INVSTR INSIGHT: FAR EAST FINTECH

by | Jul 5, 2016

Mobile and technological innovation in Asia is huge. Join invstr’s Lea Jakobiak as she finds out about the opportunity Fintech represents.

Video Transcript

LEA JAKOBIAK (Reporter, invstr): What do you get when you have on one hand lots of people without a bank account but on the other a lot of people with a mobile phone? Well, it’s a recipe for a fintech boom. Add to that a growing middle class and it’s not hard to see why investors are feeling very optimistic about Asia. The numbers really speak for themselves. Investors poured $4.5 billion dollars into fintech companies in Asia last year. About one billion people are unbanked but mobile phone penetration rates are really high. For example 99% in Indonesia.

NEAL CROSS (Chief INnovation Officer, DBS): The West is not the fintech capital of the world. It is very much been driven to Asia and especially China. The world’s largest and most innovative banks are in China. The world’s largest fintech companies as we know are people like AliPay and Lufax etc. And the scale is completely different. Like we see WeChat bank, it’s got 30 million customers going on 3 million .

KLISMAN MURATI (Global Risk Insights): Asia is a very interesting place because it’s population diversity is amazing number one. They have a lot of transfer growth and expansion. They have a youthful foundation which is astronomical and set to grow. Especially now when china’s one child policy has been taken away. By 2030 Asia’s middle class will grow to about 66% of the world population. As far as direct investment goal rank and astonishment rate. 2014 for foreign direct investments have dipped globally but for the the Asean nations it has only increased. So there’s a lot of confidence in Asia because of its the politically as well as economically.

LEA JAKOBIAK (Reporter, invstr): Once more  a lot of Asian companies dare to think outside of the box

NEAL CROSS (Chief INnovation Officer, DBS): A great example is the washer machine manufacturer. This will show you the difference between Western and Asian innovation. They produce the washing machine breaking down is full of dirt. The filter blocks and gets sent back and they realized they’ve talked to customers and  the customers are washing potatoes in there. So you know the Western company would have put a big sticker on there saying don’t wash potatoes. This Chinese washer machine manufacture changed the filters, change the pipes, re-released it, and said don’t washing + potatoes.

LEA JAKOBIAK (Reporter, invstr):  But like anywhere there are downsides.

KLISMAN MURATI (Global Risk Insights): The biggest drawback that we see in Asia is pollution and climate change that’s a big issue that the West and America specifically are promoting as something that needs to be respected and maintained if we are going to have any sort of investment climate or livable climate for that matter.

LEA JAKOBIAK (Reporter, invstr):  On the invstr app you can keep track of Asian based tech stocks such as Samsung or TenCent for example. So make sure you download the app and take charge.

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