Fintech startups are not just positively impacting Southeast Asia; they are shaping its future. They are revolutionising the financial landscape by offering innovative payment, investment, insurance, and wealth management solutions. These are driving financial inclusion and economic growth in the region, and with technological advances and increased funding, the sector has the potential for innovation and development in 2024.
The financial technology sector faces many obstacles, from poor tech stock valuations to cyberattacks, geopolitical tensions, high interest rates, labour shortages, and inadequate funding. The regulatory climate in the Association of Southeast Asian Nations (ASEAN) is also complex, with each country having its policies and regulations. For example, fintech startups in Myanmar will have policies distinct from those in Singapore.
Nevertheless, the sector has positive market trends, such as the advancement of technology to produce solutions like artificial intelligence (AI) and blockchain.
Here are five fintech startups to look out for in 2024:
BillEase
Filipino company BillEase is a flagship of First Digital Finance Corporation (FDFC), offering retail credit solutions and helping Southeast Asians access financial services. It has 250+ employees and works under the Philippines' Securities and Exchange Commission and the central bank Bangko Sentral ng Pilipinas (BSP) regulations. It offers the Buy Now, Pay Later (BNPL) payment model, enabling users to obtain credit to pay bills at over 10,000 online merchant stores.
BillEase has raised USD 56 million in four funding rounds, the most recent coming in 2024 from a debt financing round with investors including Saison International, Helicap, Burda Principal Investments, 33 Capital, and MDI Ventures. The company continues expanding its market, extending the length of its payment plans, offering zero-interest solutions, and boosting conversion and loyalty for online merchants.
Decentro
Singapore's Decentro, a Banking-as-a-Service (BaaS) platform originating from India, is strategically positioned to tap into the region's thriving fintech market. It helps businesses launch their fintech products faster by providing modules, application programming interfaces (APIs), and software development kits (SDKs) for companies to test in Decentro's Sandbox before bringing their financial solutions to the market. Its fintech infrastructure platform includes options such as Recurring Payments, Escrow Accounts, Ledgers, Instant Payouts, Lending, and more.
Decentro began operations in Singapore in 2023, hiring Saksham Shubham, a former senior member of Grab, to drive business operations in APAC (Asia-Pacific). It has raised over USD 4.7 million from investors like Leonis Investissement, Launchbay Capital, and Unpopular Ventures. Decentro plans to accelerate its growth, remain compliant with regulations, collaborate with local and international financial institutions, and provide cloud-based, scalable tech solutions.
Wallex
Cross-payment platform Wallex offers a secure, global, and multi-currency solution for collecting invoices, paying suppliers and partners, and making cross-border payments. Users can receive payments like locals, with the money converted using almost mid-market foreign exchange (FX) rates. Furthermore, customers can pay partners via the platform in 47 currencies.
Wallex was funded by SMDV, Indonusa Dwitama, Central Capital Ventura, BEENEXT, BAce Capital, and Skystar Capital, before Singapore-based M-DAQ acquired it. It is an ecosystem for stock and securities exchanges and trading. In January 2024, Wallex partnered with International Payments Identity (iPiD) to verify users and prevent fraud.
Zed
Philippine-based Zed is a neobank regulated by the BSP. A neobank has no physical branches but operates exclusively online, offering digital banking services like opening a checking account. Zed's mission is to challenge the status quo and provide young Filipinos access to financial institutions.
Zed has raised USD 6 million from Valar Ventures. It plans to use the money to continue democratising access to financial services. It created a "No Fee" Mastercard credit card with no annual, foreign transaction, or interest charges. Users can also expect a streamlined application process and seamless payment transactions via a Zed app.
Higala
Filipino company Higala helps financial institutions, users, and other market players to perform payments. The Higala Ecosystem covers fintechs, billers, Automated Teller Machines (ATMs) and Point-of-Sale (POS), unibanks, and cross-border, rural, and agency banks.
Higala received seed funding from Talino Venture Studios and Chemonics International. The company will offer an Inclusive Instant Payment System (IIPS) and act as a highway for different types of monetary institutions. Higala aims to lower the cost of transactions, democratise access for rural banks, and deliver financial services to underbanked and underserved Filipinos.
Fintech startups have great potential to thrive in ASEAN, which has a young and tech-savvy population and governments that are investing heavily in digitising their nations. Each sector's development requires convenient and seamless financial solutions handled in real-time.
Fintech startups in Southeast Asia are playing a crucial role in their respective country's economic growth and digital transformation. They are not just providing financial services but also driving innovation, creating jobs, and contributing to the overall development of the digital economy. Many underserved residents in the region will benefit from the financial inclusion and products brought by fintech, which can help to reduce poverty and inequality and promote economic development.
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