FinTech Business Delegation to Singapore Webinar
Welcome & Opening Remarks By Margaret Hanson-Muse, Regional Senior Commercial Officer, U.S. Embassy in Singapore FinTech Opportunities in ASEAN by Ajay Sunder, Vice President, Digital Transformation, APAC, Frost & Sullivan Working with the Monetary Authority of Singapore and the Singapore FinTech Festival by Roy Teo, Director, FinTech & Innovation Group, Monetary Authority of Singapore Three things to do before you go to Singapore by Jupe Tan, SVP, Global Operations, Plug & Play U.S. FinTech Business Delegation Program Highlights by Clint Brewer, Commercial Officer, U.S. Embassy in Singapore
Welcome Address & Opening Remarks Margaret Hanson-Muse, Regional Senior Commercial Officer U.S. Commercial Service U.S. Embassy, Singapore Email: [email protected]
FinTech Opportunities in ASEAN Ajay Sunder Vice President, Digital Transformation Frost & Sullivan Email: [email protected]
3
Market Offering by Segment
Segments Market Offering
Digital Payments
• Foreign Exchange and international funds transfer • Cryptocurrency trading and payment • Online Payments • Mobile Point-Of-Sale Payments
Personal and Business Finance
• Financial Planning • Bookkeeping • Peer-to-peer lending • Short-term personal and business credit • Insurance • Share and Securities Trading • IPO bidding • Investment Advice • Portfolio Tracking
Financial Infrastructure and Data Analysis
• Blockchain-as-a-Service • Consumer Behaviour Analysis • Personal Data Exchange • Unstructured to Structured Data conversion • B2B ordering platforms • Financial trading hardware
4
What is driving the APAC Fintech market ?
Smartphone penetration
Mobile penetration
Indonesia 34.40% 43.10%
Malaysia 59% 84.20%
Philippines 42.30% 57.80%
Singapore 78.70% 89.00%
Thailand 44.50% 58.30%
Vietnam 36.60% 57.10%
o Muti-screen trend continues as consumers benefit from declining prices especially with popularity of new brands such as Xiaomi. Rising smartphone users are causing a faster shift from voice heavy users to data heavy users especially in the more developed markets
o Rise of mobile consumers creating a new opportunity for “digital first “ Fintech consumer in the emerging economies.
0.00%
20.00%
40.00%
60.00%
80.00%
100.00%
120.00%
0.00% 20.00% 40.00% 60.00% 80.00% 100.00%
SE Asia Digital penetration
Singapore Malaysia
Vietnam
Philippines
Thailand
Indonesia
Smartphone penetration
Mob
ile p
enet
ratio
n
Size of bubble represents % of unbanked population
5
APAC Fintech Forecast
The APAC Fintech Industry is expected to reach $71 billion USD by 2020. Frost & Sullivan anticipates the APAC Fintech Industry will grow 72.5% CAGR by 2020. We put the total market size of the APAC Fintech Industry in 2016 at USD $10.2 Bn. This forecast predicts a sharp growth in the Fintech market in 2017 and 2018, followed by steady increases through to 2020.
62% 19%
19%
Figure 7: Fintech Revenue in 2015
Digital Payments
Personal And Business Finance
Financial Infrastructure and Data Analysis$0
$10,000
$20,000
$30,000
$40,000
$50,000
$60,000
$70,000
$80,000
2015 2016 2017 2018 2019 2020
Figure 8: APAC Fintech Forecast Financial Infrastructure and Data Analysis
Personal and Business Finance
Digital payments
Source: Frost & Sullivan Analysis
6
APAC fintech will take more than $15b away from Traditional Financial Services by 2020
APAC is in the development stage of the business cycle The Fintech start-up space has grown rapidly in APAC. This will reflect $15 bn of revenue taken from existing financial institutions and $7b worth of added revenues.
Western Europe
North America
Central & Eastern Europe Middle East
Maturity Development Growth
Africa
Asia-Pacific
Latin America
Consolidated
Time
Mar
ket V
alue
APAC Fintech Poised for Sharp Growth and
Maturity
Asia-Pacific is leading Fintech activity outside
North America and Western Europe
Australia
7
Fintech investment within APAC reached approximately USD 8 billion in 2016
China and India lead the Fintech wave while Singapore and Hong Kong were close in heels
0.2 0.3 0.35 1.1
4.6 5.3
0.1 0.15 0.17
0.5
1.9
2.7
0.00
1.00
2.00
3.00
4.00
5.00
6.00
7.00
8.00
9.00
2011 2012 2013 2014 2015 2016
In B
illio
ns U
SD
VC-backed OthersPayment
s
Lending
Markets and
wealth managem
ent
Risk and security
Insurance
Others
Largest share of FinTech Investments in
APAC
VC-backed FinTech Investments quadrupled in 2016 growing from 1.1 billion USD in 2014 to 5.3 billion USD in 2015.
Chinese companies attracted a whopping 2.7 billion USD in investments in 2016 accounting for the largest share in the APAC FinTech pie.
Zhong An, China's first online-only insurer raised $931.3M in PE funding, the largest deal in the region
Beijing, Shanghai and Shenzen were the leaders in China while Bangalore and Mumbai held the roost in India.
InsureTech and Regtech are emerging areas where many innovative Startups are launching new services
Source: Frost & Sullivan Analysis; Secondary Sources
8
Mobile Payments to Take Off in 12-18 Months
App Purchases Consumers pay for
mobile apps by credit card on their mobiles.
Online Purchases Consumers buy goods and services through
their mobiles.
Mobile Centric Goods/Services
Consumers pay for mobile exclusive goods
and services.
POS Payments Consumers make all payments, including
POS purchases through mobiles.
High
Low
2008 2018
Mob
ile P
aym
ent V
alue
Timeline
• Payers will be able to carry a “deck” of credit or charge cards from various companies and pay with their NFC enabled mobile phones.
• New EFTPOS and online charging solutions will allow more merchants to be paid through credit cards but also drive down the cost of receiving payments.
• Mobile Payments is an umbrella term which includes both payer services and payee services.
• The entry of Apple Pay and Google Pay in 2016, will revolutionise the APAC Mobile Payments market.
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Asian Banks are the new tech companies – Fintech companies
Digital Ecosystem
Automated Advice for New Products
Social Media Integration to share Investments and
Payments
Mobile Payment App for POS Purchases
Automated Investment and Financial Planning
Quick Access Short-Term Loans for Business and
Personal Use
Web-based UI for Banking
Mobile Banking App
Investment Tools to Trade Shares and Bonds
10
Asia-Pacific Innovation Hubs
Singapore Bangalore
Hong Kong
Shanghai
Beijing
Sydney Melbourne
• The 2015 Fintech Boom in APAC was concentrated primarily in Australia, Singapore and China. Specifically, activity was centered in Sydney and Melbourne in Australia, in Beijing and Shanghai in China, Hong Kong and in Singapore.
• In China, a populous and increasingly wealth middle-class has enabled strong social demand for efficient dynamic and disruptive financial services.
• In the case of Singapore, India and Australia, a healthy 18-34 demographic is driving consumer demand for Fintech products.
• Along with favorable government policies towards startup investments.
Growth Concentration
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Key Findings – APAC Fintech 2016-2020
Source: Frost & Sullivan
2 Singapore, Hong Kong and Sydney will Continue to be a Fintech Innovation Hubs in the Asia-Pacific Region
Singapore, Hong Kong and Sydney are attracting a lot if interest and considered hot-beds for innovation . These are also centers from where Fintech companies can easily expand in the region.
1 APAC Fintech solutions and services will account for over $70 billion in revenues. APAC Fintech solutions and services is expected to gross more than 70 Billion Revenues by 2020 growing at a CAGR of 72 %.
3 Analytics and AI will drive new applications and use cases in APAC The increasing use of AI, Algorithm-based banking and Robo-Advice will significantly affect the Financial Planners market in APAC. Financial Planning will increasingly be done by complex projection algorithms and AI systems with data analytics modules.
4 Micro-Investing will be Attractive Investment Path for Digital Natives Micro-Investing will offer a convenient but reliable form of long-term investment for Digital Natives. The wealth held by Asians aged 18-34 means that Frost & Sullivan projects that the total potential investment pool for micro-investing will reach $2.3b by 2020.
5 Blockchain will find new use cases beyond Financial services The implementation of Blockchain ledgers will significantly reduce infrastructure costs. Blockchains will also find new use cases beyond Financial services
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Growth Opportunity 1: Digital payments as an opportunity
Applicable Segments
• Evolution of technology has led to convergence of various industries and verticals esp Payments for consumer and consumer facing industries
• Banking institutions are now seeing their traditional service offerings being disrupted by smaller tech startups.
• This has forced financial institutions to acknowledge their impact and collaborate with them to stay relevant in the market.
• Many startups have received payments bank licenses to offer savings and current accounts to customers.
.
Context and Opportunity Call to Action
• Large population of unbanked offer huge opportunity for mobile and digital payments
• Communicating the new vision to key stakeholders internally and externally - including product and marketing teams, customers and partners.
• Next level innovation is in new product capabilities and user experiences enabled by: analytics, personalization, automation and integrations.
Applicable Regions
Vision Transformation
Megatrends Impact
Disruptive Applications
Business Models
Current Offerings
New Capabilities
Value-add Services
Vertical Markets
Geographic Expansion
Partnerships
Investment / M&A Source: Frost & Sullivan
Digital Payments Personal and Business Finance
Financial Infrastructure and Data
Analysis
Asia Pacific
13
Growth Opportunity 2: Blockchain beyond Financial services
nits
Applicable Segments
Context and Opportunity Call to Action
• Encourage the collaboration between global or local banks, key stakeholders as well as government agencies to expedite the implementation of blockchain technology.
• New opportunities for Tech players in
• Blockchain as a service
• Data centre services- e.g Wholesale Colocation
• Security & Managed services
• Seek for potential investors and leaders to nurture incubation and FinTech ecosystem development.
Applicable Region
Vision Transformation
Megatrends Impact
Disruptive Applications
Business Models
Current Offerings
New Capabilities
Value-add Services
Vertical Markets
Geographic Expansion
Partnerships
Investment / M&A Source: Frost & Sullivan
Digital Payments Personal and Business Finance
Financial Infrastructure and Data
Analysis
Asia Pacific
• IBM and PwC are Citigroup’s strategic partners for the fintech acceleration program in APAC
• New use cases for Blockchain emerging beyond Financial services
• Smart contracts – Real estate , Legal,
• Healthcare – to validate records and authorization
14
Growth Opportunity 3: Data analytics is the key differentiation
Applicable Segments
• The evolution of Big Data with the vast amount of data volumes in emerging market are driving new technology to capture and analyse the data with advanced data visualization and analytics capabilities
• The algorithm application and analytics tools are able to generate reliable factual insight which help to better understand customers, competitors or employees.
• The use of analytics is an opportunity for businesses to unlock the potential from the available data for commercial gain.
Context and Opportunity Call to Action
• Fintech data analysis player should harness the big data opportunity to generate new profit sources by exploring new innovative applications.
• Use cases in • Robo-advising
• P2P lending
• Transaction analytics ( Real estate, Payments etc.
• More affordable and accessible data analytics services should made available to tackle the potential market needs.
Applicable Region
Vision Transformation
Megatrends Impact
Disruptive Applications
Business Models
Current Offerings
New Capabilities
Value-add Services
Vertical Markets
Geographic Expansion
Partnerships
Investment / M&A Source: Frost & Sullivan
Digital Payments Personal and Business Finance
Financial Infrastructure and Data
Analysis
Asia Pacific
15
Growth Opportunity 3: Data analytics is the key differentiation
Applicable Segments
• The evolution of Big Data with the vast amount of data volumes in emerging market are driving new technology to capture and analyse the data with advanced data visualization and analytics capabilities
• The algorithm application and analytics tools are able to generate reliable factual insight which help to better understand customers, competitors or employees.
• The use of analytics is an opportunity for businesses to unlock the potential from the available data for commercial gain.
Context and Opportunity Call to Action
• Fintech data analysis player should harness the big data opportunity to generate new profit sources by exploring new innovative applications.
• Use cases in • Robo-advising
• P2P lending
• Transaction analytics ( Real estate, Payments etc.
• More affordable and accessible data analytics services should made available to tackle the potential market needs.
Applicable Region
Vision Transformation
Megatrends Impact
Disruptive Applications
Business Models
Current Offerings
New Capabilities
Value-add Services
Vertical Markets
Geographic Expansion
Partnerships
Investment / M&A Source: Frost & Sullivan
Digital Payments Personal and Business Finance
Financial Infrastructure and Data
Analysis
Asia Pacific
Working with the Monetary Authority of Singapore and the Singapore FinTech Festival Roy Teo Director, FinTech & Innovation Group Monetary Authority of Singapore Email: [email protected]
Singapore
A Vibrant Financial Technology Hub
A Smart Financial Centre
Increase efficiency Manage risks better
Improve people’s livesCreate new opportunities
Where innovation is pervasive
and technology is used widely to
National Digital
Infrastructure
Identity | Signature |
Vault | Connectivity (API)
World Class
FinTech R&DGlobal FinTech
Education Centre
Deep Access To
Startup Investment (Early to Mature)
International FinTech
Collaboration
Advanced and
Open Payment Rails
Smart
Financial
Centre
Policy Makers’ Toolkit
Engage in Accelerators
Annual FinTech Recognition
Regulatory Sandbox
Graduated Regulations
Hackathons / Challenges
Experiments with FIs
Experiments with Public Sector
Co-creation with Industry
Singapore Ecosystem Snapshot
> 300 active FinTech companies
Key Segments
32 FinTech companies
received $81.5m in early
stage investments
Ranked #1 in reports commissioned by
Thomson Reuters & Swift/UK Innovate
Finance (2017)
World-Class
FinTech Hub
(excl. cross-sector startups and tech companies)
Source: Medici
Blockchain
P2P Lending
Wealth
13% InsurTech
Payments
Remittance
RegTech
Cybersecurity
B2B Infra&Tech
Global R&D Hub
>30 R&D centres
dedicated to financial
services
Impactful Experiments
Project Ubin - interbank blockchain
payments | SoCash - cash withdrawal
platform | ACUO - collateral
management platform | Arts -
parametric-based catastrophe
insurance
ASEAN Partnership
UNCDF - Financial Inclusion
IFC-ABA AFIN - Regional Sandbox
International
Connectivity
10 FinTech MOUs
2% 9%
9% 2%
4%
16%
15%30%
United Kingdom
Australia
Switzerland
United States
South Korea
India
Access to MarketsAbu Dhabi
Japan
France
ASBA
Denmark
Thailand
BIGGER
More exhibitors,
more conference
tracks and
choices
BRIGHTER
Academics,
Scientists, Star
Speakers
BETTER
Dynamic Venue,
Compact
Programming
Attendees
Experience
Singapore FinTech Festival 2017
FinTech
Awards
FinTech
Conference
Networking
events
Industry
Workshops
Hackcelerator
Demo Day
A platform for idea-generation, knowledge-sharing, and business-networking for financial institutions,
FinTech companies, VCs, investors, institutes of higher learning, and entrepreneurs.
13,000+ attendees 200+ FinTech expertsIn 2016
&
Investor
Summit
FinTech Awards
Recognising implemented
innovative FinTech solutions
Singapore
Founder
Singapore
SME
Singapore
Open
ABS
Global
FinTech
Award
A prize pool of S$1.15 M is up for grabs
Investor Summit – “Deal Day”
Showcase of investment-worthy,
Singapore-based start-ups and
disruptive technologies
Keynote
Presentations
Start-up
Demos
Tech
Exhibitions
Exclusive
Networking
Join us at the Singapore FinTech Festival!http://fintechfestival.sg
Three things to do before you go to Singapore Jupe Tan SVP, Global Operations Managing Partner, Asia Pacific Email: [email protected]
U.S. FinTech Business Delegation Program Highlights Clint Brewer, CGBP Commercial Officer U.S. Commercial Service Atlanta Email: [email protected]
• Country briefing• Matchmaking meetings• Networking Receptions• Site visits to accelerators• Outreach with potential investors• Three Day access to the Singapore FinTech Festival
Conference• Optional Booth and Kiosk at Singapore FinTech Festival for
demos
Questions & Answer
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