DigFin VOX

Bertrand Billon is founder of Singapore-based fintech iLex, which is pioneering a digital platform for syndicated loans and other forms of private debt.

Loans, unlike bonds, are designed to be bespoke, and traditionally have been difficult to trade. iLex is trying to foster a digital marketplace among private capital players and banks, to create new sources of liquidity in loans.

Billon speaks with Jame DiBiasio about the challenges of creating such a platform from scratch and the possibilities for transforming this large but opaque segment of capital markets.

• Timecodes:
• 0:00 – Bertrand Billon, iLex
• 02:09 – Why haven’t loans been digitized before?
• 03:32 – How to accommodate the idiosyncratic nature of loans
• 05:49 – Creating liquidity
• 7:24 – Changing conditions: the rise of private capital, rising interest rates
• 9:43 – Securitization and its risks
• 11:28 – Developing the ecosystem for trading loans
• 14:36 – Asia versus Europe versus US
• 16:44 – Chicken and egg: jumpstarting a marketplace
• 20:01 – Size of digital loans market versus traditional syndication business
• 22:40 – Developed versus emerging markets
• 23:45 – VC funding conditions for fintechs, iLex’s valuation
• 27:02 – Future exit goals

Ambre Soubiran is founder of Kaiko, which provides market data on crypto to institutional investors.

She talks about the impact on the digital-assets industry from the closure of crypto-friendly banks in the US, why banks are still building infrastructure for digital assets, and the promise of smart contracts for traditional structured products and derivatives.

Soubiran looks at challenges such as public versus private blockchains, how to source data from blockchains, standards, and interoperability.

• Timecodes:
• 0:00 – Ambre Soubiran, Kaiko
• 2:00 – Data for smart contracts and founding Kaiko
• 5:18 – Pace of banks adopting blockchain infrastructure
• 8:12 – Public versus private, permissioned chains
• 11:16 – Is Ethereum now a security?
• 14:06 – New sources of demand for crypto data, Asia’s promise
• 18:38 – Standards and teaming up with Bloomberg
• 22:20 – Engaging with risk teams on trading floors
• 24:25 – How to source data in a blockchain world
• 26:25 – Kaiko’s business risks post bank closures in the US
• 29:56 – Fundraising

Monica Jasuja is an engineer and product manager who has led payments teams at PayPal, Mastercard, GoTo and elsewhere. She is one of the most knowledgeable people in the region when it comes to fintech.

Jasuja speaks with Jame DiBiasio about the key trends in the post-Covid era. Her analysis is balanced, noting the failure by many fintechs, banks, and governments to change consumer habits away from cash. On the other hand she discusses where she sees great potential for uptake.

As she goes through changing business models, Jasuja also touches on the implications for valuing fintech startups, lessons from China, and the foundational importance in Southeast and South Asia of government initiatives for financial inclusion. 

• Timecodes:
• 0:00 – Monica Jasuja and her career
• 2:58 – Challenges in Southeast Asia for super-app models
• 4:53 – The enduring use of cash, the limits of financial inclusion, how to change habits, and how to get users to pay for services
• 7:51 – Creating sustainable fintech businesses, the changing business playbook, reassessing a product’s value post-Covid
• 11:07 – What makes a product successful, Asia’s peculiar needs, neobanking in Asia, identifying the right problems to solve
• 14:24 – The essential role of government in Southeast Asia fintech, digital literacy, how to grow consumer spending
• 18:01 – Financial literacy, gamification, knowing customers, why UPI hasn’t grown faster, reaching beyond top-tier cities
• 21:52 – Lessons from China, what works and what doesn’t, why Southeast Asia is different
• 25:02 – How to value tech companies, rethinking how we fund startups
• 27:48 – Are CBDCs relevant? Finding use cases, integrating the region’s domestic payment systems, benefits for business users

 CUSTOMIZE

Kevin Kang, co-founder of payments fintech Reap, discusses the trends behind virtual cards for SME and enterprise users.

This is a segment of the fintech segment industry that brings credit-card like features to businesses using credit to manage working capital and cash needs. How big is it, and how disruptive?

Kevin discusses with Jame DiBiasio the market’s trajectory post Covid, compares it to traditional card and transaction banking businesses, and Reap’s funding situation.

• Timecodes:
• 0:00 – Kevin Kang, Reap
• 1:55 – Fintech business after Covid
• 5:15 – What’s a virtual card, pricing, fees, economics, comparison with traditional card business
• 9:49 – Reap’s B2B business segments, pain points for enterprises
• 12:41 – Data
• 13:33 – The virtual cards industry and growth areas
• 16:10 – Disrupting traditional finance
• 17:45 – Looking beyond B2B
• 20:38 – Card cash management versus transaction banking
• 22:28 – Web3 users, pain points, crypto fallout
• 26:24 – Role of AI
• 27:14 – Reap’s funding, VC milestones, valuation, exit
• 30:34 – Growth versus profitability

Helene Li is co-founder and CEO of GoImpact, a startup advisory and investment firm focused on sustainable finance.

She spoke with DigFin‘s Jame DiBiasio about the state of ESG in Asia, the role of fintech, and reasons why financial institutions will be able to manage ESG exposures more effectively.

• Timecodes
• 0:00 – Helene Li, GoImpact
• 1:33 – State of ESG in Asia
• 2:46 – The different roles of Hong Kong and Singapore
• 8:18 – Convergence among standards and investment practices
• 13:36 – ESG transformation versus digital transformation
• 16:16 – Pricing carbon markets and integrating them into balance sheets
• 19:43 – What’s needed to accelerate change
• 22:10 – The role of fintech
• 25:10 – Important skillsets and experience for ESG careers
• 27:06 – What’s next for GoImpact and measuring success

Benjamin Quinlan of Quinlan & Associates argues that Hong Kong’s incumbent insurance companies are now at risk of losing market share if they do not adopt digital, direct-to-consumer businesses.

Quinlan discusses the rise of virtual insurance companies, which are bringing policies to market that are cheaper and sometimes better.

He speaks with Jame DiBiasio about the costs of maintaining the status quo, the possibility that incumbents will opt to maintain agency networks, and the challenges of digital transformation.

• Timecodes:
• 0:00 – Benjamin Quinlan, Quinlan & Associates
• 1:00 – Why Hong Kong’s insurance companies must go direct to consumer
• 4:33 – Early uses of digital to support insurance agents
• 6:48 – Incumbent apps, engagement, traction
• 8:16 – Confronting old and new business models
• 10:06 – Impact of digital on products and margins
• 12:28 – Challenge of legacy IT systems
• 15:36 – The allure of business as usual post-Covid
• 17:32 – Can bancassurance replace lost revenues?
• 20:14 – Embracing health and fitness apps
• 21:47 – Risks to the virtual insurers post-Covid

Ganesh Rengaswamy is managing partner at Quona Capital, based in Bangalore. His VC firm has just raised a fund focused on fintech in emerging markets.

Rengaswamy speaks with Jame DiBiasio about why invest in fintech now, making decisions in the new macro environment, and what fintech business models look attractive – and which do not.

He also discusses how fintech can scale across the region, the importance of public digital infrastructure, and the rewards of backing companies that drive financial inclusion.

• Timecodes:
• 0:00 – Ganesh Rengaswamy, Quona Capital
• 1:45 – Why raise a fintech fund, and why now
• 4:05 – Standalone versus embedded fintech use cases
• 6:41 – Opportunities in the new macro environment
• 9:14 – Attractive early-stage fintech business models
• 15:30 – Unattractive business models 
• 19:47 – Investing in digital banks
• 20:51 – Hard tech/IP versus business model innovation in fintech
• 24:13 – Impact of public digital infrastructure
• 27:59 – Scaling fintech businesses internationally
• 29:23 – Making money via financial inclusion strategies

Andi Taufan, founder and CEO of Jakarta-based fintech Amartha, discusses financial inclusion and creating digital financial services for the unbanked.

Many of his customers (both individuals and small businesses) in Indonesia don’t even own a mobile phone, let alone have a bank account, and they depend on cash. How is he building a digital world for them?

Taufan talks about his hybrid business between offline and online, giving people access to digital finance, and the surprisingly lucrative business and investment returns this can create.

• Timecodes:
• 0:00 – Andi Taufan Garuda Putra, Amartha
• 1:01 – Amartha’s founding and building microfinance in Indonesia
• 3:27 – Enabling digital access and financial inclusion
• 6:20 – Sourcing data in an offline world
• 9:44 – Why banks and fintech partners like the business
• 12:12 – Migrating cash-based users to a mobile app
• 14:15 – Competing versus Big Tech and SEAsia platforms
• 17:00 – Macro challenges
• 19:02 – Funding, working with VCs
• 20:40 – Outlook for growth in 2023
• 22:00 – Challenges for a P2P platform
• 24:24 – Scale, mission, and the business model

Mark Munoz is managing partner at Vectr Fintech Partners, a global venture-capital firm based in Hong Kong.

Munoz speaks with Jame DiBiasio about the new, challenging macro conditions for startups and VCs, the new landscape for valuations, and his approach to investing in fintech companies in Asia.

Munoz also discusses his take on digital assets, artificial intelligence, and what he’s looking for in the next pitch deck.

• Timecodes:
• 0:00 – Mark Munoz, Vectr Fintech Partners
• 1:40 – Comparing today’s turmoil to the Dot-Com bust
• 4:46 – Macro impact on Vectr’s portfolio
• 6:56 – How company valuations in Asia are changing
• 9:56 – VC operating models in the new macro environment
• 12:20 – What he’s looking for in different fintech segments
• 15:00 – Investing in Asia and emerging markets
• 17:50 – Challenges of scaling portfolio companies
• 20:12 – Blockchain and digital assets
• 23:27 – Artificial intelligence in fintech
• 26:40 – Advice to founders making a pitch

How are the global payments companies, which built their legacy business on credit cards, growing in Asia?

Ari Sarker, president for Asia Pacific at Mastercard, tells Jame DiBiasio what opportunities are emerging for his industry. He discusses the economic outlook and managing the risks of deglobalization, along with the opportunities of e-commerce and digital economies in Asia.

He says debit now makes up as much business as credit cards, and describes how the firm is positioning itself to support financial inclusion, narrow the digital divide in societies, and find ways to drive new businesses.

• Timecodes:
• 0:00 – Ari Sarker, Mastercard
• 1:01 – Macro volatility and momentum in Asian economies
• 4:15 -Debit cards and wallets versus legacy credit card business
• 8:43 – Competition in new-economy payments and finance
• 11:53 – Asia’s digital leapfrog and tech’s role in meeting financial needs
• 15:21 – Narrowing the digital divide, boosting domestic growth
• 16:25 – Risks of deglobalization and the need for domestic partnerships
• 18:02 – Acquirer business, new revenues
• 20:22 – BNPL, crypto, and managing innovation and risk
• 24:39 – Tokenization in e-commerce and the future direction of digital payments