Australia
InsurTech

Fast-Growing Aussie Insurtechs Choose Singapore as Gateway to Southeast Asia

									by Fintech News Singapore
July 28, 2021

Singapore’s burgeoning fintech landscape, reliable physical infrastructure and progressive regulations are attracting Australia’s fast-growing high-potential, insurtech startups looking to take on Southeast Asia.
Citing the city-state’s strategic location, high digital adoption, vibrant ecosystem of industry stakeholders eager to embrace cutting-edge technology, combined with the support of Accelerator programmes, like Firemark Accelerate, startups such as ActivePipe, Gruntify, ProofTec and Truuth, view Singapore as the gateway to the region.
Backed by Insurance Australia Group (IAG) and supported by the Australian Trade and Investment Commission (Austrade) Landing Pad, Firemark Accelerate was launched in 2020 as the leading insurtech accelerator in APAC.
Stephen Skulley
“The Firemark Accelerate programme and Austrade are an excellent partnership to launch Australian technology scaleups into Singapore and ASEAN. This co-delivery partnership brings together Firemark’s expertise in technology and innovation, and Austrade’s knowledge on navigating overseas markets and connecting Australian businesses to the world.

Following the success of the first season, we have now expanded our partnership to support the market expansion activities of another six scaleups across deep tech, cybersecurity and digital services,”
said Austrade’s Senior Trade and Investment Commissioner, Stephen Skulley.

The programme lays the foundations for startups to land and expand into new markets, to find new potential partners and investors, and to become corporate ready.
Meet four of the seven participating startups from Season 2:
ActivePipe
ActivePipe is an email marketing and lead-nurturing platform for real-estate professionals that leverages predictive technology to make it easier for property managers to understand their customers.
Their solution uses surveys and behavioural data to automatically deliver relevant property content, from intelligently matched listings and open house reminders, to expertly written articles.
Founded in 2014, ActivePipe builds, sells and services lead nurturing and sales enablement software for real estate brokerages, agents and mortgage brokers. Through email marketing, ActivePipe can identify a consumer’s intent to buy, sell or invest in real estate and make sure that they are receiving relevant, timely content from their real estate agent.
With an interest to tap into Singapore’s tech expertise and capabilities, the team from ActivePipe shared:
“Singapore is well known for being the technology and innovation hub of Asia. ActivePipe is excited to be able to leverage this to mature its data capabilities.”
ActivePipe has already signed several clients overseas, notably in North America where it will continue to strengthen its foothold this year and onward.
ActivePipe dashboard, activepipe.com
Gruntify
For Gruntify, a cloud-based technology platform for field productivity and workflow automation, Singapore’s strategic location in Asia paired with their business-friendly environment makes it “a perfect choice to springboard into the broader Asian market”, explained Founder and CEO, Igor Stjepanovic.
“Singapore is also a very multicultural place with strong work ethics, where innovation is clearly valued – those traits, attributes and values are very important to us and fundamental to our own purpose,”
Igor added.
“Consequently, we consider Singapore the epitome of location we want to be doing business in.”
Gruntify, which emerged from an Open Innovation Challenge hosted by PwC and Queensland Government back in 2015, helps organisations collect field data, manage assets, automate job assignment, manage teams and automate business processes, all from a single platform. With powerful metrics and location intelligence, businesses can discover trends and get answers fast, reducing costs and minimising risks.
Gruntify platform, via Gruntify.com
ProofTec
ProofTec’s founders, Danny Cohen and Dr Jeroen Vendrig, know that unbiased evidence about car damage gives peace of mind for the driver as well as accurate cost recovery when things do go unexpectedly wrong.
Founded in 2017, ProofTec has developed an automated damage detection technology platform that identifies, assesses and reports incremental changes on a vehicles’ exterior condition.
ProofTec was established to make all parties in a car rental transaction happy using proprietary vision AI technology.
Their solution leverages a proprietary AI image processing algorithm and can be deployed through fixed security cameras as well as on standard smartphones or tablets through a mobile app.
When asked about what their future looks like after finishing the 12-week Firemark Accelerate programme in mid-June 2021, Danny Cohen, Founder and CEO shared,
“We’re excited to continue our expansion into adjacent business domains, particularly insurance, to help data driven decision making.

Finally, we are very much looking forward to a post COVID world where we can once again meet face-to-face with our current and prospective global customers in countries outside of Australia!”
He also shared that Singapore is an ideal landing pad and logical stepping stone for ProofTec given the mature stakeholder ecosystem and it being a gateway for their business to springboard into other regions across ASEAN.
Image provided by ProofTec
Truuth
Truuth, a startup providing an integrated suite of digital identity services, has a mission to deliver the world’s most accurate, secure, and user-friendly digital identity services.
Founded in 2018, Truuth is already serving clients like Macquarie Bank and Australian Finance Group (AFG) and their solution can be delivered through a globally scalable SaaS platform.
They’re scheduled for a global launch of Truuth Biopass, a multi-biometric “passwordless” authentication solution, in the next 3 months. Biopass aims to empower users to append to their digital identity and use any combination of biometrics (face, voice or fingerprint), thereby enabling them to replace insecure passwords with their biometrics for all online interactions.
Founder and CEO, Mike Simpson, has named Asia one of its primary target regions, and is now looking to establish a presence in Singapore.
“We see a great fit with Truuth as our technology is world leading and our business model is disruptive.

“As we plan for our Series A funding round, we see Singapore as a key market for Truuth to have a presence in … and a logical launch pad for expansion throughout Asia,”
Mike shared.
Truuth Biopass, How it works, via truuth.id

Firemark Accelerate also worked with startups like Detexian, who were able to establish a strong presence in Singapore during season 1, where it has, since participating, landed three new customers in Singapore.
Detexian is an Australian startup providing businesses with an automated risk management solution powered by software-as-a-service (SaaS) applications.
Tan Huynh, CEO of Detexian said,
“Staying on top of multiple SaaS apps without automation is an impossible endeavour.

We help Singapore modern workplaces continuously track their SaaS use at ease, minimising risks and cost wastages.”
Singapore, one of the largest fintech hubs in the world, is home to some of Asia’s top insurtechs, a large community of committed investors, and major insurance and broking companies.
Visit the Australian Trade and Investment Commission’s website here.

Featured image credit: Unsplash and Pexels

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Blockchain
Open Banking

AFIN and R3 to Launch New Digital Currency Sandbox to Test CBDC Apps

									by Fintech News Singapore
June 16, 2021

The ASEAN Financial Innovation Network (AFIN) has partnered with R3, an enterprise blockchain software provider, to enable banks and fintechs to build and test Central Bank Digital Currency (CBDC) applications and drive its innovation and adoption globally.
AFIN is a not-for-profit entity jointly formed by the Monetary Authority of Singapore (MAS), the International Finance Corporation (IFC), and the ASEAN Bankers Association.
Through R3 and AFIN’s collaboration, AFIN will launch a new digital currency sandbox in APIX, and R3 will be the first partner organisation to provide APIs for building applications using digital currencies.
Select APIs of R3 Sandbox for Digital Currencies, a learning and development platform for CBDC experimentation used by global financial institutions and regulatory bodies, will be listed on the API Exchange (APIX) from August 2021.

In addition, developers can create and edit code, integrating R3’s APIs and others across different solution domains in APIX’s marketplace by leveraging the cloud-based integrated development environment (IDE).
This collaboration will provide financial institutions and fintechs on APIX with tools to build CBDC applications for new payment rails and multi-currency payment systems.
The sandbox is underpinned by Corda, and provides an environment for central banks, commercial banks, exchanges, payment providers, fintechs and more to collaborate and evaluate CBDC use cases, as well as to learn, transact, and test roll-out strategies.
Pieter Franken, Independent Advisor, AFIN said,
“Three years after its launch, the APIX platform has scaled by leaps and bounds. Today it is enabling the FinTech ecosystem to provide new impetus to the deployment of digital currencies in everyday transactions globally.

With R3’s APIs on APIX, we will see financial institutions and FinTechs designing new CBDC solutions collaboratively and deploying them as future-ready enterprises.”
David E. Rutter
David E. Rutter, Founder and Chief Executive Officer, R3 shared,
“CBDC initiatives have gained momentum globally and the ASEAN region is no exception with many central banks, commercial banks and FinTechs advancing the deployment of CBDC pilots, including the long-running Project Ubin in Singapore.

With our CBDC APIs available to banks and FinTechs globally on APIX, R3 will support participants from the public and private sectors in driving the development of faster and more secure payment settlements across the world.”
Sopnendu Mohanty, Chief FinTech Officer, MAS said,
“There has been an increasing interest in the deployment of blockchain technologies, which has created a strong demand for more efficient international payment settlements compatible with these technologies. MAS is encouraged by the collaboration between AFIN and R3 to facilitate broader experimentation between central banks, financial institutions, and FinTechs around the world. The collaboration will enable the global FinTech ecosystem to better understand the financial innovations around digital currencies.”

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Funding
Indonesia
Open Banking

Open Finance Startup Finantier Raises Undisclosed 7-Figure Seed Funding

									by Fintech News Indonesia
June 16, 2021

Finantier, an Indonesian open finance API platform, has raised an undisclosed 7-figure sum in a seed funding round led by Global Founders Capital and East Ventures.
The round was oversubscribed, and funds were raised at a post-money valuation of more than 20 times its pre-seed valuation in November 2020.

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Participating in the round were Future Shape, an investment and advisory firm founded by Tony Fadell, the co-inventor of the iPhone, Partech Partners, Taurus Ventures, Saison Capital, and GMO VenturePartners, among other high profile global fintech investors.
Existing investors AC Ventures, Y Combinator, Genesia Ventures, Two Culture Capital and prominent angels also participated. Finantier was part of Y Combinator’s Winter 2021 batch.

Finantier also welcomed Francesco Simoneschi, Co-Founder and CEO of Truelayer as an advisor to strengthen its board.
The fresh funds will go towards scaling and enhancing Finantier’s product offerings, continue its expansion within Indonesia and the region, and double the size of its team.
Since the beginning of the year, the company has expanded its team by more than 5 times to 50 employees, while growing its clients and partnerships by over 50 percent month-on-month.
Edwin Kusuma
“Finantier democratises access to financial services by allowing the millions of unbanked – from roadside warungs (SMEs) to gig economy workers – to benefit from their digital data footprint.

By unlocking access to basic financial services for the unbanked, we are enabling them and their loved ones to lead better lives,”
said Edwin Kusuma, Co-founder and COO of Finantier.

Featured image: Finantier Team

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Indonesia
Open Banking

Brankas Surpassed 10 Million Monthly API Calls With Over 80 Network Partners

									by Fintech News Singapore
June 18, 2021

Brankas, an Indonesian open banking solution provider, announced that it has recently surpassed 10 million monthly API calls with over 80 network partners.
The platform now operates in more than six countries and has partnered with more than 30 financial institutions to bring open finance to the region.

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Brankas provides open finance technology solutions to financial institutions and online businesses across Asia-Pacific, building the region’s supply of available financial API products while making it easier than ever for online businesses to add embedded finance to their own products.
The Brankas Open Finance Suite reportedly enables any financial institution to launch their own open API products in 8 weeks or less, and Brankas aggregated data and payments APIs enable customers greater choice, flexibility, and security in accessing financial services.

According to Brankas, it now provides 80% market coverage in the Philippines, Indonesia and Thailand, and has since expanded to Singapore, Vietnam, and Bangladesh.
The firm was one of the five startups that were selected to be a part of the first Visa Accelerator Programme in Asia Pacific.

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InsurTech
Remittance

eRemit Singapore Rolls Out Insurance Scheme for Migrant Workers

									by Fintech News Singapore
June 23, 2021

eRemit Singapore, a digital remittance service platform backed by Merchantrade Asia and QALA Tech, announced that it has partnered with Hong Leong Assurance Singapore (HLAS) to offer a new insurance scheme for migrant workers in Singapore.
The eRemit Singapore’s Salary Protector Scheme, underwritten by HLAS, is specially designed to meet the unique coverage needs of migrant workers in Singapore.
This scheme covers up to 12 times their monthly salary with a maximum cap of S$12,000.
It covers on- and off-work hours for the majority of occupations and provides critical financial support in the event of accidental death and permanent disability.

The scheme is provided free to all eRemit Singapore customers who have made a successful remittance transaction through its digital platform.
Additionally, eRemit Singapore is also expanding its remittance services to a business audience, particularly small- and medium-sized enterprises (SMEs).
Its new international business remittance platform supports faster and more flexible business transfers to six countries within the Asia-Pacific region, facilitating seamless, safe and secure cross-border payments.
Srihari Sikhakollu
“We are proud to work with HLAS to bring this Salary Protector Scheme to life, and we hope this will give migrant workers some peace of mind in ensuring that they and their families are provided for.

In May this year, we waived our service fee to all 13 countries so that workers who use our service can send more money to their families, and we hope to continue supporting them with our debut entry in the insurtech space.”
said Srihari Sikhakollu, Chief Executive Officer of eRemit Singapore.
Kelvin Lim
“Everyone deserves to be covered regardless of where they come from or what they do, especially in these challenging times. It is innovative to add this service to our extensive portfolio of insurance packages.

eRemit Singapore’s extensive fintech experience and wide adoption among the migrant worker community makes them an excellent partner to ensure that our insurance is accessible to them and addresses their needs,”
said Kelvin Lim, CEO of HLAS.

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InsurTech

Thriving Amidst Challenges: A Look Into the Singapore Insurtech Industry

									by Tun Yong Yap
July 8, 2021

It’s not about the cards you’re dealt, but how you play the hand. That would be an accurate depiction of the insurtech industry in Singapore.
Insurance has been a tough nut to crack, especially in the city-state. Singapore is home to one of the highest saturated insurance markets globally – measured by gross written premiums (GWP) as a percentage of per-capita gross domestic product (GDP).
A report by Bain showed incumbents accounted for more than 45 per cent of GWP and annual growth was at 1 per cent for the general insurance market. Furthermore, traditional distribution channels through agents and financial advisors remain the preferred avenue for local consumers to purchase their policies.
Advice from physical advisors and agents remain the dominant distribution channel for insurance in mature markets such as Singapore. (Image Credit: Bain)
In a mature market with incumbents maintaining a strong foothold, insurtech firms in Singapore have been dealt a challenging hand. However, they have played it well.

Insurtech in Singapore is far from a laggard industry. There are more than 80 insurtechs registered on the Singapore Fintech Association. And there has been no shortage of investment into the sector. According to BCG, funding for local insurtech firms accounted for 29 per cent of total fintech funding in 2019. The sector has witnessed significant M&As too. Last year, Singlife merged with Aviva in a US$3.2 billion deal.
Hence, it is clear insurtechs have a role to play within Singapore’s insurance industry.
Supporting role
Given the Republic’s high insurance penetration rate, the value proposition of insurtechs does not lie in reaching new customer segments.
Instead, it is working with incumbents to improve current insurance services and offerings. Therefore, the bulk of services offered by insurtechs are intended to assist incumbent providers to be more customer and data-driven.
While accessing insurance is not a problem for many Singaporeans, challenges around policy applications and processing claims remain. Both require applicants to furnish multiple documents that are a hassle to retrieve. Furthermore, processing timelines can last months on end with the need to communicate through multiple agents.
A number of insurtechs in Singapore are looking to change this narrative with their digital offerings. bolttech is one such example. Under Richard Li’s Pacific Century Group (PCG), the Singapore-based insurtech firm claims it operates the world’s largest online insurance exchange, having transacted US$5 billion in premiums, with over 5,000 products and 150 insurance providers on its platform.
Leveraging PCG’s strength in the insurance space – FWD Insurance is among the investment group’s portfolio – bolttech was able to serve over 7.7 million customers within a year of its launch in 2020. It recently raised a US$180 million Series A round which saw the company valued at over US$1 billion.
While bolttech’s impressive numbers offer local insurtechs a hint of the global insurtech market size they could target, we should not discount the fact being backed by a corporate powerhouse like PCG did significantly accelerate bolttech’s rise.
Undiscovered segments
While the bulk of insurtechs in Singapore focus on working with incumbents to improve their offerings, a few are also looking to launch solutions targeting untapped segments of the market.
Although microinsurance is typically found in developing countries and provides coverage for lower-income families through more affordable policies, local insurtech firm Igloo spun a new take on it by designing one that insures consumer goods instead.
Besides offering conventional personal insurance plans, the company also provides insurance to protect lower-value assets such as electronic gadgets and e-commerce goods.
With digital commerce booming, the move seems to be paying off. Igloo claimed its GWP grew by three times in 2021 over the same period last year.
Igloo’s Transit Insurance Plan protects against e-commerce goods lost or damaged during transit (Image Credit: Igloo)
Meanwhile, Gigacover targets the gig economy by partnering with supply-side platforms to provide white-label insurance solutions. It currently partners with Gojek and Pickupp to provide health insurance for drivers and delivery agents respectively.
Regulators
Apart from market factors shaping the growth of insurtech within Singapore, regulatory support has played an equally important role.
The Fintech Regulatory Sandbox launched by the Monetary Authority of Singapore (MAS) has been widely lauded to promote innovation within the financial services industry and elevate the country to its current status as the region’s fintech hub.
The sandbox enables financial institutions and fintechs to experiment with innovative financial products or services in a live environment but within a well-defined space and duration. PolicyPal was the first graduate in 2016 after completing a 6-month stint within it.
While the sandbox promotes innovation, its efficacy is limited as it only functions as a temporary testing environment. Outside of the sandbox, there has been a lack of long-term policies promoting innovation.
A country local regulators can learn from would be Hong Kong. The country’s Insurance Authority has been supportive of the development of insurtech through its Fast Track authorisation scheme.
The scheme has a dedicated queue for firms seeking to enter the insurance market in Hong Kong using solely digital distribution channels. Since launching in September 2017, four virtual insurers have been granted authorisation by utilising the Fast Track scheme.
Outlook
Given incumbents such as Aviva and Great Eastern maintain a stronghold of Singapore’s insurance market, the long-term success of insurtechs within the city-state would rely on their ability to synergise digital offerings with incumbent solutions.
While the value provided by these startups are clear, working together with a larger incumbent often goes beyond tangible terms. Local insurtech founders noted it has been challenging for startups to work with large organizations, due to resistance caused by conflicting agendas from different internal stakeholders.
However, the recent M&As within the insurtech industry represents a step in the right direction and could be a glimpse into the future of how incumbents and startups can work together.
Besides serving as validation of synergies between insurtechs and incumbents, these M&As are healthy for the industry as they represent a proven exit route for insurtechs in Singapore.
This increases investor confidence and the ensuing influx of capital will allow insurtechs to scale their solutions, generate larger exits and create a flywheel effect that will be beneficial for the long-term growth of insurtech in Singapore.

Featured image credit: Photo by Jason Rost on Unsplash

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Open Banking

What Does Singapore’s Open Banking Landscape Look Like in 2021?

									by Fintech News Singapore
June 30, 2021

Amid a rapidly changing financial landscape, incumbent banks must be open to innovation and explore opportunities to partner with non-banking partners for the benefit of their customers. One such way this can be accomplished is through the open banking system.
A collaborative ecosystem between traditional banks and non-banking partners, open banking allows third-party providers to have access to consumers’ financial information held by their bank. Doing so enable banks to introduce services and products to their customers that they’ve never been able to before on their own.
This is done through an application programming interface (API). A 2018 global survey by Accenture revealed that among 18 to 24-year- olds, 85% of them would trust a third party to aggregate their bank data.
Open banking aims to benefit consumers through improved consumer experience, access to open banking-enabled products, and better financial decision-making by having their financial information consolidated in a single platform.

Both the United Kingdom and Europe have opted for a regulatory-driven approach when it comes to open banking. In Europe, a revised Payment Services Directive (PSD2) was adopted by the European Parliament in October 2015 which included regulations to promote online and mobile payments through open banking. In August 2016, the United Kingdom Competition and Markets Authority (CMA) issued a ruling which gave licensed start-ups access to financial data held by the nine biggest UK banks.
In the Asia Pacific, Singapore, an early adopter of open banking, has been touted as a leader of open banking and API within the region in the Open Banking APAC report by the Emerging Payments Association Asia (EPAA) which was released in February 2020.
APIX, laying a strong foundation for Singapore’s open banking
The Monetary Authority of Singapore (MAS) is a key driver of developments in Singapore’s open banking space. One of the key initiatives that MAS has taken to support open banking in Singapore is laying a strong foundation for the growth of Singapore’s open banking by introducing API Exchange (APIX), a collaboration platform. It is the world’s first cross-border, open-architecture platform and aims to support financial innovation and inclusion in ASEAN and around the world.
Launched in November 2018, the platform is where financial institutions and fintech firms can connect easily and collaborate on design experiences via APIs. According to Shailesh Naik, the founder and Chief Executive Officer of MatchMove, a fintech company registered in Singapore, he has seen progress in the collaboration between banks and fintech firms in this space over the past two years. Banks are now more willing to cooperate and began reaching out to stay competitive as processes in fintech firms became more attractive and cost-effective to the conventional finance sector.
API Playbook and Financial Industry API Register
Prior to that, MAS had published the ‘Financial World: Finance-As-A Service API Playbook’, in collaboration with the Association of Banks in Singapore (ABS). It serves as a comprehensive guideline for financial institutions and fintech companies to develop and adopt open API based system architecture in their organisations.
Advantages of an API Economy, Source: Financial World: Finance-As-A-Service API Playbook
The guide includes a framework for governance, implementation, design principles for APIs and a list of over 400 recommended APIs and more than 5,6000 processes for their development. It has been described as the gold standard for regulatory advice on the topic in Asia.
Additionally, MAS also operates the Financial Industry API register which tracks open APIs in the Singapore financial industry by functional categories.
Guiding Principles for API Design, Source: Financial World: Finance-As-A-Service API Playbook
Singapore Financial Data Exchange: A leap forward in Singapore’s open banking space
Another key milestone for Singapore’s open banking space is the Financial Planning Digital Services initiative, which aims to facilitate data portability with a secure API framework. On 7 December 2020, MAS then launched the Singapore Financial Data Exchange (SGFinDex), which involves the consolidation of financial data from banks and government agencies in a single place, instead of multiple locations.
This is facilitated through Singapore’s national digital identity, the Singapore Personal Access (SingPass), which is a single sign-on service used by Singaporeans to transact with more than 60 government agencies online. Consumers have the option to grant access to financial institutions of their choosing to share their information.
Developed by the public sector in collaboration with ABS and seven participating banks, it is the world’s first public digital infrastructure to use a national digital identity and a centrally managed online consent system.
A voluntary adoption approach for Banks to embrace open banking in Singapore
MAS believes in making adoption voluntary for banks, instead of mandating it. Despite this voluntary approach, Singaporean banks are taking initiatives on their own. In 2017, DBS launched the world’s largest API developer platform in the industry, with 155 APIs in more than 20 categories. Through these APIs, other brands, fintechs, corporates, and software developers can communicate with the bank and access services such as funds transfers and peer-to-peer payment service PayLah!
Meanwhile, other banks are partnering with fintechs and developers to launch applications that utilise their publicly available APIs. One such example is Standard Chartered through their ‘The Good Life’ privileges programme, which gives their customers access to merchants that offer discounts and alternative payment methods. Another example is United Overseas Bank (UOB), which has selected specific fintechs and launched applications that leverage their APIs.
Trust, a key component for Singapore’s open banking to succeed
In 2019, Ravi Menon, the Managing Director of MAS, highlighted the importance of strengthened trust in the financial sector. The rewards of open banking must be balanced by the risks presented by the sharing of customers’ data between various parties.
In Accenture’s 2019 Global Financial Services Consumer Study, 75% of consumers state that they are very cautious about the privacy of their data, with data security breaches being the second-biggest concern for consumers. Therefore, for Singapore’s open banking to truly take off, customers must be fully confident that their data is safe.
Although banking data in Singapore is regulated by the Banking Act and the enhanced Personal Data Protection Act, banks, too, must play their part and continue to be vigilant in protecting their customers’ data to benefit both consumers and the industry, and ensure the success of Singapore’s open banking.

Featured image: Photo by Peter Nguyen on Unsplash

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InsurTech

Could InsurTech Revolutionise Insurance Into a Utility, as Accessible as Electricity?

									by George Kesselman
September 5, 2016

Imagine a time when oil lamps dimly lit up streets. If you had a privilege of having one of those contraptions outside your home, you would be forgiven for not feeling overly joyous, majority of the time. While it certainly had a purpose, it was difficult to service and oil had a nasty tendency to catch fire during transport. Moreover, it needed someone to light it up and put it out on a daily basis, apart from regular cleaning. At that time, while manufacturers were coming up with ever better and safer oil lamps, it remained a relative rarity due to its limited effectiveness and high ownership cost.

Joy, Safety and Productivity
It would have been very difficult for oil lamp manufactures to comprehend what society needed was utility of light and not a better oil lamp. Light with all the fundamentally wonderful things that it enabled: joy, safety and productivity. As the result, it wasn’t lamp manufactures that brought about broad revolution of electricity and electrical lighting that most of us take for granted now.
InsurTech as a Change Catalyst

What if I told you that the story of insurance is not not at all dissimilar to oil lamps. We are now in the age of oil lamps of insurance while electricity is being invented in our backyards. Investment into InsurTech has grown exponentially since 2012 and 2016 is the year it entered mainstream. Entrepreneurial talent powered by investment is rapidly experimenting across the whole insurance value stack and is starting to chip away at the first set of key insurance industry problems.

Power of a Utility
Over the years insurance has evolved into an equivalent of super complex oil lamp contraption that resorts to all kinds of complexities and tricks to address inherent structural limitations of current insurance model. The more time I spend with InsurTech startups, customers and insurers across Asia, the more I become convinced that the only way forward for insurance is for it to become a UTILITY, akin to electricity. In fact, as a consumer you want insurance for precisely the same reasons why you want electricity, as an enabler for joy, safety and productivity.
Furthermore, similar to electricity which expanded from the original purpose of lighting to power everything from our homes to internet and transportation, once basic insurance becomes a utility there’s a world of opportunities for insurance to positively impact our society on a much broader scale. Think of these as Apps that plug into the insurance platform similarly to how we have fridges, air-conditioning, computers, Teslas are all ultimately powered by electricity. Electricity is a super enabler and so should be insurance!
Insurance Journey Towards Becoming a Utility
If we take an analogy of insurance now = oil lamps, and extrapolate it to help us start imagining what a world of insurance would be in the age of electrical lighting. Its a journey that will take us shorter than expected due to the non-linear nature of progress.

Furthermore, I’ll venture to say that we’ll experience a tremendous consolidation across insurance industry and will end up with three major utility providers per market instead of current fragmented landscape.
First Wave of InsurTech
The first wave of InsurTech startups is already out there in the market experimenting with new tech/propositions and testing insurers’ appetite for collaboration. Broadly there are three camps of startups:
– Partner with insurers to accelerate their journey toward becoming a utility (eliminating frictions and building insurance grid infrastructure);
– Develop applications that plug into the insurance utility grid to provide custom products both in insurance and risk prevention;
– Aim to outrace insurers and become utilities themselves.
I’m a big believer in power of collaboration between startups and incumbents. Hence, I feel that the first two InsurTech camps have a better shot at creating a broader impact.
At this point most of the startups are focused on one particular technology or proposition. In order for insurance to become a utility and a true enabler of joy, safety and productivity it will take few of these enablers to join up in clusters and connect to the right insurers. The heat-map from Munich Re is a useful reference source.

Lastly, I’m not advocating for a universal insurance. “Insurance as a utility” is the mental model that nicely summarises all the various things happening in the InsurTech ecosystem and at a same time can act as a beacon for ecosystem players.
This article first appeared on LinkedIn Pulse

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Regtech
Sponsored Post

The Evolving Opportunities and Roadblocks in Singapore’s Maturing Regtech Scene

									by Fintech News Singapore
July 9, 2021

Progressive regulations, strong government support and the availability of talent and capital are cementing Singapore as a fintech hub with a maturing regtech market.
However, the impact of Covid-19 has catalysed the development of its regtech sector, according to a report released today by Ireland’s trade and innovation agency Enterprise Ireland, ranked one of the world’s most active VC investors, including fintech.
The report, entitled The State of Regtech in APAC, provides the most comprehensive, independent analysis available on the adoption of regtech across 10 key APAC markets of Australia, Mainland China, Hong Kong, Indonesia, Japan, Malaysia, Philippines, Singapore, Thailand, and Vietnam.
Enterprise Ireland commissioned Kapronasia, a leading Asian financial technology market research and consulting firm, to develop the report which identifies the latest opportunities and roadblocks facing regtech players in each of these markets.
It has been forecasted that the global regtech market will grow from USD$6.3 billion in 2020 to USD$16.0 billion by 2025, a rate of over 20% per year, with APAC expected to have the highest growth rate over this period.
The projected growth of the sector is in tandem with the booming fintech scene in the region, particularly in Southeast Asia which saw an estimated USD$1 billion worth of investments in 2019.
As a leading fintech hub in APAC, Singapore’s reputation in financial services is led by the Monetary Authority of Singapore (MAS) which has established a robust and mature regulatory framework that supports industry development and innovation.
Although this top-down approach remains critical to creating a conducive business environment, Covid-19 expedited the growth of the regtech ecosystem in Singapore.
On top of this, the MAS has shown real commitment to accelerating regtech adoption through the Regulatory Technology (RegTech) grant scheme and the Digital Acceleration Grant (DAG) scheme, bolstering Singapore as an attractive market for global regtech players.
Digitalisation also became a widespread necessity for organisations in Singapore, forcing many to move away from legacy systems to adapt and survive the impact of Covid-19 on the market.
Through various government and MAS sponsored grants, regtech solutions were prioritised as an immediate business need as part of a nationwide push for digital transformation.
The willingness of government-led support is also matched by a deep instinct for market resilience in Singapore. While industry consolidation across Singapore’s fintech and regtech sectors was already ongoing prior to the pandemic, the impetus for consolidation became more pronounced over this period.
Covid-19 provided additional incentive for smaller players to partner with established ones to survive the impact of the pandemic. As a result, the regtech sector in Singapore will increasingly sit within a more consolidated spectrum of fintech services as industry players move towards providing end-to-end solutions in the market.
Tiarnan McCaughan
“Singapore is a strategic market globally, not only to Ireland which is home to many regtech specialist companies but to Southeast Asia in particular. A global fintech hub with an extremely sophisticated regulatory regime, Singapore is a key gateway to the region and is often seen as a regulatory model for markets that are looking to drive innovation and regtech growth,”
explained Tiarnan McCaughan, Enterprise Ireland’s Senior Market Advisor (Singapore).
“At Enterprise Ireland, we share the commitment to support the development of a vibrant global industry. This report is a compendium for anyone in the regulatory, risk or compliance functions of any company in the region, as well as for regtech companies which are looking to scale and expand into Singapore and Southeast Asia,”
he added.
Brian Tang, co-chair of the Fintech Association of Hong Kong’s Regtech Committee and co-convener of the APAC RegTech Network that brings together the regtech committees of the fintech associations of Hong Kong, Singapore, Japan and Malaysia said,
Brian Tang
“Regtech is a secret sauce that empowers financial institutions, fintechs, virtual asset service providers and beyond. All such institutions, and their regulators and users, across the Asia-Pacific benefit from innovative, efficient and cost effective regtech solutions to combat financial crime and drive efficiencies and financial inclusion, regardless of origin of such technology solutions.”
He added,
“However, the journey to adoption is certainly not a straightforward one. We congratulate Enterprise Ireland for making this comprehensive report on the state of regtech in APAC publicly available so that regtech solution providers from across the globe, as well as APAC policy makers, can benefit from its findings to help drive further regtech adoption in the region”.
Key Singapore Highlights:
Some insights from Singapore’s overview include:

Impact of Regulators in Singapore

Tremendous support from the government and the MAS which is actively guiding the development of the fintech ecosystem to ensure the right balance of innovation and risk mitigation. Their proactive efforts in shaping the market has enabled Singapore’s regtech landscape to mature.

Regtech Development and Innovation

As an advanced regional player with regards to regulation, it is easier to start regtech development in Singapore then to try to implement it almost anywhere else in Asia Pacific.

Impact of Covid-19

The regtech ecosystem is benefiting from government and MAS sponsored grants. Greater industry consolidation across fintech and regtech can be expected as smaller players and startups prioritise survival.

Opportunities for Regtech in Singapore

With all that the authorities are doing around e-government, e-KYC, and the national identity scheme, there are opportunities for regtechs to get involved. Regtech entering Singapore market should also be looking at applying regional solutions.

Changes in Regulation

In the post-Covid era, another regulatory driver for greater regtech uptake will be around senior management liability guidance. The MAS was about to introduce such guidance but this has now been postponed until the end of 2021.

Roadblocks and Challenges

Talent and its shortage are another area which has seen support from the government. The Singapore government has introduced initiatives focused on retraining the population, evident in the development of a fintech curriculum in universities.
The State of Regtech in APAC report is available for download here.

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Funding
InsurTech

Singaporean Insurtech Bolttech Clinches Unicorn Status With US$180 Million Series A

									by Fintech News Singapore
July 2, 2021

Singaporean insurtech firm bolttech announced the completion of an oversubscribed US$180 million series A funding round which values it at more than US$1 billion, giving it unicorn status only one year after its launch in 2020.
The fundraise led by Activant Capital Group, joined by investors including Tony Fadell – Principal at Future Shape, Alpha Leonis Partners, Dowling Capital Partners, B. Riley Venture Capital and Tarsadia Investments.
The investment will be used for its plans to consolidate its position in the United States.
Additionally, the funds will enable its partners and customers with enhanced technology and digital capabilities, and strengthen its presence in its existing markets while continuing to expand internationally.

As part of the investment, Richard Benson-Armer, Partner at Activant, will join bolttech’s board of directors which already includes Peter Hancock, Robert Kyncl, and Malcolm Turnbull, amongst others.
bolttech is said to have transacted US$5 billion in premiums on the platform, providing a gateway to more than 5,000 products and 150 insurance providers.
Supported by a team of 1,400 employees, bolttech works with partners such as insurers, telcos, retailers, banks, e-commerce and digital destinations, to seamlessly embed insurance into their customer journeys at the point of need.
bolttech reported that it serves more than 7.7 million customers in 14 markets across 3 continents namely North America, Asia, and Europe, with licenses in 50 states in the U.S. and several key markets in Asia and Europe-wide.
Rob Schimek
Rob Schimek, bolttech’s Group Chief Executive Officer, said,
“We are delighted to welcome our new investors, and together with their support and partnership, we look forward to continuing on our mission to become the world’s leading technology-enabled ecosystem for protection and insurance.

This investment will help us connect even more insurers, distributors, and customers on our platform, shaping the future of insurance distribution.”

Featured image: bolttech team

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InsurTech
Vietnam

AIA Vietnam to Offer Life and Health Insurance via Tiki’s e-Commerce Platform

									by Fintech News Vietnam
July 6, 2021

AIA Vietnam and e-commerce platform Tiki has formed a 10-year agreement for an expansion of their financial services offerings.

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Under this agreement, AIA Vietnam will become Tiki’s exclusive insurance partner, enabling its customers to gain access to life and health insurance solutions via its e-commerce platform.
AIA Vietnam and Tiki will also jointly explore collaboration opportunities to meet the diverse and increasing financial needs of Vietnamese people.

By leveraging AIA’s omnichannel distribution and leading technology capabilities, alongside Tiki’s all-in-one e-commerce platform, this partnership offers significant potential for both entities to build long term relationships with even more customers across Vietnam.
Wayne Besant
Wayne Besant, Chief Executive Officer of AIA Vietnam, said,
“We believe with Tiki’s existing assets and market leadership, we can bring an accessible and enhanced customer service proposition to make a positive difference in the lives of the people of Vietnam.

We are very excited to extend AIA’s Vietnam’s market leadership and work together with our partner, Tiki.”
Tran Ngoc Thai Son
Tran Ngoc Thai Son, Founder and CEO of Tiki, said,
“Partnering with a global leader like AIA allows us to embrace that vision by creating personalised life and health insurance solutions for everyone, every need and every circumstance in a seamless, digital-first experience on our platform.

This strategic partnership combines fuses AIA’s world-class expertise in insurance and Tiki’s deep, hyper-local understanding of Vietnamese consumers to create what we hope to be the simplest, hassle-free online insurance shopping experience.”

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InsurTech

SMU Now Offers Singapore’s First Advanced Certified Insurtech Course

									by Fintech News Singapore
July 7, 2021

Singapore Management University (SMU) has launched an advanced full certificate programme in insurtech with TechFin Consulting to upskill working professionals and undergraduates.
With trainers hailing from Singapore’s fintech community and homegrown insurtech firm PolicyPal, SMU’s professional training arm SMU Academy will roll out the course from July 2021.
SMU Academy will roll out the programme in two alternatives; those interested can sign up for a 1-day introductory course or a more in-depth 12-day full certificate programme.
Upon successful completion of the latter, an advanced certificate would be jointly issued by SMU Academy and TechFin Consulting.

Both the 1-day course and 12-day certificate programme are funded by SkillsFuture Singapore, with up to 90% subsidy on course fees.
Designed to empower working professionals and undergraduates, the programme aims to equip participants with the right frameworks and capabilities to navigate the rapid technological disruptions and developments in the insurance industry.
The programme will include an introduction of the insurtech industry, discuss the problems solved in the traditional insurance market through technology and the latest trends and outlook.
This would bring participants up to speed on the worldwide adoption of insurtech and how it will shape their respective industries, as more companies move towards smart business models locally and globally.
The programme will follow SMU’s trainer-participant seminar style interaction to foster open discussion.
Jack Lim
Jack Lim, Executive Director, SMU Academy said,
“We are pleased to work with TechFin Consulting for this first-of-its-kind certificate programme on insurance technology. Social and technological trends which have shifted customer needs and expectations are a source of opportunity for tech-savvy insurers.

This certificate programme which comprises of five modules is designed to help professionals navigate the complex world of insurance and understand how insurance technology plays a role in the future of the industry.”
Featured image credit: By Hong Huazheng – Own work, CC BY-SA 4.0

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Regtech

APAC Countries Lose an Average of US$4 per Transaction Due to Fraud

									by Fintech News Singapore
July 8, 2021

A report by lobal data and analytics company LexisNexis® Risk Solutions found that Australia, Hong Kong, Japan and India recorded higher losses per transaction due to fraud compared to its Asia Pacific (APAC) counterparts.
It showed that the cost per transaction is US$3.51 in Australia; US$3.61 in Hong Kong, US$3.87 in Japan and US$3.84 in India, the total amount of loss a firm occurs based on the actual U.S. dollar value of a fraudulent transaction.
All four countries reported higher costs per transaction than the regional 2019 average that involved other APAC markets at US$3.40.
A combination of factors is driving the high cost of fraud, including market events influencing the use of transaction channels/payment methods, the challenges that businesses face when assessing fraud.

Another factor is the less than optimal approach that businesses take towards fraud detection, prevention and minimising customer friction.
The report also found that financial institutions tend to have higher costs given the heavy account-based nature of their business and the need to repay fraud losses to customer accounts, financial institutions often employ more internal and external labor for investigation, detection and recovery.
On average they spend US$3.78 per transaction in Australia, US$4.70 in Hong Kong, US$4.46 in Japan and US$4.76 in India.
One of the other key findings in the report is that identity verification remains a top challenge. The rise of synthetic identities was the most common source of identity verification issues.
Additionally, the use of digital/passive identity authentication solutions and transaction risk assessment solutions was limited in the Australia and Hong Kong markets.
The 2021 True Cost of Fraud™ APAC Study covers the retail, ecommerce, financial services and lending sectors for Australia, Hong Kong, India and Japan.
The report’s findings stem from a comprehensive survey of 418 risk and fraud executives in retail, ecommerce, financial services and lending companies in the APAC region in 2021.
Cameron Church
Cameron Church, Director of Fraud and Identity, LexisNexis Risk Solutions said,
“High fraud costs impact ecommerce merchants, retailers and financial institutions as they increase each year – even without the influence of COVID-19.

With sophisticated threats on the rise, taking a multi-layered solution approach has proven to be the most effective way to fight fraud across various channels and transaction types, as well as performing a more complete assessment that combines physical and digital identity data analysis.”

Featured image: edited from Unsplash here and here

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InsurTech

Insurtech Zensung Partners ERGO and Munich Re to Roll Out Its Green Insurance Policy

									by Fintech News Singapore
July 21, 2021

Singapore-based insurtech firm Zensung announced a partnership with insurance firms ERGO and Munich Re to launch green insurance policy ‘Parrot Safe Driver’.
Using an Artificial Intelligence (AI) based proprietary platform, delivered through Zensung’s ‘Parrot’ mobile app, they said that this policy makes buying and monitoring car insurance simpler, greener and fairer.
Through the app, users can purchase a policy, make a claim, and receive safe driving rebates using their smartphone.
The Parrot app also allows policyholders to monitor their trips and compensate for the CO2 emissions caused. It uses the globally recognised Greenhouse Gas Protocol (GHG) to calculate emissions.

In addition, Parrot offers its policyholders the choice to become CO2-neutral by buying carbon credits straight from the app.
Zensung said that it takes a “holistic view of its environmental stewardship, and firmly believes that improving driving behaviour, coupled with an awareness of one’s carbon footprint, will go a long way towards reducing fuel consumption and carbon emissions”.
Parrot’s scientific reward mechanism for safe driving aims to enable a permanent and positive change in its user’s driving habits, contributing towards reducing the number of accidents and making roads safer for the entire community.
Amod Dixit
Amod Dixit, Founder and CEO of Zensung said,
“We feel great about being able to do our part in protecting the environment. Through our app, we hope that people will use the policies, such as our Parrot Safe Driver policy and feel inspired to safeguard our environment.

Our partnership with ERGO and Munich Re Group represents a shared ambition in offering innovative yet environmentally friendly products.”

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Open Banking
Payments

OCBC First to Integrate With IRAS to Enable Direct Payment of Taxes

									by Fintech News Singapore
July 22, 2021

OCBC Bank is the first in Singapore to collaborate with the Inland Revenue Authority of Singapore (IRAS) to enable customers to have a seamless review and payment of their income and property taxes within a single digital platform, according to a statement by the bank.
IRAS has integrated its payment Application Programming Interface (API) with the bank’s digital platform – OCBC Financial OneView.
With the launch of Singapore Financial Data Exchange (SGFinDex), an open banking initiative, OCBC enabled customers to consolidate their financial information on one platform and view their assessable income.
With this recent integration of a direct payment method through OCBC Financial OneView, customers can now view their tax balance amounts and make tax payments immediately on the same platform via a seamless one-stop access.

This solution eases a common pain-point among taxpayers, who traditionally had to switch between the IRAS platform and the bank’s platform to view their tax details and then make payments.
Since the launch of the instant tax view and payment feature in May 2021, 30 percent of the customers who used this service paid their taxes for the first time through OCBC.
Sunny Quek
Sunny Quek, Head of Consumer Financial Services Singapore at OCBC Bank said,
“Income and property tax payments are among our top five payment transactions by volume today. With an all-in-one view of tax information and the ability to pay them instantly, customers will obtain a holistic picture of their financial health as they can now take into account their tax expenditure and make their tax payments easily via our digital channels. This overview will help customers work out their budget, income and expenses better.”

Featured image: Edited from Unsplash

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InsurTech

bolttech Plots European Expansion With Its Acquisition of Swiss-Based i-surance

									by Fintech News Singapore
July 23, 2021

Singaporean insurtech firm bolttech announced it has acquired i-surance, a next-generation B2B2C digital insurance platform based in Switzerland.
The acquisition of i-surance extends bolttech’s global footprint from 14 to 26 markets across North America, Asia, and Europe, adding 12 new countries in Europe including Belgium, France, Germany, Liechtenstein, Luxembourg, Monaco, Netherlands, Poland, Portugal, Spain, Switzerland, United Kingdom.
Launched in 2020, bolttech’s insurance exchange has US$5 billion premium on the platform, providing a gateway to more than 5,000 products and 150 insurance providers.
Supported by a team of 1,400 employees, bolttech currently serves more than 7.7 million customers.

Meanwhile, i-surance offers protection products to leading brands across its markets, including telecommunications providers, retailers, and manufacturers.
The transaction will bring together i-surance’s differentiated product set and geographic footprint with bolttech’s rapidly growing European partnerships, digital native protection and insurance capabilities.
bolttech intends to build out its insurance exchange capabilities in Europe, providing partners and customers with more choice through its B2B2C insurance exchange as it has done in the United States and Asia.
The transaction is part of bolttech’s international expansion strategy and follows its recent closing of US$180 million Series A funding round which values it at more than US$1 billion, giving it unicorn status a year after its launch.
i-surance and bolttech’s customers and partners will not be impacted by the transfer of ownership and rebranding, and all services and agreements will continue uninterrupted.
Rob Schimek
Rob Schimek, Group Chief Executive Officer of bolttech said,
“We are excited to welcome the i-surance team to the bolttech family. We have an aligned vision to connect people with more ways to protect the things they value, and we will build upon bolttech and i-surance’s strong foundations in Europe to accelerate our growth across the region.”
i-surance’s founder Dr. Jens Schädler, will remain with the business. He will continue to apply his deep experience and expertise as part of the team led by Andrew Cons, bolttech’s General Manager for Europe.
Dr. Jens Schädler
Dr. Jens Schädler, CEO of i-surance commented,
“As the market leader in several European countries for mobile device protection and hearing insurance, we’re delighted to be joining such an ambitious and innovative business as bolttech. As part of the bolttech family we are now able to provide our partners with global solutions.”

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InsurTech
Wealthtech

Prudential Makes Financial Push With New Wealth Offerings in Its Pulse App

									by Fintech News Singapore
July 26, 2021

Prudential Singapore has rolled out new wealth solutions on its health and wellness app Pulse by Prudential to make it simpler for everyone to begin their financial planning journey.
The insurer will first launch the wealth solutions in Singapore with plans for a roll out in other markets as the app is currently available in 11 languages across Asia and Africa.
With the new wealth features on Pulse, users will have the convenience of having both health and wealth solutions in one app.
The wealth tools called “Wealth@Pulse” enables users to seek wealth tips from Ruby, a digital assistant powered by Artificial Intelligence (AI), set and track financial goals and get access to curated content on how to save and invest for the future.

Based on the goals set, users can explore solutions from Prudential’s suite of insurance solutions in protection, savings and investment.
They can also connect to a Prudential financial consultant through the app for in-depth financial advice on how to protect and grow their wealth.
Pulse started as a health app to motivate people to stay healthy with easy-to-access preventative healthcare tools.
Today, Pulse has a suite of health solutions including an AI powered symptom checker, health assessment, and online doctor consultation service.
Users can also purchase bite-sized insurance plans on the app to get coverage for dengue, breast cancer, and prostate cancer and get complimentary coverage for side effects from a COVID 19 vaccination.
Prudential customers can access a dashboard that provides a single view of their insurance plans in protection, savings, and investment with the company.
The app was launched in Singapore in April 2020 and has crossed 260,000 downloads to date with 26 million downloads across Asia and Africa.
Dennis Tan
Dennis Tan, CEO of Prudential Singapore said the insurer wants to enhance financial literacy and help people plan for their life goals with greater confidence using the new wealth solutions on Pulse.
“We want to partner individuals and their families in improving their wellbeing. With Pulse, we have made it easier for people to focus on their two key priorities in life – health and finances – so they can be healthier and more financially prepared for the future.”

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InsurTech

Newly-Minted Unicorn bolt Makes Two New Key Appointments for Its Next Growth Chapter

									by Fintech News Singapore
July 27, 2021

bolt, insurtech exchange for the property and casualty insurance industry that is a part of the bolttech group, has announced two key changes to its senior leadership team to accelerate its next chapter of growth.
bolttech had recently achieved unicorn status following the completion of its oversubscribed US$180 million Series A funding round.
The firm had also acquired Swiss-based digital insurance platform i-surance to push ahead with its European expansion plans.
Eric Gewirtzman
Eric Gewirtzman, currently CEO of bolt United States, will assume a group leadership role, becoming CEO, Insurance Exchange for bolttech.

As part of this expanded role, Gewirtzman will join bolttech group’s executive committee, and be responsible for defining and implementing the group’s global insurance exchange strategy across North America, Asia and Europe.
This will include setting the strategic direction for new and existing market growth, expanding the company’s global reach with new partnerships and building on the insurance exchange’s technology and insurance capabilities.
Jim Dwane
Jim Dwane, currently bolt’s Chief Revenue Officer, will take on the role of bolt’s CEO in the United States.
Bringing close to three decades of deep insurance experience, Dwane will lead the implementation of bolt’s ambitious growth strategy across all business lines in the United States to further consolidate the company’s leading insurance exchange position.
With this move, Dwane will join bolttech group’s executive leadership team.
Both Gewirtzman and Dwane’s new roles are effective immediately.

Featured image: CEO, Insurance Exchange for bolttech, Jim Dwane, Bolt’s CEO in the United States.

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Innovation
Open Banking

Banking-as-a-Service: A Promising Sector in Southeast Asia

									by Fintech News Singapore
August 18, 2021

In Southeast Asia, banking-as-a-service (BaaS) can help financial institutions reach a greater number of customers and improve financial inclusion. But for BaaS to reach its full potential, the sharing of data is critical, Arvind Swami, director of business development for Red Hat’s Asia Pacific (APAC) financial services division, told Fintech News Singapore in an interview.
BaaS refers to a business-to-business (B2B) service where a bank leases its infrastructure. Clients like fintechs, challenger banks and other third parties can then connect with the bank’s systems directly via APIs and build banking offerings on top of the provider’s regulated infrastructure.
Finance becomes embedded
Perhaps one of the biggest opportunities related to BaaS is the ability to integrate financial services products into other kinds of customer activities, including non-financial digital platforms. For instance, a customer could be provided with the ability to take out a small loan when paying for a holiday on a travel site. Or that person could be given a tailored micro-insurance product when purchasing new jewelry.
Arvind Swami
“BaaS is about moving away from a product-centric approach to actually providing the services to take care of customers’ needs,”
Swami said.

“The seamless lifecycle of a service is what I would call BaaS.”
BaaS and open finance are intimately connected, he said, noting that the sharing of customer data becomes critical when finance is embedded into a customer’s life.
“Everything needs to be open in order for BaaS to work, otherwise it just goes back to the previous model where customers have to transact with each and every provider [along the way, whether that’s a bank, an insurance company, or a credit bureau,]” Swami said. “If the ecosystem is open, they can aggregate other components and create a lifecycle.”
Southeast Asia’s payment-as-a-service (PaaS) innovators
One example of this in Southeast Asia, Swami said, is Ascend Money, the fintech company behind Thailand’s leading e-wallet TrueMoney Wallet. TrueMoney Wallet is an all-in-one app that allows users to make cashless and cardless payments, including mobile top-ups, bill payments, online and offline purchases, cross-border remittances, as well as get access to exclusive promotions and discounts across a wide variety of merchants and services.
In Thailand, the TrueMoney brand has also produced other spin-offs including WeCard, in partnership with MasterCard, and TrueMoney Cash Card, for specialized top-up services like gaming.
In Myanmar, Wave Money is another relevant example of a successful payment-as-a-service provider. Wave Money specializes in over-the-counter financial services and operates with over 65,000 Wave Money shops across the country. In parallel, the company also offers the WavePay mobile wallet app which allows users to cash in/out money, top up their mobile phones, pay bills, repay loans, purchase tickets, and more.
“That’s a classical model of payment-as-a-service because what they’ve done is going beyond transactions to actually providing wallet and services, to the extent that I can do a transaction through a small shop,” Swami said. “As a consumer, I have that much more flexibility around transacting, rather than having to go to a bank and do a fund transfer. In that case, fund transfer is a product.”
BaaS: an underdeveloped yet promising sector in Southeast Asia
Though in most developing markets in Southeast Asia, BaaS still remains an underdeveloped area, there are plenty of opportunities for growth, especially considering the region’s large population of unbanked and underbanked, and high Internet and mobile phone penetration rates.
For example, BaaS can help bring financing to the micro, small and medium-sized enterprises (MSMEs) ineligible for loans at traditional financial institutions. Leveraging technology and data, these providers can lower the cost of onboarding and create better credit scoring mechanisms for these segments.
“The challenge in the past was that … traditional banks that have access to multiple layers of customers always went for customer profiles that are the less risky … [thus leaving behind most small and medium-sized enterprises,]” Swami said. But “technology can help reduce the cost of … customer acquisition and help by aggregating data to do better risk profiling of customers.”
Technology alone is not a silver bullet
But technology is not a silver bullet, Swami noted, stressing that the right technology must be coupled with the right use case and the right process. Not only that, but it must run on the right infrastructure and the right platform.
“Technology … helps and is a great enabler, but there’s a combination,” Swami said.
“A lot of time what we realize is people take the shiniest technology and won’t apply the right process and people don’t understand what to do with it.”
Blockchain is a good example of that, he said, noting that only two schools of thought exist around the technology: the supporters who believe that blockchain will solve every problem; and the detractors who argue that it’s useless. “I think there’s a middle ground to it where you just need to find the right use cases and know how to use it.”
Cybersecurity concerns grow
Swami warned however that the prolific use of technology and digital platforms is bringing new risks, notably in the areas of cybersecurity and fraud. He deplored banks’ nonchalant attitude towards the issue.
“As technology advances, methods to breach and hack that technology will also advance,” he said.
“One of the biggest problems we find in that space is that … cybersecurity investments are amongst the lowest in terms of the areas of funding in any financial institution. The general trend is ‘I’m not being hacked, I’m fine.’ Then once they get hacked, everything breaks loose.”
Attacks against the financial sector increased 238% globally from the beginning of February 2020 to the end of April 2020, with some 80% of financial institutions reporting an increase in cyberattacks, according to cyber security firm VMware.
Ransomware attacks against the financial sector went up 9x in that period and 82% of surveyed financial institutions said cybercriminals have become more sophisticated.

Featured image: Arvind Swami, Director of Business Development for Red Hat’s Asia Pacific (APAC), background Infographic vector created by GarryKillian – www.freepik.com

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Payments
Regtech

Napier Provides AML Controls for Cross-Border Payments Specialist ONEPIP

									by Fintech News Singapore
August 11, 2021

Napier, provider of advanced anti-financial crime compliance solutions, has announced that cross-border payment specialist ONEPIP will be using its technology as part of the latter’s upgraded anti-money laundering (AML) controls.
The regtech firm’s AI-led transaction monitoring, client activity review and risk-based scorecard review will give ONEPIP a systematic, intelligent review of all its transactions and customer profile data to help identify suspicious activity quickly and easily, creating a robust compliance solution.
ONEPIP reports that it has processed over 25,000 transactions worth over US$4.5 billion in value since 2016. It has licensed operations in Hong Kong and Singapore, and planned expansion in the region.
Dagian Cheong, Head of Risk Management at ONEPIP said,

“ONEPIP is on a continual quest to collaborate with best-in-class technology innovators, to integrate with our proprietary FX management platform, to meet the exacting standards of all our stakeholders, which include regulators and partner banks. We are particularly grateful to the Monetary Authority of Singapore for awarding us with the Digital Acceleration Grant which helped fund this project.”
Robin Lee
Robin Lee, Head of APAC at Napier said,
“Financial services organizations continue to face mounting pressures to ensure that their regulatory compliance measures are constantly up to date and robust enough to identify any potential criminal activity, or face huge fines. With Napier’s advanced and intelligent technology, this can move from being a mandatory duty to a competitive edge. ONEPIP’s new solution enhances its regulatory compliance regime to further strengthen its position as the trusted cross-border payment specialist in the region and beyond.”

Featured image credit: Screengrab from ONEPIP website

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InsurTech

HSBC Inks US$575 Million Deal To Acquire AXA Singapore’s Insurance Assets

									by Fintech News Singapore
August 16, 2021

HSBC said that it has entered into an agreement to acquire 100% of AXA Insurance issued share capital in Singapore for US$575 million.
The intention of this deal is to merge the operations of HSBC Life Singapore and AXA Singapore, which is subject to further approval by the Singapore regulator and courts.
The bank said that this is a key step in its “ambition of becoming a leading wealth manager in Asia, by expanding its insurance and wealth franchise in Singapore, a strategically important scale market for HSBC, and a major hub for its ASEAN wealth business”.
HSBC added that AXA Singapore is a good fit with its existing HSBC Insurance (Singapore) business.

Both businesses have complementary products across the spectrum of insurance solutions and distribution channels, while AXA Singapore provides access to a sizeable tied-agency sales force, several leading independent financial advisory firms, and a large pool of insurance policyholders and corporate relationships.
This combined business will not only materially scale up HSBC’s presence in the regional insurance market, it will also provide an excellent platform for future growth.
The combined business would reportedly be the 7th largest life insurer based on annualised new premiums and 4th largest retail health insurer based on gross premiums with over 600,000 policies in-force covering life, health and P&C.
Noel Quinn
Noel Quinn, Group Chief Executive, HSBC Holdings commented,
“This is an important acquisition that demonstrates our ambition to grow our wealth business across Asia. Wealth is one of our highest growth and highest return opportunities, and plays to our strengths as an Asia-centred bank with global reach.

We are acquiring a good business that fits well with our existing operations, and which strengthens our status as one of Asia’s leading wealth and insurance providers.”
Nuno Matos
Nuno Matos, Chief Executive, Wealth and Personal Banking at HSBC added,
“This strategic investment is a key milestone for HSBC Life to materially scale up, grow and diversify our insurance and wealth business in Singapore.

The proposed acquisition will immediately put us in a leading position in health and employee benefits, and accelerate our build out of a distinctive and holistic wealth and health planning business, operating beyond our branch network.”

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Open Banking

Southeast Asia Gears up for Open Finance Movement

									by Fintech News Singapore
August 20, 2021

Open finance, the next step in the open banking movement that broadens the scope to a wider range of products and services, offers new growth and distribution opportunities for banks, fintechs and other financial services providers.
In Southeast Asia, regulators are establishing the foundations for open finance as part of broader national modernization reforms and with hopes that the seamless and secure sharing of customers data will help improve financial inclusion.
In a new report, financial software provider Brankas and Southeast Asia-focused venture capital fund Integra Partners looks at the state of open finance in the region, highlighting the key initiatives launched so far.
The report says that in the region, central banks are eager for open finance. It notes however that the strategy varies from one country to another with some preferring a market-led approach, while others have embraced a regulatory-driven approach.

Open Finance Regulations across various ASEAN jurisdictions, Source- White Paper- Embracing Open Finance in Southeast Asia, Brankas and Integras Partners, July 2021
The Philippines
In the Philippines, the Bangko Sentral Pilipinas (BSP) approved new guidelines for the Open Finance Framework in June 2021, allowing for consent-driven data portability, interoperability, and collaborative partnerships among financial institutions and third-party providers.
Under the framework, consumers will have the power to grant financial institutions access to their financial data and will be offered tailored products and services that represent better deals.
An industry-led self-governing body called the Open Finance Oversight Committee (OFOC) will exercise governance on the activities and participants of the Open Finance ecosystem. BSP governor Benjamin E. Diokno said earlier this month that the creation of the committee will be completed within the year.
Indonesia
In Indonesia, regulators have expressed support for open banking as part of the digital financial transformation reform. In 2019, Bank Indonesia put in place its Indonesia Payment System Vision 2025, laying out five main key areas of focus: open banking; retail payment systems; financial market infrastructure; data; and regulatory, licensing and supervision.
Indonesia’s Personal Data Privacy (PDP) bill is expected to pass later this year.
Thailand
In Thailand, although there is no formal guidelines around open finance, the government has been supportive of digital transformation initiatives for the industry notably through the National e-Payment Maser Plan, a scheme focusing on the development and promotion of more effective, safer and lower-cost electronic payment services.
The plan lays out a few initiatives paving the ground for open banking, including the establishment of a working group to test bank statement sharing among financial services companies, as well as the creation of an interoperable infrastructure that would feature, among other things, biometric capabilities for identity authentication and electronic know-your-customer (eKYC).
These efforts sit alongside the implementation of the Personal Data Protection Act (PDPA), a legislation introduced in May 2019. PDPA, which came into full effect in June 2021, mandates that data controllers and processors who use personal data must receive consent from data owners and use it only for expressed purposes.
Singapore and Malaysia
Finally, in Singapore, though there is no mandatory requirement for banks to implement open banking, the Monetary Authority of Singapore (MAS) has supported the trend through notably the launch of the Finance-as-a-Service API Playbook, which contains principles on API governance, implementation, use cases, design principles, and 400 recommended API services.
MAS has also been involved in the launch of the API Exchange (APIX), a global, open-architecture platform that serves as a marketplace for fintech and financial institutions to connect, share ideas and innovate collaboratively.
Similarly to Singapore, Malaysia has taken a market-driven approach to open banking with a non-mandatory guideline framework for working with open data and open APIs.
Vietnam, Cambodia lag behind
Across Southeast Asia, the Philippines, Indonesia, Thailand, Malaysia and Singapore have so far been the most proactive jurisdictions to embrace open banking.
In Vietnam, although banks are becoming increasingly aware of open banking and recognizing the need to embrace open APIs to keep up with the rapidly evolving financial landscape, there’s been no real commitment from the government nor regulators so far on the topic.
Similarly, Cambodia currently has no regulation around open banking and customer data protection.
Untapped opportunities
Southeast Asia’s fast-evolving and yet still largely underdeveloped open finance ecosystem is becoming an appealing market for services providers looking to tap into this region’s large population of unbanked and digital reforms. In June, Singapore-headquartered open finance API platform Finantier raised an undisclosed seven-figure round to expand across the region, citing the region’s huge unmet demand for financial services.
According to Bain, over 70% of adults in Southeast Asia lack access to financial services, and millions of small and medium-sized enterprises (SMEs) in the region face large funding gaps. This is partly because many financial institutions are lacking access to customers’ financial data, limiting thus their ability to assess these customers’ eligibility for products or services.
With open finance and data sharing, banks can partner with third-party providers such as online marketplaces to gain access to alternative data including ecommerce transaction data to assess the credit risk of previously underserved customers.
Open finance also allows banks to lower the cost of customer acquisition and onboarding by allowing them to partner with third parties for eKYC, expanding thus access to underserved customers.
Featured image credit: Technology photo created by rawpixel.com – www.freepik.com

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Open Banking

AFIN Leverages Data Center Giant Equinix To Offer Enhanced Open Banking Infrastructure

									by Fintech News Singapore
August 19, 2021

Data center giant Equinix announced that the ASEAN Financial Innovation Network (AFIN) would leverage its platform to accelerate financial services innovation in Singapore and the global fintech ecosystem.
The collaboration will provide a dedicated on-premise API Exchange (APIX) sandbox on Equinix’s platform for financial institutions (FIs).
This offers fintechs a fast-provisioning and affordable, enterprise-grade, cloud-like, single tenanted hardware for production services.
APIX on Equinix Metal, which streamlines and facilitates infrastructure connectivity and integration, will enable FIs and fintechs to deploy their sandboxes as well as production services on cloud-like single tenanted hardware.

FIs and fintechs will also be able to scale on-demand at speed and interconnect physically and virtually to Equinix’s financial services ecosystem that consists of more than 1,800 networks, 3,000 cloud and IT service providers and 1,100 financial services companies across 64 global cities.
Additionally, FIs and fintechs can ensure that they remain compliant to the ever-changing compliance regulations.
Equinix‘s commitment to reaching climate-neutral globally by 2030 also strengthens AFIN’s shared sustainability agenda.
APIX is a cross-border, open-architecture API marketplace and sandbox for collaboration between fintechs and financial institutions by AFIN which was founded in 2018.
It now hosts hundreds of FIs who are actively using APIX to run proof of concepts in a fail-safe environment.
Sopnendu Mohanty
Sopnendu Mohanty, Chief Fintech Officer at the Monetary Authority of Singapore said,
“Equinix’s secure and scalable infrastructure will provide fintechs partnering with FIs an option to effectively manage technology risk in the financial sector.

Further, Equinix will also host APIX Sandbox for FIs looking for on-premise scaled innovation infrastructure.

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Funding
Indonesia
InsurTech

Former Lazada Execs’ Insurtech Lifepal Raises US$9 Million in Series A Fundraise

									by Fintech News Indonesia
August 20, 2021

Lifepal, an Indonesian digital direct-to-consumer (D2C) insurance marketplace, announced it has raised an oversubscribed US$9 million Series A funding round, bringing the total capital raised to US$12 million.
The funding round was led by ProBatus Capital with participation from Cathay Innovation, Insignia Ventures Partners, ATM Capital and Hustle Fund.

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Lifepal said that it will use the new financing to improve its product and customer experience.
The firm was founded in 2019 by former Lazada executives Giacomo Ficari and Nicolo Robba, as a one-stop platform offering over 300 policies across health, life, automotive, property, and travel.

Lifepal reportedly has more than 50 insurance partners which include some of the region’s largest players.
Giacomo Ficari
“We have entered the market at an exciting time: consumer behaviors are shifting online and we have the rare opportunity to continue to scale our traffic & branding to become the dominant online destination for consumers for the years to come.

We look forward to partnering with our new investors that share the same long-term vision and passion for insurance and best-in-class customer experience.”
said Giacomo Ficari, Founder and CEO of Lifepal.

Featured image: Lifepal’s team

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Regtech

Explosion of Data Fuels Demand for Regtech Amidst Growing Regulatory Complexity

									by Fintech News Singapore
August 27, 2021

The proliferation of data and an ever-so complex regulatory environment are driving the rise of regtech, forcing financial institutions to look for new ways and tools to comply, experts said during a panel discussion.
During Fintech Fireside Asia’s latest virtual session, top executives and officials from the Monetary Authority of Singapore (MAS), regtech provider Tookitaki, United Overseas Bank (UOB) and data technology vendor InterSystems came together to discuss the rapidly evolving regtech landscape and the key trends driving the sector.
Michael Hom, Head of Financial Solutions at InterSystems, said that as the financial services sector becomes more digitalised and data-driven, the advantages of tech-driven compliance monitoring compared to less automated alternatives are becoming evident.
Michael Hom, Head of Financial Solutions at InterSystems
“As the world becomes ever more digitally-oriented … and moves faster, the way we monitor and control need to change,” Hom said. “We have to move from purely detecting, maybe meditating, to ultimately preventing because everything is moving faster.”

Explosion of data driving regtech adoption
Alvinder Singh, Deputy Director of MAS’ Financial Technology and Innovation Group, said that demand for regtech is closely linked to the need of market participants and supervisors to process large amounts of data.
Alvinder Singh, Deputy Director – Financial Technology and Innovation Group, Monetary Authority of Singapore
“Data is the key driver of this: one, is the large amount of data that’s being produced; and two, is the large amount of data that needs to be analysed. Humans alone cannot do this,” Alvinder said. “The [tremendous] volume of data that needs to synthetised, … especially now that you’re using unstructured data and so on, this cannot only depend on humans.”
Echoing Alvinder, Michael said that the key to a successful regtech strategy relies heavily on data, adding that regulation and compliance are just one of the many use cases where an organisation’s data are put to work.
“As an organisation, you want to use your data appropriately for many different things whether that’s decisioning, reporting, insights, artificial intelligence (AI) and so forth,” Michael said. “We just see regulatory as another user or service that will play upon your data strategy.”
Abhishek Chatterjee, Founder and CEO of Tookitaki, noted the increasingly complex regulatory landscape as a major driver for regtech adoption. He cited digital assets as an example and the new regulations being introduced on a regular basis.
Abhishek Chatterjee, Founder and CEO of Tookitaki
Michael added that another point of complexity was the fact that rules vary from one jurisdiction to another. This means that, oftentimes, organisations have to rely on multiple regtech tools and providers.
“The amount of knowledge and understanding that you need to have [about these tools and providers] within those regulations forces it to be outsourced. Because there’s just so many people that have the capabilities and resources internally,” Hom said. “What came out of that is the spawning of a lot of regtechs that a lot of firms are utilising, at least in the US.”
Rising awareness and adoption
From a regtech provider’s standpoint, Abhishek said that awareness and education have risen significantly in the financial sector, a trend that goes hand in hand with accelerated adoption of technology across the broader industry.
Another trend he’s observed is the booming demand for tech-enabled compliance solutions from fintech companies and neobanks.
“Two years back, I don’t think compliance was considered one of the most important areas of fintechs and neobanks, but if you talk to every neobanks’ CEO now, they will say that compliance is a big area of focus for them,” Abhishek said.
“Adoption of regtech compliance by these new age, fintech companies is a huge trend that we will see. Especially when these companies come in, we will also see a trend towards cloud-based, software-as-a-service (SaaS)-based products … fintechs are tech-driven, they tend to be leaner in team and tend to be moving very fast.”
At UOB, Victor Ngo, the bank’s Head of Group Compliance, said that they’ve been using a combination of analytics, AI, and automation to tackle financial crime effectively while optimising resources.
Victor Ngo, Head of Group Compliance, United Overseas Bank (UOB)
“We have tapped machine learning (ML) to enhance our risk mitigation capabilities which are complemented by robotic process automation (RPA),” Victor said. “We have also applied AI to two risk dimensions within our AML framework – transaction monitoring and name screening.”
UOB has also partnered with Tookitaki to co-create and implement an AI-powered solution for transaction monitoring, a solution that has allowed it to analyse quickly the large volumes and high velocity of transaction data that UOB processes daily, Victor said.
“Financial crime has become more sophisticated and complex over the years, further exacerbated by the pandemic,” Victor said.
“While banks and financial institutions have existing preventative measures in place to tackle financial crime, regtech can bolster their defense against illicit activities. At UOB, we have achieved 96% prediction accuracy in high priority cases by tapping AI in transaction monitoring and name screening.”
A fairly nascent industry
To boost regtech adoption and development, MAS launched in April the Regtech Grant scheme. The scheme covers two tracks: the pilot track, where financial institutions are able to seek funding of up to S$75,000 to pilot potential regtech solutions before full-scale integration; and the production level project track, where financial institutions can seek funding of up to S$300,000 to develop larger-scale customised products.
So far, interest in the Regtech Grant scheme has been high, Alvinder said, noting that they’ve received more than 10 applications, among which two were already approved.
“The quality of the proposals that are coming in and the use cases are impressive,” Alvinder said. “There is a good variety of use cases: monitoring, data collection, and several anti-money laundering (AML) use cases.”
Based on the applications MAS has received, Alvinder said there’s a clear preference for in-house development, noting a desire to remain in control, and a lack of efficient regtech tools available on the market.
“[Financial institutions] want a lot of control of their tools, and one of the feedbacks we get is that the tools are just too complicated for them,” Alvinder said. “The person evaluating the tool could be from the tech team, but the person using the tool is not from the tech team but rather the compliance team. So it’s just too complicated for them and they don’t need something that sophisticated.”
Regtech is a wide sector that encompasses many areas, Alvinder said, and while much development has been made in regards to know-your-customer (KYC), AML and transaction monitoring, tools and solutions for areas like capital management and liquidity are still lacking.
“Those are very important and yet we don’t see that many tools,” Alvinder said. “Then on regulatory reporting, I will say upfront that I’m not impressed with most of the tools that I see. They don’t really meet the requirements for regtech reporting, etc.”
“This is actually good news because it means that the ecosystem is still wide open for a majority of players. Even the existing players have plenty of room to improve their tools. The last thing you want is an oversaturated ecosystem.”

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Regtech
Sponsored Post

Future-Proofing Against Compliance and Risk When Expanding Globally

									by Fintech News Singapore
September 6, 2021

Globalization Partners, a US-based compliant and automated global employment platform, found that companies that grow internationally without prioritising compliance are sure to run into problems according to its “7 Compliance Challenges Companies Face When Growing Globally” e-book.
As a fast-growing fintech industry, scaling up and expanding internationally are key components to your growth.
But how do you navigate the complex labyrinth of global compliance?
Preparing for compliance before expansion — why is it important?
Entity setup, hiring, onboarding, financial reporting, transactions, and product and service commercialisation are but a few of the myriad aspects of compliance.
And when it comes to talent, compliance starts with hiring and continues all the way to termination — in some cases, all the way to the employee’s retirement.
Does your company have the breadth and capacity to navigate global compliance seamlessly, particularly if you’re just beginning cross-border growth?
It’s crucial that companies in the early stages of their global growth are prepared with everything from country-specific legal expertise to HR know-how to ensure they’re adhering to the local employment laws and regulations, and avoiding the potential penalties related to noncompliance.
Additionally, on-the ground experts on compliance prove vital when it comes to ensuring locally compliant employment contracts, benefits, and worker classification.
Sharing the considerable workload is the only route to sustainable scaling for most companies, if they wish to grow quickly.
Compliance is vital to avoid costly fines, but also critical to maintaining employer brand equity and retaining employees.
On a global scale, the importance of compliance multiplies as complexity mounts — when looking toward international expansion, organisations have to consider the varying labour laws and regulations that change country to country.
How will compliance impact your day-to-day business growth?

Companies must compliantly manage employee data. Companies that handle employee data will be called upon to establish the necessary protocols to avoid data breaches and compliantly manage all private data relating to its employees.
This is no easy feat when it comes to cross-border data flows amid differing local regulations.
Running payroll in a new country can also present some complexities, including dealing with a new currency. Understanding any laws governing payroll is key, including when and in what form employees should be paid.
Employers must also comply with data privacy laws that mandate how to handle employees’ personal banking information for direct deposit.
And although it has yet to become mandatory in every country across the world, an increasing number of markets are integrating Environmental, Social and Corporate Governance (ESG) reporting into their rules and regulations.
Lastly, there’s the challenge of adequately maintaining diversity. Diversity is likely to continue to drive corporation’s take on social responsibility policies, which will in turn trigger the enactment of new regulations that employers need to be on the lookout for.
Million-dollar fines, criminal sanctions for executives, bad press, social media condemnations, customer abandonment, and employee discouragement can all prove fatal for a company.
So, is your company able to future-proof its business against compliance and risk when expanding internationally?
Download this “7 Compliance Challenges Companies Face When Growing Globally” e-book to learn more about what companies can do to protect themselves against growing obstacles like fast-paced globalisation, new tax law enactments, changes in accounting standards, increased demands from tax authorities, and more.

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