front payment, and are ready to help SMEs start accepting cards as financial inclusion takes place and more people start going cashless. Startups like Cermati help to accelerate the inclusion process by providing recommendations, guides and comparison on the various financial products like credit cards, loans and insurance. Providing such information in a localised manner will help to bridge the gap between complex financial services and people who have never used them before. We also noted the rise of assisted payment in ecommerce platform for unbanked population such as Kudo. the platform is growing 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 own Citicoin, DBS using IBM Watson, OCBC opening up the Open Vault - and they have the kind of resources that a Fintech startup would probably not have. However, amount banks 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 and it's hard any one company to cover all the areas from the beginning. Therefore there is definitely space for different Fintech ideas serving different niches of the finance industry. Consumer and SME client segments involving payments and lending are the areas that banks face the most heat from Fintech startups, but banks could also have an edge when developing their own Fintech tools for corporate banking or their own robo-advisory arm. Such niches require more than just money, they require security, trust, customisations for each customer and capital intensive investments that startups might not be able to afford. Unlike in the West where Fintech startups can take advantage of consumers' declining trust in their banks, Southeast Asian banks have one of the highest consumer confidence ratings. Trust issues have been a problem, for example, for mPOS startups trying to onboard traditional merchants in a cash culture - where merchants felt more comfortable if there were at least partial association with a bank.
  194. 194. 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 of late? How do you perceive the overall investment climate for Fintech 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, how do you see the market being different from other SEA countries as far as online lending is concerned? We divested ourselves from the Lending business in 2014 and now we serve both online incumbent banks and alternative online lenders. There are 2 types or market - Developed economies such as Singapore and developing economies such as Indonesia, Vietnam and Philippines. In developing markets each 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 #2 Lenddo is a provider of social network based credit scoring that empowers the emerging class to use their online social connections to build their creditworthiness and access local financial services. Users link their social networking accounts to their Lenndo account and complete their profiles to generate the LenddoScore. Lenddo enables businesses to simply and securely evaluate both the character and identity of customers using alternative data in order to extend credit and deliver life-improving services. Jeff Stewart, Founder and Chairman of Lenddo
  195. 195. FinTech – Southeast Asia, July 2016 Q+A: Lenddo 195 How difficult it has been for you to expand beyond SEA? Do you think SEA is more challenging in comparison to other developing countries like India? We have put in a comprehensive plan for our expansion into South America and India which is going as per plan. As a SAAS provider, we have also been able to deploy our solutions quickly and easily in the countries including Africa. #4 How do you think governments or central banks can encourage the alternative way of evaluating the credit score from non-traditional data points given the increasing digital footprint of SEA? From our experience, central banks are being proactive in allowing new techniques for driving financial inclusion as long as it is done in a planned approach and ensures the stability of the financial systems. Certainly nothing happens overnight, but the recent evolution observed in emerging markets show that they are embracing more and more modernisation as a compulsory step to quickly support and help financial institutions, and especially new players such as P2P lenders to scale and become more competitive, more regulated for the greatest benefit of the consumers. #6 How has the experience been in expanding to other SEA countries (like Singapore, Indonesia) from Philippines? Do they pose similar challenges? We only operate in Indonesia and Philippines in SE Asia today. These 2 markets are very similar with similar challenges facing financial institutions in both. #3 How do you see the acceptance for alternative credit scoring model in SEA vis-a-vis the traditional credit scoring models from bank? The feedback from the market has changed over the last few years. As more and more success stories from around the world have been shared, Credit Risk Officers are more open to using new types of data in building models and also comfortable using more advanced modelling techniques to build scorecards. These exciting developments must still be validated and managed using internal credit management policies and frameworks. #5
  196. 196. FinTech – Southeast Asia, July 2016 Similar to the development in UK and US, the advancement of technology has enabled nimble players to provide better customer experience and gain traction. This has prompted many banks to look at how they are able to transform and innovate their business to stay relevant for their customer. In Singapore there’s a concerted effort by the government bodies and eco- system partners to create an environment for innovation to thrive. This is but the start of the journey and we will expect to see real innovative ideas are being implemented in this digital and shared economy. Q+A: Altona Widjaja, VP OCBC Bank 196 Altona Widjaja works as Vice President with OCBC Bank, Singapore. He has been associated with OCBC Bank for more than 9 years and presently runs all aspect of operations at The Open Vault at OCBC from fixing coffee machines to curating Fintech strategy for the bank. What are the recent trends that you are observing in Fintech in SEA - like online lending, mobile payment etc? What is so unique about Singapore that is prompting many established 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 these initiatives from OCBC to other SEA countries like Indonesia, Malaysia? Build and transfer has always been OCBC’s regional strategy, the approach in these initiative would be similar. The market infrastructure and regulatory support would vary with each one but we believe there will be a convergence in approach and there’s a high chance of replicating the initiatives in other SEA countries especially in Malaysia and Indonesia. However, there would still need to have local adjustment like any regional initiative. #2 What do you think the future trend would likely to be - banks developing their own tech-enabled solution or banks acquiring few of the startups out there? I believe that it’s time for the banks to co-create with the external eco-system partner like the Fintech startups. I think that the bank should be enabler of such players. In this shared and open economy each entity should focus on what they do best and leverage on one another. I do not think there will be a one size fit all approach, be it own development or acquisition, different organisation have different culture and approach. But what is clear is that everyone have to be a digital/technology company to stay relevant to their customers. #3
  197. 197. 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

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