FinTech ecosystem playbook
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FinTech ecosystem playbook
FinTech ecosystem playbook
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Foreword
Inrecentyears,servicesprovidedbyfinancialtechnology(FinTech)start-upshavegainedprominence,andareincreasinglyimpactingconsumers,financialinstitutionsandeconomies.Subsequently,ecosystemshaveemergedaroundtheseFinTechs,consistingofmultipleinterdependentandinterconnectedstakeholders.
AFinTechecosystemismadeupofconsumers,financialinstitutions,FinTechstart-ups,investors,regulatorsandeducationalinstitutions.Thehealthydevelopmentofsuchanecosystemwillresultinmutuallybeneficialcooperationamongstakeholders,andeventually,helpfinancialservicesbedeliveredatlowercost,higherspeedandatbetterqualitytomoreconsumers.Thedevelopmentisparticularlydistinctinemergingmarketswherefinancialservicespresentuniqueopportunitiesandchallenges.
In FinTechecosystemplaybook,theteamsbringyouapanoramicviewofaFinTechecosysteminemergingmarketsinASEAN,LatinAmerica,Central,EasternandSoutheasternEurope&CentralAsia(CESA),theMiddleEast,Africa,andAsia-Pacific.
TheregulatorsandpolicymakersintheseemergingmarketsareactivelyseekingtodevelopattractiveFinTechecosystemsthrougharangeofpoliciesandotherinterventions.Thisreporthighlightssomeleadingpracticesandprovidesasummaryofwhatisgoingonattheregionalandcountrylevel.
Thereportwillnotberankingthehubsastheobjectiveistohelpeachhublearnfromglobalpeersandgrowtheindustryasawhole.SharingtheseleadingpracticesandsuccessstorieswiththeglobalFinTechcommunity,theteambelieveswillhelpusmakeadifference,together.
EYteamsexpressourgratitudetoFinTechassociationsandecosystemenablers,includingFintechGalaxy,FINNOVASIAandFinTechConsortium(FTC).
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ContentsFast facts
Objective of the study
Pillars of a FinTech ecosystem
Approach and coverage
FinTech hub trends
Cluster analysis
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Key cluster takeaways
ASEAN
Latin America
CESA
The Middle East
Africa
Asia-Pacific
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FinTechinvestmentsVC-backed total FinTech investment reached
US$32.6b8b in 9M18 driven by a record investment of
US$14b raised by Ant Financial in 2Q18 from domestic and international investors
$ The deal volume in 9M18 stood at
1,164 deals.North America accounted for the maximum FinTech funding of approximately
US$9.3b in 9M18
Asia accounted for approximately
US$6.1bof the global FinTech funding in 9M18, excluding the Ant Financial deal
Europe accounted for approximately
US$2.7bof the global FinTech funding in 9M18
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Scopeofthestudy
GlobalFinTechlandscape
Globalregulatorynetwork
unicorns are present in the global FinTech industry, with the most in North America
Global Financial Innovation Network (GFIN)was created by the UK Financial Conduct Authority, in August 2018 in collaboration with 11 financial regulators and related institutions
26 hubs in emerging markets
across 6 clusters
Fastfacts
Source:FinTechinvestmentdata: GlobalFinTechReportQ32018,CBInsights
FinTechecosystemplaybook
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Objectiveofthestudy
FinTechsareventuresthatleveragetechnologytodevelopnewandaugmentexistingcapabilitiesforthediscovery,distribution,operationsandservicingoffinancialproductsandservices.
AFinTechecosystemcomprises‘tech-savvy’start-upsandscale-ups,regulators,governments,traditionalinstitutions,investors,andtalentinstitutions.EachFinTechecosystemisconstantlyevolving,withplayerscontinuallyinteractinganddeveloping.Regulatorsaretaskedwiththechallengeofevolvingwith
theindustry.Theyneedtoensurethatcompetitionandinnovationarenotstifledwhilemaintainingthesafetyandsoundnessofthefinancialsystem.
The FinTech ecosystem playbook capturesthejourneyof26FinTechhubsintheemergingmarkets—theirexperiencesandlearningsintheprocessofbuildingastrongfinancialservicesecosystem.Theteamshighlightthebestindustrypracticesfromthesemarketssothatparticipantslearnfromeachother
This report will facilitate hubs to think global and act local.
Reviewofhub-levelbestpracticesthatdrivethedevelopmentoflocalFinTechecosystems
Local drivers
OverviewofkeyglobalFinTechtrendsthatareredefiningthefinancialserviceslandscape
Global trends
Studyofsixregionalclusters,assessingtheirmacroeconomicenvironmentandregionalopportunities
Regional opportunities
FinTechecosystemplaybook
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FinTech ecosystem playbook
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PillarsofaFinTechecosystem
• Strong:Collaborationwithincumbents;andpresenceofaccelerators,incubators,communityenablersandco-workingspaces(publicorcorporate)
• Scalable:Easeofaccesstolocalandinternationalmarkets
• Sustainable:Governmentandindustrysupportforsustainabledevelopment
Enablingenvironment
• Attract:Accesstointernationaltalent,easeofmobilityandvisapolicies
• Upskill:Developmentoftalentpipeline—universitycourses,researchanddevelopmentinvestment
• Retain:Policiesandinitiativesthatwouldreduce‘braindrain’andprovideconduciveenvironmenttogrowandflourish
Talentavailability
Sustaineddemand• Consumers:Digitalreadinessintermsofmobileandinternetpenetration,
smartphonepenetration,bankingpenetrationandeaseofaccesstofinancialservices
• Corporations:Demandfromenterprises,includingsmall-andmedium-sizedenterprises(SMEs)andinstitutions
• Financialinstitutions:DemandfromfinancialinstitutionsforFinTechofferings
• Riskcapital:Accesstoangelfunding,high-net-worthindividuals(HNIs)andgovernmentfunds;easeofraisingcapitalfromalternativesourcessuchasinitialcoinofferings(ICOs)
• Growthcapital:AccesstoVCandgovernmentfunds,financialinstitutionsandtechcompanies
• Strategiccapital:Fundingfromtraditionalinstitutions,techfirms,corporatesandprivateequity(PE)funds
Accesstocapital
• FinTechlaws:Specificregulationsandpolicies
• Overallregulatoryenvironment:Easeofdoingbusiness,creditavailability,taxationpolicies,visapoliciesandpresenceofregulatorysandboxes
• Competition:Encouragementofcompetitionthroughpolicies
Regulatoryopenness
FinTechecosystemplaybook
Approachandcoverage
Africa ASEAN Latin America CESA Middle East
Nigeria
Kenya
Singapore
Philippines
Malaysia
Brazil
Mexico
Estonia
Russia
UAE
Turkey
Bahrain
HongKongSAR,China
SouthAfrica Indonesia Lithuania China
SouthKorea
India
Vietnam
Cambodia
Thailand CzechRepublic SaudiArabia Japan
Asia-Pacific
Thesixclustersandrespectivehubsarepresentedbelow:
Thefollowingfour-stepapproachisundertakentoanalyzetheFinTechecosystemof26hubs:
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UAEconstitutestwohubs—DubaiandAbuDhabi
Identifytheoveralldrivers,trendsandopportunitiesateachofthesixregionalclusters
AssesstheFinTechecosystemof26hubsbyleveragingEYextensiveresearchcapabilities,andnetworkofEYfinancialservicesandFinTechprofessionalsacrosstheglobe
Understand themacroeconomicanddigitalfactorsdrivingFinTechdevelopmentatcluster andhublevel
Discussthesuccessstoriesof26hubsbystudyingtheFinTechinitiatives
Advancingtechnologies,rapidlyexpandingeconomiesandchangingcustomerexpectationsaresomeofthefactorsdrivingdemandforFinTechproductsandservicesacrosscountries.Broadly,thedemandforFinTechscanbecategorizedinto:
FinTech hub trends
Demand
• Individuals:Inestablishedhubsthatenjoyhighbankingpenetration,demandislargelydrivenbytech-savvyconsumerslookingforabetterexperienceandawiderrangeofservices.Inemergingmarketswherefinancialinclusionisachallenge,FinTechsarehelpingbridgetheexclusiongap.Rapidurbanization,mobileandinternetpenetration,andeaseofusearedrivingindividualdemandforFinTechservices.AccordingtoWorldBank’sThe Global Findex Report 2017,69%ofadults,i.e.,3.8billionpeople,haveanaccountwithabankoramobilemoneyprovider,whichisanincreasefrom62%in2014andjust51%in2011.Theriseisattributabletotheincreasinguseofmobilephonesandtheinternet.Between2014and2017,thepercentageofuserssendingandreceivingpaymentsdigitallyincreasedfrom67%to76%globally;andfrom57%to70%inthedevelopingworld.
• Corporations and SMEs: SMEspresentanattractiveopportunityforFinTechs.Limited
financialhistory,smallticketloansandhighservicingcostresultedinthissegmentbeingunderservedbytraditionalinstitutions.Thedigitizationofthelendingprocess,includingtheassessmentofcreditrisk,isprovidingSMEswithanalternativewayoffunding.Digitalidentityprojectsinhubs,suchasSingapore,India,ChinaandEstonia,arepresentingnewopportunitiesforFinTechstoservicethisunmetdemandinanefficientmanner.
• Financial institutions: BanksacrosscontinentsarepartneringwithandinvestinginFinTechsacrossthebankvaluechaintodriveefficiencies,offernewproductsandaugmentcustomerexperience,resultinginrisingdemandforbusiness-to-business(B2B)solutions.
• Governments and regulators: RegulatorsareleveragingFinTechs’capabilitiestoimprovetheirprocesses.Forinstance,theMonetaryAuthorityofSingapore(MAS)haspartneredwithFinTechfirmAnquanforblockchain-basedProjectUbin.
Hub subsector specialization
Globally,successfulhubstendtohavediversityintheecosystem,withstart-upsspanningacrossmultiplesubsectorsandgrowthstages.
FinTechecosystemplaybook
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FinTechecosystemplaybook
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Atthesametime,someFinTechhubshaveidentifiedsubsectorswheretheyhavecertainadvantages,andhavemanagedtotakeleadershiporarepositioningthemselvestobecomethedominanthubforthosesubsectors.
Someexamplesinclude:
Switzerland for cryptocurrencySwitzerland,whereregulatorsdisplayedaclearandfriendlystanceinfavorofcryptocurrencyfromasearlyas2014,ishometotheCryptoValleyinthecityofZug.
Malaysia for Islamic bankingWithanestimatedMuslimpopulationof61.3%,andanenablingregulatoryenvironment,MalaysiahasmadeconsiderableadvancesintheIslamicbankingsector.
Stockholm for paymentsStockholmhasestablisheditselfasapaymentsgiantbyprovidingaconduciveenvironmentforpaymentFinTechs,andisthehomeofFinTechunicornsKlarnaandiZettle.
Increased access to government-backed funding:
Capital
• ForFinTechentrepreneurs,accesstocapitaloftendependsonanumberoffactorsincludingthestageofproductmaturity,backgroundoffounders,headquarterlocationofthecompanyandtargetcustomersegment.Toeasesomeofthecapitalchallenges,governmentsgloballyaresupportingstart-upsbygivingaccesstoriskandgrowthcapital.Somehubshavededicatedfundsorfund-of-funds(FOF)tosupportFinTechsintheirgrowthphase:
• TheDubaiInternationalFinancialCentre(DIFC)launchedaUS$100mFinTech-focusedfundinNovember2017toacceleratethedevelopmentoftheFinTechsectorbyinvestinginstart-ups,fromincubationtogrowthstage.
• TheGovernmentofIndia(GoI)introducedtheStartupIndiainitiativeinJanuary2016thatincludedaUS$1.5bFOFforstart-ups.
• InJune2018,BahrainDevelopmentBank(BDB)
announcedthatAlWahaFundofFunds,itsVCFOF,tosupportstart-upsinBahrainandacrosstheMiddleEastandNorthAfrica(MENA)region,hadraisedUS$100m.
• In2017,HongKongGovernmentlaunchedtheUS$256mInnovationandTechnologyVentureFundtoinvestinlocaltechnologystart-ups.
• InJune2015,Singapore’sMAScommittedS$225moverafive-yearperiodfortheFinancialSectorTechnologyandInnovationscheme.InDecember2017,itannouncedthelaunchoftheS$27mArtificialIntelligenceandDataAnalytics(AIDA)Grantunderthescheme.
• Policymakersarealsotakinginitiativestoimproveaccesstoprivatecapital:
• InJuly2018,theEstonianGovernment,throughitsEstFundFOF,invested€60mintoVCfundstosupportstart-upsandSMEs.Privateinvestorswilladd€40mto
theseVCfunds.
• Thisyear’sFinTech Investor Summit undertheMAS-sponsored Singapore FinTech Festival 2018hastwocomponents—(a)theFinTechDealDaythatconnectsFinTechswithpotentialinvestorsand(b)Meet ASEAN’sTalentsandChampions(MATCH)thatconnectsstart-upsandenterprisesinASEANacrossallsectorswithpotentialinvestors.The380participatinginvestorswhoenrolledforMATCHhaveindicated intentions to invest uptoatotalofUS$6.2binASEANenterprisesnextyear,andanadditionalUS$6bearmarkedoverthesubsequenttwoyears.Morethan17,000matchesweregeneratedbetweenthe380participatinginvestorsand840enterprise.
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Talent
• Themostsought-aftertechnicaltalentincludedatascientists,financialengineers,mobilemarketersandcomputerprogrammers.
• TheBigTechfirmsaregivingstiffcompetitiontoFinTechsandfinancialinstitutionsintheireffortstoattractstrongtechtalent.
• Somecountries,suchastheUK,FranceandtheUAE,are
attemptingtoimporttechnicaltalentfromothercountriesbyofferingspecialvisas.TheUKoffersavisarouteundertheUKRIScience,ResearchandAcademiaschemefornon-EuropeanEconomicArea(EEA)researchersandplanstoofferstart-upvisasforforeigntechentrepreneurs.TheUAEintroduceda10-yearresidencyvisaforinvestorsandspecialists.Meanwhile,countriessuchas
EstoniaandLithuaniahaveStartupVisaprograms.
• NurturingdomestictalentisasustainablesolutiontothetalentunavailabilitychallengefacedbyFinTechsandfinancialinstitutions.HongKongandSingaporearemovingtowardthisdirectionbypartneringwithschoolstotrainstudentstodevelopFinTechknowledgeandcapabilities.
Attracting talent considered key by FinTechs:
Making the workforce future-ready through FinTech-focused talent initiatives:
• Ascompetitionfortechtalentintensifiesglobally,hubsaredevelopingFinTech-focusedspecializedprogramsandinitiativestodevelopthelocaltalentpool.Someinitiativesbeingtakenbythehubsinclude:
• FinTech-specificcoursesandprogramsincludinggovernment-ledinitiatives:
• SingaporeoffersFinTech-specificcoursesunderitsSkillsFutureprogram.TheNationalTradesUnionCongress,SingaporePolytechnic(SP)andtheSingaporeFinTechAssociation(SFA)havejointlycreatedtheFinTechTalentProgramme.
• TheHongKongGovernmenthaslaunchedtwodedicatedpubliclyfundeddegreesinFinTech,beginningacademicyear2017-18:BachelorofEngineeringProgrammeinFinancialTechnologyatTheChineseUniversityof
HongKongandBachelorofScience(Hons)inFinancialTechnlogyatHongKongPolytechnicUniversity.
• InIndia,BombayStockExchangelaunchedanMBAprograminFinTechinassociationwiththeUniversityofMumbaiin2017.
• AbuDhabiGlobalMarket(ADGM)offersFinTech-specificcoursesthroughtheADGMAcademy.
• FinTechtalentincubatorandacceleratorprograms:
• TheHongKongMonetaryAuthority(HKMA)haspartneredwiththeHongKongAppliedScienceandTechnologyResearchInstitute(ASTRI)fortheFintechCareerAcceleratorScheme(FCAS),whichprovidesinternshipintheFinTechindustrytoundergraduateandpostgraduatestudents.
• SingaporehaslaunchedtheTechSkillsAccelerator(TeSA)FinTechCollectivetostrengthenSingapore’sinfocommandFinTechtalentpool.
• Onlinelearninginitiatives:InOctober2017,theUniversityofHongKong(HKU)launchedAsia’sfirstFinTechMassiveOpenOnlineCourse(MOOC).
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Regulations
ToincreasecompetitionandprovideanenablingenvironmentforFinTechfirms,countriesarepushingoutinitiativesinvaryingdegreeswithregardstoOpenBanking.ItallowsFinTechstoleverageonbanks’datatoprovideandextendtheirofferingstobankcustomers.Theteamshavehighlightedafewofthedifferentapproachesundertakenbyregulators:
Facilitation of innovation through Open Banking
Regulatory trends
ChangeisconstantintheFinTechspace,witheachideabeingmorerevolutionarythanthepreviousone.Itisamomentoustaskforregulatorstoprovideregulatoryoversighttoprotectconsumerswhilebeingmindfulofnotinhibitinginnovation.Regulatorshavetakendifferentapproaches,buttheyhavelargelyconvergedintoafewsimilarways:
• Introduction of sandboxes: FinTechswithinasandboxareabletolaunchproductsandserviceswithoutnecessarylicenses.However,thenumberofconsumerswhomtheycanservewouldbelimitedtocontainanypossiblenegativeeffects.Atthesametime,regulatorswouldbeabletohaveconstantconsultationswithcompanieswithinthesandboxtounderstandthesubsector.
• Economic zones:Somecountrieshavecreatedspecialeconomiczoneswhereinnovativefirmscanbesetup.Thesezoneshavevaryingbenefits;buttheunderlyingconceptisthesame—toprovidealocationforthefirmstoinnovateandofferassistancethroughregulationsthatarespecifictothezones.Theseregulationsmayincludelowertaxes,permissiontooperate
withoutnecessarylicenses(orwithspeciallicenses)andfrequentconsultationswithregulators.
• Consultations with industry players:Regulatorshavebeenrunningconsultationswithindustryplayerstolearnwheretheindustryisheadingto,inordertogainanunderstandingoftheindustryandknowhowtheycouldsupporttheindustrywhileprotectingtheconsumers.
• Guiding principles and frameworks rather than rules: AstheFinTechspaceisever-changing,someregulatorshaveimplementedguidingprinciplestomaketheirstanceclear,insteadofcreatingdefiniterulesthatmayinhibitinnovation.
• FinTech laws or licenses: To assistFinTechswithinthelocalenvironmentwithoutchanging
muchofthelocalregulations,somecountrieshaverolledoutFinTech-relatedlawsorlicensesthatallowFinTechstooperatewithouttheneedtogainabankinglicense.
• TheUKpioneeredOpenBanking,launchingtheinitiativeinJanuary2018,thatmandatesnineUKbankstoopenuptheirdataviaasetofsecureapplicationprograminterfaces(APIs).
• Singapore’sMASisencouragingfinancialinstitutionstoadoptOpenAPIasakeyfoundationallayerforinnovationandinteroperability,althoughitis
notmandated.
• InJuly2018,HongKong’sHKMAlaunchedthedraftOpenAPIframework,whichsetouttimelinesforinstitutionstofollow,andmaderecommendationsonspecificprotocolsanddataformats.TheframeworkalsolaidoutexpectationsonhowbanksshoulddeployOpenAPI.
• IntheEU,therevisedPaymentServiceDirective(PSD2)requiresbankstoshareinformationoftheircustomers’accountswiththirdpartieswiththeauthorizationofthecustomers.
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Collaboration among regulators
Regulations(continued)
AmajorconcernforFinTechswhenexportingtheirservicesisthedifferinglocalregulations.
Regulatorsareawareofthisandhavetakenstepstomitigatethischallenge.FinTechindustryassociationsandfinancialregulatorsareenteringintopartnershipsgloballytoshareleadingpractices,experiencesandframeworks,andtohelp
FinTechfirmsexpandineachother’smarket.RegulatorsintheUK,SingaporeandAustraliahaveenteredintothemostnumberofbilateralagreementswithotherregulators.
ThenewestmeasuretoimprovecollaborationamongregulatorsistheGlobalFinancialInnovationNetwork(GFIN).TwelvefinancialregulatorslaunchedtheGFIN
inAugust2018.Thepurposeistoprovideanefficientwayforinnovativefirmstointeractwithregulators,helpingthemnavigateamonghubstoscalenewideas.Itisalsoexpectedtocreateanewframeworkforcooperationamongfinancialservicesregulatorsoninnovation-relatedtopics.
Abu Dhabi Singapore, Australia
Canada Australia, UK, France
Mainland China UK, Australia, Hong Kong
France Canada, Singapore, Mauritius
Hong Kong UK, Dubai, Australia, Switzerland
Singapore UK, Dubai, South Korea, Australia
London US, Australia, Canada
United States UK, Singapore, Canada
Hubs Instances of bilateral agreements
Regulators are experimenting with new technologies such as DLT
Somegovernmentsareawarethatdistributedledgertechnology(DLT)canimproveprocesses.Theyareexperimentingwithblockchaintechnologyinareassuchaspayments(includingwholesalepayments,sovereigncurrency,tradefinanceandinterbankpayments).SomeexamplesofDLTbeingadoptedbygovernmentsare:
• InJuly2018,HongKong’sHKMA,alongwithsevenlocallenders,announcedthatitisgoingtolaunchablockchain-basedtradefinanceplatforminSeptember2018.
• TheSouthAfricanReserveBank(SARB)conductedasuccessful
blockchainexperimentforwholesalepaymentsusingthetechnology.
• Hubs,suchasSingapore,CanadaandtheUS,areexperimentingwiththeirowndigitalcurrencies.
• Somesmalljurisdictions,suchasMalta,GibraltarandBermuda,havetakenacrypto-friendlystance to attract crypto or DLTfirmstodomicileintheirjurisdictions.
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Speeding innovation through public accelerator programs
Receiving support from traditional financial institutions
Offering FinTechs global platform through branding and positioning initiatives
Environment
• Incubators,acceleratorprogramsandinnovationslabsorcentersareimportantleverstodrivetheFinTechsectorinaneconomy.Hubsgloballyhaverecognizedthesignificanceoftheseprogramsaimedatdevelopingstart-upsbyprovidingmentoring,funding,training,networking,andmarketingandpublicrelationopportunities:
• Dubai’sDIFChaslauncheditsFinTechHiveacceleratorprogram,whichfocusesonFinTechopportunitiesintheMiddleEast,AfricaandSouthAsia(MEASA)region’sfinancialsector.
• ADGMinAbuDhabihastiedupwithPlugandPlaytolaunchitsacceleratorinOctober2017.
• K-StartupGrandChallengeisagovernment-supportedstart-upacceleratorprograminSouthKorea.
• Singapore’sMASrunsitsglobalacceleratorprogram,Global FinTech Hackcelerator, focusingonstart-upsacrosstheglobe.
• Itisimperativethatgovernment-ledinitiativesaresupportedbyindustryparticipantsinordertoensureathrivingFinTechecosystem.Financialinstitutionsgloballyaresupportingthesectorthroughvariousinitiatives:
• Banksglobally,suchasCiti,
HSBC,Santander,BBVA,UnitedOverseasBankandBankMandiri,havededicatedfundstoinvestinFinTechventures.Ithelpsbankstoachieveatwo-foldobjective:investingtoenjoythebenefitsofrisingFinTechvaluations,andleveraging
theFinTechs’technologicaladvantageinordertoimprovetheirownproductsandprocesses.
• BanksareactivelyengagingwithFinTechsthroughinnovationlabs,hackathonsandacceleratorprograms.
• Severalhubsglobally,throughFinTecheventsandprograms,areprovidingFinTechswithaplatformtoconnect,collaborateandnetworkwithinvestors,techplayers,industryparticipantsandregulators.Theseeventsencompassaseriesofconferences,workshops,awardsandexhibitionsaswellasnetworking,amongotheractivities:
• TheSingapore FinTech Festival (aweek-longevent)isorganizedbyMASinpartnershipwiththeAssociationofBanksinSingaporeandincollaborationwithSingExHoldings.ItincludestheGlobal FinTech Hackcelerator, FinTechconferenceandexhibition,theFinTech Investor Summit and FinTech Awards.
• Hong Kong FinTech Week 2018, hostedbyInvestHongKong
(InvestHK),offersawindowintoHongKong’spositionasAsia’sfinancialhub,andasanentrypointtoPeople’sRepublicofChinaandtheGreaterBayArea.ThethirdannualHong Kong FinTech Week,heldfrom29October2018to2November2018,isthefirstcross-borderFinTechevent,expandingfromHongKongtoShenzhen.
Cluster analysis
Cluster: Key takeaways
ASEAN Fast-growingeconomieswithlargepopulations makeauniqueplayground
Drivers Thekindofdemandandsupplythathavebeendrivingthedevelopmentoftheecosystemsofar
SpotlightNotableplayersandtrendsthathaveemergedinthelocalandregionalecosystem
OpportunityAreasthatpresentsignificantroomforgrowthinthenearfuture
Drivers ASEANistheconnectingbridgebetweenChinaandIndia,makingitaperfectplaceforlargelocalandglobalplayerstocollaborateandcompete.Regulatorsaresupportinginnovation,butatthesametime,arecautiousinordertoensurethatthefinancialsystemispreparedtohandlethestressofaglobalfinancialcrisis.
SpotlightE-commerce,andsocialandmobilityplayersareexpandingintothefinancialservicesfield,leveragingontheirlargeuserbase.
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OpportunityTheregionhassomeofthefastest-growingeconomieswiththelargestpopulationbases,andastronghistoricalandculturalheritage.Astheseeconomiescontinuetogrow,therewillbemoredemandforbetterqualityservices.
Drivers SeveralgovernmentsareconsideringFinTechdevelopmentasoneofthepillarstoincreasefinancialinclusion.ThedevelopmentofFinTechhasbeendrivenbystart-upsseekingtoservesegmentspreviouslyinadequatelyaddressedbythefinancialsystem.Financialinclusionwilldrivesustainableeconomicdevelopment.
SpotlightPrivatecorporationsandinternationalinvestorsarebuildingventurestocomplementexistingfinancialservicesproviders.
OpportunityCollaborationintheregionisbecomingmorefrequentandthedevelopmentoftheFinTechindustrywillallowtheexpansioninquantityandqualityofsynergiesamongdifferentactorsintheecosystem.
Latin America Opportunitiesinunderservedmarket
FinTech ecosystem playbook
Drivers Attheturnofthecentury,theseeconomiesopenedup,andsincethenhavebecomeanattractiveinvestmentdestinationduetoconsumerspendinggrowth,competitivewageratesandskilledworkforce.Theregionhasstronginfrastructureandtalentthatarebeingleveragedupon.
SpotlightTheregionisdevelopinghomegrowncompaniesandattractinginternationalcompaniestosetupheadquarterstoservicetheEUmarket.
OpportunityBybeingpartoftheEU,countrieshaveaccesstoalargeunifiedmarket.TheregionisplacedstrategicallybetweenAsia,theMiddleEastandEurope,andcanbeabridgeforcompaniesexpandinggeographicallyintheseareas.
CESA Leveragingstrongtalentbase
The Middle East GovernmentsupportandcapitaldrivingFinTechgrowth
Drivers Capitalhasbeenoneofthekeystrengthsoftheregionduetothepresenceoflargesovereignandprivatefundsthathavealonghistoryofglobalinvestments.SeveralstatesviewFinTechasamajoralleytodiversifytheireconomiesfromnaturalresourcesandhavespecificinitiativestodrivefinancialservices.
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Drivers Theregionhasoneofthelargestconcentrationoftheunbankedandunderbankedpopulation,whichprovidesanopportunityforleapfroggingseveralgenerationsoftechnologyandinfrastructuretoprovideacuttingedgesolution.Forexample,theregionhasskippedlandlinesand2Gtogodirectlyto3Gand4G.
SpotlightSeveralwalletsbackedbytelecommunicationcompanieshavebecomeglobalcasestudiesoffinancialinclusion.Mostoftheinnovationisdrivenbytelecomplayers,whichisuniquetotheregion.
OpportunityLargepenetrationofmobilemoneyaccountspresentopportunitiestoFinTechstoexploreexpansioninotherareasincludingalternativelending,cross-bordertransfers,personalfinanceandremittances.CollaborationwithlocalfinancialplayerscanhelpFinTechsnavigatethismarket.
Africa Leapfroginnovations
SpotlightSomeofthehubshaveregulatorytechnology(RegTech)asprimaryfocus.OthershavepositionedthemselvesaslaunchpadstoservicethewholeMiddleEastmarket.
OpportunityTheregionoffersuniqueopportunitytoFinTechproductsandservicesthatarefocusedonIslamicbanking.FinTechscanalsohelpsolvethechallengeoffragmentedaccesstofinancialservicesintheregion.
MainlandChinaandHongKong:
Drivers InMainlandChina,confluenceoffactors,includingrelaxedregulations,vastmarketofunaddressedfinancialneedsandthegrowthindigitalpenetration,revolutionizedfinancialservicesandmadeFinTech‘awayoflife’.ProximitytoMainlandChinaandsupportiveregulationsarethekeydriversforFinTechinHongKong.
SpotlightMainlandChinahasindependentfinanceandlifestyle(FinLife)ecosystemsthatstartedoutase-commerceandchatplatformsbeforedevelopingintofull-scalefinancialservicesprovidersgoingontoearnbanklicenses.
OpportunityForChina-basedcompanies,leveringdataandtechtoexpandoutsidecoreareasaswellasinglobalmarketsiskeytogrowth.
India:
Drivers Government-leddigitalinfrastructure,andrapidurbanizationandmobilepenetrationisdrivingthedevelopmentofFinTechsector,particularlyinpayments.
SpotlightIndianFinTechplayersareraisinglargefundingfromforeigninvestorslookingtoexpandoverseas.IndiaisnowhometotwoFinTechunicorns.
Asia RiseofindependentFinLifeecosystemplatformsinGreaterChina;andIndiabringingthebestfromEastandWest.
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OpportunityInIndia,globalinvestors,suchasChineseinternetfinanceplayersandAmericane-commerceplayers,havesetupgreenfieldventuresaswellasinvestedsignificantlyinlocalventures,creatinganinterestingstageforaFinTechecosystemtobebuilt.B2Bbusinessmodelsaregainingprominencegiventhebackdropofgovernmentinitiatives.
ASEAN
Keyhighlights
TheInternationalFinancialCorporation,alongwithregionalstakeholders,establishedtheASEANFinancialInnovationNetwork(AFIN)in2017tofacilitatecollaborationamongfinancialinstitutionswiththeprimaryobjectiveoffinancialinclusion.
Theregionhasanestimatedpopulationof646million,withamedianageof28.8years.Ithasa58%internet penetration ratewith390.8millionmobileusers.FinTechinvestmentwasUS$366min2017.
ASEANFintechNetwork(AFN)waslaunchedinNovember2017toenablecollaborationandcooperationonFinTechecosystemsamongsixparticipatingnations.
Malaysia
Thailand
Indonesia
Philippines
Singapore
Cambodia
Vietnam
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Keyhighlights
Thailand
GDP: US$455.8b | 2017
GDPgrowth(y-o-y):3.9%GDPpercapita:US$6,601
Population:69 million
Inflation:0.7%FDIinflow(%ofGDP):2%Regulatorysandbox:Yes
Indonesia
GDP: US$1.0t | 2017
GDPgrowth(y-o-y):5.1%GDPpercapita:US$3,842
Population:264.3 million
Inflation:3.8%FDIinflow(%ofGDP):2.2%Regulatorysandbox:Yes
Vietnam
GDP: US$220.6b | 2017
GDPgrowth(y-o-y):6.8%GDPpercapita:US$2,310
Population:95.5 million
Inflation:3.5%FDIinflow(%ofGDP):6.3%Regulatorysandbox:No
Philippines
GDP: US$313.5b | 2017
GDPgrowth(y-o-y):6.7%GDPpercapita: US$2,982
Population: 105 million
Inflation:2.9%FDIinflow(%ofGDP):3.2%Regulatorysandbox:Yes
Cambodia
GDP: US$22.2b | 2017
GDPgrowth(y-o-y):6.9%GDPpercapita:US$1,387
Population:16 million
Inflation:2.9%FDIinflow(%ofGDP):11.4%*Regulatorysandbox:No
Malaysia
GDP: US$315.2b | 2017
GDPgrowth(y-o-y):5.9%GDPpercapita:US$9,949
Population:32 million
Inflation: 3.8%FDIinflow (%ofGDP):3%Regulatorysandbox:Yes
Singapore
GDP: US$324.1b | 2017
GDPgrowth(y-o-y):3.6%GDPpercapita:US$57,749
Population:5.6 million
Inflation:0.6%FDIinflow(%ofGDP):19.6%Regulatorysandbox:Yes
FinTech ecosystem playbook
22
DigitalreadinessInternet bandwidth (kb/s/user)
982.923.6
49.2
24.9
91.3
42.6
43.4
Mobile subscriptions (per 100 people)
110
134
126
174
176
117 148
Cambodia
Indonesia Malaysia Singapore
Thailand Vietnam Philippines
Cambodia Indonesia Malaysia
Singapore Thailand Vietnam Philippines
Financialparameters
Banking penetration (%) Debit card ownership (%)
7 92
60 27
31 74
21
Credit card ownership (%)0.6 2.4 21.3
1.94.19.8
48.9
Made or received digital payments in the past year (% age 15+ years of population)
16 35 70
25
90
62 23
Sources: 1. ASEANstats:EYASEANFinTechCensus2018Report,February2018
2. GrossDomesticProduct(GDP)andpopulation,inflation:OxfordEconomics
3. FDIinflowandMobileSubscriptions:WorldBankOpenData
4. Internetusersandinternetbandwidth:TheGlobalCompetitivenessReport2017–2018,WorldEconomicForum
5. FinancialParameters:TheGlobalFindexDatabase,WorldBank
*FDIinflowCambodia-Considered2016figuresinstead
46.5%55.5%
47.5%81.0%78.8%25.4%25.6%
Internet users (%)
68.9%30.8%81.6%97.9%85.3%48.9%21.7%
FinTech ecosystem playbook
23
Success stories
Singapore• MASsetuptheFinancial
TechnologyandInnovationGroup(FTIG)withinitsorganizationalstructurein2015.TheformationofFTIGisacommitmentbyMAStowardthevisionofasmartfinancialcenter.In2016,MASsetupFinTechOfficetoserveasaone-stopvirtualentityforallFinTechmatters.
• OtherinitiativesoftheSingaporeGovernmentincludetheFinTechRegulatorySandbox,RegTechinitiativesandtheintroductionofblockchainforinterbankpayments.In2015,MASannouncedthatitwouldcommitS$225moverthefollowingfiveyearsforFinTechprojects.MAShasalsoissuedguidanceonICOsandplanstoissueguidelinesfortheuseofartificialintelligence(AI)intheindustry.
• TheannualSingapore FinTech Festivalseestheparticipationofthousandsofstart-upsandinvestors.Over30,000peoplefrom109countriesrepresentingmorethan5,000companiestookpartinthefestivalin2017.
• TheIntellectualPropertyOfficeofSingaporelaunchedtheFinTechFastTrackinitiative,whichprovidesexpeditedpatentapplication-to-grantprocessforFinTechinventions.
• SingaporeFinTechAssociation(SFA)isacross-industryinitiativethathasover300members.
Malaysia• Malaysiawasthefirstcountry
inASEANtointroducearegulatoryframeworkforequitycrowdfunding(ECF)andpeer-to-peer(P2P)financing.BankNegaraMalaysia(BNM)hasestablishedcross-functionalFinancialTechnologyEnablerGroup(FTEG)withinthebank.FTEGisresponsibleforformulatingandenhancingregulatorypoliciestofacilitatetheadoptionoftechnologicalinnovationsintheMalaysianfinancialservicesindustry.BNMalsolaunchedanOpenAPIworkinggroupinSeptember2018.
• MalaysiaaspirestobecomeanIslamicFinTechhub,asevidencedbystrongsupportfromregulators.
• BNMreleasedguidelinesone-KYCin2017.Theguidelinessetoutminimumrequirementsandstandardsthatanapprovedremittanceserviceprovidermustobserveinimplementinge-KYC.
Indonesia• FinTechgrowthinIndonesiaisin
digitalpayments,underpinnedbyhugee-commerceboominthecountry.Oflate,thecountry
witnessedanactivepaymentsM&Amarket,withregionalplayerstryingtoexpandtheirpresence.
• Indonesia’sfinancialservicesauthority,OtoritasJasaKeuangan(OJK),formedtheFinTechAdvisoryForumin2017toensureconstructivecoordinationamongagencies,ministries,FinTechstart-upsandotherrelevantparties.
FinTechdistributioninASEAN
15%
43%
6%4%
5%
8%
8%
11%
Payment and mobile wallets
Financial comparison
Retail investment
Blockchain
Financial lending
Financial and business tools
Account software
Others
Source: UOBStateofFinTechinASEAN(Published:November2017)
24
Success stories
FinTechecosystemplaybook
FinTech ecosystem playbook
25
Thailand• TheBankofThailand(BOT)has
launchedasandbox,andformedforumstopromotesharing,discussionsandconsultationswithacademicians,incumbentsandregulators.
• MajorThaibankshavesetuptheircorporateventurearmstoinvestinFinTechs.
• InJune2018,theSecuritiesandExchangeCommissionofThailandannouncedaregulatoryframeworkforICOsandICOportals.TheframeworkbecameeffectiveinJuly2018.
Vietnam• InJanuary2017,theVietnamese
Governmentsignedapolicydecisionaimedtosignificantlyreducecashtransactionsandimproveelectronicpaymentmethodsby2020.Undertheplan,totalcashtransactionswouldbelessthan10%oftotalmarkettransactions.
• TheFintechSteeringCommitteewasestablishedbytheStateBankofVietnam(SBV),thecountry’scentralbankinMarch2017.ItsaimistoadvisethegovernmentonFinTechecosystemdevelopment,whichincludeshelpingthegovernmentinthedevelopmentofaregulatoryframework,toensuregrowthintheindustryandsupportFinTechinnovation.
• InMay2018,SBV,AsianDevelopmentBank(ADB),theAustralianGovernmentandMekongBusinessInitiativelaunchedtheFinTech Challenge Vietnamevent,seekingsolutions
fromstart-upstoaddresssomechallengesoffinancialinclusioninVietnam.Theeventsawtheparticipationof141FinTechcompanies,45ofwhichwereVietnamese.
Philippines• InDecember2015,theBangko
SentralngPilipinas(BSP)launchedtheNationalRetailPaymentSystem(NRPS),whichaimstoenableanyuserwithabankorelectronicmoneyaccounttodoelectronicfundtransfer(EFT)fromoneaccounttoanotheraccountinanyparticipatingfinancialinstitution.
• AsofApril2018,theBSPisalsopilotingRegTechsolutionstostrengthenitsrisk-basedregulatoryandsupervisoryactivities.TheBSPhadpartneredwiththeRegTechforRegulatorsAccelerator(R2A),aprojectthatprovidestechnicalassistanceforfinancialsectorregulatorstodevelopandtestdigitalsupervisiontoolsandtechniques.
Cambodia• AsofJuly2017,theNational
BankofCambodia(NBC)wasdevelopinganationalfinancialinclusionstrategy,withtheprivatesectorplayingapivotalrole,tobanksignificantnumberofadultCambodiansandprovideformalfinancialservices.
Success stories
ASEANFinTechNetwork(AFN)waslaunchedinNovember2017toenablecollaborationandcooperationonFinTechecosystembetweensixparticipatingnations
AccordingtoWorldBank’sGlobal Findex Database 2017, themobileinternetpenetrationinLatinAmericaandCaribbeanregionis55%,whichis15%morethanthedevelopingworldaverage.
Theregionhasanestimatedpopulationof553millionwith80%ofpeoplelivinginurbanareas.
Thereareabout1,034FinTechstart-upsinLatinAmerica,ofwhich41%serviceunderservedorexcludedcustomersandtheSMEmarket.
Latin America
Mexico
Brazil
Keyhighlights
26
FinTechecosystemplaybook
FinTech ecosystem playbook
27
Mexico
GDP: US$1.2t | 2017
GDPgrowth(y-o-y):2.3%GDPpercapita:US$8,935
Population:129.4 million
Inflation:6.0%FDIinflow(%ofGDP):2.8%Regulatorysandbox:Yes
Brazil
GDP: US$2.1t | 2017
RealGDPgrowth(y-o-y):1.0%GDPpercapita: US$9,810
Population: 209.5 million
Inflation:3.5%FDIinflow(%ofGDP):3.4%Regulatorysandbox:No
Digitalreadiness
Internet bandwidth (kb/s/user)
66.2 24.9
Mobile subscriptions (per 100 people)
113.0 88.5Brazil
Mexico
Internet users (%)
59.559.7
Keyhighlights
28
Success stories
Financialparameters
Debit card ownership (%)
59 25
Credit card ownership (%)
27 10
Banking penetration (%)
36.970.0
Made or received digital payments in the past year (% age 15+ years of population)
Sources: 1. Finnovista
2. WearesocialDigitalin2018report
3. UrbanisationinLatinAmerica,BBVAResearch,July2017
4. GrossDomesticProduct(GDP),GDPpercapita,populationandinflation:OxfordEconomics
5. FDIinflowandMobileSubscriptions:WorldBankOpenData
6. Internetusersandinternetbandwidth:TheGlobalCompetitivenessReport2017–2018,WorldEconomicForum
7. FinancialParameters:TheGlobalFindexDatabase,WorldBank
Brazil• InApril2018,theCentralBank
ofBrazilissuedaregulationthatgrantsautonomytoelectroniclendingplatformstocarryoutloantransactionsdirectlybetweenborrowersandlendersbyintroducingtwonewcategoriesoffinancialinstitutions—P2Pcompaniesanddirectcreditcompanies.
• BanksinBrazilhavebeenconnectingwithFinTechsthroughfundingandincubation.
• TheSecuritiesandExchangeCommissionofBrazilrunsitsFinTechHub,whichaimstoanalyzethedevelopmentandapplicationofFinTechincapitalmarkets.
Mexico• MexicoFinancialTechnology
InstitutionsLawbecameeffectiveinMarch2018.Itprovidesregulatorycertaintyonissuesincludingcrowdfunding,paymentmethodsandcryptocurrencies.Mexicobecameoneofthefewcountriesgloballytoregulatethesector.
• Aregulatorysandboxwasintroducedtoallowcompaniestoobtainatemporaryauthorizationforamaximumoftwoyears.
58 32Brazil Mexico
FinTechecosystemplaybook
FinTech ecosystem playbook
29
FinTechlandscapeinLatinAmerica—2017-18
Source:FinTechecosysteminLatinAmerica,Finnovista
Mexico
Brazil
Colombia
Argentina
Chile
Peru
Ecuador
Uruguay
Other
26%
17%
16%
8%
9%
6%
5%
13%
Lending
Payments & remittances
Enterprise financial management
Crowdfunding
Personal financial management
Insurance
Wealth management
Others
35%
3%1%3%5%
7%
12%
23%
11%
Keyhighlights1
ASEANFinTechNetwork(AFN)waslaunchedinNovember2017toenablecollaborationandcooperationonFinTechecosystembetweensixparticipatingnations
Keyhighlights
Theregionhasahighermobilepenetrationrate,withcountrieshavingmobilepenetrationratesabovetheglobalaverageof112%.
Theregionhasanestimatedpopulationof406millionwithnearly74%internetpenetrationratein2017.
EconomiesinCentralandEasternEuropewitnessedabuoyanteconomicgrowthlastyear, driven by a rise inconsumerdemandandinvestment,whicheventuallyloweredtheunemploymentratesintheregion.
CESA
Czech Republic
Russia
Estonia
Lithuania
30
FinTechecosystemplaybook
FinTech ecosystem playbook
31
Keyhighlights1Keyhighlights
Estonia
GDP: US$26.0b | 2017
GDPgrowth(y-o-y):4.9%GDPpercapita: US$19,744
Population: 1.3 million
Inflation:3.7%FDIinflow(%ofGDP):3.3%Regulatorysandbox:No
Czech Republic
GDP: US$217.2b | 2017
GDPgrowth(y-o-y):4.5%GDPpercapita:US$20,504.5
Population:10.6 million
Inflation:2.4%FDIinflow(%ofGDP):4.3%Regulatorysandbox:No
Lithuania
GDP: US$47.3b | 2017
GDPgrowth(y-o-y):3.9%GDPpercapita:US$16,992
Population:2.8 million
Inflation:3.7%FDIinflow(%ofGDP):2.3%Regulatorysandbox:Yes
Russia
GDP: US$1.6t | 2017
GDPgrowth(y-o-y):1.5%GDPpercapita: US$10,951
Population:144 million
Inflation:3.7%FDIinflow(%ofGDP):1.8%Regulatorysandbox:Yes
FinTech ecosystem playbook
32
Digitalreadiness
Internet users (%) Internet bandwidth (kb/s/user)
Mobile subscriptions (per 100 people)
180.7
210.8
51.9
198.6
145.4 150.9
119.0 157.9Estonia Lithuania
Czech Republic Russia
76.4%76.5%74.4%87.2%
Financialparameters
Banking penetration (%)
Made or received digital payments in the past year (% age 15+ years of population)
Debit card ownership (%)
92%
75% 57%
56%
Credit card ownership (%)
29% 16%
20%25%
76%81%83%98%
97% 78% 80% 71%
Estonia Lithuania
Czech Republic Russia
Sources: 1. Digitalin2018report,Hootsuite,January
2018
2. GrossDomesticProduct(GDP),GDPpercapita,populationandinflation:Oxford
Economics
3. FDIinflowandMobileSubscriptions:WorldBankOpenData
4. Internetusersandinternetbandwidth:The
GlobalCompetitivenessReport2017–2018,WorldEconomicForum
5. FinancialParameters:TheGlobalFindexDatabase,WorldBank
33
FinTechecosystemplaybook
Estonia• Estoniahasastrongreputation
forbeingadigitaleconomy.Thecountryboastsofmuch-laudede-residencyprogramthatincludesthee-identityprogramande-Estoniastateportal:
• Undertheprogram,theGovernmentissuesadigitalidentitythatallowsentrepreneurstosetupandrunalocationindependentbusiness.Businessescanquicklysetuptheirpresenceinthecountry(in15minutes).
• E-residentscanstartacompanyonline,accessbankingandonlinepaymentserviceproviders(PSPs),managecompanyremotely.
• Estonialaunchedthee-Residencyprogramin2015,anditse-residentshavesincegrowntoapproximately40,000peoplefrom150countriesasofJune2018.
• Estoniahasdevelopedoneofthemostliberaltaxsystemswitha0%corporateincometaxoncompanieswithoutdividends.
• In2015,theEstoniangovernmentestablished‘StartupEstonia’tostrengthentheEstonianstartupecosystem,carryouttrainingprogramsforstartups,educatelocalinvestorswhilstattract
foreigninvestors,andeliminateregulativeissuesandbarriers.
• ThecountryhasaStart-upVisaprogramthatenablesnon-EUresidentstoworkforEstonia’sstart-ups.
Lithuania• Lithuaniapositionsitselfasthe
entrypointforFinTechcompaniestotheEU.ThecountryhastakenmeasurestocreateaconduciveenvironmentforthedevelopmentofitsFinTechindustry.Afastdigitalpaymentore-moneylicense(inabout3to4months),easylicensingforP2PlendingplatformsandcrowdfundinglawsaresomeofthekeyinitiativesbytheGovernment.
• InJuly2018,theBankofLithuaniaintroducedaprocedurethatallowscompaniestoapplyremotelyandonlineforFinTechlicenses.
• Lithuaniaoffersaspecializedbankinglicensethatallowstoestablishabankwitharegisteredcapitalofonly€1m.
• InJanuary2018,theBankofLithuaniaannouncedthatitwillbelaunchingablockchainsandboxplatformfordomesticandforeigncompanies.Theplatform,calledLBChain,willallowFinTechstodevelopandtestoutblockchain-basedsolutions.
Success storiesSuccess stories
• ForFinTechs,specialsupportandadvicesystemsareprovidedfortheirfirstyearofoperations.Non-bankinginstitutionsaregivenaccesstoCENTROlink,thepaymentsystemoperatedbytheCentralBankofLithuania,andthuscanexecutepaymentsintheEU’sSingleEuroPaymentArea.
Czech Republic
• GovernmentagencyCzechICTAlliancesetupthePragueStartupCentrein2016tohelpearly-stagestart-upsconnectwithinvestorsandpartners.Servicesincludeanincubationprogramforuniversitystudentsandearly-stagestart-ups,officesinPraguedowntown,varioustrainingsandworkshopsforstart-ups,andnetworkingevents.
• InJanuary2017,CzechRepublicstartingJanuary1,2017,introducedthelawagainstmoneylaundering.ThelawpreparedbytheMinistryofFinanceoftheCzechRepublicrequiresvirtualcurrencyexchangestodeterminetheidentityofcustomers.
Russia• InApril2016,TheCentral
BankoftheRussianFederationcreatedadedicateddepartment—DepartmentOfFinancialTechnologies,ProjectsandProcessOrganization—tomonitor,analyzeandevaluatethescopeoftheemergingFinTechsector.
• Inearly2018,thecentralbankpublishedadocumentsettingguidelinesforthedevelopmentoffinancialtechnologiesfrom2018to2020.
• InApril2018,thecentralbankintroducedaregulatorysandboxtoserveasaplatformformodelingtheprocessesoftheuseandapplicationofinnovativefinancialservices.
• Thegovernment-fundedInternetInitiativesDevelopmentFund(IIDF)has$100M(6bnRUB)underitsmanagementasofAugust2018.
• From2013toAugust2018,IIDFhadclosed370dealswithvaluesrangingfrom$20kto$5.5M
34
FinTechecosystemplaybook
Keyhighlights
GulfCooperationCouncil(GCC)economiesintheregionareundertakingreformstopromotegrowthinthenon-oilsectorandinvestingininfrastructuredevelopmenttopusheconomicgrowthintheregion.
Theregionhasanestimatedpopulationof253millionin2018withoverallinternetpenetrationof65%in2017.Theregionhasmobilepenetrationrateof128%.However,internetpenetrationrateisfragmentedacrosstheregion.
The Middle East
Bahrain
GDP: US$36.7b | 2017
GDPgrowth(y-o-y):4.0%GDPpercapita:US$26,820
Population: 1.4 million
Inflation: 1.4%FDIinflow(%ofGDP):1.5%Regulatorysandbox:Yes
Bahrain
Saudi Arabia UAE
Turkey
35
FinTechecosystemplaybook
FinTech ecosystem playbook
36
Turkey
GDP: US$851.3b | 2017
GDPgrowth(y-o-y):7.3%GDPpercapita:US$10,527
Population:80.8 million
Inflation:11.1%FDIinflow(%ofGDP):1.3%Regulatorysandbox:No
Saudi Arabia
GDP:(1) US$686.7b | 2017
GDPgrowth(y-o-y):-0.9%GDPpercapita:US$20,926
Population:32.8 million
Inflation:-0.9%FDIinflow(%ofGDP):1.2%*Regulatorysandbox:Yes (capital markets)
UAE
GDP: US$382.6b | 2017
GDPgrowth(y-o-y):0.8%GDPpercapita: US$40,622
Population: 9.4 million
Inflation:2.0%FDIinflow(%ofGDP):2.5%*Regulatorysandbox:Yes (Dubai and Abu Dhabi)
FinTech ecosystem playbook
37
Sources:
1. Digitalin2018report,Hootsuite,January2018
2. GrossDomesticProduct(GDP),GDPpercapita,populationandinflation:OxfordEconomics
3. FDIinflowandMobileSubscriptions:WorldBankOpenData
4. Internetusersandinternetbandwidth:TheGlobal
CompetitivenessReport2017–2018,WorldEconomicForum
5. FinancialParameters:TheGlobalFindexDatabase,WorldBank
Note: * 2017 FDI inflow figures not available. Considered 2016 figures instead.
Financialparameters
Bahrain Saudi Arabia
Turkey UAE
Banking penetration (%) Debit card ownership (%)
80
63 83
67
Credit card ownership (%)
30 16
4542
Made or received digital payments in the past year (% age 15+ years of population)
77 61 64 84
88.2%68.6%71.7%98.6%
Digitalreadiness
Internet users (%)
Bahrain Saudi Arabia
Turkey UAE
90.6%58.3%73.8%98.0%
Mobile subscriptions (per 100 people)
158.4 122.1
210.996.4
Internet bandwidth (kb/s/user)
68.1 133.7
112.8 78.2
United Arab Emirates
Dubai• Establishedin2004,DIFCisa
majorfinancialhubintheMEASAregion.Ithasanindependentregulatorandjudicialsystem,andaglobalfinancialexchange.Thefinancialdistricthas2,003activeregisteredcompaniesoperatingwithacombinedworkforceof22,768.
• DIFCestablishedFinTechHive,anacceleratorthataimstobringfinancialandtechnologyfirmstogether.ItofferslicensingsolutionsforFinTechsandsupportiveregulationthroughitsInnovationTestingLicence.Italsooffersdedicatedcommerciallicense,specificallydevelopedforFinTech,RegTechandInsurTechfirmstooperatewithinthecenter.
• DIFClaunchedaUS$100mFinTech-focusedfundtoacceleratethedevelopmentinfinancialtechnologybyinvestinginstart-ups,fromincubationtogrowthstage.
• ItlaunchedTheAcademy,anexecutiveeducationcenter,in2017.Formedinpartnershipwithleadingbusinessschools,TheAcademyprovidesaccesstofinancialservicescourses.
• InAugust2017,theDubaiFinancialServicesAuthority(DFSA),launcheditsregulatory
frameworkforloan-andinvestment-basedcrowdfundingplatforms.
AbuDhabi• ADGMwasfoundedin2013.
Itcomprisesthreeindependentauthorities:ADGMCourts,theFinancialServicesRegulatoryAuthorityandtheRegistrationAuthority.
• ADGMhasintroducedseveralinitiativesandprogramstosupportthecountry’sFinTechecosystem.IthasaregulatorysandboxprogramandispartofGFIN.
• InOctober2017,ADGMlaunchedtheFinTechInnovationCentre,aco-workingspaceforFinTechs,andenteredintopartnershipwithPlugandPlay,aglobalacceleratorprogramtosupportfinancialinnovation.
• InSeptember2018,ADGMlaunchedaregulatoryframeworkforprivatefinancingplatformsthatenableenterprisestoseekfinancingfromprivateandinstitutionalinvestorstolaunchandgrowtheirbusinesses.
• FinTech-specificcourseswerelaunchedbyADGMAcademyinMay2018.Theacademyispartneringwitheducationalinstitutionsforarangeofprogramsonbankingandfinance,personalandprofessionaldevelopment,entrepreneurship,andnationaldevelopment.
Success storiesSuccess stories
38
FinTechecosystemplaybook
FinTech ecosystem playbook
39
Bahrain• BahrainFinTechBaywaslaunched
inNovember2017withthecollaborationofBahrainEconomicDevelopmentBoard(EDB)andFTC.
• InBahrain,FinTechdevelopmentisinspiringIslamicfinanceinstitutionstoadoptdigital.InDecember2017,AlBarakaBankingGroup,KuwaitFinanceHouseandBahrainDevelopmentBank(BDB)launchedthefirstglobalIslamicFinTechconsortium,ALGOBahrain.Theconsortium,whichaimstoincreasetheadoptioninFinTechinIslamicbanking,planstolaunch15bankingplatformsby2022.
• TheCentralBankofBahrainhasadedicatedFinTech&InnovationUnitthataimstocreateasupportiveregulatoryenvironmenttoencourageinvestmentinFinTech.DevelopmentsincludeadedicatedlicensecategoryforconventionalandShari’a-compliantcrowdfundingandaregulatorysandbox.
• InJune2018,BDB’sAlWahaFundofFundscloseditsUS$100mfundraisinground.Thefundwillsupportstart-upsinBahrainandacrossMENAregion.
Saudi Arabia• AspartofSaudiVision2030,the
SaudiArabiaGovernmenthaslaunchedtheFinancialSectorDevelopmentprogram.Undertheprogram,theSaudiArabianMonetaryAuthority(SAMA)shall
establishacentralpaymentunittoregulatethepaymentsindustry.Italsoplanstodevelopfinancialservicespaymentlawsandregulationstogetherwithcreatingnewlicensesforinnovativenonbankingplayers.Additionally,SAMAhaslaidoutframeworkforcybersecuritycompliance.InMay2018,SAMAlaunchedtheFintechSaudiinitiativetosupporttheFinTechdevelopment.
• CapitalMarketAuthority(CMA)laidouttheregulatoryframeworkfortheinnovationofFinTechincapitalmarketwithinSaudiArabia.FinTechsalsorequireapermitthatwouldenablethemtofirsttesttheirofferingsintheFinTechLab.InJuly2018,CMAapprovedthefirsttwolicensesforFinTechs.
Turkey• InJuly2018,theTurkish
GovernmentsetupFinTechTaskForcewiththeaimtoimprovetheFinTechecosysteminthecountryConsistingofexecutivesfromtheCentralBankoftheRepublicofTurkey,theBankingRegulationandSupervisionAgency,theUndersecretariatofTreasury,theCapitalMarketsBoardTurkey,andtheSavingsDepositInsuranceFund,thetaskforceissettinganationalvisionandgoal,determiningastrategyandaroadmapfortheindustry.
• InDecember2017,TurkeyamendeditsCapitalMarketsActtomakecrowdfundingthatoffersareturnoninvestment(e.g.,throughshares)availableinthecountry.
• TheInterbankCardCenter,BKM,hasalsobeenplayinganactiveroleinsupportingFinTechinTurkey.In2016,BKMintroducedTurkey’sPaymentMethod(Troy),anelectroniccardpayment
system,inlinewithitsvisionofcreatingacashlesssocietyby2023.
Keyhighlights
AccordingtotheWorldBank,insub-SaharanAfrica,21%oftheadultpopulationhaveamobilemoneyaccount,whichisthehighestinanyregionintheworld.WhilemobilemoneyhasbeencenteredinEastAfrica,ithasexpandedtoWestAfricaandbeyond.
Theregionhasanestimatedpopulationofaboutabillionin2018with34%internetpenetrationrateand82%mobilepenetrationrate.
GlobalFinTechhubplaybook2018
South Africa
KenyaNigeria
Africa
40
FinTechecosystemplaybook
FinTech ecosystem playbook
41
Keyhighlights
South Africa
GDP: US$349.3b | 2017
GDPgrowth(y-o-y):1.3%GDPpercapita:US$6,150.6
Population:56.8 million
Inflation:5.3%FDIinflow(%ofGDP):0.4%Regulatorysandbox:No
Kenya
GDP: US$74.9b | 2017
GDPgrowth(y-o-y):4.9%GDPpercapita:US$1,506.7
Population:49.7 million
Inflation:8.0%FDIinflow(%ofGDP):0.9%Regulatorysandbox:No
Nigeria
GDP: US$355.5b | 2017
GDPgrowth(y-o-y):0.8%GDPpercapita: US$1,860
Population: 191.2 million
Inflation:16.5%FDIinflow(%ofGDP):0.9%Regulatorysandbox:Yes
Digitalreadiness
Internet users (%)
Mobile subscriptions (per 100 people)
86.1 75.9 162.0
Internet bandwidth (kb/s/user)
69 11.3 26354.0%25.7%26.0%
Kenya Nigeria South Africa
Financialparame
Debit card ownership (%)
38 3432
Credit card ownership (%)
6 3 9
Banking penetration (%)
69.2%39.6%81.6%
Financialparameters
Sources:
1. Digitalin2018report,Hootsuite,January2018
2. GrossDomesticProduct(GDP),GDPpercapita,populationandinflation:OxfordEconomics
3. FDIinflowandMobileSubscriptions:WorldBankOpenData
4. Internetusersandinternetbandwidth:TheGlobalCompetitivenessReport2017–2018,WorldEconomicForum
5. FinancialParameters:TheGlobalFindexDatabase,WorldBank
Made or received digital payments in the past year (% age 15+ years of population)
79 30 60
Kenya Nigeria South Africa
Nigeria• ThePaymentsSystemVision2020
oftheCentralBankofNigeria(CBN)identifieswaystoincreasetheresilienceofthepaymentssysteminfrastructure.Thesectorisusinginnovations,suchasUnstructuredSupplementaryServiceDataservice(USSD),forpayments.
• InMarch2018,CBN,alongwithNigeriaInter-BankSettlementSystem,introducedaregulatorysandboxwiththeaimtofacilitatedigitalinnovationbyFinTechcompanies.
Kenya• M-Pesaisakeydriverbehind
successofmobilebankinginKenya,whichhashelpedalleviatefinancialexclusion.AccordingtotheGlobalFindexDatabase2017,73%ofadultsinKenyahaveamobilemoneyaccount.
• TheCentralBankofKenya(CBK)isthefinancialregulatorybodyinthecountryandisreceptiveoftheFinTechinnovations,whichisevidentfromthemeasuresithastaken.In2007,theCBKtookthepivotalstepofallowingmobileoperator,Safaricom,tolaunchM-Pesawhentherewasnoregulatoryframeworksetup.
South Africa• InFebruary2018,SARB
establishedaFinTechprogramthataimstostrategicallyassesstheemergenceofFinTechandconsideritsregulatoryimplications.Ithasthreeprimaryobjectives:evaluatingprivatecryptocurrencies,investigatinginnovationfacilitators(sandboxes,incubatorsandaccelerators)andlaunchingaDLTexperiment(ProjectKhoka).
• InJune2018,SARBreleasedareportontheProjectKhoka,aPoCdesignedtosimulateareal-worldtrialofaDLT-basedwholesalepaymentsystem.
Success storiesSuccess stories
42
FinTechecosystemplaybook
FinTech ecosystem playbook
43
FinTechlandscapeinsub-SaharanAfrica
Breakup of total FinTech funding for 2016-17: US$100m
Distribution of FinTechs
34%
34%
32%94
74
56
76
Source: Finnovating for Africa: Exploring the African Fintech Startup Ecosystem Report 2017, Disrupt Africa
South Africa Nigeria
Kenya Rest of Africa
South Korea
GDP: US$1.5t | 2017
GDPgrowth(y-o-y):3.1%GDPpercapita:US$30,008
Population: 51.0 million
Inflation: 1.9%FDIinflow(%ofGDP):1.1%Regulatorysandbox:Yes
Mostofthehubsareencouragingdigitalpaymentinitiativesandworkingtowardfinancialinclusion.
Theregionhasanestimatedpopulationofabout3.6billionin2018.Asia-Pacifichasabout2billioninternetusers,whichisabout51%ofthetotalworldinternetusers.Theregionhasa48%internetpenetrationrate,and102%mobilepenetrationrate.
Keyhighlights
Asia-Pacific
44
Hong Kong
India
Japan
South KoreaChina
FinTechecosystemplaybook
FinTech ecosystem playbook
45
Hong Kong
GDP: US$341.4b | 2017
GDPgrowth(y-o-y):3.8%GDPpercapita:US$46,307.6
Population:7.4 million
Inflation:1.5%FDIinflow(%ofGDP):35.8%Regulatorysandbox:Yes
Japan
GDP: US$4.9t | 2017
GDPgrowth(y-o-y):1.7%GDPpercapita:US$38,255
Population:127.4 million
Inflation:0.5%FDIinflow(%ofGDP):0.4%Regulatorysandbox:Yes (FinTech Proof of Concept Hub)
India
GDP: US$2.5t | 2017
GDPgrowth(y-o-y):6.2%GDPpercapita:US$1,870
Population:1.3 billion
Inflation:3.3%FDIinflow(%ofGDP):1.5%Regulatorysandbox:No
Mainland China
GDP: US$12.3t | 2017
GDPgrowth(y-o-y):6.9%GDPpercapita: US$8,697
Population: 1.4 billion
Inflation:1.5%FDIinflow(%ofGDP):1.4%Regulatorysandbox:No
FinTech ecosystem playbook
46
Digitalreadiness
Internet users (%) Internet bandwidth (kb/s/user)
Mobile subscriptions (per 100 people)
83.0 54.3
14.7 4906.0 16.0
104.6 249.0 87.3
124.9133.5
India Japan South Korea
Mainland China Hong Kong
92.7%92.0%29.5%87.3%53.2%
Financialparameters
Banking penetration (%) Credit card ownership (%)
21
3 68
64
65
Debit card ownership (%)
67 83
75
8733
Sources: 1. Digitalin2018report,Hootsuite,January2018
2. GrossDomesticProduct(GDP),GDPpercapita,populationandinflation:OxfordEconomics
3. FDIinflowandMobileSubscriptions:WorldBankOpenData
4. Internetusersandinternetbandwidth:TheGlobalCompetitivenessReport2017–2018,WorldEconomicForum
5. FinancialParameters:TheGlobalFindexDatabase,WorldBank
Made or received digital payments in the past year (% age 15+ years of population)
95 92
68 85 29
94.8%98.2%79.9%95.3%80.2%
Hong Kong India Japan South KoreaMainland China
FinTech ecosystem playbook
47
Hong Kong• HongKonghastakenanumberof
stepstostrengthenFinTechsector.InMarch2016,HKMAestablishedtheFinTechFacilitationOffice(FFO)tosupportthedevelopmentoftheecosystem.
• TheHKMAhaslaunchedsevensmartbankinginitiatives,whichincludethefollowing:
• FasterPaymentSystem(FPS):LaunchedinSeptember2018,thenewsystemoperatesonaround-the-clockbasis,andconnectsbanksandstored-valuefacility(SVF)operatorsonthesameplatform.
• OpenAPI:InJuly2018,OpenAPIFrameworkfortheHongKong’sbankingsectorwasreleased.
• EnhancedFintechSupervisorySandbox(FSS)2.0:AsoftheendofJuly2018,33newtechnologyproductshavebeentestedintheFSS.Separately,bankshavecollaboratedwithtechfirmsin18trialcases.
• Virtualbanking:InSeptember2017,theHKMAannounceditsintentiontoencouragevirtualbankinginHongKong.
• Closercross-bordercollaboration:ThelatestinitiativesincludethedevelopmentofaDLTplatformtodigitalizebanks’tradefinanceprocessesinHongKongwithpotentialconnectivitywithSingapore’stradeplatform.
• Researchandtalentdevelopment:HKMAhascollaboratedwiththeHongKongAppliedScienceandTechnologyResearchInstitute,ScienceParkandCyberportinanumberofresearchandeducationinitiatives.
• BankingMadeEasyInitiative—Aimistominimizeregulatoryfrictionsincustomers’digitalexperience,includingremoteonboarding,onlinefinanceandonlinewealthmanagement
• TheHongKonggovernment’s2018budgethaspledgedHK$500mtothedevelopmentoffinancialservicesoverthenextfiveyears,includingFinTech.
• In2017,theGovernmentlaunchedUS$256m(HK$2b)InnovationandTechnologyVentureFundtocoinvestwithprivateVCinlocaltech-basedstart-ups.
• WithspecificfocustoexpandFinTech-basedtalentinHongKong,HKMApartneredwithASTRItolaunchFCAS,providinginternshiptoundergraduatesandpostgraduatestudentsintheFinTechindustry.HKMAalsorunsatalentacceleratorprogram.
Success storiesSuccess stories
FinTech ecosystem playbook
48
• TheHongKongFinTechWeekisacrossborderevent(from29Octoberto2November2018)tookplaceintheHongKongandShenzhen.Over8,000participantsattendedtheevent.
India• TheGovernment,throughits
DigitalIndiainitiative,hastakenanumberofstepstodrivedigitalpenetrationinthecountry.Thefollowinginitiativeshaveresultedinincreaseinbankingpenetrationrateto80%in2017frommere35%in2011:
• Aadhaar,thelargestbiometricprogramintheworld,hadgeneratedover1.2billiondigitalidentities.Asof15September2018,over23billionauthenticationsand6.2billione-KYChavebeendoneusingAadhaar(UIDAIstats).
• JanDhanYojna,oneofthelargestfinancialinclusionprogramsintheworld,waslaunchedbytheGovernmentin2015,hasover327millionbeneficiariesasof19September2018.
• UnitedPaymentsInterface(UPI),aninstantreal-timepaymentsystemthroughbankaccount,waslaunchedin2016.InAugust2018,UPIcrossedanimportantmilestoneof300milliontransactionsinamonth.
• InAugust2016,theGovernmentlaunchedBharatBillPay(BBP),aninteroperablepaymentplatform,whichallowsuserstomakebillpaymentsacrossmultiplechannelsandpaymentmodes,andprovidesinstantreceiptsthroughSMS.
• InMarch2017,theGovernment
launchedBharatQR,acommoninteroperablequickresponse(QR)code.
Japan• InJapan,projectsarebeing
undertakentodevelopplatformsusingcontactlesstechnology,QRcodes,blockchaintechnologyanddigitalcurrencies.InApril2018,theMinistryofEconomy,TradeandIndustrysetatargettohave40%ofalltransactionstobedonecashlessby2025,upfrom18.4%in2015.
• TheFinancialServicesAgencytheJapanesefinancialregulator,establishedFinTechSupportDeskin2015tosupportFinTechswiththespecificinterpretationofbankinglawsforthemortheapplicabilityofregulationstoFinTechbusinesspriortolaunch.
• AsofMarch2018,16crypto-exchangeswereregisteredunderFSAandanother16werestillbeingexaminedforregistration.
• InSeptember2017,FSAannouncedtheestablishmentofthePoCHub,aregulatorysandbox.
Mainland China
• MainlandChinaishometolargeFinTechcompaniesinpayments,P2Plending,InsurTech,whichhavedisruptedthewayfinancialservicesareconsumed.
• InJanuary2017,AsiaFinTechFundofFundsworthUS$1.4bwasfoundedbystate-ownedcapital
andprivatefundstonurturestart-upsintheFinTechindustry.
• InApril2018,theXiongAnGlobalBlockchainInnovationFundwaslaunchedwithUS$1.6btoinvestinChineseblockchainstart-ups.InJuly2018,ChinaMerchantsGrouppartneredwithLondon-basedinvestmentfirmCentricustolaunchaUS$15btechnologyfundcalledNewEraTechnologyFund.
South Korea• Techgiantsinthecountryhave
pioneeredFinTechadoptionbyprovidingpaymentsolutionsaswellassettingupdigital-onlybanksthathaveacquiredmillionsofuserssofar.
• In2016,theFSClaunchedaFintechOpenPlatform.TheOpenAPIsystemwithinFintechOpenPlatformthatprovidesprogramcommandsneededwhenprogrammingFinTechserviceswithbankingfunctions.
• Theregulatoryenvironmentregardingcryptocurrencyismovingtowardmoretransparency.StartingJanuary2018,cryptocurrencytradersinSouthKoreawillnotbeallowedtomakedepositsintotheirvirtualcurrencyexchangewalletsunlessthenamesontheirbankaccountsmatchtheaccountnamesincryptocurrencyexchanges.
49
FinTechecosystemplaybook
Appendix
ASEAN• Singapore
• “MASsetsupnewFinTech;InnovationGroup,”Monetary Authority of Singapore website, http://www.mas.gov.sg/news-and-publications/media-releases/2015/mas-sets-up-new-fintech-and-innovation-group.aspx,accessedon15October2018.
• “Singapore’sFinTechJourney—WhereWeAre,WhatIsNext”-SpeechbyMrRaviMenon,ManagingDirector,MonetaryAuthorityofSingapore,atSingaporeFinTechFestival-FinTechConferenceon16November2016,”Monetary Authority of Singapore website, accessedon15October2018.
• “SingaporeFintech:TopInfluencers,”finews.asia,23July2018.
• “FinTechFastTrack(FTFT),”Singapore FinTech Association website,https://singaporefintech.org/fintech-fast-track/,accessedon15October2018.
• “Home,”Singapore FinTech Association website,https://singaporefintech.org/,accessedon15October2018.
• Malaysia
• “ListofRegisteredMarketOperators”,Securities Commission Malaysia website, https://www.sc.com.my/digital/list_rmo/,accessedon18September2018
• “EquityCrowdfunding”,Securities Commission Malaysia website,https://www.sc.com.my/digital/equity-crowdfunding/,accessedon18September2018
• “ImplementationGuidanceone-KYCbyMSBIndustry”,BankNegaraMalaysia,http://www.bnm.gov.my,accessedon18September2018
• Indonesia
• “OJKSETSUPFINTECHADVISORYFORUM”,OJK website,https://www.ojk.go.id/en/berita-dan-kegiatan/siaran-pers/Documents/Pages/Press-Release-OJK-Sets-Up-Fintech-Advisory-Forum,accessedon18September2018
• Thailand
• “SECreleasescryptodetails”,Bangkok Post website,https://www.bangkokpost.com/business/news/1481525/sec-releases-crypto-details,accessedon18September2018
• “ThestateofICOregulationinThailand”,Bangkok Post website,https://www.bangkokpost.com/business/news/1510938/the-state-of-ico-regulation-in-Thailand,accessedon18September2018
• Vietnam
• “Non-cashpaymentperformancegainedsignificantimprovement,”State Bank of Vietnam website,https://www.sbv.gov.vn/webcenter/portal/
en/home/sbv/news,accessed5January2017.
• “SBVestablishesSteeringCommitteeonFintech”,State Bank of Vietnam website, https://www.sbv.gov.vn/webcenter/portal/en/home/sbv/news/news,accessedon18September2018
• First-everFintechChallengeVietnamlaunched,”VietnamEconomicTimes,http://vneconomictimes.com/article/business/first-ever-fintech-challenge-vietnam-launched,accessed5January2017.
• Philippines
• “BSPandIndustryLaunchestheNationalRetailPaymentSystem”,Bangko Sentral ng Pilipinas website,http://www.bsp.gov.ph/publications/media.asp?id=3948,accessedon18September2018
• “ThriveNotJustSurvive”,Bangko Sentral ng Pilipinas website,http://www.bsp.gov.ph/publications/speeches.asp?id=606,accessedon18September2018
• Cambodia
• “Fintechcouldbe‘gamechanger’,”ThePhnomPenhPost,28July2017
Latin America• Brazil
• “Brazil’sCentralBankauthorizespeer-to-peerlendingP2plending”,Reuters, https://www.reuters.com/
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50
article/brazil-credit-fintechs/brazils-central-bank-authorizes-peer-to-peer-lending-idUSL1N1S32Y6,accessedon18September2018
• CVMcreatesaFinTechHub,CVM,http://www.cvm.gov.br/noticias/arquivos/2016/20160613-1-1.html,accessedon18September2018
• Mexico
• “MexicoPassesNewFintechLawasSectorSurges,”Mexico Business Blog website,bdp-americas.com/blog/2018/04/18/mexico-passes-new-fintech-law-as-sector-surges/,accessedon27September2018.
CESA• Estonia:
• “e-residency,”e-Estonia website,https://e-estonia.com/solutions/e-identity/e-residency/,accessedon15October2018
• “e-identity,”e-Estonia website, https://e-estonia.com/category/e-identity/,accessedon15October2018
• “e-governance,”e-Estonia website,https://e-estonia.com/solutions/e-governance/state-e-services-portal/,accessedon15October2018
• “ESTONIA:“ITTAKES15MINUTESTOSETUPACOMPANYONTHEINTERNET”,”L’Atelier BNP Paribas website, https://atelier.bnpparibas/en/smart-city/article/estonia-it-takes-15-minutes-set-company-internet,accessedon15October2018
• “e-Estonia:Whatisallthefussabout?,”ZDNet website,
https://www.zdnet.com/article/e-estonia-what-is-all-the-fuss-about/,accessedon15October2018
• “About,”StartupEstoniawebsite,https://startupestonia.ee/about,accessedon27September2018
• Lithuania:
• “KeySectors—FinTech,”Go Vilnius website,http://www.govilnius.lt/business/key-business-sectors-vilnius/fintech/,accessedon15October2018
• “BankofLithuaniaintroducesremoteFintechlicensing”,Invest Lithuania website, https://investlithuania.com/news/lithuania-introduces-remote-fintech-licensing-making-the-prime-destination-for-fintech-even-better/,accessedon15October2018.
• “TheBankofLithuaniatolaunchblockchainsandboxplatform-service”Invest Lithuania website,https://investlithuania.com/news/the-bank-of-lithuania-to-launch-blockchain-sandbox-platform-service/,accessed27September2018.
• Czech Republic:
• “Home,”Prague Startup Centre website,http://en.praguestartupcentre.cz/,accessedon15October2018.
• “CZECHREPUBLIC:MajorNewImmigrationLawIncludesNewEUIntra-CompanyTransferCard,”Newland Chase website,https//newlandchase.com/immigration-insights/latest-news/czech-republic-major-new-immigration-law-includes-new-eu-intra-company-transfer-card/,accessedon15October2018.
• “CzechRepublicIntroducesLawRegulating(Restricting)Bitcoin,”CNN, 31 January 2017.
• Russia:
• “Russia’sc-banklaunchesregulatorysandbox”,Finance feeds website,https://financefeeds.com/russias-c-bank-launches-regulatory-sandbox/,accessedon20September2018
• “RussianCentralBankSetsGuidelinesforFintechDevelopment,AimsatCompetitionandAccessibility—IBS Intelligence,” IBS Intelligence website,accessedon27September2018.
• “Home,”IIDF website,https://www.iidf.ru/,accessedon27September2018
The Middle East• UAE
• Dubai:
• “Home”,Dubai International Financial Center website, https://www.difc.ae/,accessedon30August2018
• “Home,”FinTech Hive website,https://fintechhive.difc.ae/,accessedon15October2018.
• “DFSAlaunchesCrowdfundingFramework,”Dubai Financial Services Authority website,https://www.dfsa.ae/MediaRelease/News/DFSA-launches-Crowdfunding-Framework,accessedon27September2018.
• Abu Dhabi:
• “Home”,Abu Dhabi Global Market website,https://www.adgm.com/,accessed
51
on20September2018.
• “Home,”ADGM Academy website,https://www.adgmacademy.com/,accessedon27September2018
• “Home,”Emirates Digital Wallet website,http://www.edw.ae/,accessedon15October2018.
• Bahrain
• “Home”,Bahrain FinTech Bay website,https://www.bahrainfintechbay.com/,accessedon10September2018.
• “BahrainlaunchesanewResearchandDevelopmentFinTechfirm!,”Startup Bahrain website,http://startupbahrain.com/newsfeatures/bahrain-launches-new-research-development-fintech-firm/,accessedon15October2018.
• “WorldsFirstFintechConsortiumofIslamicBanksAnnouncedByBahrain,”Albaraka website,https://www.albaraka.com/default.asp?action=article&id=644,accessedon15October2018.
• “BDBcloses$100mVCfund,”Arab News,http://www.arabnews.com/node/1328086/corporate-news,26June2018.
• Saudi Arabia:
• “Home”,Capital Market Authority website,https://cma.org.sa/en/Pages/default.aspx,accessedon27September2018.
• “Home”,Saudi Arabian Monetary Authority website, http://www.sama.gov.sa/en-US/Pages/default.aspx,accessedon27September2018.
• “FinancialSectorDevelopmentProgram”,Saudi Vision 2030 website,http://vision2030.gov.sa/en/FSDP,accessed15October2018.
• Turkey:
• “Home”,FinTech Istanbul website,http://fintech.istanbul/en/,accessedon15October2018.
• “TurkeyLaunchesitsFirstFintechTaskForce,”The FinTech Times,23July2018.
• “EUROPE:TheNewAgeOfTurkey’sPayments,”PYMNTS website,https://www.pymnts.com/news/payment-methods/2015/the-new-age-of-turkeys-payments/,accessedon15October2018.
Africa• South Africa:
• “Mediastatement,”South African Reserve Bank (SARB), 13February2018
• “TheSouthAfricanReserveBankreleasestheProjectKhokhareport,”South African Reserve Bank (SARB),20June2018.
• Nigeria:
• “PaymentsSystemVision2020,”Central Bank of Nigeria, September2013.
• “FinancialInclusionNewsletter,”Central Bank of Nigeria,March2018.
• Kenya:
• “TheRiseofMobileMobileandMobileSavingsinKenya,”World Bank Group,2011.
• “Home,”Central Bank of Kenya website,https://www.centralbank.go.ke/,accessed
on15October2018.
• “News&Publications,”Capital Markets Authority website, accessedon15October2018.
Asia-Pacific• Hong Kong
• “ANewEraofSmartBanking”,HKMA website,https://www.hkma.gov.hk/eng/key-information/press-releases/2017/20170929-3.shtml,accessedon15September2018
• “Aboutus,”Hong Kong Monetary Authority website, https://ffo.hkma.gov.hk/about,accessedon15October2018
• “HongKongPushesFintechInnovation,”FinTechnews.hk, published7March2018
• “InnovationandTechnologyVentureFundopensforapplicationbyventurecapitalfunds,”GovHK website, https://www.info.gov.hk/gia/general/201709/15/P2017091400760.htm,accessedon15October2018
• “HKMAlaunchesFintechCareerAcceleratorScheme2.0withitsstrategicpartners,”Hong Kong Monetary Authority website, https://www.hkma.gov.hk/eng/key-information/press-releases/2018/20180131-8.shtml,accessedon15October2018
• “EventsPage,“FinTechHK website,http://www.hongkong-fintech.hk/en/events/,accessedon15September2018
• India
• “AadhaarDashboard”,Aadhaar website,https://uidai.gov.in/aadhaar_dashboard/,accessedon15September2018
FinTechecosystemplaybook
FinTech ecosystem playbook
52
• “JanDhanYojna”,Pradhan Mantri Jan Dhan Yojana website,https://www.pmjdy.gov.in/account,accessedon20September2018
• “Home,”United Payments Interface website,http://cashlessindia.gov.in/upi.html,accessedon15September2018
• “AboutUs,”Bharat BillPay website,https://www.bharatbillpay.com/aboutus.php,accessedon15October2018
• “BharatQRCode,”Ministry of electronics & Information Technology website,http://meity.gov.in/bharat-qr-code,accessedon15October2018
• Japan:
• “BanksRushtoTurnJapanCashlessbeforeLegalChangeAttractsTechGiants.”The Japan Times website, www.japantimes.co.jp/news/2018/04/05/business/banks-rush-turn-japan-cashless-legal-change-attracts-tech-giants/#.Wwz1zkiFOUk,accessedon27September2018.
• “IndustryministryreporturgesJapantoshedcustomofcashdependence”,The Japan Times website,https://www.japantimes.co.jp/news/2018/04/11/business/industry-ministry-report-urges-japan-shed-custom-cash-dependence/#.W6yn5mgzaM8,accessedon27September2018
• FinTechSupportDesk,Financial Services Agency,https://www.fsa.go.jp/news/27/sonota/20151214-2.html,accessedon27September2018
• “EstablishmentofFinTechProofofConceptHub”,Financial
Services Agency,https://www.fsa.go.jp/en/newsletter/weekly2017/262.html,accessedon27September2018
• Mainland China
• “Chinalaunchesmega$1.44bAsiaFinTechM&AFundofFunds”,Deal Street Asia Website,https://www.dealstreetasia.com/stories/china-launches-1-44-bn-asia-fintech-fund-of-funds-for-asian-fintech-mas-61848/,accessedon15September2018
• “HangzhouSetsUp$1.6BGovernment-backedBlockchainFundToInvestInStart-ups”,China Money Network,https://www.chinamoneynetwork.com/2018/04/10/hangzhou-sets-up-1-6b-government-backed-blockchain-fund-to-invest-in-start-ups,accessedon15September2018
• South Korea
• “Asia:Regulatingdigital-onlybanksinSouthKorea”,Rfi Group website,https://www.rfigroup.com/global-retail-banker/news/asia-regulating-digital-only-banks-south-korea,accessedon16October2018
• “KoreaFinancialAuthorityStrengthenTiesWithSingaporeasFintechsEyeGlobalExpansion,”Fintech News website,http://fintechnews.sg/3300/fintech/korea-financial-authority-strengthen-ties-singapore-fintechs-eye-global-expansion/,accessedin27September2018.
• “S.Koreaopensspecialfintechplatform,”Yonhap News Agency website,http://english.yonhapnews.co.kr/news/2016/08/30/0200000000AEN20160830006000320.html,accessedon27September
2018.
• “SouthKoreatoBanCryptocurrencyTradersfromUsingAnonymousBank...”Reuters website,ThomsonReuters,23Jan.2018,www.reuters.com/article/us-southkorea-bitcoin/south-korea-to-ban-cryptocurrency-traders-from-using-anonymous-bank-accounts-idUSKBN1FC069,accessedon27September2018.
53
Contacts
Jan BellensEYGlobalBanking&CapitalMarketsDeputySector[email protected]
Imran Gulamhuseinwala EYGlobalFinTech[email protected]
Charlie AlexanderEYGlobalTransactionAdvisoryServicesLeader—BankingCapitalMarkets[email protected]
Varun MittalEYGlobalEmergingMarketsFinTech[email protected]
Globalcontacts
Matt HatchEYAmericasFinTechandFinancialServicesGrowthMarkets[email protected]
Spyros Zachariadis EYCentral,Eastern,SouthernEurope[email protected]
Rana SanyouraEYMiddleEast&NorthAfricaFinTech[email protected]
Rachael LowProgramLeader,EYAsia-PacificFinancialServicesBrand,Marketing&[email protected]
James LloydEYAsia-PacificFinTech&Payments[email protected]
Rocio Velazco-RotemLatinAmericaFinTech[email protected]
Mahesh Makhija DigitalandEmergingTechnologyLeader,[email protected]
Ankita SrivastavaFinTechAnalyst,EY[email protected]
Regionalcontacts
FinTechecosystemplaybook
FinTech ecosystem playbook
54
Notes:
FinTech ecosystem playbook
55
Notes:
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