Tech in indonesia 2014 presented at startup asia 2014 jakarta
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INDONESIA TECH LANDSCAPE ____________________ Do you want to pet the tiger? Andy Zain @andyzain
100 Million Dollars
Everybody’s talking about them
Congratula1ons!
v
It is s1ll early! Per capita GDP and Internet penetration percentage
Developed Market
20% of retail shopping is online
Emerging Market
Less than 1% of retail shopping is online
Indonesia’s demographic bonus. Millions of young people joining the middle class, going online and beginning to save and consume.
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80 mil Internet users
55 mil Consumers joining middle class
35 % Growth in mortgage lending
26 % Growth in consumer lending
24 % Growth in insurance premiums
50 % Percentage of populaEon under 30 years of age
$ 565 bio Forecasted size of savings and investment market in 2030
22 % Growth in Credit card transacEon value
Macro story: technology-enabled society evolving from “push” to “pull” with
the individual dictating what, when, where and how.
PUSH PULL
v
v
Before E commerce After E Commerce
GROWTH CONSTRAINTS FOR INTERNET BUSINESS IN
INDONESIA
C o n n e c t i v i t y L o g i s t i c s , H u m a n C a p i t a l , a n d L a s t M i l e P a y m e n t s
S t r u c t u r a l R o o t I s s u e s …
P a p e r - b a s e d s y s t e m s
L a c k o f i n f r a s t r u c t u r e
A n t i q u a t e d r e g u l a t i o n
L o w T r u s t
P o o r c o n s u m e r
p r o t e c t i o n
P o o r n a t i o n a l e d u c a t i o n s t a n d a r d s
But the winds of change are blowing…
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I C T M i n i s t r y I n i t i a t i v e s e S e r v i c e s
B u s i n e s s - f r i e n d l y , f r o m o u r i n d u s t r y ,
o p e n t o i n n o v a t i o n M o b i l e P a y m e n t
e V o t i n g , e Ta x , e A p p l i c a t i o n s ,
e H e a l t h
1,000,000 families to get Cash Aid USD 20/month Distributed via Mobile SIM Card!
#SUPERCARD
Financial Technology is a structural pillar that enables scalable innova1on.
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E-‐Money
vs Paper/plas1c
P2P payments vs
Cash
Customer data safety
Vs No customer
data
Big data analy1cs
vs Guess work
Personalized products
vs One size fits
all
Lower loss rates vs
High NPLs
Faster transac1ons
vs Go to branch
E-‐Applica1ons vs
Wet signature
FINANCIAL TECHNOLOGY
NOT THIS INNOVATION
NOT THIS INNOVATION
CLOSER TO HOME
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FinTech-‐enabled innovaEon – what is needed?
Full-‐service branchless banking, microfinance, inclusion
Bank Rakyat Indonesia (BRI) : 465 mobile vans + 10K permanent branches USD 14B in micro lending alone (7M micro credits customers) DomesEc opportunity : USD 50B/year Micro lending is proxy for branchless banking with massive opportunity
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FinTech-‐enabled innovaEon – what is needed? Credit Scoring for Banked and Non-‐Banked Data Sources
BANKED : 40% of Indonesian Adults UNBANKED : 60% of Indonesian Adults
128 banks, 1,600 microbanks, few hundreds mulE finance lenders
FinTech-‐enabled innovaEon – what is needed? True Digital & Mobile Payment
FinTech-‐enabled innovaEon – what is needed? True Digital & Mobile Payment
FinTech-‐enabled innovaEon – what is needed? P2P payments and money transfers
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BBM MONEY
FinTech-‐enabled innovaEon – what is needed?
Online Comparison, Brokerage & Transparency
Consumer lending market : USD 120B (12% CAGR) Retail Insurance : USD 40B (15%) Life Insurance : USD 20B
Impact of fintech
S t r u c t u r a l s o l u t i o n s f o r t h e
e - c o m m e r c e i n d u s t r y
E n a b l e S M E s a n d t h e s m a l l b u s i n e s s m a n
E n a b l e c r e a t i v e
p r o d u c e r s l i k e g a m e s a n d
m u s i c t o g a i n t r u l y m a s s
d i s t r i b u t i o n
E n a b l e d e v e l o p m e n t ( m a s s m a r k e t
r e m a i n s l a r g e l y
u n b a n k e d )
Announcing today the so[-‐launch of FinTech Indonesia!
An advocacy group consisEng of banks, insurers, other associaEons, regulators and startups.
Invited members
Andy Zain @andyzain [email protected]
NOW, ARE YOU READY TO PET THE TIGER?