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

description

I presented this slide during Startup in Asia 2014, Jakarta on Nov 26, 2014.

Transcript of Tech in indonesia 2014 presented at startup asia 2014 jakarta

Page 1: Tech in indonesia 2014   presented at startup asia 2014 jakarta

INDONESIA TECH LANDSCAPE ____________________ Do you want to pet the tiger? Andy Zain @andyzain

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100  Million  Dollars    

Everybody’s  talking    about  them  

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Congratula1ons!  

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v  

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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  

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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  

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Macro story: technology-enabled society evolving from “push” to “pull” with

the individual dictating what, when, where and how.

PUSH PULL

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v  

Before E commerce After E Commerce

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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

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                   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

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1,000,000  families  to  get  Cash  Aid  USD  20/month                          Distributed  via  Mobile  SIM  Card!  

#SUPERCARD  

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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

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NOT  THIS  INNOVATION  

NOT  THIS  INNOVATION  

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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  

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FinTech-­‐enabled  innovaEon  –  what  is  needed?  True  Digital  &  Mobile  Payment  

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FinTech-­‐enabled  innovaEon  –  what  is  needed?  True  Digital  &  Mobile  Payment  

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FinTech-­‐enabled  innovaEon  –  what  is  needed?  P2P  payments  and  money  transfers  

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BBM  MONEY  

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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      

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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 )

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Announcing  today  the  so[-­‐launch    of  FinTech  Indonesia!  

An  advocacy  group  consisEng  of  banks,  insurers,  other  associaEons,    regulators  and  startups.  

Invited  members  

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Andy Zain @andyzain [email protected]

NOW, ARE YOU READY TO PET THE TIGER?