Investing : Next Frontier in Indonesian Fintech ?

In current Indonesian context, when somebody talk about fintech they mostly refer to lending. In DailySocial surveys, more than half of respondent associated fintech with online lending services with payment as a close second. Number of fintech funding activities also skewed toward this direction with 60% of total 14 deals in 2018 went to P2P lending startups. If you browse through fintech list in OJK website, only P2P lending are listed even though insurance and investment fintech falls under OJK supervision. There are currently 113 registered lending fintech as of June, far more than any other types of fintech combined.

Two things from this: Indonesian fintech growth so far still contributed by lending thus other financial services is underutilized. This leaves lots of room to grow for fintech ecosystem going forward. Second, with lending companies already reach hundreds, fintech players need to think hard what will be the next play.

So what could be the next phase for Indonesian fintech ? my take is on investing. Of all the financial services, it is the least inclusive with less than 1% registered investors in a 270 million population. Number of investors has been growing double digits for four years straight and most of the growth are contributed from younger segments.

In this article, i wrote overview on investing landscape in Indonesia, challenges and how this sector has big potential to drive further fintech growth going forward.

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Apa yang dicari para investor dalam pendiri startup?

Ini adalah thread quorayang saya jawab beberapa waktu lalu. Platform Quora ini cukup menyenangkan dan saya aktif disana. Cek kesini untuk melihat semua jawaban yang saya tulis.

*Skena dari film The Founder dimana Michael Keaton memerankan Ray Kroc*

Di satu konferensi, saya berkesempatan mengobrol dengan Pak Jefrey Joe dari Alpha JWC Venture. Seorang venture kapitalis yang portfolionya bisa dilihat dilink dibawah

Portfolio | Alpha JWC Ventures

Pertanyaan saya senada dengan ini :

“ Bagaimana menilai probabilitas kesuksesan seorang founder, terutama jika startupnya masih early sekali “

Continue reading →

One Mistake Away

Its middle of the night here in Manchester when wife and kid already asleep. In a rare serene moment like this, I should be doing the literature review part of my dissertation but somehow there is this imaginary brick wall that stop one’s thought process. Hence another too often moment of procrastination creeps me once again.

Either Hemingway, Capote or Woody Allen which said something that to overcome writer’s block, you just have to keep writing. But rather than grinding papers to fuel my dissertation writing, i decided to recollect slice of my life story which i suddenly remembered due to random up-swiping in twitter. Hopefully, brain dumping this will lubricate the dissertation-mode engine once again. At the very least, procrastinating this way is more productive than yet once again Netflix-binging hole i cant seem to escape every time dissertation journey gets a little bit uphill. Continue reading “One Mistake Away” →

Silicon Roundabout Presentation

Today, Ive delivered presentations for regional innovation class. For the final coursework, the students are expected to submit essay on several topics related to regional dimension of innovation, from role of public policy in cluster formation, university-industry relation to smart specialisation. I choose to do clusters, specifically start-up cluster. The topic fits into my interest and i want to take the topic as my dissertation areas as well. Before submitting the final essay, the students would need to present first in order to get feedback and directions.

The case study that i chose is Silicon Roundabout which also known as East London Tech City. It is a high tech startup cluster in the east London area (Shoreditch and Hoxton). Digital economy is huge contributor to UK GDP. London in particular has turn over of 56 billion GBP from digital economy. Majority of this are contributed by cluster of tech startups around the old street roundabout in East London. The area has a history of being a creative hub from the early 1990s. Post dot com boom, several startups such as Moo, Dropplr and Last.fm relocated to this area and in 2008, the terms Silicon Roundabout was coined.

silicon roundabout.png — short history of how silicon roundabout emerge

In 2010, Prime Minister David Cameron launched Tech City initiatives to support this cluster to become world class technology area. Two years later, Google developed seven stories co-working space / incubator called Google Campus.

For the presentation, i include a short history on the cluster, how the cluster grow without policy intervention, the pros and cons of Tech City initiatives and future challenges of the cluster moving forward. I need to be very concise considering 15 minutes time limit.

My presentation is embedded below. Write me in the comment if you have any questions.

All in all, i did okay on today session however as i think my presentation delivery need to be upped a notch. One deadline finished, a lot more to go.

This week is going to be a semester two hell week. All the best for you folks!.

Indonesia Fintech Industry Updates #3

OCBC Become The First Bank in South East Asia To Open Public API

Singapore-based bank OCBC made an interesting digital move just recently. The bank embraced the fintech wave by officially opening their internal data to be used as public API services called Connect2OCBC. This move is the first one in the region and no banks has ever done this before even though recently BCA has already moving in the direction by holding a Hackathon. Using this API, software developers can programmatically use OCBC’s data to enrich their own services.

Screen-Shot-2559-05-18-at-12.51.28-AM

Right now Connect2OCBC offers four different API access :

Branch Locator : Give location data on all OCBC branch and their opening hours
ATM Locator : List OCBC ATM machines location
Smart Card Advisor : Give recommendation on perks and rewards for OCBC card holder
Forex Rate : Give up to date FOREX rate

Quoted by The Edge Market, OCBC Senior VP for Group Operations and Technology Praveen Raina said that the bank aimed to create a ‘data social network’ which facilitates free flow of certain non-customer data that will benefit any third party and the community as a whole in a secure manner. Praveen added that OCB has been in discussion with several fintech startups and real estate firms in order to help them make an optimal use of this API’s.

“As we mature, we see more and more collaboration with third party app developers, and that’s where the ‘API economy’ comes in. Organisations that don’t do this will be left behind. This is no longer a matter of choice, whether we do it or not,” he added.

Developer manual and use case examples are available on Connect2OCBC site. Being asked about future plans, The bank are focusing to add more services to the platform and the additional services expected to be ready the end of the year. However there are still no information whether the data will include OCBC presence outside Singapore (e.g Indonesia).

More information on this : https://e27.co/no-kidding-ocbc-just-became-the-first-bank-in-southeast-asia-to-have-an-open-api-20160517/

Doku & Dycode Opened Indonesia IoT Challenge 2016

Indonesia online payment startup Doku held a developer competition called Indonesia Internet of Things (IoT) Challenge 2016. This competition invites young Indonesian software developer to submit their creative IoT products which integrates with Doku payment platform. Partnering with software development house DyCode, Doku offered total prize of 30 million IDR for the winners.

In the press release, Doku’s CEO said that this competition aimed to encourage young developers to show their talent and solve real problems using IOT and Payment platform. This competition is open for anyone and participant are free to choose their preferred programming language and IoT tools.

bg-mentor

Participant will be judged on several criteria :

Simplicity of the solution
Technology understanding of the participant
Hardware efficiency
Esthetics and design
Bonus points for good implementation of DOKU API in the solution

Submission is currently open until 28th of May and finalist will be announced on 5th of June 2016.

More information here : http://edu.dycode.co.id/idiot-challenge/

Finnet launched Finpay Link to Ease Payment via Social Media

Indonesian internet users has an unique habit of using Social Media as an e-commerce platform. Instagram and Facebook has become primary channel for online sellers to showcase their product especially for individual sellers and SME.

solusi-bisnis-finpay-link

Leveraging on this phenomenon, Telkom affiliated company Finnet launched Finpay Link, an online payment gateway services tailored for Social Media sellers. With Finpay Link, sellers will be able to create customizable link for their product and embed them easily in social media. This will enable customer to instantly pay the products just like in ecommerce marketplace sites such as Elevenia or Lazada. More convenient options compared to current practice of doing manual bank transfer.

Finnet CEO Niam Dzikri said that manual bank transfer has 65% error rate. Most of this errors contributed by human factor such as mistyping the account number and payment amount. Finpay Link aim to minimize these mistakes and made payment process in Social Media selling more straight forward. Apart from this, Finpay link also offer real time confirmation notifications and bank account checking.

More information here : http://www.indotelko.com/kanal?c=bid&it=finpay-link-transaksi-ukm-goes-digital

Kredivo, online financing services with real time credit scoring

Singapore based startup, FinAccel, recently launched online financing services called Kredivo. This services enable its users to buy things online on credit which they can also pay it in installments. To do this, FinAcccel partnered with local financing companies BFI Finance.

kredivo

What makes Kredivo interesting is it offers the capability to do real time credit risk assessment. When Kredivo users buy an item, the platform do a background check based on variety of information. There are about 1000 variables are considered to determine users credit score including self-reported data about income, employment, marital status, but also social network data like how often someone posts, how many friends you have, what type of phone you use etc.

Currently, Kredivo is integrated with 20 online merchants including e-commerce marketplace Jualo. Ahmed Aljunied, Jualo CTO said that they like the product very much and it give significant spike to the transaction.

” Consumers tend to be suspicious of online sellers, so the ability to receive their purchases without having paid a single cent is an extremely attractive proposition,”

Kredivo user has 30 days to pay for the item, without additional fees or interest. If payment isn’t completed in 30 days, interest will be charged with 2.95 percent per month and late fees of 3 percent a month.

More information on Kredivo : https://www.techinasia.com/startup-unlock-ecommerce-growth-southeast-asia

Indonesia Fintech Industry Updates #2

Quadrupled Investment Growth On Asia Pacific Fintech Industry

In their recent report “Fintech and the evolving landscape”, Global consulting company Accenture stated that Asia Pacific (APAC) region had a quadrupled growth in 2015 with to USD 4.3 billion. With this figure. APAC contributed almost 20% of total investment in global fintech industry (USD 22 Bio) and become the second biggest invested fintech region after North America. Most of these growths are contributed by China and India while in South East Asia, the hottest fintech hub still being lead by Singapore.

In terms of business model, payment still reigns in a top spot for the most invested fintech business in APAC. However there is a huge surge in Insurance technology. From 2014 to 2015, Insurance Technology grow almost tripled even though the amount is still small compared to payment. The report predicted that Insurance Technology will be the next hot battleground in APAC fintech landscape.

In this report, fintech startups were divided into two different types: Competitive and collaborative. Competitive-type challenges the established financial institutions while collaborative-type add value to the incumbent. Last year investment collaborative-type startup increased by 138 % while competitive-type only increased by 23%.

This is a good sign that going forward banks and other financial are more open to invest and collaborate with fintech startups. Trend which we already see in Indonesia right now with BCA and Mandiri leading the pack.

For more info, read the full Accenture report here.

Paypal launched fintech incubation program in Singapore

Global mammoth on online payment, PayPal has just launched fintech incubation program in Singapore. This program are opened for fintech startups in the region. Selected participant will go through nine month incubation in PayPal’s Technology Centre in Suntec City. The incubation program will include mentorship on finance and technology topics such as risk, compliance, core payment network and channel development. Participant will also given direct access to PayPal executives, external talents and also well-known industry experts.

PayPal

In order to be eligible, applicants should fulfill these criteria :

1. A fintech or technology startup
2. Have a minimum viable product (MVP) and early trial with customers
3. Armed with seed stage funding
4. Based out of Singapore or willing to relocate to Singapore

Acceptance will be judged based on team capability, business model, technology innovation and traction.

Apart from PayPal, VISA also setup strong footprint in South East Asia by opening their new Innovation Centre which also in Singapore. Align with the Accenture report, massive growth in fintech sector has been jump-starting the interest of global tech giants to setup business in this region.

More information on this here (e27)

Gojek-Bluebird Partnership

In a surprising twist, recently Gojek has striked partnership with the Bluebird, the company they aimed to disrupt. During the press release, Head of Buebird Public Relation Teguh Wijayanto stated that this partnership improve hailing process for Bluebird. Gojek’s CEO Nadiem Makariem also said that the partnership will include technology, payment system and promotion. Currently the detail on this partnership is not yet clear. Both parties has stated that Gojek-Bluebird joint services will be revealed to public at the end of May 2015

1641042Go-Jek-Blue-Bird-1780x390

Focusing specifically in payment parts, this partnership will likely served as the first Go-Pay payment expansion outside Gojek own ecosystem. Considering this move and their recent GoPay campaign (50% discount for all gojek services), Seems like Nadiem Makariem has a big ambition to dominant players in the universal payment platform going forward.

More information on this here (Kompas).

Indonesia Fintech Industry Updates #1

As part of my job as Innovation Management, on a weekly basis I deliver quick industry updates to the relevant XL Digital services team. Since i will be writing this for work, might as well post it here. Hope you guys find it useful.

BCA Financial Hackathon 2016

Bank BCA in collaboration with DailySocial held Financial Hackathon event on 23-24^th April at Segarra Ancol. By doing this event, Bank BCA encourage software developers and innovators to build creative fintech services using their recently launched Data API.

For this competition, BCA invited several experts in Indonesia startup ecosystem to be the judges. Amongst them are Andrew Darwis (Kaskus), Anton Soehartyo (Touchten), Rama Mamuaya (DailySocial) and several others.

Three winners were announced at the end of this events.

Team Name	Product Name	Product Description
Fariz Tadjoedin	ChatBanking	Send money through instant messenger such as Line, WeChat, Kakao Talk etc
AMBISNIS	GueBayar	Apps to share bill payments amongst friends. User just need to take receipt picture and tag a friends. The bill will be splitted amongst the tagged users
ATOM	InstaPay	Bill payment apps. Integrated with BCA E-wallet

This initiatives can be seen as increasing commitment from Bank BCA to dive in into Indonesia digital ecosystem going forward. No news yet on whether their Data API will be accessible for public or not. Considering the massive size of BCA, it will spark a whole lot new services if their API opened for developers and startups.

More information on this : https://dailysocial.id/post/inilah-3-aplikasi-pemenang-finhacks-2016-hackbythebeach/

Mandiri Capital Indonesia Set Up IDR 500 Bio For Investing In Indonesia Fintech Startups

Apart from BCA, Bank Mandiri also had started a move to venture in Indonesia startup ecosystem. Earlier this year, this biggest bank in Indonesia launched their venture capital subsidiaries called Mandiri Capital Indonesia (MCI). For this venture, the corporation has set up IDR 500 bio funds to be invested in several potential startups.

On top of financial investment, MCI will give mentorship guidance to their portfolio startups and also give marketing platform to connect the startups with potential customers / partners (e.g using Wirausaha Mandiri platform)

Budi Gunadi Sadikin, Bank Mandiri CEO, explained that the company sees the emerging trend of disruptive technologies following the growth of Indonesia digital ecosystem. For example, Ride-hailing apps and various e-commerce players have changed the way Indonesians do business. Bank Mandiri cannot afford to be left behind in this movement hence the decision to jump in directly into Indonesian startup ecosystem.

“Financial technology startups are in this money moving business. That’s why we (Bank Mandiri) entered this space with a focus on fintech,” Budi stated.

Mandiri Capital Indonesia will be focusing to invest in fintech and e-commerce digital payment space to leverage on existing Bank Mandiri’s business. Currently, the bank had more than 2 million merchants which mostly receive payments in cash.

More information on this : http://www.cnnindonesia.com/ekonomi/20160128123925-92-107346/suntik-modal-start-up-mandiri-capital-tak-beri-syarat-khusus/

Gojek Expands Gojek Credit into GoPay

Leading ride sharing startups Gojek have started to expand into cashless payment business by upgrading their previous Gojek Credit features into separate business called GoPay. Following this update, users can top up GoPay using bank BCA, Mandiri and BR with maximum balance IDR 2 million per user. Gojek users will be able to pay all of related Gojek services (Gofood, Goclean) using GoPay.

GO-PAY by GO-JEK - Google Chrome_2016-05-05_09-34-14 — Gojek Credit transformed into GoPay

Going forward, theres a big possibility for Gojek to utilize GoPay for universal cashless payment platform apart for their own services.

More information on this : https://id.techinasia.com/gojek-hadirkan-gocar-saingi-uber-dan-grabcar

SokBritish.com : Jago Inggris, Gratis, Gak Pake Nangis

Ide ini berawal dari chatting saya dengan Desti in one random night. Ketika itu, kantor tempat saya bekerja sedang membuka lowongan untuk freshgrad. Aku bekerja di one of the telco group yang beroperasi di Asia Tenggara dan lowongan tersebut terbuka untuk freshgrad dari negara negara ASEAN such as Malaysia, Indonesia, Singapura dll. Dengan penuh semangat, aku mulai menawarkan lowongan tersebut ke teman teman di kampus via YM. Surprisingly, tidak ada yang tertarik untuk melamar walaupun diriku sudah pitch ke beberapa teman dengan berapi api. Why ? semua menjawab tidak pede dengan kemampuan bahasa inggrisnya. Desti mengalami hal yang sama, in her case yang ditawarkan adalah beasiswa ke Perancis (bener gak des ? lupa euy).

Setelah itu , kita pun mulai brainstorming secara random. Diawali dari kenapa bahasa inggris yang masih menjadi hal yang susah dan cenderung menakutkan buat sebagian besar teman kita sampai apa faktor yang menyebabkan orang Indonesia ragu / susah / malas untuk belajar bahasa inggris (harga kursus yang mahal salah satunya). Then we began thinking and asking ourselves, what can we do about this ?.

Thats the story how we come up with SokBritish.com, sebuah blog yang bertagline jago inggris, gratis , gak pake nangis. SokBritish berisi tips tips bahasa inggris yang fun, casual dan bisa dilakukan oleh siapapun. Kita berdua bukan guru bahasa inggris , that makes the tips we wrote here is solely based on our experience, creativity and sometime twisted mind. Dibawah ini adalah salah satu tips berjudul TTF, go check it out.

#003 – Tuesday, Thursday, and Friday

Selain saya dan desti, another awesome teammates comes up from the internet to join forces to set up SokBritish. Pingkan Normalitasari , mahasiswa dari Surakarta yang juga blogger aktif dengan skill inggris yang oke berat. Check her blog for more infos!.

So what are you waiting for ? come on visit SokBritish.com! Read, enjoy and learn at the same time! Give comments also ya, we love comments and feedbacks hehe

Mengkomentari blog muhalovic

Dekap, Dekaplah Diriku
Dengarkankan Debaran Hati
Jangan Kau Ragukan Aku
Engkau Bunga Jiwaku
– Bunga Jiwaku, Yovie Nuno

Ada salah satu temen yang barusan ngeblog nih folks. Nama lengkapnya Muhammad Rohmatullah, tapi anak anak kampus sini lebih familiar dengan nama panggilan muhak. Sebagai salah seorang kroni saya dalam kejahatan maupun kebajikan sejak semester pertama , yang saya dapat deskripsikan mengenai seorang muhak.

Kurus Tinggi Langsing (KUTILANG)
Organisatoris (mantan BEM, ingat!!! mantan)
Web Programmer
Bercita cita ~~mustahil~~ mulia untuk menjadi ulama

yap , dijaman yang gila gilaan seperti sekarang. Saudara seangkatan ku yang satu ini mempunyai cita cita untuk jadi ulama, ustadz IT. Mungkin itu hal yang tidak terlalu mengagetkan klo kita belum pernah berinteraksi dengan saudara muhak, tetapi bagi saya yang sudah mengalami pahit manisnya kehidupan (OPO MANEH IKI!!!) bersama muhak ini, cita cita beliau adalah hal yang sangat mengagetkan. Jangan bayangkan seorang muhak adalah seorang mahasiswa alim ekstrim yang berjenggot tebel dan kemana mana nenteng attribut yang ke arab araban. Lebih terlihat seperti mahasiswa selengekan biasanya. Dan mungkin tidak ada yang mengira bahwa muhak ini lulusan pesantren : ).

Continue reading “Mengkomentari blog muhalovic” →