Vanaya Digital Talk Eps. 6 - Fintech: Friend or Foe?

FINTECH: FRIEND OR FOE?
March 21st 2018
@iLotte Noble House
Kuningan, South Jakarta
Digital Talk Episode #6
Vanaya Digital proudly present:

© 2018 of Vanaya Digital. All Rights Reserved.
Our Today’s Resourceful Speakers
Calindra da Cunha
Operations & Business Director
TrueMoney Indonesia, Ascend Group
Vincent
Head of Partnership & Business Development
GO-PAY
Sonny B. Sofjan (Host)
CEO & Founder
Vanaya Digital
Steven Calvin
Vice President Director
IndoLotte
Arno Tse
Chief Operation Officer
TCASH

Let’s be friend!
Find us on:

Round 3: Looking Forward to an Entirely Cashless Society
By Vincent
Round 1: Fintech in The Eyes of Finance People
By Steven Calvin
Round 2: Converging Telcos to Create a New Digital Ecosystem
By Arno Tse
Round 4: INDONESIA CASHLESS or LESSCASH
By Calindra da Cunha
Agenda
Round 5: Digital Talk Wrap Up
By Sonny B. Sofjan

Fintech
n. The industry consisting of
companies that create or sell
financial technology.
http://logophilialimited.com/index.php/index.php?word=fintech

Fintech is an abbreviation of
the phrase financial technology
and it’s first recorded use was
way back when in the 1980’s by
Peter Knight, the editor of a
business newsletter in the
Sunday Times. He used it to
describe a bot which had
altered his mailbox.
(Until this event started, we could not find a photo of Mr. Knight)

Generally, FinTech startups are founded by the former
banking industry employees, who identify a niche where the
bank lacks competence, better user experience or simply its
services are too expensive and overcomplicated.
“FinTech and Banks: Collaboration or Competition?” by Linas Beliūnas on LinkedIn Pulse

So they are basically bankers and should be our friend, right?

Fintech as a friend?
Easy. I’m gonna make
them an offer
they cannot
REFUSE.

Fintech in The Eyes of
Finance People
STEVEN CALVIN
VICE PRESIDENT PT INDO LOTTE MAKMUR

FinTech is short for ‘Financial Technology’
is the central concept of structural change and digitization
within the financial services industry.
Financial Services are understood within the framework of the
Digital Market Outlook; digital infrastructures allowing the
establishment of new types of agreements and procedures in
the classic areas of banking such as lending, investment
strategies and payments.
The characteristics
• simplified access for end users via the Internet or
mobile Apps,
• increase in the processing speed of automated
processes,
• reduction in costs,
• a stronger focus on customer service,
• more convenience,
• higher transparency
• the exploitation of network effects.
The FinTech market is comprised of the following market segments:
•Digital Payments
•Alternative Financing
•Alternative Lending
•Personal Finance

The FinTech market is characterized by a rapidly growing number of startups and
businesses without bank licenses (non-banks).
For an overview of the total potential of the FinTech market, a split between classic banks
and non-banks is not sensible, because consolidation processes, co-operations and white
label solutions mean that there will be no clear differentiation in the future.
Therefore, a functions-oriented segmentation is preferred, based on an access- or business
model-based split of the market.
FinTech start-ups tend to focus on selected parts of the financial value chain and try to
unbundle traditional bank business models.
Some
Inside
s

Finance Function Today : The 4 Forces Affect

Sumber : Asian Development Bank
Indonesia GDP Growth

Converging Telco to Create
a New Digital Ecosystem
Arno Tse
Chief Operating Officer (COO) TCASH
STRICTLY CONFIDENTIAL – This information is confidential; It is not to be distributed to any third party other than
for the intended purposes

VANAYA DIGITAL TALK 6
LOOKING FORWARD TO AN ENTIRELY
CASHLESS SOCIETY
Vincent
GO-PAY Head of Business Development &
Partnership
STRICTLY CONFIDENTIAL – This information is confidential; It is not to be distributed
to any third party other than for the intended purposes

3720130903 Dompetku update for BC V14.pptx
INDONESIA CASHLESS or LESSCASH

- MURI record: E-money education in 10 city in
Indonesia (2016)
- First Sharia E-money license
- #3 e-money transaction 2016 from BI
- #3 the bet digital brand from infobank 2017
- 16,000 agent
- 500,000 member
- License E-money & Remittance
Calindra da Cunha
Just call me Rio

• 303+ Mn mobile subscribers
• 107 Mn mobile internet users
• Dominated by 12 – 34 yo digital native
• 75 Mn+ social network users
INDONESIANS
LOVE MOBILE.
THEY ARE
SOCIAL.
Jokowi, President of Indonesia and First Lady, Iriana

LIKE OTHER EMERGING COUNTRIES, INDONESIA HAVING HUGE ECONOMIC
GAP, INCLUDING IN FINANCIAL ACCESS
8 of 10
adult population don’t
have a bank account
15.5 M
Inflation-sensitive HH
& eligible to G2P
Very Low Financial
Literacy & Inclusion..
LESS CASH
SOCIETY
&
FINANCIAL
INCLUSION
21.8
17.84
14.58
9.8
7.13
3.79
57.28
11.81
5.04
6.33
1.53
0.11
Banking
Insurance
Pawn
Financing
Pension Fund
Money Market
Inclusion
..yet the un-bank & G2P-
eligible population are
still huge..
..while central bank aims
to accelerate the non-
cash adoption to gain
national efficiency of
economySource : OJK Report and Analysis, 2014

4120130903 Dompetku update for BC V14.pptxphoto courtesy of fahmiphotogalery.blogspots.com
150• Commercial players
• Distribution networks
• Market penetration
5
30K
20%
BANKS TELCOS
300K
80%
4,000,000
not less than
OTC transaction
done at Indosat
outlets in a day.
No holidays.
FROM TELCO’S PERSPECTIVE,
MFS
OPPORTUNITY
IN INDONESIA
IS GREAT

But,
Financial inclusion
& branchless
banking strategy
Favour most of banks
to override them
Account opening
Cash in
Cash out
Service payment
Micro loan
Micro insurance
Cash out
Service payment
So, what we’re supposed to do?
Deeply integrate, joint venturing, or time to buy a bank?
Indonesian old lady withdraws G2P Payment

First of all, securing our biggest asset :
agent network !!
..and that’s exactly what we did since last year
15,000 14,000
Agents acquired,
and counting in
2017
Of them are
active doing
transactions in
2017
12,500
Daily transactions
served in 2017
$100mio
Amount
processed in 2017

..acquired partner with largest footprints in country..
With total 15,000+ stores across nation,
all ready to serve TRUEMONEY users.

Our Remittance is champion . . .
2017 Key Success: Marketing Campaign Promotion and Activities for
creating emotional bounding which gained 50% of Remittance its share
Media Coverage in Launching Event
Alfamart Cashier Training Racing Program
Digital Promotion (e.g. Facebook & Instagram)
Price Promo to driveTransactions
Local Event for Emotional Bounding
Local Event for Emotional Bounding

Our lovely agent network . . .

INDONESIA E-MONEY
• Collaboration between e-money player
• Strong Cash-in Channel
• Merchant & Agent Network
• Build Needs
• Social Impact
• Socialization & Education non stop !!
People need :
MURAH – MUDAH – CEPAT – AMAN
Cash-in: Everywhere, No Fee/Cheap & Many option
Transaction: Many merchant, Promo, No Fee, Point Reward, etc
Cash-out: Everywhere, No Fee/Cheap & Many option
System: Fast, Simple & Secure

TRUEMONEY READY FOR 2018 !!

a. Bank b. Tech Company c. Say, what?

– Lloyd Blankfein, CEO Goldman Sachs
“When you ask me…
what might this
technology be doing to
disrupt the industry or
our company, it’s a
little bit of a funny
sentence, because we
are a technology
company.”

And he mean it …

“Goldman’s aim is not
just to invest in tech
companies, it also
seeks to learn from
them, and even
emulate them.”
– Linas Beliūnas, Contis Group Ltd

Them, too!
The best way to make new friends?
Be a good listener and find things in common.

Digital is about a reimagining of finance using
technology. In fact, digital requires a complete
rethinking of the business model.
Digital has its heart in real-time availability, and
thinks about using customer data to create
intimacy through devices.
Chris Skinner has become known as an international independent commentator on fintech through his blog, the Finanser.com. He is the author of the bestselling book Digital Bank and its sequel ValueWeb. Both
books have been reviewed on www.BankingExchange.com and a chapter excerpt of ValueWeb also appears on the site. Skinner chairs the European networking forum: the Financial Services Club. He has been
voted one of the most influential people in banking by The Financial Brand and has received similar honors from The Wall Street Journal and other organizations.
Visit Skinner's professional website.

See you on VDT Episode #7:
“Finding Wisdom in Financial Technology”

Vanaya Digital Talk Eps. 6 - Fintech: Friend or Foe?

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