FinTech Business Delegation to Singapore Webinar

Welcome & Opening Remarks By Margaret Hanson-Muse, Regional Senior Commercial Officer, U.S. Embassy in Singapore FinTech Opportunities in ASEAN by Ajay Sunder, Vice President, Digital Transformation, APAC, Frost & Sullivan Working with the Monetary Authority of Singapore and the Singapore FinTech Festival by Roy Teo, Director, FinTech & Innovation Group, Monetary Authority of Singapore Three things to do before you go to Singapore by Jupe Tan, SVP, Global Operations, Plug & Play U.S. FinTech Business Delegation Program Highlights by Clint Brewer, Commercial Officer, U.S. Embassy in Singapore

Welcome Address & Opening Remarks Margaret Hanson-Muse, Regional Senior Commercial Officer U.S. Commercial Service U.S. Embassy, Singapore Email: Margaret.Hanson-Muse@trade.gov

FinTech Opportunities in ASEAN Ajay Sunder Vice President, Digital Transformation Frost & Sullivan Email: Ajay.sunder@frost.com

3

Market Offering by Segment

Segments Market Offering

Digital Payments

• Foreign Exchange and international funds transfer • Cryptocurrency trading and payment • Online Payments • Mobile Point-Of-Sale Payments

Personal and Business Finance

• Financial Planning • Bookkeeping • Peer-to-peer lending • Short-term personal and business credit • Insurance • Share and Securities Trading • IPO bidding • Investment Advice • Portfolio Tracking

Financial Infrastructure and Data Analysis

• Blockchain-as-a-Service • Consumer Behaviour Analysis • Personal Data Exchange • Unstructured to Structured Data conversion • B2B ordering platforms • Financial trading hardware

4

What is driving the APAC Fintech market ?

Smartphone penetration

Mobile penetration

Indonesia 34.40% 43.10%

Malaysia 59% 84.20%

Philippines 42.30% 57.80%

Singapore 78.70% 89.00%

Thailand 44.50% 58.30%

Vietnam 36.60% 57.10%

o Muti-screen trend continues as consumers benefit from declining prices especially with popularity of new brands such as Xiaomi. Rising smartphone users are causing a faster shift from voice heavy users to data heavy users especially in the more developed markets

o Rise of mobile consumers creating a new opportunity for “digital first “ Fintech consumer in the emerging economies.

0.00%

20.00%

40.00%

60.00%

80.00%

100.00%

120.00%

0.00% 20.00% 40.00% 60.00% 80.00% 100.00%

SE Asia Digital penetration

Singapore Malaysia

Vietnam

Philippines

Thailand

Indonesia

Smartphone penetration

Mob

ile p

enet

ratio

n

Size of bubble represents % of unbanked population

5

APAC Fintech Forecast

The APAC Fintech Industry is expected to reach $71 billion USD by 2020. Frost & Sullivan anticipates the APAC Fintech Industry will grow 72.5% CAGR by 2020. We put the total market size of the APAC Fintech Industry in 2016 at USD $10.2 Bn. This forecast predicts a sharp growth in the Fintech market in 2017 and 2018, followed by steady increases through to 2020.

62% 19%

19%

Figure 7: Fintech Revenue in 2015

Digital Payments

Personal And Business Finance

Financial Infrastructure and Data Analysis$0

$10,000

$20,000

$30,000

$40,000

$50,000

$60,000

$70,000

$80,000

2015 2016 2017 2018 2019 2020

Figure 8: APAC Fintech Forecast Financial Infrastructure and Data Analysis

Personal and Business Finance

Digital payments

Source: Frost & Sullivan Analysis

6

APAC fintech will take more than $15b away from Traditional Financial Services by 2020

APAC is in the development stage of the business cycle The Fintech start-up space has grown rapidly in APAC. This will reflect $15 bn of revenue taken from existing financial institutions and $7b worth of added revenues.

Western Europe

North America

Central & Eastern Europe Middle East

Maturity Development Growth

Africa

Asia-Pacific

Latin America

Consolidated

Time

Mar

ket V

alue

APAC Fintech Poised for Sharp Growth and

Maturity

Asia-Pacific is leading Fintech activity outside

North America and Western Europe

Australia

7

Fintech investment within APAC reached approximately USD 8 billion in 2016

China and India lead the Fintech wave while Singapore and Hong Kong were close in heels

0.2 0.3 0.35 1.1

4.6 5.3

0.1 0.15 0.17

0.5

1.9

2.7

0.00

1.00

2.00

3.00

4.00

5.00

6.00

7.00

8.00

9.00

2011 2012 2013 2014 2015 2016

In B

illio

ns U

SD

VC-backed OthersPayment

s

Lending

Markets and

wealth managem

ent

Risk and security

Insurance

Others

Largest share of FinTech Investments in

APAC

VC-backed FinTech Investments quadrupled in 2016 growing from 1.1 billion USD in 2014 to 5.3 billion USD in 2015.

Chinese companies attracted a whopping 2.7 billion USD in investments in 2016 accounting for the largest share in the APAC FinTech pie.

Zhong An, China's first online-only insurer raised $931.3M in PE funding, the largest deal in the region

Beijing, Shanghai and Shenzen were the leaders in China while Bangalore and Mumbai held the roost in India.

InsureTech and Regtech are emerging areas where many innovative Startups are launching new services

Source: Frost & Sullivan Analysis; Secondary Sources

8

Mobile Payments to Take Off in 12-18 Months

App Purchases Consumers pay for

mobile apps by credit card on their mobiles.

Online Purchases Consumers buy goods and services through

their mobiles.

Mobile Centric Goods/Services

Consumers pay for mobile exclusive goods

and services.

POS Payments Consumers make all payments, including

POS purchases through mobiles.

High

Low

2008 2018

Mob

ile P

aym

ent V

alue

Timeline

• Payers will be able to carry a “deck” of credit or charge cards from various companies and pay with their NFC enabled mobile phones.

• New EFTPOS and online charging solutions will allow more merchants to be paid through credit cards but also drive down the cost of receiving payments.

• Mobile Payments is an umbrella term which includes both payer services and payee services.

• The entry of Apple Pay and Google Pay in 2016, will revolutionise the APAC Mobile Payments market.

9

Asian Banks are the new tech companies – Fintech companies

Digital Ecosystem

Automated Advice for New Products

Social Media Integration to share Investments and

Payments

Mobile Payment App for POS Purchases

Automated Investment and Financial Planning

Quick Access Short-Term Loans for Business and

Personal Use

Web-based UI for Banking

Mobile Banking App

Investment Tools to Trade Shares and Bonds

10

Asia-Pacific Innovation Hubs

Singapore Bangalore

Hong Kong

Shanghai

Beijing

Sydney Melbourne

• The 2015 Fintech Boom in APAC was concentrated primarily in Australia, Singapore and China. Specifically, activity was centered in Sydney and Melbourne in Australia, in Beijing and Shanghai in China, Hong Kong and in Singapore.

• In China, a populous and increasingly wealth middle-class has enabled strong social demand for efficient dynamic and disruptive financial services.

• In the case of Singapore, India and Australia, a healthy 18-34 demographic is driving consumer demand for Fintech products.

• Along with favorable government policies towards startup investments.

Growth Concentration

11

Key Findings – APAC Fintech 2016-2020

Source: Frost & Sullivan

2 Singapore, Hong Kong and Sydney will Continue to be a Fintech Innovation Hubs in the Asia-Pacific Region

Singapore, Hong Kong and Sydney are attracting a lot if interest and considered hot-beds for innovation . These are also centers from where Fintech companies can easily expand in the region.

1 APAC Fintech solutions and services will account for over $70 billion in revenues. APAC Fintech solutions and services is expected to gross more than 70 Billion Revenues by 2020 growing at a CAGR of 72 %.

3 Analytics and AI will drive new applications and use cases in APAC The increasing use of AI, Algorithm-based banking and Robo-Advice will significantly affect the Financial Planners market in APAC. Financial Planning will increasingly be done by complex projection algorithms and AI systems with data analytics modules.

4 Micro-Investing will be Attractive Investment Path for Digital Natives Micro-Investing will offer a convenient but reliable form of long-term investment for Digital Natives. The wealth held by Asians aged 18-34 means that Frost & Sullivan projects that the total potential investment pool for micro-investing will reach $2.3b by 2020.

5 Blockchain will find new use cases beyond Financial services The implementation of Blockchain ledgers will significantly reduce infrastructure costs. Blockchains will also find new use cases beyond Financial services

12

Growth Opportunity 1: Digital payments as an opportunity

Applicable Segments

• Evolution of technology has led to convergence of various industries and verticals esp Payments for consumer and consumer facing industries

• Banking institutions are now seeing their traditional service offerings being disrupted by smaller tech startups.

• This has forced financial institutions to acknowledge their impact and collaborate with them to stay relevant in the market.

• Many startups have received payments bank licenses to offer savings and current accounts to customers.

.

Context and Opportunity Call to Action

• Large population of unbanked offer huge opportunity for mobile and digital payments

• Communicating the new vision to key stakeholders internally and externally - including product and marketing teams, customers and partners.

• Next level innovation is in new product capabilities and user experiences enabled by: analytics, personalization, automation and integrations.

Applicable Regions

Vision Transformation

Megatrends Impact

Disruptive Applications

Business Models

Current Offerings

New Capabilities

Value-add Services

Vertical Markets

Geographic Expansion

Partnerships

Investment / M&A Source: Frost & Sullivan

Digital Payments Personal and Business Finance

Financial Infrastructure and Data

Analysis

Asia Pacific

13

Growth Opportunity 2: Blockchain beyond Financial services

nits

Applicable Segments

Context and Opportunity Call to Action

• Encourage the collaboration between global or local banks, key stakeholders as well as government agencies to expedite the implementation of blockchain technology.

• New opportunities for Tech players in

• Blockchain as a service

• Data centre services- e.g Wholesale Colocation

• Security & Managed services

• Seek for potential investors and leaders to nurture incubation and FinTech ecosystem development.

Applicable Region

Vision Transformation

Megatrends Impact

Disruptive Applications

Business Models

Current Offerings

New Capabilities

Value-add Services

Vertical Markets

Geographic Expansion

Partnerships

Investment / M&A Source: Frost & Sullivan

Digital Payments Personal and Business Finance

Financial Infrastructure and Data

Analysis

Asia Pacific

• IBM and PwC are Citigroup’s strategic partners for the fintech acceleration program in APAC

• New use cases for Blockchain emerging beyond Financial services

• Smart contracts – Real estate , Legal,

• Healthcare – to validate records and authorization

14

Growth Opportunity 3: Data analytics is the key differentiation

Applicable Segments

• The evolution of Big Data with the vast amount of data volumes in emerging market are driving new technology to capture and analyse the data with advanced data visualization and analytics capabilities

• The algorithm application and analytics tools are able to generate reliable factual insight which help to better understand customers, competitors or employees.

• The use of analytics is an opportunity for businesses to unlock the potential from the available data for commercial gain.

Context and Opportunity Call to Action

• Fintech data analysis player should harness the big data opportunity to generate new profit sources by exploring new innovative applications.

• Use cases in • Robo-advising

• P2P lending

• Transaction analytics ( Real estate, Payments etc.

• More affordable and accessible data analytics services should made available to tackle the potential market needs.

Applicable Region

Vision Transformation

Megatrends Impact

Disruptive Applications

Business Models

Current Offerings

New Capabilities

Value-add Services

Vertical Markets

Geographic Expansion

Partnerships

Investment / M&A Source: Frost & Sullivan

Digital Payments Personal and Business Finance

Financial Infrastructure and Data

Analysis

Asia Pacific

15

Growth Opportunity 3: Data analytics is the key differentiation

Applicable Segments

• The evolution of Big Data with the vast amount of data volumes in emerging market are driving new technology to capture and analyse the data with advanced data visualization and analytics capabilities

• The algorithm application and analytics tools are able to generate reliable factual insight which help to better understand customers, competitors or employees.

• The use of analytics is an opportunity for businesses to unlock the potential from the available data for commercial gain.

Context and Opportunity Call to Action

• Fintech data analysis player should harness the big data opportunity to generate new profit sources by exploring new innovative applications.

• Use cases in • Robo-advising

• P2P lending

• Transaction analytics ( Real estate, Payments etc.

• More affordable and accessible data analytics services should made available to tackle the potential market needs.

Applicable Region

Vision Transformation

Megatrends Impact

Disruptive Applications

Business Models

Current Offerings

New Capabilities

Value-add Services

Vertical Markets

Geographic Expansion

Partnerships

Investment / M&A Source: Frost & Sullivan

Digital Payments Personal and Business Finance

Financial Infrastructure and Data

Analysis

Asia Pacific

Working with the Monetary Authority of Singapore and the Singapore FinTech Festival Roy Teo Director, FinTech & Innovation Group Monetary Authority of Singapore Email: Roy_teo@mas.gov.sg

Singapore

A Vibrant Financial Technology Hub

A Smart Financial Centre

Increase efficiency Manage risks better

Improve people’s livesCreate new opportunities

Where innovation is pervasive

and technology is used widely to

National Digital

Infrastructure

Identity | Signature |

Vault | Connectivity (API)

World Class

FinTech R&DGlobal FinTech

Education Centre

Deep Access To

Startup Investment (Early to Mature)

International FinTech

Collaboration

Advanced and

Open Payment Rails

Smart

Financial

Centre

Policy Makers’ Toolkit

Engage in Accelerators

Annual FinTech Recognition

Regulatory Sandbox

Graduated Regulations

Hackathons / Challenges

Experiments with FIs

Experiments with Public Sector

Co-creation with Industry

Singapore Ecosystem Snapshot

> 300 active FinTech companies

Key Segments

32 FinTech companies

received $81.5m in early

stage investments

Ranked #1 in reports commissioned by

Thomson Reuters & Swift/UK Innovate

Finance (2017)

World-Class

FinTech Hub

(excl. cross-sector startups and tech companies)

Source: Medici

Blockchain

P2P Lending

Wealth

13% InsurTech

Payments

Remittance

RegTech

Cybersecurity

B2B Infra&Tech

Global R&D Hub

>30 R&D centres

dedicated to financial

services

Impactful Experiments

Project Ubin - interbank blockchain

payments | SoCash - cash withdrawal

platform | ACUO - collateral

management platform | Arts -

parametric-based catastrophe

insurance

ASEAN Partnership

UNCDF - Financial Inclusion

IFC-ABA AFIN - Regional Sandbox

International

Connectivity

10 FinTech MOUs

2% 9%

9% 2%

4%

16%

15%30%

United Kingdom

Australia

Switzerland

United States

South Korea

India

Access to MarketsAbu Dhabi

Japan

France

ASBA

Denmark

Thailand

BIGGER

More exhibitors,

more conference

tracks and

choices

BRIGHTER

Academics,

Scientists, Star

Speakers

BETTER

Dynamic Venue,

Compact

Programming

Attendees

Experience

Singapore FinTech Festival 2017

FinTech

Awards

FinTech

Conference

Networking

events

Industry

Workshops

Hackcelerator

Demo Day

A platform for idea-generation, knowledge-sharing, and business-networking for financial institutions,

FinTech companies, VCs, investors, institutes of higher learning, and entrepreneurs.

13,000+ attendees 200+ FinTech expertsIn 2016

&

Investor

Summit

FinTech Awards

Recognising implemented

innovative FinTech solutions

Singapore

Founder

Singapore

SME

Singapore

Open

ABS

Global

FinTech

Award

A prize pool of S$1.15 M is up for grabs

Investor Summit – “Deal Day”

Showcase of investment-worthy,

Singapore-based start-ups and

disruptive technologies

Keynote

Presentations

Start-up

Demos

Tech

Exhibitions

Exclusive

Networking

Join us at the Singapore FinTech Festival!http://fintechfestival.sg

Three things to do before you go to Singapore Jupe Tan SVP, Global Operations Managing Partner, Asia Pacific Email: Jupe@pnptc.com

U.S. FinTech Business Delegation Program Highlights Clint Brewer, CGBP Commercial Officer U.S. Commercial Service Atlanta Email: Clint.Brewer@trade.gov

• Country briefing• Matchmaking meetings• Networking Receptions• Site visits to accelerators• Outreach with potential investors• Three Day access to the Singapore FinTech Festival

Conference• Optional Booth and Kiosk at Singapore FinTech Festival for

demos

Questions & Answer

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