The ongoing COVID-19 pandemic has forced many startups to redirect their business, especially for those working in a sector that is directly impacted such as F&B or travel and tourism. We had seen changes in business strategies in newcomers such as Travelhorse and even more established companies such as PatSnap.

Cooklab, an Indonesia-based startup, was also forced to take this drastic measure.

Founders Clarence Eldy and Kartika Dwi Baswara were introducing the farm-to-table business concept in Bali when they first realised the need to pivot. Their business was actually doing quite well as they have secured more than 10 companies and 150 farmers on board by March.

“It all began when the government of Bali decided to enact full lockdown in April. At that time … 100 per cent of our demand came from restaurants and cafés in the most tourist-dense areas. As the restaurants and cafés closed –they did not even sell takeaways or delivery– we decided to pause our operation,” Baswara writes in an email to e27.

But in May, a group of farmers reached out to the founders, asking if they were able to help them sell the existing fresh produce.

“They have dropped their price, but their supply was still having a surplus,” Baswara adds.

But then she and Eldy noticed a new trend. As customers were unable to go to these restaurants and cafés, they pursued a new hobby instead, with cooking and baking being some of the most popular. This trend bloomed in markets where the lockdown measures were implemented, including in Indonesia.

Also Read: SLINGSHOT 2019: A launchpad for promising startups across the world

“We knew B2C was the way to keep our business running, but we realise there are so many platforms selling fresh produce out there. So we thought, why not explore the idea of Blue Apron from the US market? After a couple of in-depth interviews with our potential users, recipe testing and everything else, Cooklab was born,” Baswara explains.

Behind the kitchen

As a foodtech startup, Cooklab offers ready-to-cook meal kits containing pre-measured ingredients and cooking guide for customers at home. Their recipe was designed to be as easy-to-follow as possible; it is also available on various e-commerce platforms in addition to its own dedicated mobile app. The service is currently available for customers in Jakarta and Surabaya.

In Indonesia, the startup was not the first to introduce the concept of ready-to-cook meal kits. BlackGarlic has launched such service in 2015 (and ceased operation in 2017); Berrykitchen has also experimented with the concept prior to its acquisition by YummyCorp.

However, due to the timing of their launch, Cooklab is able to gain customers’ attention in a short time. The startup says that its user numbers have reached 250 people in just two months since its introduction in Surabaya, and just two weeks in Jakarta.

But pivoting to a new business strategy is not without challenges. For Cooklab, it comes in the form of starting a new business from home, with a team that is spread in different parts of the city.

“The toughest challenge was not being able to meet your new team members physically during the first three months. We want to know each one of them on a deeper level, but it’s something that is difficult to achieve virtually,” Baswara says.

“We tried a couple of things, from throwing virtual town hall and delivered some meals to each of our team members’ home, having a consistent weekly meeting, and one-on-ones,” she adds.

Beyond the kitchen

Prior to starting Cooklab, Baswara and Eldy were alumni of Singapore-based incubator programme Antler in 2019 where they began their entrance into the fresh produce industry. Though they made their debut in Surabaya, the company is run by a team of 11 in Jakarta.

Also Read: In Video: Watch a robochef cook this Hokkien mee dish

In the near future, to support the growth of its business, the startup aims to secure its seed funding round. It plans to use the funding to support business line expansion and further market penetration in Jakarta and Surabaya.

Previously, the startup has closed a US$100,000 pre-seed funding round from an angel investor in July.

“We realise that many potential angel investors are currently wary about investing and choosing portfolios. However, we remain optimistic that we will be able to conclude our seed fundraising round at the end of January 2021,” Eldy states in a press statement.

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Image Credit: Cooklab

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With Deepavali this weekend, holiday season has already ushered in. And as a special gift we have launched badges to show some rightfully-due recognition to our regular contributors. Look out for the “blue pencil” icon next to the byline to identify our regular contributors.

In keeping with the holiday season, our contributors have shared some great views on how the e-commerce and logistics can cope up with the surge in demands. Then there is more on crafting OKRs (end of the year and quarter is the best time for that) and the future of the VC investing model.

If you are reflecting on the year gone by, share your opinions and earn a byline by submitting a post. For some brain juice, read on!

E-commerce in holiday season

How to turn product returns into returning customers this holiday season by David Stock, Vice President of Marketing for UPS in the Asia

“Until the day we have holographic projectors in our lounge rooms, one of the best ways to close this experience gap is actually deceptively simple: product returns. Returns are often an afterthought for businesses, but they shouldn’t be.

But outside of the statistics, the truth is that well-orchestrated returns have the capacity to close the experience gap with the brick-and-mortar retail experience, by allowing the customer to receive their product, experience it “in person”, and if it’s not suitable, to send it back to the merchant.

It’s roughly the equivalent of a customer in a shop picking up a product, trying it on, and then putting it back on the rack. However, robust e-commerce returns require more than just a return address on your website.

Are merchants ready for an all-digital 2020 holiday season? by Tristan Chiappini, VP, APAC at PPRO

“The seasonal rush has officially begun. Last month 10.10 kicked things off in APAC and many of us recently browsed the sales on Amazon Prime Day. But merchants cannot be complacent. There is a flurry of seasonal sales coming on the horizon both toward the end of the year and into 2021.

But the opportunity that is still there to be captured by ambitious merchants this festive season and merchants across sectors should ensure they are prepared to capture their slice of the market.”

Money and tech

Why fintechs and banks have a bright future together by Andrea Baronchelli, Co-Founder and CEO at Aspire

“It’s safe to say that the pandemic disrupted many day-to-day processes—including financial services. As people were now relegated to their homes, financial institutions scrambled to find innovative digital solutions for their products.

Small and nimble, fintech has infiltrated the financial processes of many consumers. fintech platforms have joined the financial service foray by optimising financial services.”

Lessons from the buy-now-pay-later boom by Elizabeth Barry, global fintech journalist

“BNPL can be thought of as a new type of credit. Acting as an intermediary, the BNPL companies allow consumers to make purchases with a retailer and then pay it off in instalments.

There are some differences between these instalment plans, but generally, the purchase is spread evenly across three or four instalments, with the funds being debited from the customer’s account.”

Will China lead the Artificial Intelligence game by 2030? by Top 25 Global sHero Award Winner 2020 (Shanghai), Elise Quevedo

“The plan signals China’s desire to lead an area that is growing rapidly. With the intention of securing this first position, the government will invest to ensure that its companies, government, and military sector jump to the front of the field of artificial intelligence.

To do so, they will support moonshot projects, used by Google to solve problems, startups, and academic research with the aim of increasing the success of AI development.”

From the investor world

The future VC will be a hybrid between accelerator and incubator. Here’s why by Anu Shah, tech entrepreneur and former Rocket Internet CEO

“The search for deals is now more focused on employment generation, inclusivity, innovation, and cures.  And there is a dearth of deal supply in this space.

In hope of scoring that elusive home run again, many VCs have taken a more innovative approach and started their in-house “accelerators”.  Traditionally, accelerators help entrepreneurs take their idea and turn them into an investment-worthy business.”

Busting the 5 popular myths surrounding startup exits by Sergei Filippov, Managing Partner at Morphosis Capital Partners.

“VCs may successfully exit the startup but the founders may be left with unbearable market growth expectations, pumped up by the bloated valuation. The founder may be happy with the deal that keeps his/her operational independence but shareholders’ return may be low and delayed. Let’s look at the five popular myths surrounding ‘exits’.”

For the founder in you

Blake Irving, former CEO of GoDaddy, shares his startup way of running a public company by Billy Yuen, Founder of Stacktrek

“When I took the role, GoDaddy wasn’t perceived as a technological company. It was perceived primarily as a marketing company. My goal coming in was actually build a technical platform that small businesses could use globally and I think the challenge came from executing that plan.

I had to pivot the company in the direction and hire employees that were good engineers. To do that, I had to open offices in various cities in the US and we also opened ‘customer cares’.”

How to use OKRs to avoid startup failures by Senthil Rajagopalan, COO at Profit.co

“Finding the product/market fit is famously considered as an exercise in serendipity by many, but it doesn’t have to be. A startup can define hypotheses and test them through iterative business execution.

The following key principles of OKRs will be relevant for finding the product/market fit”.

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Editor’s note: e27 aims to foster thought leadership by publishing contributions from the community. Become a thought leader in the community and share your opinions or ideas and earn a byline by submitting a post.

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Singapore introduces special visa Tech.Pass to woo top global tech talents such as founders, mentors, lecturers, consultants; Applications will open in January 2021, with 500 places available upon launch; To qualify, individuals must possess experience in leading large tech companies, or in developing tech products with mass adoption. e27

Google invests in Indonesian unicorn Tokopedia, joining Temasek; The confirmation of the investment comes hot on the heels of Microsoft’s capital injection into Bukalapak; Google now holds 1.6% of Tokopedia while Temasek-affiliated Anderson Investments has a 3.3% stake; Bloomberg reported last month that Tokopedia was looking to raise around US$350M from both parties. Nikkei Asia Review

Indonesia’s Alodokter raises Series C+ from MDI Ventures; In Oct 2019, the healthcare super app raised US$33M Series C; The platform connects more than 30K doctors and 1,500 hospitals and clinics with patients; The company currently boasts over 27M MAUs or more than 10% of all Indonesian population using Alodokter services at least once a month. Mobi Health News

KOL speak
Busting the 5 popular myths surrounding startup exits; Your team may be brilliant and diverse, your business idea solid, revenues promising and the market is growing; But during the due diligence, if your balance sheet turns out to be a mess, financial experts on the buyer’s side will raise the alarm and your valuation will go down or the deal you had hoped for might never happen. e27

SME lending platform Investree receives US$15M credit facility from US-based Accial Capital; Investree offers a diversified loan portfolio, including invoice financing, buyer financing, working capital term loan, and online seller financing; As of Sept, Investree has transacted US$493K in loans to over 1,400 borrowers. e27

Vietnamese unicorn VNG sees room for gaming growth in SEA; So far, gaming contributes 80%+ of its revenues; While Thailand, Indonesia, Philippines are on its radar for immediate expansion, VNG is also betting big on Singapore, HK and Taiwan. DealStreetAsia

Singapore’s GIC leads US$200M round in Chinese edutech firm Aixuexi Education; Aixuexi provides online courses covering mathematics, Chinese, English, physics, chemistry, biology, science, and programming for students from primary to high school; It operates under the online-merge-offline model and combines education with AI, Big Data, cloud computing. TechInAsia

Indonesia’s early-stage VC Grupara Ventures rebrands as Absolute Confidence; The firm has also launched a US$30M new fund and received investments and commitments from LPs; Grupara has backed over a dozen startups, including BukuKas, Dropezy, Ayoconnect, Kopi Kenangan, Fabelio, and Andalin. e27

Singapore fintech startup Durianpay raises US$1.4M in Sequoia-led seed round; The round gives the payments and checkout solutions provider a post-money valuation of over US$6.7M; A Statista report estimated that the total transaction value in SEA’s digital payment segment will reach US$95.1B in 2020 and US$156.4B in just 4 years. TechInAsia

Malaysia’s innovation sandbox NTIS helps startups power through COVID-19 with collaboration, innovation; The NTIS has US$24.1M in funding to fast track the commercialisation of projects – an important boost, considering the lack of investors and the challenges that lie ahead post-pandemic. Digital News Asia

How to turn product returns into returning customers this holiday season; According to a survey, 42% of all shoppers in APAC will check an online store’s return policy before making a purchase; Given the dissatisfaction with the existing returns experience in Asia, a retailer could build customer loyalty through offering returns that are truly seamless, thus generating long-term revenues. e27

Why fintechs and banks have a bright future together; Whereas banks are more regulatory and rigid, fintech companies are able to provide flexible assistance to their customers; In a world where customers demand speed, simplicity, and customer-centric products, fintech ranks quite high for personalised products. e27

Shoppertainment the name of the game for e-commerce platforms; As per an iPrice report, SEA entered the era of ‘shoppertainment’ last year; Due to COVID-19, iPrice said Vietnam’s e-commerce firms were increasing livestream and gaming activities on mobile apps to increase consumer engagement during social distancing. Vietnam News

After COVID-19, where are the Singapore economy, workforce headed?; Sustainability will be a long-term theme that impacts the city-state’s economic structure; This ranges from infrastructure to guard against rising sea levels, as well as technologies for electric vehicles, harnessing clean energy and ramping up food security. Channel News Asia

Ninja Van partners Myanmar’s NearMe to drive e-payments; NearMe says its platform is used by over 50K retailers, and that transaction volumes “increased exponentially” during the COVID-19 lockdown; NearMe was launched by global payments firm 2C2P in 2015, in partnership with the Myanma Awba Group and Pahtama Group. SGSME

AmBank, Maxis collaborate to introduce contactless payment solution ‘mTAP’ for SMEs in Malaysia; mTAP uses a mobile device as a payment acceptance terminal to process debit and credit card transactions via PayNet; It is aimed at the consumer market dominated by millennials and Gen-Y, which expects smarter, faster and more accessible financial services. Malaysian Reserve

Enterprise open source and the future of banking; The appeal of open source software is that these solutions allow for fast innovation at a much lower cost than proprietary solutions; These benefits are particularly relevant at a time when customers are demanding constant innovation, and companies are looking to cut costs. Fintech Singapore

Chinese insurtech CareVoice enters SEA; Singapore, Malaysia and Thailand are the entry markets; Its tech platform CareVoiceOS offers a large variety of health services integrated into different customer journeys and also allows insurers to do fast and flexible health insurance product customisation with its plug & play implementation service. Asia Insurance Review

Leverage tech to effectively manage and respond to IT disruptions and outages; Right technology needs to be at the centre of any strategy, with people working determinedly to incorporate tech into an organisation’s incident management plan; Don’t try and do everything on your own; rather partner with those who are experts and leave space for errors. Open Gov

Big Data for small retailers: What does the data economy have to do with SMEs; The sheer amount of data collected from consumers across the world is making it easier for companies to connect with existing and potential customers and clients, all while increasing their ability to personalise the user experience. Tech Collective

Digital transformation is a marathon, not a sprint — here’s why SMEs should keep the pace; A study says 73% of mid- and large-sized companies in Singapore have sped up digitalisation in a variety of ways to adapt to the new reality; But COVID-19 is also widening the digital divide, between those who were able to muster resources to pivot their businesses and those that did not. SGSME

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It is misleading to say that Venture Capital firms are in the investment business. In reality, they are in the business of Human Resources.

Successful venture capitalists aren’t necessarily those who find and fund the most innovative ideas, but the ones who know how to spot founders capable of building a company that will eventually be acquired or go public. 

VC investments first came into being in the 1960s, when the US government spent more on R&D than the rest of the world. While that fire hose of cash flowed, the first VCs found many winners to bankroll.

Since then, VCs have backed software companies that grew fast and generate large amounts of money.

Since the golden era of the 2000s, the number of VC firms in the US has risen from 946 to 1,328 in 2019, and the amount of capital managed went from US$170 billion to US$444 billion in 2019. The stellar IPOs in the past years have led to US$121 billion in “dry powder” for the VCs in 2019. 

However, the talent spotters have now been marked with a unique challenge of channelling this dry powder in the next generation of unicorns.  New investments have drastically slowed down. VCs have found fewer and fewer ideas that fit their preferred pattern. 

In the past, software companies were attractive to investors because they were disruptive. Disruptive, often by replacing people in industries those software firms come to dominate—for example, travel agents, whose work is now done by flight booking websites.

Also Read: How two-year-old GudangAda managed to keep VCs interest ‘intact’ despite COVID-19

The search for deals is now more focused on employment generation, inclusivity, innovation, and cures.  And there is a dearth of deal supply in this space. 

In hope of scoring that elusive home run again, many VCs have taken a more innovative approach and started their in-house “accelerators”.  Traditionally, accelerators help entrepreneurs take their idea and turn them into an investment-worthy business.

A set curriculum, hands-on support, networking opportunity, access to capital, and mentors – make a very attractive proposition for the founders looking for a jump start. This infrastructure was the bedrock for attracting the next wave of unicorns. 

Y Combinator is a shining example of this model, with an impressive alumni list of Airbnb, Stripe, Instacart, etc. Y Combinator quickly pivoted to then be an investor (with an offering of US$150,000 in exchange for seven per cent).

The success of Y Combinator is what has motivated many VCs to innovate their business model and introduce an accelerator arm.  At present, there are 170 accelerators programmes in the USA, and numbers are expected to grow 10 times, according to Barclays Fintech Accelerator, Rise.

Does this lead to an added challenge of how will each VC-backed accelerator differentiate itself from others? How narrow or broad the focus will have to be to spot the next idea? How robust infrastructure will have to be created to support these startups to reach the next billion-dollar valuation?

The accelerator is a promising path going forward for many VCs. However, there is a need for speed in the market, given the surplus of US$121 billion dry powder in the market. With that in mind, a more suitable approach will be a combination of VC investment, Accelerator, and an Incubator (building companies from scratch).

While the first two are highly publicised and noted models, the last one is less heard of and well-executed only by a few. 

Also Read: TechCrunch founder’s VC firm leads US$3.7M in ex-Golden Gate employee’s blockchain startup Persistence

One of the most famous incubators across the world is Rocket Internet (RI). Infamous for their copy cat models of successful Western startups in emerging markets. While RI had a good run for several years with marquee exits such as Lazada, Zalora, Jabong, FoodPanda, and Jumia, the lack of innovation is what led to its eventual exit from Southeast Asia. However, RI had identified this issue much earlier and had pivoted to be a hybrid model of VC and incubator, investing in pioneering startups such as Hello Fresh and Hello Delivery while continuing to build companies from scratch. 

To the core of the RI model lies the strong fundamental thought of creating one instead of finding the unicorns. And that is what is needed for most VCs to bring that next billion-dollar idea into the being.

With the combined power of the capital, network, and talented investment partners (most with startup experience), accelerator equivalent resources and the possible creation of shared services (of human resource and technology) to be leveraged on– VCs will be positioned strongly to either give birth or find the home run they have been chasing relentlessly, for a while now!

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Editor’s note: e27 aims to foster thought leadership by publishing contributions from the community. Become a thought leader in the community and share your opinions or ideas and earn a byline by submitting a post.

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The startup market in Southeast Asia (SEA) is expected to grow so rapidly that in the next three years, the investment in startups in the region is expected to reach US$70 billion. By 2024, SEA is presumed to produce at least 12 new businesses with a total market value of at least US$1 billion each.

But the success rate of startups globally is still low – 90 per cent of startups fail. Have you wondered why innovative ideas fail to turn into successful businesses?

Steve Blank, the founder of the Lean Start-up movement said, “Startups are not miniature versions of established large companies”. While large companies execute known and proven business models, startups are in search of business models.

Most startups fail because they do not find the right business model, they could not find the product/market fit, and could not find enough paying customers.

Product/market fit

Don Valentine of Sequoia Capital said, “Target big markets — If you don’t attack a big market, it’s highly unlikely that you’re going to build a big company.”

“When a great team meets a lousy market, market wins. When a lousy team meets a great market, market wins. When a great team meets a great market, something special happens.”

“If you address a market that really wants your product — if the dogs are eating the dog food — then you can screw up almost everything in the company and you will succeed. Conversely, if you’re really good at execution but the dogs don’t want to eat the dog food, you have no chance of winning,” according to Andy Rachleff, CEO of Wealthfront.

Also Read: OKR is a startup lifesaver. Here is how to craft them

Finding the product/market fit is the first task of any startup that is aiming for success, or even to survive.

Finding product/market fit with OKRs

Finding the product/market fit is famously considered as an exercise in serendipity by many, but it doesn’t have to be. A startup can define hypotheses and test them through iterative business execution.

The following key principles of OKRs will be relevant for finding the product/market fit:

Let us consider the example of a startup that aims to find a profitable business model for selling organic nutritional supplements.

Objectives or Stretch Goals: Objectives should be ambitious and should map to the hypotheses that the team would like to test. The first hypothesis to test should be the Value hypothesis – is there an attractive market for organic nutritional supplements in the major metros of SEA?

The team may want to choose one locality in Jakarta to test out their hypothesis. They may want to use different hypotheses for testing out other factors such as price, delivery model, and marketing communication.

Key results: Key results are metrics used to measure the achievement of an objective. In the above example, key results could be:

In six weeks:

• Selling to 2,000 customers in one locality
• Achieving a repeat order rate of 60 per cent
• A conversion rate of at least 25 per cent
• At least 200 customers ready to refer other customers
• The Average Order value of at least US$50

Benefits of using OKRs

• Focus: Startups have limited resources. Hence it is important that everyone in a startup fixate their efforts on achieving the chosen objective. By clearly defining the OKRs and the time frame to achieve them, everyone absolutely knows what they need to do on a particular week or day.
• Transparency: When OKRs are used along with a good tool, everyone is clear about their team’s goals, the goals of other teams, the company’s objectives and the achievement status of all the OKRs. This keeps everyone on the same page, inspires people to achieve like the leaders in the scoreboard. In great teams, resources are also reallocated, with additional help extended to the teams that are falling behind.
• Early identification of problems: One of the biggest benefits of using OKRs is the “surfacing up of problems” early. The weekly reviews ensure the uncovering of problems as every team needs to report their progress as well as confidence level in achieving their key result. In the case of early stage startups, reviews can be done even twice a week or daily until they find the product/market fit.
• Alignment: OKRs ensure that everyone is aligned towards the overarching goals. In our example, while the sales team is focused on the key result of “selling to 2000 customers in six weeks, the Customer Success team is focused on achieving repeat order rate of above 60 per cent.”

Also Read: Global pandemics, trade wars: why OKRs are more vital than ever before

Tips for making OKRs work for startups:

• Three objectives or less: As resources are limited, it will be a good idea to focus on just one or two objectives until the product/market fit is established. The upper limit should be three.
• Plan shorter cycles: Aim for one- or two-week cycles to test hypotheses. Quarterly cycles are good after product/market fit is established.
• Learning: Startups should plan to obsessively learn during this phase. Having internal tools that can be used to record client interviews, have hashtagged conversations so that the field lessons are quickly disseminated across sales, customer success, product and marketing teams.
• Data before ego: Not everyone can be an Elon Musk or a Steve Jobs; having a great intuition about the market and designing products without market research is difficult for an overwhelming majority. Founders should put their ego aside and respect the ‘market” while testing their hypotheses and be ready to pivot early while they still have the funding left.

OKRs, in our view, can be a great tool for startups of any size provided they are used diligently applying the core principles stated here.

Teams need to have an open culture valuing transparency, should be ready to go out to the market and test their hypotheses and rapidly recalibrate their offerings till they find the product/market fit.

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Editor’s note: e27 aims to foster thought leadership by publishing contributions from the community. Become a thought leader in the community and share your opinions or ideas and earn a byline by submitting a post.

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Denmark-based venture builder Rainmaking has launched an advisory network, called Ocean Ventures Alliance, which seeks to accelerate the growth of maritime startups in Southeast Asia.

The network will include an alliance of industry leaders, such as Chakib Abi Saab (CTO, Bahri), Jan Holm (MD, Maersk Drilling Singapore), Jakob Bergholdt (EVP, Toll Forwarding Group),  Jesper Thomsen (Former VP, Maersk Line) and more.

Also Read : These are the top three startups chosen by PIER71, offering the latest maritime tech solution

The goal is to help startups with technology development in areas, such as shipping, supply chain and decarbonisation, while providing them access to the maritime transport world.

In each quarter, Rainmaking will also host a summit to gather C-level advisors and corporates from Ocean Ventures Alliance to discuss innovation opportunities in the maritime sector.

Furthermore, it will serve as a platform for startups to connect with corporates who can provide them with valuable insights to the industry.

“A common issue we see is that startups spend several months of effort developing their ideas and their first iteration of a product, only to find out they are disconnected from the needs of the industry when pitching to a maritime corporate partner,” said Chakib Abi Saab, CTO at Bahri.

“The Ocean Ventures Alliance is the perfect vehicle to remove this the issue because they bring advisory and corporate partners early on the conversations, resulting in startups dedicating their time innovating and re-engineering real industry challenges, which has proven to exponentially increase their chances for success,” Abi Saab added.

This news comes right after Rainmaking’s co-investment partnership with SEEDS Capital’s US$36M scheme for maritime startups.

The scheme is supported by ESG and the Maritime and Port Authority of Singapore (MPA) to drive the growth of the maritime sector through technology and innovation.

Also Read: Maritime tech startups to get US$36M investment from SEEDS Capital

According to Tan Beng Tee, MPA’s Assistant Chief Executive (Development), maritime technology startups play an even more important role in accelerating digitalisation and innovation efforts to prepare the maritime industry for a new normal post-COVID-19.

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Image Credit: Jonas Tebbe

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Fintech companies and banks might seem to always be at loggerheads—but do you really have to pick a side? Traditional banks are the go-to reliable financial institution for business owners and consumers.

Fintech companies, on the other hand, are seen as the young kids on the block. Although banks used to be wary of fintech companies, the financial sector seems to be loosening its reins on tradition. 

Why now?

Banks have long been the juggernauts of the financial services industry. Steadfast, trustworthy and regulated, their presence has pushed banking to become one of the biggest industries in the modern world. 

Big financial institutions struggle to keep up with changes in the marketplace. By spending billions a year to maintain legacy operating systems, the same business processes that once were the fundamentals of banking now leave little room for product innovation.  

Even before COVID-19, consumer patterns were already evolving alongside digital technology transformations. Fintech products such as contactless payments, peer-to-peer fund transfers and real-time service channels have started to disrupt the financial services scene. 

This is against the backdrop of an increasingly digitised generation. Around 82 per cent of Singaporeans own a smartphone, and around Southeast Asia, the number is even higher with most frequently using their devices to access search engines and social networks.

The frequency at which consumers engage with their devices has also turned fintech companies into enticing financial providers for the on-the-go customer. 

Also Read: Ecosystem Roundup: Startup funding in SEA continues decline in Q3; Digital banking heats up in Vietnam

COVID-19 is accelerating change, making the future happens faster. It’s safe to say that the pandemic disrupted many day-to-day processes—including financial services. As people were now relegated to their homes, financial institutions scrambled to find innovative digital solutions for their products.

A survey done by Ernst and Young highlights that 27 per cent of consumers agree that banks have to be more flexible in helping customers become better prepared in times of uncertainty and 65 per cent of businesses mentioned they are likely to try digital financial services within the next 12 months in a recent Deloitte survey.

So what’s fascinating about fintech?

Small and nimble, fintech platform has infiltrated the financial processes of many consumers. fintech platforms have joined the financial service foray by optimising financial services.

Using algorithms, applications and cloud-based tools, tasks such as using a financial tracker to monitor business expenses, managing investments, and crypto exchanges have been made easier for businesses and customers alike. 

Biggest pain points that fintech resolve

• Convenience: Track financial transactions with a tap —anywhere and anytime
• Accessibility: Access to loans, peer to peer transfers, and easy to digest banking options to those who have disabilities or have limited financial awareness. 
• Innovation: Being tech-backed and automation facing, fintech is on the hunt to provide quality solutions at lower costs. 

Fintechs seduce consumers with their functionality and accessibility, leveraging on big data and algorithms to streamline financial services. The innovation that fintech startups thrive on also allows their products to integrate into large digital ecosystems. 

The agility that this provides to companies makes it both convenient and cost-effective to do business. Companies such as Transferwise and Aspire target gaps left behind by banks, by offering products that slice through hefty processes required to start and perform business dealings.

Also Read: Banking the unbanked: Have cryptocurrency project achieved the most claimed utility of the blockchain?

By cutting down on the time taken to send a foreign transfer or open a business bank account, fintech startups also slash operating costs for companies. 

Banks bring with them great experience and expertise; fintech companies complement this by by bringing technology speed to layer innovative products to traditional financial service offerings. In a world where customers demand speed, simplicity, and customer-centric products, fintech ranks quite high for personalised products.

Using social media as a platform to connect with potential customers also brands fintech companies and approachable, in contrast to the daunting persona of a financial institution.

Is collaboration on the cards for banks and fintech?

Most definitely—the new future of financial services doesn’t seem like it can do without either. 

The real threat to the banking industry isn’t fintech companies but Big Tech firms such as Google, Apple and Alibaba. These huge technology firms already have the clientele, an army of developers, and huge stakes in various complementary industries.

With a leg (or two) in e-commerce, cloud services, and advertising services, these tech giants come armed and ready with the ability to take their slice of the financial product pie. 

That’s precisely why it’s essential for collaboration between banks and fintech firms. In the wake of COVID-19, tech-fuelled transactions and contactless payments will more than ever be a staple in the backend of bank products.

Contactless payment apps such as GooglePay and ApplePay are already rising in ranks, alongside consumer banking products such as Paylah! in Singapore.

To stay ahead of the curve, banks must leverage the benefits of fintech collaboration. fintech startups bypass regulatory bank processes to connect directly with users—similar to the high penetration rates Big Tech firms possess. 

Also Read: Fintech and banks: collaboration or competition?

Redefining the future of finance

According to a study done by PwC, Banks are becoming the most active of all financial sectors in exploring partnership opportunities with fintech firms. This includes setting up venture funds to invest in fintech opportunities.

More than 70 per cent of banks predict that over 60 per cent of their clientele will be using mobile-based applications as part of their financial process within the next five years.

This makes digitally adept fintech firms the perfect partner in crime to take on the big guns. 

The future of finance does seem to be littered with technological advancement. As tech infiltrates almost every aspect of our daily lives, both fintech and banks will have to come up with novel solutions to tap into digital ecosystems.

This includes managing risks—data breaches, security, verification systems—that arise from new developments. 

Nevertheless …

The next step for financial services has to be partnerships. While banks can definitely benefit from the innovation and product development aspect of fintech startups, fintech companies can also leverage from the bank balance sheet and compliance expertise.

That being said, partnerships are no walk in the park for both fintech firms and banks. It’s only with shared values and goals this allied relationship can truly redefine the future path of finance.

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SparkLabs Taipei, a Taiwan-based accelerator programme, has announced the eight startups graduated from its fourth batch, in a demo-day event held in the capital city.

These startups came from diverse industries, from financial blockchains to smart logistics.

Edgar Chiu, Co-founder and Managing Partner of SparkLabs Taipei, said: “The global economy in 2020 has been greatly affected by the recent pandemic, and it has unexpectedly created a unique foothold for Taiwan’s entrepreneurs.”

“Some of the industries covered by the startups at DemoDay 4 include telehealth, e-commerce, and 5G infrastructure, which is aligned with the recent trends of the global technology industry. In fact, many major technology companies are currently seeking strategic partnerships and investments in these industries,” he added.

Also Read: From coffee maker to app-free chat solutions, meet the 8 startups from SparkLabs Taipei’s third batch

The startups are:

EMQ: A fintech platform that enables global businesses and individuals to access real-time, affordable and efficient cross-border payments. 

Pickupp: A data-driven, AI-enabled logistic platform to supporting merchants with flexible and cost-effective solutions. 

OakMega: A SaaS platform offering omni-channel instant messaging CRM solutions for businesses.

Kneron: A tech hardware firm providing Artificial Intelligence solutions.

Tresl: An e-commerce data analytics platform.

Aegis Custody: A blockchain financial services company specialising in providing secure and user-friendly solutions for enterprises.

TMYTEK: A 5G infrastructure provider.

PenguinSmart: A digital healthcare platform that enables individualised rehabilitation therapy.

Established in 2o18, SparkLabs Taipei assists Taiwanese startups in international expansion and foreign startups in entering the domestic market. It also partners with large enterprises and multinational companies to source technology talent and identify potential startup strategic investments and acquisitions. 

The programme has accelerated four cohorts since inception and invested in a total of 26 startups. SparkLabs Taipei alumni have attracted funding from investors, including Taiwan’s National Development Fund, Japan’s NEC Capital Solutions, and Hive Ventures.

Taiwan has managed to escape the brunt of the global pandemic and has reaped the economic benefits of it. Posting a positive economic growth in 2020, it has seen its startup ecosystem flourish as foreign companies increase their investments in Taiwan. Thereby, positioning itself as a growing hub for international capital, talent and digital technology.

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Image Credit: SparkLabs Taipei

 

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Before 2020, people started online shopping largely out of curiosity or convenience. But this year, necessity has driven many to make their first forays into the world of e-commerce as social distancing measures and lockdowns keep many of us housebound.

Despite all the benefits presented by e-commerce, both veteran and new-to-the-game e-shoppers will likely have run up against the “experience gap” while buying online the little comforts that they used to enjoy from visiting a physical store.

One of these comforts? The ability to see, touch, and feel a product. No matter how many product specifications you put up in an online store, this tangibility is a difficult thing to replicate.

Until the day we have holographic projectors in our lounge rooms, one of the best ways to close this experience gap is actually deceptively simple: product returns. Returns are often an afterthought for businesses, but they shouldn’t be.

According to UPS’s most recent Pulse of the Online Shopper survey, 42 per cent of all shoppers in Asia Pacific will check an online store’s return policy before making a purchase.

But outside of the statistics, the truth is that well-orchestrated returns have the capacity to close the experience gap with the brick-and-mortar retail experience, by allowing the customer to receive their product, experience it “in person”, and if it’s not suitable, to send it back to the merchant.

It’s roughly the equivalent of a customer in a shop picking up a product, trying it on, and then putting it back on the rack. However, robust e-commerce returns require more than just a return address on your website.

Also Read: A comprehensive guide to handling product returns carefully without upsetting customers

Convenience is crucial

Our survey of online shoppers revealed that APAC is the least satisfied region in the world when it comes to the e-commerce returns experience. Significantly, nine in ten shoppers will consider a merchant’s return policy at some point in the purchasing process.

This presents an opportunity for online retailers to differentiate themselves by having a returns policy that is easy to find, clearly worded and understands the customers’ needs.

But here lies the first challenge: how do you craft a returns policy that meets these customer needs but that also sets clear boundaries and conditions on how to prevent the returns mechanism from being overused and placing undue burden on the business. Some retailers may accept returns for any reason at all, which can lead to shoppers buying many items.

In fact, research shows that 41 per cent of shoppers buy multiple versions of the same product, with the intention of returning all but the one that fits their needs. At the other end of the spectrum, some stores don’t readily offer a returns policy at all.

While most businesses would lean on the side of generosity when it comes to returns, getting the balance right can be complicated. Having a clearly defined list of conditions where a product can be returned—such as for damage, wrong colour, inaccurate description might help—and retailers can make this list more or less expansive depending on how much flexibility you want to give.

Something for nothing?

Free returns are a very attractive proposition to buyers, which is why they’re becoming increasingly common amongst online retailers—but this does mean weighing the additional cost burden on businesses against the desire to retain customers.

Also Read: How Pomelo tackles the problem of high product return with its O2O retail experience

Given that the online space is already incredibly competitive on price, passing the cost of returns on to all your customers by increasing product margins is essentially a non-starter.

When it comes to return services, e-commerce operators have a range of options at their fingertips, depending on which delivery partner they choose to work with. Service providers may offer pre-printed labels, electronic labels and return labels which are shipped separate to the item itself, all of which offer varying degrees of convenience for different costs.

Businesses can also employ returns services dedicated specifically to handling sensitive and delicate items, such as photography equipment or electronics, thus ensuring the returned item is able to be resold. But a smart, cost efficient returns strategy can involve much more than an address label on a box.

For instance, businesses can determine whether there are alternative locations where returned items can be shipped to and stored—a potentially substantial cost saving, particularly if you have many customers outside your country or region.

E-commerce businesses can use their international offices or employ warehousing facilities to form part of a more localised network of return locations, which can then be used to ship returned products to new buyers nearby.

When current costs become future revenues

When it comes to returns, it’s important for e-tailers to take the long view. Superficially, returns could be seen as another cost burden—but as with many costs of doing business, they should be thought about as an investment in customers and future growth.

Given the dissatisfaction with the existing returns experience in Asia, a retailer could build customer loyalty through offering returns that are truly seamless, thus generating long-term revenues.

Also Read: “The challenge for new startups lies in how to commercialise and commoditise products”

A returned product shouldn’t be considered the end of the story. Oftentimes, a product will be returned simply because of a single attribute, such as size or colour. It’s relatively simple to set up a mechanism in an online store that offers customers similar products, which could lead to an exchange rather than a monetary refund.

Additionally, giving customers the option of receiving store credit—often a faster process than transferring money back to a bank account—can keep customers browsing your items.

This approach also helps to guard against “serial returners”, as it forces these customers to be more careful in how they buy, while allowing shops to keep revenues from multiple returned purchases.

Returns also offer businesses a chance to learn and mature. Simply inquiring why a customer returned an item can provide invaluable information: perhaps the quality of certain items from a supplier isn’t up to scratch, or maybe a product’s images or description weren’t sufficient.

These are important dialogues and can show a real commitment to doing the right thing by customers, rather than simply being a box-ticking exercise.

While it’s an overlooked part of business strategies, returns should be considered as important as other key facets of running an online business, such as SEO, social media presence or pricing strategies.

With more businesses shifting online, competition is only going to become more intense, and will occur at a greater variety of points on the customer journey. The businesses who are most likely to succeed are those that provide customer service which is holistic, encompassing every stage of the shopping process—including those that occur after the cart has been filled, paid for and delivered.

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Burnout

You have probably heard of the term “burnout,” if not, felt the very real symptoms of it like debilitating anxiety, depression, and insomnia. These occur because your brain is screaming to you that you need to stop and take a break, and the longer you ignore it, the worse it gets (thankfully, talking about your stress with others helps tremendously, and we’ll talk about that in a future article).

For some people, these symptoms never go away, or at least take years of hard work to get rid of them. Which is why I have two favorite mantras I live by, and its why I treat all my team members with love and kindness.

My favourite sayings

My most favourite saying is “Entrepreneurship is a marathon, not a sprint”, and that’s because it’s extremely important to be realistic with yourself about what you are truly capable of accomplishing in a given day, week, month, quarter, or year.

Venture capital firms push their founders to move as fast as possible, but this only increases their likelihood of stress and burnout, which is the number one killer of any business venture. I insist that my team understand this saying well because several of them have burned out in the past, and we lost amazing people who we cherished greatly so they could nurse their mind back to health. When we hire people, we allow them to create their own work schedule, where their family life comes first. Once they have taken care of those demands and needs, they can come to work with a clear mind, thus setting them free to focus on their work with all their hearts and giving us everything they have.

The second saying is “once you lose your health, it’s impossible to get it back.” What I mean is, if you have the tools in your kit to understand the needs of your mind, body, and soul, you can then do everything in your power to work at and improve yourself every day. Over time, this protects you and decreases the chance of burnout, allowing you to enjoy the fruits of your labour with vigour, rather than waste it on psychological therapy and escapes from reality. That’s why meditation is one of my favourite tools.

Also Read: A meditation guide for entrepreneurs from an entrepreneur

So, how did I get started with meditation?

When I was a kid, I got swept up in the craze of doctors in the 1990s diagnosing “boys with too much energy to know what to do with themselves” as having a chemical imbalance called ADHD, or Attention Deficit Hyperactivity Disorder. I was prescribed Ritalin and forced to take it on school days. After some time, I started hiding the pills inside the living room couch to avoid taking them, because they made me feel like a zombie. But when we moved to another city, the pills all fell out a hole in the bottom of the couch and my parents found literally 500 pills, and they were PISSED. So the jig was up and I was back to taking these damn pills I hated so much.

In high school, I made the decision to take myself off the pills with my parents’ approval, but after one semester I almost failed school due to being bored by the slow pace and lack of intellectual stimulation, and back on the pills again I was. When I first started university, I insisted I go off the pills permanently, and that I would work hard to manage my immense levels of energy through some other means. At this time, my father got the idea to introduce me to his meditation instructor, who taught him when he was in university. At that’s how it began. I was 18 years old, and for the first time started feeling the ability to slow my mind down and harness my energy in a focused manner. I found that the only way to really enjoy meditation was to make it part of my daily routine, and I have kept it that way for 16 years (as of September 2020 when this article was published).

How can it actually save your life though?

Meditation has a lot of amazing benefits, many of which have been proven by hard science, but we won’t get into them here. I’m only going to cover the few most important benefits I’ve experienced, and you can read more about them all over the internet. I’ll also share a link from this post’s page to a guide for how you can get started meditating today!

Benefit #1 – Lowered resting heart rate

The first benefit I’ve discovered is that during meditation, my stress at the moment quickly melts away because of the environment I place myself in. I create sensory deprivation by putting my phone on airplane mode, wearing an eye mask, putting my noise cancellation headphones on, and making the room dark and cool. This allows me to totally relax without the anxiety of anticipating notification pings and other distractions so that during meditation I can let go completely. Total relaxation leads to breathing less, which lowers your heart rate.

The long-term benefit of this is a permanently lowered resting heart rate, which means it takes a lot more to get me worked up and anxious. Side note, the average resting heart rate of people who don’t meditate is 70-80 beats per minute, while people who meditate daily have an average resting heart rate of 50-60 beats per minute. This is a huge difference and is proven every time I get medical checks and they are shocked at how slow my heart beats. Meditating will absolutely lower your chances of having panic attacks, which decreases the chance of heart attacks.

Also Read: e27 webinar: Sailing through COVID-19 crisis with mindfulness meditation

Benefit #2 – Increased self-awareness
Meditation requires that you let go of everything you are worried about. If you can’t learn to let go, meditation will NEVER work for you. So once you let go, meditation will OPEN your mind to the subconscious thoughts that float around all day without you even realizing they exist.

The method of meditation I use is designed to allow these completely nonsensical thoughts to rise up to the conscious mind without reacting to them emotionally. I know this sounds hard, and it IS, so if you can get good at it, it allows you to become more aware and more logical. Therefore, learning to let go allows you in the long-term to worry less and accept that there are many things you can’t control, which frees your mind to focus on what you CAN control. Meditating will make you a more relaxed person, which gives you the chance to be a more focused leader who makes better decisions and increases your health span by protecting against stress.

Benefit #3 – Increased empathy
Meditation has absolutely allowed me to become a more empathetic, grounded, relaxed, and generous person. It’s hard to explain why this is, but I think it’s because meditation allows you to feel more connected to the universe and it lets you realise that you are not the centre of existence. By losing your ego, you start to see that other people and animals matter a lot more than yourself, which develops your sense of humility.

The Secret (Law of Attraction) states that people attract the kinds of people that are like them through their mindset, beliefs, and actions. [Full Disclosure: As an affiliate, I receive compensation if you purchase through this link.] Therefore, humble people will attract other people with high levels of emotional intelligence.

This also means that we have the inner strength to treat others with increased love and kindness, which they give back to us and to others around them as a result, something we like to call “paying it forward.” In essence, through our words and actions, we can help others increase their emotional intelligence, which makes the world a better place. If we view this from the point of view of Maslow’s Hierarchy of Needs, meditation can help us move up the ladder towards enlightenment.

The higher the level you attain, the better able you are to understand the world around you, and help others reach higher too. Enlightenment at a psychological and spiritual level will make you a much better human, a better leader, and a more attractive mate. Meditation will save your life because humans are hardwired to be social, and the higher your EQ, the more empathy you have, the more likely you will be to attract great people into your life, which means you are much less likely to die at a young age.

Also Read: Stressed at work? Here are 11 best meditation apps to help you relax

What can you take away from this

• Meditation is an amazing way to improve your mind, body, and soul.

• The sooner you get started, the sooner you will see all sorts of benefits.

• The longer you keep up this routine and make it a solid tool in your kit, the stronger the effects will be.

Learn more

If you are suffering from insomnia, anxiety, depression, or burnout, PLEASE check out our guide on how to get started meditating IMMEDIATELY because it’s better than continuing to suffer, and MEDICATION IS A CRUTCH, NOT A SOLUTION. If you know anyone who is suffering, please share this episode with them too, because no one deserves to feel like that. Remember, entrepreneurship is a marathon, not a sprint, so please love yourself and take care of your mind, body, and soul every day!

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This article was first published on We Live To Build.

Image Credit: Michal Czyz on Unsplash

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