She can't see it on your end.
It shouldn't be any test. I can't see anything. This is me. Nothing. She says, uh, it will start in nine minutes. How many seconds? So right now I cannot. Yeah come down now I cannot see anything. That's the one thing. Yeah, as soon as the countdown is done it's like we have to start immediately talking.
The woman said the lab, I think.
That's the problem for OK.
Would like to close to you or something.
No microphone is from sagging.
But then I can't remove it so.
Put it down a little bit.
And then you can see in Tech so he has to like be ready already.
I didn't understand that this would be on the camera, so this is more well this is more a problem for me because.
I can't move. I mean I could. I'd have to like all the way out.
Like I said, we can make it so that we see both of us for the whole thing. It's fine, but.
Yeah exactly, I will be relevant, uhm?
And then I guess we should also satisfies these different.
Is how to selectively audio?
May you believe are good throughout the.
Now you think I can answer.
I'll throw you the most difficult question. I'm sure you can answer.
At the top and so we've got five on 553.
Think about it that way. Team guy. I met too excited.
So they would you see your face was right. Yeah, they mind being the one till 8.
Yeah, the cameraman exactly.
Yeah, and then you can see that now is fine, yeah?
Anything yes you yes yes.
Yeah, you get a bigger budget after this race.
Everything that process the video.
And then also like Facebook live.
I go to town with it, man.
When do inside everything is just follow me whenever I thought, yeah.
And focusing on the right spot.
Yeah, I follow my my voice.
You wanted I have in my school then useful in back in China. They follow the mileage are forever.
You have a sweet tempered.
There have been some papers on.
We gonna do this do that after we need this to happen.
I'd like to stream like web.
We need to be able to do stuff remotely, like have a panel that all come in. I guess we're going to try it on March 25th.
No on at the green light and red light and you will go to studios.
There's a whole like podcast.
But I think we have some budget so.
So we're not going to see the tracing.
OK, I'm visiting, maybe not, but we have little broadcasting in everything.
Fazila Hashim
08:57:39 AM
Hello
The very basic worried about it very important.
You cannot see my chat, is it?
Oh, it has to go through questions.
So Hello, Yep, and that's visible right?
And welcome again. Just going to have a welcome message. I felt, well, OK.
Die in the next minute or so and it's fine. Little busy now like a newsroom, yeah?
I I don't think is a little I love you OK OK?
Can you see my life that they will be very interested in Texas?
Fazila Hashim
09:00:13 AM
Hello and welcome to Asia School of Business' Virtual Masterclass: Financing Your Business with FinTech by Prof Yen Teik Lee! Our host and alumna from Class of 2018, Alex Snedeker will be introducing Prof Lee before he commences with his MasterClass.
Alright, Good morning everyone, uh, more depending on where you're watching this from. Good evening, um, we're here at the Asia School of Business in Kuala Lumpur, Malaysia and welcome to our next virtual master class. So with me today I have one of our amazing resident asby finance professors stock doing exactly and he's going to be talking about how to use alternative financing options, especially those in the fintech industry.
To finance your business, we're going to be going over what the landscape of finding sync options is. How to evaluate these options, and how to apply them to your business needs throughout the presentation, which will last about 30 to 40 minutes, you're welcome to submit your questions into the chat box at anytime, either about the presentation or about Asia School of Business and at the end of the presentation we will answer all of your questions.
If we don't get to you, we can always take your questions via email. So without further ado, I'm going to turn this over to young tag.
Fazila Hashim
09:01:23 AM
Please submit your questions here and we will try our best to answer all of your questions given our time.
And Good morning, are you doing so? We haven't talked about today? In fact, is going to be a tablet broader. We're going to talk about alternative finance is designed for intravenous, but I'm going to focus on the fintech, part of alternative finance. Now if you ask me, How do I define Finn? Tag is really the ABC D of our finance, specifically artificially intelligent blockchain cloud and big data.
Off our finance and thanks to this enabling technology, we have better food, are cheaper and more inclusive.
So let's explore how if you are an entrepreneur.
Financing through this, a new mode of, you know, financial services.
Now, do you have a big idea they can fly?
And even if you are very dated them, I have bad news for you.
If you want to look at the failure rate of new businesses.
20% of the new startups they fail within one year.
Half bill within the first five years and then it gets stabilized after that and this statistics is from the United States and is a relatively stable regardless of our business cycle. Now the question now is, what is the number one reason for failure?
Fazila Hashim
09:03:11 AM
Please refresh if your screen is frozen
I can hear you, so I'm going to answer for on your behalf. So the number one reason for failure is actually running out of cash.
Now, some of you may think earnings would be more important, but is it really true?
No, earnings is a bit like your foot.
But cash is that oxygen. Now tell me how long can you last without oxygen?
You can try it at home, but, uh, you know. Cash is basically the lifeline for any businesses.
Running out of cash means the end of the business.
How do you make sure that you have a long enough cash runway?
Anne, this lease is the discussion of the financing option you have.
So this is the game plan. Today we're going to talk about some of the financing options available for you, the traditional and the alternative finance, and I'm going to spend a bit more time on those that are heavily intact.
And I'm going to share the view that decision tree as to how to think about the different choices.
And then we're going to step into the shoes of people. There may finance you, understand the challenges of pain, point. They had an actionable insights.
Let's talk a bit about the financing option.
Let's begin with the question what are the traditional funding options that you have?
These are some of the choices that you have traditionally small business loans. You treat your equity or services for money issue, convertible bonds, preferred shares, or your bootstrap. On top of that, you could. You can also look around for incubators separators.
We can go hi tag and go for crowdfunding. Something that we are going to focus on little bit on later on. You can also look around local government, federal government for small business grants and you can also go for local consensus to get visibility and potentially funding. And of course keep your day job.
No, there's one thing that is a simile missing here. Friends and family. Now if you talk about friends and family.
They're really an important source of funding, according to research. About 50% of Arcelor. Somehow at some point in the are, you know, venture, they get financing on friends and family.
Sometimes foods now one thing good about what we see here, that the options that you have here is that 25% of the time.
You, uh, you would rely on the light of credit related products. A lot of credit card so alone or 75% of the time you can basically rely on sources of funding. Edison require your credit worthiness, which is just a good news.
Now let's talk about the other the finance. So let me just define a bit what this means. Authority finance are really financial services and products that are out of the traditional channels. And by that I mean it could be the markers or regulate the banks. If you want to look at this chart, Y axis is basically the cash flow that you generate overtime.
And the X axis is basically time from your first venture.
If you want to look at the chart, there's 100,000 miles in the middle, so the options you have beyond that will be.
The top half of the graph and those are below will be the bottom half of the graph.
Now, one of the things that you want to avoid is really that that track. This is where you find produc market feet and a lot of startups die here. Remember 20% of the phone died within the first year and half of them die within five years. So that's the test track. Now that means.
What this is a very critical time and this is the time when you need help with cash and one of the reasons why ventures new entrants. Regular cash is that they tend to underestimate time to nail down the product.
And the corresponding cash flow required so.
If you want to look at the options that we have here, let's focus on the yellow columns. These are all heavily intact, and they would include the A bunch of problem of crowd funding options, peer to peer platforms, an marketplace now.
Among those in yellow, you have those that are, you know.
Call it or other surrounded by blue corners. Those are the regulated 2nd.
Of the Fintech Options Alright.
The financing alternative financing landscape.
Now this slide is meant to confuse you. The key message here is that you have a lot of options out there. And how do you make up your mind as to which one to go forward and a lot of the options that you see here. I have to leave in tech enabled, meaning the views are kind of one of the abcd to make things better, cheaper, faster and more inclusive.
Now, so we so many options. Uh, yes, party choices. But the question is, how do you think about the, you know, the best way forward and this will be a function of what you want and the stage of development.
So let's move on to how do you think about that?
Which option to go fall? So the first thing that you have to ask yourself is why do you need the computer fall?
Do you need the capital for growth or do you need to find your working capital?
Now, if the answer is, uh, you need the working capital.
We need the money for working capital then, uh?
What you do is the move from moving to the lower region.
A box is OK in the first question. You ask is whether whether you can, whether you're doing viterbi sales. If you're doing big V sales, what you can do will be supply chain finance. Now, let me give you 1 example, for example, any of you have used cell me before.
Not show me his, uh, an ecosystem for people to come up with that you know to come up with new prototypes, Newhart, Lance, and what did they do to support this? You know, inventors is ready to finance the venture and again and get financing from Sony.
This is one form of what I what I mean by supply chain finance at the other popular form will be E Commerce related. For example, if you talk about that Amazon Taobao.
Each of them would have some kind of financing and sometimes the financing is given to you before you. You think you need the money.
Oh, you notice you know enough about you to become with the bird to give you the money when they think you need it.
And the other will be a trade finance refinance is, uh, you know. It is a very old form of financing. Or what is a exciting in the recent times is that you know.
The old processes are really, you know, hang consuming and right now for example in Singapore they have a headphone. They put together the people who need money, the banks and the shippers.
Does this remind entire process?
Using the louder the light of our AI cloud services and so on, all right now, let's say you're not doing me to be doing a Vita C, and the next thing that you need to ask yourself whether you have any security.
In other words, whether you have any assets that you can use to secure funding. If you have, you can use a asset based lending.
Now, uh, related to this will be the light of receivable factory.
And we see a lot of development on the Fintrac from where the Treasury function, the account payable account receivable functions are increasingly being automated. In fact, their platforms that enable you to predict your cash flow needs an to raise cash accordingly, using a common dashboard.
Finally, if you do not have anything to do.
To to serve as our collateral, you can move on to peer to peer lending, and one of the most popular one will be Lending Club. Let's say you want to grow, you need capital to grow. What do you do? First of all, you ask yourself whether you have any security.
Uhm, you do. You can go for asset based lending which is, uh, what we have discussed before. If you don't then you move on to the next. This is where you ask the question whether you want to sacrifice your equity.
Now, if you do not want to sacrifice your equity, you have a couple of options and again one of the options that is I powered by Vin tag will be here to pier landing.
Now, of course, a related idea would be the light of equity crowdfunding, where you put your business is online. Now you know in detail about what your plan would be an you ask people for money an if I'm interested in your idea. I give you the cash and in return I get some equity stake in your company.
Now, if you are not willing to sacrifice a equity, then you move onto.
Did the next question. I mean, if you if you're willing to sacrifice our equity and you move on to the next question, would you benefit from the advice and support from people that would thank you?
If the answer is no, then you can go for a peer to peer lending. Again, if the answer is yes, then you ask the question whether your company is still at startup stage. Every is not. Then you go for you can go for the light of a private equity option. Couple of venturing options and increasingly these guys getting high tag so their employee employing the light of Abcd 2 screen.
To select ventures they went to pick up, and finally if you are not, if you are start up then you can go over venture capital and business Angel. So this is basically the decision tree that you can go through to decide which automotive finance go for and some of them are more powered by feedback and others.
Now let's move on to the next point, understanding your finance chairs, I'm running out of time, so I'm going to step on my pedal move to be faster, skipping the portion that might be you know, of less interest to you, so we're not stepping into the shoes of people that my financial. Why do we look into this? Because we want to understand your pain point, because if you can solve their pinpoint your more than building 2.
Give you the cash. Now let's begin away for the simple war financing simpler finance your people who need money and people who have the money and the challenge is very simple. You just put the resources price increase and then you know money lent alright. But in the real world what we see is this graph. Here we have a bunch of entities in the middle, the analyst eyesight annaliza sell side analysts and so and so forth. Why do we need so many people in the middle?
And pay them so much money to do so. The key problem is information asymmetry. Because you have a lot of you know, cowpens.
Different sovereign wealth funds that have a lot of money and they need to deploy, but they had to divide the people whom they may not necessarily trust.
Remember the people that has a lot of information here. They had all the information you have would be people that need the money.
But whatever the people these people say, would you necessarily trust them?
It cannot signal credibly that means we have our information asymmetry problem and these guys in the middle is trying to solve this top problem and they get paid for that, right? So the challenge, how do you allocate people? The people whom you do not trust.
Let's revisit the idea of Information Asymmetry. This is really a situation where one party to the transaction is more information about the food out services then the others.
I'm going to give you 1 example. Let's look at the used car market. Let's say you have a Tesla to sell.
Do you know as a salad that I do not the perspective buyer?
You know I can test drive your car. I can do visual inspection whatsoever, but I still miss a lot of things because you know better than I do which part of the car is falling apart and what is your last maintainance. Whether the car has a transmission problem and so on and so forth.
I'm the buyer. If I can't tell the difference between the cherries in the lemons, lemons will be people will cause with problem and the chairs would be people with really good old Tesla.
And I'm willing to pay indicate for the lemon antenna for cable cherry, what would ioffer?
He said if I do not know the difference between the two.
Overtime the price. I mean, I would offer indicate because my assumption here is that all the cars are going to be lemons.
And this would. This would be when you see overtime alright.
OK, so the question now is how do you solve this problem?
One way to credibly signal that your car is A is a charity. Attached. Lisa Cherry is basically to give up seller warranty. Now what I mean by credible signaling? So boring.
It is going to be very costly.
For the lemons to do the same.
Because remember, the lemons. Have you know casted are not in good condition. The cherries have good old Tesla and if the level sellers are going to give us sellability, they're going to kill themselves.
So this is credible signaling. Now the other option is basically the two to have laws to protect the consumers or and finally the last one would be, you know, giving out more informations for the bias to do investigation. Now if you want to look at the fintech solutions that we have discussed a peer to peer lending market, praise crowdfunding.
Is equity base or you know, profit sharing each of these?
Has our information asymmetry problem right? So if you talk about the light of seller warranty, this will be how do you send out critical signals to your potential funders that you are. You are the cherries, right? And the implication and the law will be if you want the razor money, you know.
Any legal issues which perform is more trustworthy than others. Which platform is much everything, Evans and finally been told about information. You know, the move information they're willing to give out for your potential potential. Financial backer them area because this will reduce the information Gap and then they would have more trust in that point. Computer into your your venture and this will be the light of sharing your digital footprint and so and so forth. For example, if you want to.
The emergent in atop a couple know everything about you, your inventory status you're serious for that. Review your interaction with your customers and so on and so forth. They have about 100,000 para meters to profile you.
This, that's why there they can basically give you loan pre approve.
Be cause they know enough to tell whether you can now be back.
Another scenario in the case of Insurance now Indiana. If you were in sure, you know if you have perfect information about the health status and everything about policyholders you just pull in. Price is right, but the problem is that we live in the world where with information asymmetry that makes you have true problem right specifically? Adverse selection anymore.
And 90 right? But if you, if you're not healthy, then you know you're more likely to take on insurance. That means policyholders tend to have issues came. So go out and then the insurance will charge more.
Um, now the second problem will be more hesitant now if you are insured with your behavior change.
Image change of behavior. Because you know that if you want to screw things up you have interest behind you to protect.
So if you talk about handing of financing right now, if you if you have money.
Do you need to borrow money?
You don't, so the question now is for those who need the money, why do they need it and how are they going to deploy the money?
OK, so we have a bit of a selection here and the moral hazard we got to lending would be with the money you have now with your behavior change.
Was it the case where you you're running out of cash?
OK, so who is the information disadvantage when we talk about the lending market of financial market?
The people with money who are going to decline capital.
Let's move on to the next point. So I really talk about this in the credit market or lending market financing model you have ever selection because people with money will not look for money.
I've gotten the borrow money. They may behave differently from those who are running out of cash. OK, they may deploye money more recklessly.
Um, so who is information disadvantage? Again, you will be the people with money who wants to deploy the money, right? How do? How do you elevate the information that this is where Fintech coming to help? So as I mentioned before?
If you're in the total ever know almost everything about you, your operations, you know your customers. You put out quality and so on and so forth. That means they can. You know they have 100,000 para meters to profile you. Whether you're going to repay. So technology helps an if you want to marry big data. The laughter hundred-thousand Perimetre Plus AI. This made the process fully automated.
Is also an enabling anf into is so inclusive be cause they are bunch of who would walk into a traditional banks and get nothing.
But thanks to platform like this, you know they have the necessary funding to live on.
Now I'm going to move on to the actionable insight, and he's going to surround Bobby. I've learned about the pinpoint of those with money and want to deploy.
So how do you reduce the information gap?
The key punch line here is the signal credibly project and the fund the credibility.
Um, your actions matter specifically. You really want to show as much as possible about your working prototype with rich media with video with images.
Would give people a sense that you have the ability to deliver and you've really got something and the team is trustworthy.
Because one makes this a signal credible.
Be cause people can claim whatever they want, but people with the prototype will win the race in raising funds. And if you have a working prototype is even better.
So if you can show the real food that do people you want to raise money from, at least show them as rich as possible in the form of video or images.
And the next in modern pawn we interact, so you should carefully curated your team's human capital that after this weather your CV you show that you have the engineering background necessary to meet your productive element. Physio has experience back past experience in raising capital in past ventures or even in developing products.
Social ties, for example. Who will be your advice is your bot of vices.
You know who do they know and what is the past experience? All this is going to matter.
And finally put party and Osman's would magnify all the signals above. But in essence what you're trying to do here is to reduce the information gap.
So that you can, uh, raise the capital necessary to lengthen your hash. Angry now.
I **** you, take a stick away for SMS.
Understand your funding requirement and options with new digital player. For example, if you are doing a comments, you have a couple of options available. You can tap into one of the e-commerce or supply chain.
EN the love of our, you know, equity funding options out there. An alternative? Financial options out there. Look at them carefully and you might find one that would fit your business the best. Next understand which payment mechanism available to you and suitable for your business. Specifically, what would be the repayment schedule?
And how fast can you get your money? Uh, do you need any collateral, an, uh, so and so forth next will be didn't mean the full cost and benefit of these options. Are there any fine print hidden causes? Is there any?
Do you need to be the guarantor doing any guarantee? Would you need to review your identity on the platform? So look at the fine print carefully.
Consciously balance your business processes towards digital mechanism. I briefly talked about the fintech that enable or automate that Treasury function, automate Congress evil enviable and this is an example of those. The other example would be, as I mentioned before, if you are.
Selling on E Commerce platform. The layout of all animals.
So integrate your system with gas.
This will give them more visibility and be cause of the visibility they have. They know more about you, they better profile you and they would have a better sense of whether you can repay an also getting funding from them will be higher, because remember the key concern for any financials would be you know.
Diploid money to somebody they do not trust they don't trust you.
And do they know enough about you? So give them enough information to know about you?
And you're also securing funding will be higher.
Alright, let's pretty much what I have for you.
Let me know if you have any questions.
Alright, thank you so much and tag for all that really helpful in practical information. So first before we go to the pre written questions I wanted to go over a little bit about what Asia School of Business actually is. What sorts of programs we offer and how you can apply for those programs.
Uh, it just School of Business is established in collaboration with the central Bank of Malaysia and MIT Sloan School of Management. So what this partnership means is that we have a really deep connection with MIT Sloan, including award winning visiting professors that will actually flag into Kuala Lumpur to teach one week intensive modules of the same courses that they teach at MIT Sloan. Some of these professors are actually some of the most sought after.
Among MBAs at MIT Sloan and they come to teach exclusively for Asia School of Business students. So this is super exciting. Also, all of our degree programs include a four, 2 six week, MIT emergent wreck depending on the program where you can actually fly to the MIT Sloan, Cambridge MA Campus and take additional ottosson participate influence student activities right on campus with their professors.
Uh, In addition, you got an MIT affiliate alumni status. When you graduate, you get a certificate of completion from the MIT inversion program and you get MIT benefits, including an MIT email address for life as well as connections to the affiliate alumni database and certain events as well.
Her also is even more than any other NBA provider that I've seen, has a very action focused curriculum. So instead of just sitting in a classroom and going over case studies or problem sets, you are going to be spending 1/3 of your time out in the field on five different hands on projects, as well as traveling and up to five different countries so you can kind of see what businesses like on the ground in Thailand, Vietnam, Indonesia, Malaysia.
Um, as well as trips to certain financial and business hubs around the world.
Where is the third thing that I think sets us apart really is our diversity. So among the students and the alumni we have over 30 different countries represented over, I think six continents at this point, so it's definitely a global program where you get the benefit of being in highly diverse teams of learning to work with people from all different industries, countries, cultures, you name it. And then when you graduate.
You have a global network as well, and I think that it's also very telling that we have people from multiple countries. Even on this web and R who are listening to this right now.
And I guess one last thing that I would say is we also have a couple of add meds who are watching this webinar as well. So to you guys congratulations, we're really looking forward to having you here at ASB.
So what programs do we have? So right now we have two degree programs that we're currently recruiting for for next years in take. The first is a full-time residential MBA, so this MBA is a 20 month program. It's based here in Kuala Lumpur, Malaysia. But like I said, it includes travel to five different countries across the world. You also get to participate in five action learning projects. A four week MIT Sloan inversion.
As well as potential study tracks in career tracks as well, if you're based in Asia an you are actually looking for a part time option that does not require you to leave your dog for a 20 month period. You can actually apply to our MBA for working professionals, so this is a great option for people who want to stay in their company and accelerate their Karere, but they still want that high quality education the ASP provides as well as hands on projects on that you can complete with your manager in your own.
And we're in our first year of this program right now, but we've already seen many students on working with their companies to make a big difference with the help of our MIT Sloan and resident professors as well as business coaches.
In real time, kind of while they're working and studying driving change in their companies and getting recognized for it. So this is a highly recommended program for professionals in Asia who are looking to scale up their career.
I wanted to also go over a few of our action learning partners so we're working with partners in over 22 countries right now and we have over 100 corporate partners that we've had after mining projects with so we have an updated list of this if you go to our website it is B dot Edu dot MY you can view all of our action learning projects as well as stories from different.
Impacts that we've made in these companies across the world on our student blogs, an on our action learning an MBA program pages. So definitely check it out if you think you might be interested in these projects.
So if you're interested in applying to one of our two degree programs, we do have a few minimum requirements that were setting forth. You have to have a bachelors degree two years of work experience and proof of English proficiency.
And if you've got those beyond this, what we're looking for is a frontier minded individual that's really interested in emerging markets. Emerging industries interested in kind of making a difference through business and has kind of proven leadership, cross cultural and team based qualities. So if you think this sounds like you and you're interested in having a truly global an unconventional NBA experience.
Then definitely apply. We have one more deadline for our full time MBA program coming up on April the 2nd and we have two more deadlines coming up for MBA for working professionals program one on April 7th and one on June 16th. So definitely be sure to apply for both of those programs as early as you can.
I also wanted to mention that we do have executive education courses coming up. If you're interested in executive education or short courses are most up-to-date, list will be on our website, so be sure to check those out there.
An if you're interested in anything you heard from this presentation, uh or anything about our programs are short courses or partnering with ASV.
If you can always connect with us by visiting our website, downloading our brochure or reaching out to us at admissions@asd.edu dot MY with any of your questions, including those that we did not get to today, and you can also schedule a call with the admissions team at the link, below is a private link that's not available through the navigation on the website, so be sure to copy. This town will also give you a PDF of this presentation.
Afterward, I'm so you can follow any of these links then, so I guess without further ado I have a couple of questions that I wanted to ask you, um specifically about your presentation, so we had.
A few questions come in via the sign up form for his master class. The first one was kind of concerning financial regulations, so obviously we've got people from multiple countries in a lot of different jurisdictions, and so you know I'm trying to kind of generalize this beyond who asked the question. So how do financial regulations come into play in different jurisdictions? And then, how can you start to think about this in the context of a lot of them?
Financing options that you've shown.
And this is a. This is a tough question. There's a lot of heterogeneity in terms of how country regulate Watt.
For example, initial coin offering.
Not just the bank and a bunch of other countries, some other countries choose to embrace, and yet you have countries that are there in the middle. It put them in a sandbox and just watch him do whatever they want and then regulate accordingly.
Right, so I think, uh, the way to think about really complete the following. Uhm, so let me begin with the with the point that even the central bankers around the world didn't have a common agreement as to how to regulate one.
But, uh, there are three things you should look into.
In terms of regulatory response.
The three differences will be number one.
Regulation on specific feedback. For example, I mentioned about one. I see this one P2P network admin, Peter P. Lending market raise equity crowdfunding. Each country would have their own set of rules and regulation specifically up in Tech.
And some would even bend a certain fintech.
Yeah, not compatible with.
The second time will be regulation on the enabling technology, so increasingly you see countries giving out in a high level principles of headlines as to how to how to use cloud and also how to deploy AI. For example in Singapore I being Ms as a recent guideline as to how I should be using principle. What are some of the ethical boundary that you have to?
Take into consideration and so on. Now the third dimension is really the enabling regulation, and by that I'm talking about the light of for example in the in the in the Europe they have this.
He has the two regulation and what it means is that all the financial institution in Europe.
And what it means is that, uh.
Must have for the access to their own information to be revealed to third party providers.
Now this enable a lot of this is a opportunities something that is impossible before and sing appliances where API is the use of APIs being promoted.
The other would be a lot of Spanish, a sandbox, so initial samples is really the middle path, so you don't. Then you do not write the encourage, but you get them to do what they want to do. The Fintech companies within a controlled environment so you see what they do and you see how regulation can support them and whenever they go beyond the marker.
You bring them back and you said regulation to regulate the specific behavior. Then would strike balance between promotion of you know innovation in the financial services and financial stability.
OK, so uh, these are some of the enabling regulations that central bank around the world. You know, a diploid.
So in essence, each country would have their own, you know.
Facebook, but uh, it was around this tree angles an, uh, cause.
The central banks on themselves sure about what to do, so you really need to, you know.
Keep track of the changes.
Yeah alright um yeah super good answer, um, so kind of the next question that was submitted to us is kind of similar, but I think kind of deals more with things like availability of each of the fintech options so you know, again, we've got people tuning in from all over the world and they're wondering. Kind of, how do these different funding options differ by geography? Everything that you went over?
Is this kind of more of a western funding landscape or can we have people in Africa, Latin America, Central Asia, tapping into these same kinds of sources? And then how do you go about figuring out what would be right for your jurisdiction?
So this is a another interesting but challenging question. Same response. There's a lot of unity in the options available.
Um, so I've shown you a slide that basically look at the options available by the state of your development.
But if you talk about the financing options of intact options available across country, this will be in fact function of what the central bankers do. What does central bankers allow? For example, if you want to do initial coin offerings in China, that that has been banned?
And some countries are not allowed marketplace, uh, appear to peer lending.
But Having said that, the one thing they are two things to keep in mind. So if you talk about non Chinese fintech players, those that are coming from the euro and United States, they tend to be.
Vertical destructors In other words. They focus on a specific segment is the light of you love into a banking website. You know one of those button or one of those services provide the focus on one of those segments. One of those button and they do it very well and usually do it mobile only.
Now this is very different from this is the second point. the Chinese players when you talk about the Chinese players are talking about $0.10 talking about? How about any financial the basically.
So In other words, instead of vertical you know orientation. They cover the entire spectrum.
From uh, from landing to do insurance, you know all the financial services that you can.
When would they come to your country? As I mentioned before, there would be a function of you know what the central bankers I think of them.
An A number 2. You know when those sort of things that it is time to enter. And personally I think it's just a matter of time for them to enter this part of the world.
Uhm, you ever really seen?
How 'bout and, uh, you know, for machine ottensen entering the market so they have already bought operations in Singapore, so I think it's just a matter of time for them to end the Malaysia, Indonesia with the existing technology stack. So what I think they're doing is to understand the.
You know how building are the people in this region to adopt the technology and #2? What is the altitude of the central bankers towards the technology that they can now offer?
OK, and so the last question that I have that came pre submitted was I guess sure if it was from someone looking to engage with or invest or whatnot. Um, with any of these up income.
Things in Tech players question was centered around is there? Are there any specific impact players, especially in Southeast Asia, that we should kind of be looking out for over the next year or two?
Now, if you want to look at, uh, you know potential around the world, omm?
Sally Seashell is one of the you know area with a lot of growth. So in our opinion, uh, all the players wanna piece of this pie.
The question is, who is the first one or two in the game? Now? We have already seen a few vertical disruptor entering the market, and especially in the payment segment.
Um, for example you have transferwise, India. There also other you know players. That is, you know exploring the option and I think there is one company that is doing it very seriously and that would be the light of the two Giants in China so.
They have the technology.
And, uh, they are looking at ways in which they can tailor it to this region.
Uh, how about UN Phoenicia? The uh? For example, looking into, uh, you know, serving the Viterbi segment?
To help companies to deal with their Treasury operations.
So I think these are some of the big players that would uh they would come in and they would make an impact in the financial landscape in this part of the world.
Great, um, so this uh, is all of the questions that have been submitted thus far, and it doesn't look like any new ones have come in since the winner has started. So I guess with that I'll close it out for today. As always. Like I said, You're welcome to them. It more questions to our email address on this slide. We're also going to be giving you the recording as well as a PDF version of the slides after this, so if you missed anything.
Or wanted to go back over it and review it. Definitely welcome to do that.
But anyway, I hope that all of you have gotten something out of this presentation, and we hope to be kind of hearing your questions, your feedback, and hopefully you receiving your application soon. So have a great day everyone and thanks again to you in tech for sharing this with us.