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Development of Fintech to the Asian Financial Industry

Development of Fintech to the Asian Financial Industry

yeah next session is gonna be about financial technology of FinTech the session is development of FinTech to us in financial industry our panelists are cupola pot a crap Brady Managing Director corporate venture capital for digital vendors subsidiary of CM commercial bank sagen couldn’t and Oppong tomorrow rana co-president of ascent money company limited a financial technology firm with a person in six Asian countries namely Thailand Cambodia Menma Whitnall Indonesia and Philippines and the moderator of the session is Connaughton ananda pan pong senior associate at x para ladies and gentlemen may I now invite our panelists and moderator on stage please please welcome [Music] okay good morning before we go to the delight lunch outside we have the main course here so for for a topic of development authentic to the Asian financial industry something a little bit closer to home and something a little bit closer to you I’m home I will give like 10 minute at the ends for it a question from the crown here please prepare a lot of questions I or I will let panelists ask you so starting with mister palapa Acharya PD managing director of corporate venture capital digital ventures could you introduce yourself a little bit about what DVD is doing sure so I I more commonly go by the name Paul Ark since you listen to a paul in the e-commerce session you can refer to me as paul 2.0 i if you haven’t guessed i am an american-born thai and i i work with digital ventures which is the FinTech arm of Siam commercial bank I imagine most of the people in the room are familiar with SCB so I won’t go into too much detail about our parent company but digital ventures is a wholly owned subsidiary of SCB we are tasked with helping SCB navigate this brave new world of FinTech and technology you’re going to hear the words disruption a lot and we do that in a number of ways one is we have a product team that spends time launching new products testing new technologies either technologies that we can bring back into the bank or technologies that we can use to create products and services outside of the bank to disrupt our own bank another area is through our startup accelerator we excel great local startups or international startups that are focusing on the time market we’re not specifically looking at FinTech startups to help accelerate and support but any any startup that serves the Thai market and actually we do find ways of connecting those startups back to the bank in any case and then the final piece of digital ventures is the venture capital arm which I manage so III manage you know fifty million dollars in corporate VC funds this is right off the bank’s balance sheet so SCB is our only shareholder and we I want to say it’s a fin tech fund but we actually do look at a lot of enabling technologies that feed into fin tech so we will look at things like AI we will look at things like biometrics cybersecurity even future tech like you know virtual reality anything that we think can ultimately impact the future of our business and we are we are not limited geographically so the great majority of our investments are outside of Thailand we’ve placed money in Hong Kong and Singapore in San Francisco New York I’m currently working on deals in London the Nordics Israel we will go anywhere in the world where we can find technologies that will ultimately impact financial services just as sort of a quick background I come from your side of the table I spent 10 years as an investment banker I actually did spend a short amount of time as a commercial banker I was a management trainee at SCB back in 94 and I also spent 10 years as a retailer so I spent a number of years working with central retail Corporation central group working on regional acquisitions as well as helping Central into China before I transitioned over and started opening up a bunch of Apple stores across the region so it was kind of an interesting journey from Investment Banking – opening retail stores to managing a FinTech VC fund okay thank you so we have another panel is here mr.

Development of Fintech to the Asian Financial Industry

Tanya poem tomorrow new coop president of ascend money can you introduce a little bit about SN and SM money I’m tangible I think a lot of people may not know assent money and I think ascent money is the company named and that we use to to operate the business the brand that we use when we go to the market we we operated under the brand of true money I’ll give you an introduction I said money is we are we’re clearly the FinTech company that cover six countries in the region we have parents father and mother of Citigroup and Alipay and financial and curly be operating in Thailand Myanmar Cambodia Vietnam Philippines and Indonesia our mission our mission is to enable everyone access to innovative financial services leading to better life we have looked at look around in the region and we have found that even basic financial services it’s not widely accessible by people in the country we see that both an opportunity and also a mission that we want to help these people you know getting to the financial services so so we have two key groups of customers one is digital consumer people are who are slightly younger who are worried you know family with tech family meet Bob iPhone tech-savvy and then we have another group of people who are under bank and and population we are focusing on at the moment realistic are the payment business both online offline in the future we also looking at other financial services that we can offer to our customers we have two line of business one is the mobile wallet app I think for many many of you in in Thailand you probably have seen some advertising or some of you probably already are using the true money wallet and through money wallet is now in Thailand we have this wallet apps that we start off roughly about three years ago then in international in the rest of the five countries that we are operating we are operating we start off with an agent business and the agent is looking exactly like like what you are seeing in the pictures so we are turning mom and pop shop in in different countries to be our true money agents some of the stats that we have the true money wallet in Thailand at the moment we have roughly about 6 million download customers and were three million active customers that are using our wallet for international I think one other thing that we if you look at the permission that we what we are trying to do is to enable everyone access to innovative financial services as that’s simply because there’s a large pain point in the region today as a region we have 620 million people many of these countries have very young population 70% of them are under 40 years old majority of them are actually unpack in most countries five countries that we are operating ranging for 40 to 70% of the people don’t have bank account or even if they have bank account and they don’t use it and also we are seeing growth in a smartphone penetration in our countries that we operating in if you look at you compare out of five countries even country who we might think is slightly less developing others like Cambodia or Myanmar the penetration or the growth of smartphone is actually you know quite fast and quite rapid and we are seeing more people on Facebook more people are chat apps that has been their common lifestyle for international in Indonesia we are we are operating at roughly about twenty five thousand agents in Indonesia and the rest of the four countries we have roughly about 5,000 to 6,000 agents we are clearly providing basic payment services to customer in these countries and we have three basic services one is mobile tapa second is be payment and third is limited and for many of us here in Thailand when you look at the service that we are providing it seems so basic but if you look at many countries that we are operating in its a large played point for them I’ll give you example on the bill payment here is so easy to do bill payment you can do it via mobile banking you can do it via wallet you can go to 7-eleven to make bill payment when it was used auto-debit deducted pay malibu every month but if you go to these countries they have this local electricity company so people have to queue up roughly about half an hour to three hours just to pay them malibu so so even basic financial services is not available limited for example many of them when they want to transfer the money when you want to send a money back home due to parents they have to give it to their friends sometime to give it to bus driver and and you know very well for for for for example me and my workers who come and work in in Thailand they used you know the word call work one or in English it’s windy they use this beam for more that were in order sent to send the money back so so for for this group of customer I think banking is is very far from from from that sort of normal lifestyle so so for us I think we think the agent Network is a bridging gap in order to convert the customer into fully digital I think customer need to be family a bit basic for more services before we can you ask this customer to go fully digital so so and we also looking at and I mentioned earlier we are looking at three basic services today obviously mobile top-up bill payment and domestic limit ins but we are expanding into other type of payment services like ticketing like international irritants like like insurance I think one of some of the things that we are going to launch very soon is the tactical thing some of the some of the information that we have example in in in most countries you know including Thailand the basic transportation of people is actually bus when you want to do inter region transportation train is generally not available so generally bus Airport is not well developed so so people Jenni travel by bus but they have a big pain point where they have to go to bus station which could be two hours over the house make a payment get the bus ticket and then come back home and wait for the for the travelling date and for us because we have agent network who were everywhere in the country customer can come to our agenda work make bus booking they can choose the seat you can choose the route they can get the ticket and this is wait for the day that they travel and they can bring that ticket with them so so so we are looking at providing these services to to our customers in these countries so that’s that’s the the overview of the DSN money service that we are doing today okay I think a lot of people here were using a lot of us and money products already know or not knowing that so I would like to talk about Paul last year you have been flying around the world just last year I I don’t know where have you been but I’ve been I saw you at the singularity University in Silicon Valley like have you been there like a hundred times already do you have anything to update us about the latest Terran of the FinTech oh the latest trends that’s an easy no you know it’s you know FinTech is a rather unusual beast in the sense that you know i think if you were to ask me a year ago i think a lot of us in the FinTech space would have said you know 2015 2016 was the peak you know VC funding for fintechs was through the roof everyone was talking about crowdfunding then everyone was talking about blockchain now everyone’s talking about AI and ensure attack and I think the expectation was that in 17 things would have come down a little bit it you know there’s there’s still a lot of legs to FinTech but I think the expectation was that funding VC funding into FinTech would slow down what’s interesting is that you know it has slowed down but not because interest in FinTech has slowed down I think probably the the thing that’s on everyone’s mind at every FinTech conference I go to is the rise of crypto currencies and the proliferation of initial coin offerings RI cos otherwise known as token sales this is a form of funding that is extremely frontier you know it’s been around for about four years but just in the last nine to twelve months ICO funding has gone through the roof and just to give you a little bit of an idea of the scale of this you know year-to-date so over the last nine months Global VC funding for for early stage internet companies for all types of tech companies I want to say I don’t have exact numbers because it changes every month but you know it’s we’re talking roughly about 700 800 million dollars in global VC funding for early-stage Internet companies in that same period I cos have raised about 1.6 billion so the amount of funding that is going to fin tech companies through a fund raising means that is completely bypassing VC is just astounding and so if you ask anyone in the VC space that companies are going to be able to raise hundreds of millions of dollars in hours using the blockchain they would have said ok that’s a really nice fantasy we’ll see that happen in 2020 2022 this is happening now so this is not about oh ok one day people will raise money through the blockchain it’s happening now the technology is validated people are willing to invest in money in sometimes ludicrous business plans you know I’ll tell you you know Floyd Mayweather raised two I see in his fight leading up to Conor McGregor I just read the news today that Burger King Russia just issued their own cryptocurrency so if you want to talk about stuff that’s just absolutely ludicrous you’re seeing it but if you get past all the hype you know once there’s a crash one things once things start to settle down once regulators start to step in you cannot escape the fact that people are willing to throw vast sums of money at companies using the blockchain and I think that is a really interesting trend that not only threatens to disrupt the venture capital industry but over the next decade potentially disrupt any capital market that involves fundraising over an antiquated process of book building phone calls paper prospectus ‘as you know you know again it you know I I exaggerate when I say you’re raising money in a few hours it does take some time to set up an ICO but the minute you press the button people are raising hundreds of millions of dollars literally within hours sometimes within minutes and it is quite an astounding process to see okay thank you for the heads up that I’m really up top see so I think because you have seen a lot of fintechs and in this world already I would like for you to compare it with a Thailand or with the Southeast Asian market how far we are in the development and how far behind from from the the Western world okay so I I would say you know I think Thailand is at an extremely early stage and this is simply a function of the age of our startup ecosystem our startup ecosystems about five years old so that that is that is less time than the length of most VC funds that that invests in capital which means that if you have a very very new startup ecosystem you have a lot of first-time founders you you don’t have a large pool of serial entrepreneurs that will come after this first wave of founders fail in their business and make no mistake in the startup world we’re talking ninety five percent failure rates but what I hope to see what we all hope to see is that these founders fall off their horse they get back on again and once they become that second time entrepreneur we’ve got a pool of serial entrepreneurs and what we need is we need an ecosystem that gets to the point where you have a pool of serial entrepreneurs people that are coming out of established companies so you know when I look at the FinTech space here in Thailand I see a lot of young 20-somethings and 30-somethings who have some experience who are willing to take the big leap into entrepreneurship and they’re starting fin tech companies and some of them are quite interesting but what we really need is to get to that next stage of FinTech evolution is we need people coming out of commercial banks investment banks insurance companies that have 15 20 years of experience they know their business inside and out they know all the pain points of of their their companies and they’re deciding I’ve got 15 20 years of experience I know my business I want to be my own boss and the ecosystem is mature enough for me to step out of that corporate business and get funding and resources to launch my own startup when we get there then we’re gonna start to see the the the FinTech space in Thailand sort of take that next generation leap that will get us caught up to places like North America or Europe where you know FinTech entrepreneurs have been coming out of established financial institutions for the past two decades so you know that that is a very polite way of saying we’re very far behind but that’s because our ecosystem is very young and so a lot of it is just a function of age it’s like do that I agree with Paul I think it’s a good example right here someone with deep domain experience coming out into the FinTech space so fintechs there are many Arian fintechs and in most areas I would say we are very still very far behind other countries you know in the West but but there are some areas that I think Thailand and Southeast Asia is actually at the forefront of of the of the FinTech work which is the payment that the payment was actually just starting apart from China which is way way ahead of videos China is you know five to ten years ahead of everyone else Southeast Asia’s are now is the battleground of the payment business there are many players who comment and want to win this space you know last month and I say last week we saw kbank a CPE and and other pants you know I’m launching a new mobile banking apps you know focus focusing on the lifestyle end and that that’s not that’s not uncommon we have seen this in every countries that we are operating in payment space are becoming hyper competition in a sense in many countries that we are operating in and I think everyone is talking to you know reef rock the the the period where many countries you know have to take 30 years 40 years to convert from cash to to to digital I think so is Asia I think we’re good to see you know that conversion much much faster given the the in the interest of FinTech investor and many corporates company that hoo-hoo jump in into this space you look at Indonesia of example there’s a big hair riding company similar to to uber and graph is called Kojak go check for example is it’s very aggressive and what to get into payment graph for example what to get into payment you have people like Ali pay and we shot who invest investing heavily in the region on the payment side of the business so so I think we are that we are seeing that space that you know many investor many startup many many corporates are interested to go in and and interests come from various sites you know in in in the ecosystem your banks now want you to jump into the payment then you have credit card company as well you have to go you have served establish FinTech people like crap go check then you have you know people from telco so so so many many parties who were looking at this and want to to jump in and and and invest in this so I agree with Paul that the ecosystem is very young like last year I hope kun cantata cabinet set up – tech Association just last year and it like we we just have heard of the FinTech just last year and a lot of people are working from but with a they work at banks before and they quit a job and one of them last year that I quit I’m also worked at patois and SCP before and I think more and more of the professional and experiences veteran from the banking side are starting to see the new opportunity and as Ken Hanyu Hong is from KGB – right so I would like to know why why who who do you think they will be the disrupter in four frente is it gonna be the bank is this gonna be telco is it gonna be other people or ascent money it’s gonna be leading – tech here maybe we start we continue home I think it’s it’s actually that’s two sign of the coin you know when we people look at FinTech the few hey it could be a major disruption to incumbent and engineer we are referring to bank or financial institution and financial situation could be broker could be insurance companies of course I’m in Destin that angle but there are so other angles where FinTech actually help support the the incumbent so so when when when people look at FinTech it has to look at both side of the coins I’ll start with the with the second which is the half intake actually help incumbents you look at payment for example right in in Thailand and in South Asia cash is king cash is roughly representing in Thailand probably 75 to 80 percent in in other countries Southeast Asia cash probably 90 percent 95 percent so so if you have you know fin tech startup people who are focusing on driving payment from cash to digital that’s helped banks because eventually this group of people they can they can start doing the banking transaction which otherwise they wouldn’t be able to do for merchants in the market if they start accepting wallet or start accepting mobile payment they have information on the income you know how how much do they sell per month how much do they buy per month with that information financial institution can use that information too do the lending which otherwise wouldn’t be available and and and you have seen that in every countries in in Thailand that’s due to point I think close to three million SMB customer in Thailand I think the biggest part of SME in in the banks probably you know close to four hundred five hundred thousand customers so let’s do a big and the surf customers so without FinTech I think I don’t think that that is come it you’re going to takes a long time oh it’s not going to be possible so in that in that sense I think that help you know the FinTech actually help date the incumbent there’s also other areas if you look at other areas you know some of the intuitive things that could help insurance company operating operate their business in in a much leaner faster and cheaper example there’s a technology in favor insurance company in the past when you want to do a claim for your car what you have to do is you have to call the insurance company and said okay senti there the claim person to your office or to your house look looking at the damage so so so the guy look at the damage take a picture you know key in the damaged sent that send that document back to the head office do the came calculation and then and then as a customer and you can’t go to the code go to the garage to face your car you know with the technology with the FinTech technology now there are some companies who can let the customer take the picture of that damage themselves and through the technology of AI the picture that the customer taken it’s as the quality as as good as the claim person who take it for example does it Claire like like there’s a Sun coming Juke ha and is there’s a glass except one with that it’s very difficult for for for for a claim insurance company to look at that damage because that’s a clear but the tonight technology can reduce that glare for customer who take a picture from a different angle instead of the rectangle that picture is low quality but the technology it can actually shift the angle to become the direct and go so that’s a company in China now who can do the claim in three minutes instead of three days and that save the insurance company significantly and in the claim process so so there’s a lot of benefit also that the incumbent can can can work with and can enjoy from the founder FinTech and on the disruption site i think there are some areas that for example payment there are some areas that we may compete with banks but again even for payment services today if you look at the payment majority is cash when you look at money transfer a lot of it is under the tape and underground that’s not it that’s not the transaction that banks or finance company are capturing anyway so so so there will be there will be some disruption but again we have to look at areas by areas and and again where the cost and benefit which one are we I I don’t know if you play add a little bit or want to banks to overlook fintechs company that from what I see from your presentation previously a lot of things or banks service like insurance is hot goal for for for the banks and you are doing personal loan as as the investment arm of the Bank Paul how Bank can like move forward with the FinTech and how Bank could like try to prepare for this new disrupter okay probably before I answer that it’s probably best to address the way I view disruption because I think you know and when people talk about FinTech disruption they’re always talking about disrupting a bank as an institution which I don’t think is the right way of looking at it because you know we start with a great quote you know Bill Gates once said that you know people need banking but they don’t necessarily need banks so when we think about disruption and we think about banks banks are not blackbox monolithic organizations banks are collections of products services and processes so when you say a company is disrupting they’re not disrupting the bank they’re not looking to replace a bank most fintechs are basically zeroing in on a particular product service or process and say I want to completely up end you know this service I want to up end the way the bank processes this data or this product so you know so in in the FinTech space we see you know there’s this trend which is towards unbundling it’s basically saying you know how can we unbundle each individual product and service and find a way to do it better through digital means through technology means which means that I personally don’t think that banks as institutions are going anywhere but how they look 10 years from now is gonna be radically different because they’re they’re bundling their collection of products services and processes these are all going to be very different because of financial technology so so when when we talk about disruption you know we look at ok which which one of these areas which products which service which process is is is under attack and to be honest I shouldn’t even say under attack because we think of disruption as this is bad for banks because when we sit there and say disruption we think oh banks are gonna lose revenue because of this FinTech but the thing to understand what technology is that technology not technology drives down revenues because costs are also falling so the trick is can you disrupt something where you disrupt the cost faster than you disrupt the revenue because there is no businessman in the right mind that wants to get in their business where revenues go to zero and costs are still high that’s not good for the bank and that’s not good for the FinTech entrepreneur and you know they get into that business because they they think I can slash revenues by ninety percent but I can slash costs by 99 percent and I can get 10x increase in in margin so you know when we look at you know for example you know you know SCB was was the first bank in Thailand to to introduce a commercial service on blockchain you know through ripple we announced it a few weeks ago but we actually launched it in stealth back in December now when we first were looking at this product and I was bringing it into the bank the first question that most of the folks in the bank said is that you know isn’t this going to wipe out our remittance revenue and I said it doesn’t matter if it reduces our remittance revenue if our remittance costs fall faster so on a margin baseness we come out ahead but if it reduces costs and revenues to the point where we can now offer remittance services to people that can couldn’t previously afford to do international transfers you know we’re basically increasing the volume and the velocity of transactions you know if you can send money internationally for a fraction of a baht for just a few sit down and you could do it instantaneously there is no reason why you wouldn’t just transfer money constantly instead of saying okay I’m gonna do my regular monthly transfer you know Mike it’s tuition is coming up in the u.s.

Development of Fintech to the Asian Financial Industry

I need to wire money in one go so he can pay his college tuitions paulien cost me $300 to wire ten thousand or whatever the case is you know if you drive down costs to almost zero then you just send money to your kid in the US anytime you want you know he’s 20 dollars short send him money you know you go out to dinner with your friends you just wire you know here’s you know here’s a few cents so when you think about disruption you know you have to go at kind of at the service level and at the process level and you have to think about the costs and as well as the revenue so when I think about disruption of financial services that the one thing I wholeheartedly agree I strongly believe is that you know the idea of assets driving bank revenue going forward is is dead so the idea that banks are gonna be deriving revenue from fees and interest that’s gone ten years from now all those fees go down to zero so banks in the future if they’re gonna survive are not going to be stewards of people’s wealth they’re gonna be stewards of people’s data which means banks need to figure out if we are their bank of data we need to find better ways to collect data to store data to secure data in a monetized data which is easier said than done and that’s the great challenge the one thing we can say for certain is you know the money that we make on remittances the money that we make on you know you know it insurance premiums all of these types of traditional revenue sources they will get disrupted banks won’t disappear they’ll find a way banks are full of really really smart people who are desperate to find a way to keep employed uh-huh so you know we’re gonna find a way and if we don’t find a way then the kids that we send to school we’re going to tell them learn how to program computers and you just you know you you sustain my retirement but you know I think banks will find a role in this new world but it’s hard to say what the role of a bank is going to look like specifically I think that’s come forward the audience a little bit especially a wholly-owned manager in banking vertical so couldn’t on Yahoo a son money already expanded in sick country six country in in this region or a day I would like to know how your experience dealing with regulators from from other countries comparing to Thailand because yesterday I heard the speaker from u.s. embassy talking about the some regulations that are outdated about the banking license that maybe they looked at the mobile banking as a branch for for foreign banks how is your experience dealing with the regulator’s yes we didn’t want to compare later of different countries but general equation is very important in in the FinTech area you know FinTech the name said fin is financial so with financial journey regulation alekhya laters you know we will closely wash and has a strong influence in what can be and what cannot be done I think on the under under regulation I want I want you to probably break it down into two two key areas one is the regulator perceptions towards innovations to what News idea and the second is about the policy how the policy that have in place or the policy that is going to be developed impact the growth the adoption of in tech if you look at different countries in the region and again is very much gold together with the development of his particular country I just came back from from garam / last week and have a chance to discuss with the applicator of Bank Negara of Malaysia I think I’m very impressed with the with the love of knowledge with the openness a black later also with the progressive thinking of of the Bank Negara in in Malaysia in in supporting the FinTech so and if you go down to two slightly less developed countries I think some countries as to regulators are not very opened to innovation yet and that some countries III don’t want to name some country for example it’s it’s only allowed for example it’s only allowed banks to do fund in to the wallet or to the bank account and and with that strict regulation it makes it very difficult for FinTech to compete in that market because if you don’t allow other people to fund in into the wallet then how how can a FinTech and a wallet company compete or help drive customer behavior in in converting from cash to digital in Thailand you know we can we can do fund in at 7-eleven we can do in funding at banks but in in in some countries we cannot even allow to do that so so so regulation wise it has a major impact in terms of how fast can the FinTech grow in different space in Thailand in general and I’m seeing a and a willingness of of the regulator and you know to engage FinTech I think central bank now are setting up the vintage Department only except application related to to FinTech orally and a person who are working on on that FinTech you know they focus purely on the FinTech trying to understand what are the technology difference the new technology that are impacting the financial services in Thailand there’s also new raw that are being draft is the law that allow some of the financial services company access some of information that is not available today but but that information has to be sanitized out of the personal information but that information will be if if fintechs company our banks can access those kind of information it will be easier for banks of in tech company to offer product and services to customers and I mentioned earlier about the SME you know at least two billion SME in Thailand don’t have access to to learn to learn form from financial institution today that’s because the lack of information that financial institution is having today I think with the new policy of FinTech companies or banks that can access some information that which otherwise in the past we will not be able to access things like payment behavior apart outside of the credit bureau some of the tax information that that can be available even things like eky see a lot of times in thailand now people have to you now when you want to open a bank account you have to go to bank branch you have to show your ID to the teller in order to open a bank account but in fact the technology now allow you to do online as secure even more secure than people go to the branch the government has the highly solution picture of over and us in the ID we also have it in in the passport that’s a high-resolution pictures and that’s now technology where can scan your face is can scan the blood vessel around your eye and compare with the highly solution picture that the government has and it can’t compare if that person are the same person if we both are is the same person and with the same person’s then you can on board that person online so so there’s a lot of things that need to be done and I’m seeing the liquidators in in different countries are more engaging more active in in trying to accommodate there’s a concept called sandbox that literally implement in four four central bank yes technology change very fast and and every day so look later cannot keep up with a shiny technology so what the creators have come up they call it sandbox so they said okay if you have a new idea it hasn’t been proven put this in sandbox test it on a small scale and see whether it works see whether it helped drive customer engagement help change customer behavior whether it’s have any risk to what the customers or puppet in at large so we did that with the sandbox it helped isolate the growth of their new technology in the financial service sector so know if that yes Paul so I know that you have been to Scandinavian countries recently and as I heard that Scandinavian especially Sweden it’s very advanced on the banking business and the regulators are very like changed the mindset to embrace the new technology do you have any like idea how how we cashing up or on the right track on the regulation so I do why I’ve probably been my team and I have probably been all over Europe actually so we spent many we’ve done many trips to London we’ve been to Italy France Spain Portugal Germany the Nordics you know I think that you know I think Europe is is fast becoming as a bloc one of the most advanced FinTech regions in the world short of China China’s in a bit of a league of its own you know what’s kind of interesting is if you if you look at the EU as a bloc and if you look at ASEAN as a bloc ASEAN has 2x the population we have about 660 million people across the 10 countries versus about 3 3 54 for the EU obviously they’re there economies are more mature but you know a lot of the technology indicators in Asia are quite impressive in terms of you know mobile phone penetration smartphone penetration social media usage willingness to make purchases over mobile but I think what’s largely holding us back as a region is that you know I think two ascends experienced you know they’re they’re experiencing you know six different regulatory approaches and regimes in six different countries whereas the EU tends to be a lot more uniform so right now that the big thing on everyone’s mind and EU is a PSD to the payment service directive – which is sort of the next generation service directive and and these are service directives that are designed to create standards across financial services across the entire geography which makes it easier for any FinTech to come into the region and say if we can plug into any given bank in any given region it’s gonna be very easy to plug into a different bank in a different country because the standards are there it also means that you know if I am a French person mean needing to send money to someone in the UK or send to someone in Italy it is gonna be like sending money to someone who’s in the next neighborhood they are literally creating one financial market without borders without Geographic or political borders so I think that’s a big thing you know I think to to your question on Scandinavia you know I think you know if you look at probably some of the most you know relatively cashless societies on earth you know we do spend a lot of time thinking about China because it’s 1.3 billion people and they’re big but if you look at who’s probably the farthest along in extracting cash out of society you know it’s it’s countries like Denmark its countries like Belgium it’s countries like Sweden which is quite amazing and you know my team and I spent you know three four days in Sweden it is almost impossible to use cash in Stockholm merchants don’t take cash everything is electronic you know I couldn’t even get a bus ticket with cash you know you know we talked to the merchants they say only the tourists use cash and the only place you can use tourists you can use cash are probably in the tourist heavy areas but you know to their credit the infrastructure is phenomenal you know I had to take the bus and Stockholm and I’m looking at the bus schedule and there’s a sign that says you know cannot purchase tickets on the bus you have to purchase through an app I looked at the schedule I had four minutes before the bus arrived so I downloaded the app super high-speed Internet simple punch in of my credit card number super quick authorization I bought my ticket and the bus arrived two minutes later so I did it all in about two minutes I I basically brought about a thousand US dollars worth of kronor and I basically came back with about 950 of it I could not you can’t get rid of it it’s amazing we talked to Swedbank one of the largest banks in Sweden which doesn’t say much because Sweden’s a small country they have 300 Bank branches around the country only three handle cash and the reason why is because Swedes do not visit bank branches anymore the average Swede visits their bank branch less than once a year but they use their app at least 500 times a year meaning they’re basically going through their app almost twice a day and I look at my iPhone 99% of the apps I don’t open up more than twice a day you know it’s either Facebook line or a game and that’s it so you know it’s it’s amazing and the thing is and the key message of that is it you know Sweden is a phenomenal collaboration between banks the banks are very progressive the courts the government the regulator’s all the Constituent parties are on the same page they don’t always they’re not always in sync but they’re largely moving in the same direction and I think what’s quite amazing is that a lot of the finned a lot of the financial innovations in Stockholm were driven by coalition’s of the bank’s they weren’t waiting for the regulator or the government to tell them what to do they got together as a group and it’s very hard for regulators or courts to say no if the majority of the country’s banking power says we’ve thought through the problems we’ve created a solution that we think are good for customers and you know we want you to adopt it okay I would like to open the floor for the question we have like maybe one or two questions left I am really looking forward to see like banking cold collation in Thailand like many constitutions and I hope to see as in money like doing all the bus ticket this may be this year or next year are we having a question from the audience come on I know you how they want to know a lot about I CEO a lot about blockchain the panel is asking you so um if there is no question I would like to for you to to maybe lay summarize or give the key takeaway from from this session for the audience before we stay hungry and maybe not foolish anymore and go to lunch maybe starting with kun honeycomb thank you for for having me here is a great honor to speak to to to all of you here today I think the tech industry is just recently started and in in Thailand and South Asia I think it’s you know people are starting above in tech probably less than two years ago I mean the mass the mass population and a lot of people don’t know the FinTech yet so that’s a long long way to go from here but but I think we will be here to stay it could be depending on which form it could emerge and what we have seen is I think I like Rick and bought her traditional business model where you can have many that coexist together you could be twenty forty hundred but Jenny and and in an online world so there will be only few who emerge as a winner so so everyone is working you know very hard in trying to to to win that space with that test you need you know a lot of changes we talked about relation you know adding about you made a very good point a very good illustration I’m in terms of you know how regulators in in more developed countries are doing I think we need more support from the from the regulation side in order to to speed up the development of FinTech in Thailand and in the region and also I mean it’s a scale scale is important if we have to go to different countries and doing just different things in different countries it’s actually slowed us down significantly the flocculation requires different setting different go to market different type of investment and it’s rate of confers to to get to scale so so that’s a stood many many challenges that we are seeing ahead though we see many opportunity as well we see that there’s a lot of underserved population in this part of the world even at the market like Thailand there are only a small percentage of people who have who do investment on a regular basis apart form LTF and IMF so so that’s still a big opportunity that that we are seeing and and yeah and I did collaboration with with Bank collaboration with other parties we will be important you know for the success of FinTech I’ll keep quick because I know that you know the lunch buffet is just sitting out there so I’ll probably gear my current summary towards the audience because I know many of you represent companies that are long in the banking industry here in Thailand so there’s probably a little bit of nervousness about whether your investments will still yield a return so the thing is even if the Thai the Thai startup ecosystem is playing catch-up and in FinTech is now just sort of on the mine of our country I would say the banks here are moving aggressively into the space no one has figured out the right formula no one’s figured out the right way to work with startups but banks are engaging you know four banks have formed CVC funds which is unheard of in any country in the world I don’t know of any country where banks that represent half of the assets under management have formed VC funds to engage with financial technology that’s quite amazing you know they’re they’re starting startup accelerators there they’re doing partnerships I know that FinTech is what keeps a number of CEOs up at night and that is a very good sign because the ones that don’t think that financial disruption is gonna hit their business are the ones that will get disrupted you know going back to Andy Grove founder of Intel only the paranoid survive so I joined SCB because I know my CEO is scared out of his mind out of technology and he’s willing to throw resources and people and capital behind getting on top of this trend and our bank is not alone so I think the banking industry in Thailand is in good shape thank you very much Paul and couldn’t hire bonefish please give our floors thank you all panelists also conduct on note for the informative session

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