Speak to bank leadership teams about the state of their current core technology stack, and you’ll likely find most of them agreeing that they’re struggling to keep up with the rapid shift to the digital-first and more seamless interactions that their customers and partners are expecting, along with the obvious realisation that replacing these technologies will be a complex process that won’t only involve significant risk, but also incur significant expense.

This is a real problem, as banks continue to invest money in maintaining the status quo while new regulations, rising digital expectations, and the shift towards open banking are pushing those same legacy systems to their limits.

Building on workarounds to tackle these changes has simply kicked the can (i.e., risk) down the road, making them harder and more expensive to overcome in the face of increasing digital transactions and rising customer expectations for more personalised interactions and connected offerings.

While banks in Southeast Asia still have some ways to go, there is progress in the right direction; findings from Publicis Sapient’s recent Global Banking Benchmark Study show that 37 per cent of bank leaders in Southeast Asia are aware that legacy technology is hindering their business transformation. Looking ahead, almost a third (29 per cent) of SEA bank leaders said their organisations are prioritising improving the customer experience as their main digital transformation goal.

Four steps to delivering core modernisation

Hesitance to upgrade legacy systems is understandable; it is all too easy for a CEO or CIO to lose their job by proposing a core system transformation and then failing to deliver it.

On the bright side, cloud technologies, coreless banking systems, and the surrounding ecosystem of Software-as-a-Service (SaaS) solutions have matured greatly in recent years. At the same time, taking an iterative approach toward core modernisation can significantly mitigate the risks of transformation.

How, then, should banks approach core modernisation? Here are four steps to consider, as well as pitfalls that can be avoided in the journey to delivering a modernisation program.

Also Read: Phishing threats: Protecting your online shopping and banking

Step one: Have a clear and aligned ambition from the top to the bottom

Everyone involved in the process must believe in and commit to the process, from the board and all the way down to the on-ground teams doing the actual work. Alignment must be made on a clear case for change, the critical challenges that modernisation is intended to address, the benefits which these modern capabilities can unlock, and ultimately, the return on investment.

The right leaders must be selected for the program, whether sourced internally or through new hires. These leaders must be provided with the appropriate funding, resources, and decision-making power. Just as important is having clear alignment on the roadmap and timeline for program delivery, as well as a framework for both oversight and accountability.

Step two: Mobilise the program

This step is conceptually a simple one: Without the right preparation, modernisation programs cannot succeed, as this step is where you begin shaping what that desired operating model for a coreless bank should look like.

This starts by bringing on board the right combination of business, functional, and technology capabilities while ensuring that the right level of governance, as well as risk and compliance, is set up. The product roadmap must be clearly defined, confirming timelines for the launches and the technical proof points along the way to achieving the target state.

Designing the coreless architecture must be aligned with best-practice principles, while any vendors brought on board to make up any critical components must be properly assessed. Cloud infrastructure requirements must be confirmed as well.

During the mobilisation process, caution must be taken to avoid simply reproducing the functionality of the legacy core versus embracing the possibilities that coreless architecture brings.

Step three: Proving the platform through the first release

Critical to modernisation efforts is the need to quickly get to market; this helps to build belief in the new capabilities while enabling learning and continuous iteration through real-world experience, which can help improve subsequent releases. Failure to launch is usually the result of a combination of incorrect delivery models, missing go-live requirements, or taking on too much too soon.

Step four: Modernise progressively

Once your first release is out the door and the platform is given a chance to prove itself to key internal stakeholders as well as customers, it is then time to accelerate the transition from legacy onto the new modernised platform through the next series of iterative releases. By sequencing the migration appropriately in tranches, risk and disruption for customers can be minimised.

Also Read: How to harness open banking for greater consumer and fintech empowerment

Focus on where the new capabilities can drive the most value for your customers and colleagues, prioritising new features based on value, speed, and quality metrics. At the same time, do not be afraid to drive continued exploration of new and differentiated approaches to enhance and expand the new coreless model, with which competitors will struggle to compete.

Modernisation for resiliency

Banks that cannot take steps to solve their core banking conundrum are doomed to fail; merely processing banking transactions will not be enough for them to compete.

The opportunity to modernise the core of your bank might be daunting, but banks can position themselves for success with the right modernisation roadmap, as well as the right partners who have experience in creating modern coreless architectures that can enable a more efficient banking model to drive growth by launching new product revenue streams, to build digital experiences that their customers are demanding, and to enhance operational efficiencies, in order to increase resiliency for the future.

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This article was first published on September 26, 2023

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Venture studios and venture building are activities that have now existed for several decades with a proven record of success. In contrast, corporate venture building has historically faced scepticism in venture capital circles. It is often seen as a step removed from the agility of independent startups. The criticism is often around how corporate ventures lack the agility and risk tolerance of independent startups. They are perceived to be weighed down by internal bureaucracy and often misaligned with entrepreneurial incentives.

Furthermore, there is a perception that corporates struggle to attract seasoned entrepreneurial talent. Such talent may shy away from ventures perceived as too constrained by corporate priorities. They may also dislike organisations that are too focused on incremental gains rather than breakthrough innovation. Another challenge is balancing the short-term demands of meeting corporate financial targets with the long-term strategic nature of a venture capital investment.

However, in recent years more and more corporates have entered the venture building space, and that perception is changing. Among them is IMI, a publicly traded company in the United Kingdom with deep engineering roots. It has identified venture building as a critical lever for future growth in fast-evolving sectors and emerging technologies. IMI established the IMI Venture Studio in 2023 with an approach based on three powerful pillars. First, market-driven validation, second, world-class entrepreneurial talent, and third, leveraging the corporate advantage.

Also read: Futureproofing the energy and industrial sector in Asia with IMI’s Venture Studio

Market-driven validation 

The first pillar, market-driven validation, ensures that every venture IMI pursues is grounded in market reality. When new ventures are built without proper market validation, they can be misaligned with customer needs. They may also face challenges in gaining commercial traction. Insufficient validation can result in ventures that burn through resources. They chase assumptions rather than solve customer problems, leading to wasted capital, lost time, and missed opportunities. 

IMI overcomes this by starting with a rigorous validation process. This filters out concepts that will not gain traction with paying customers early on. In this last year alone, the company vetted over 50 business ideas, selecting only one to advance to the venture building phase. In this phase, they work with expert partners through EDB’s Corporate Venture Launchpad programme. These industry leaders have the best practices in the venture building space and a track record of bringing successful ventures to the market.  

Coupled with this, they conduct in-depth analyses of market trends and perform comprehensive competitor benchmarking. They also gather valuable customer feedback through targeted outreach. Finally, they run pilot tests with potential customers to thoroughly validate market demand and ensure a strong problem-market fit. This disciplined approach gives IMI’s ventures solid foundations from which to build upon. 

World-class talent 

Investors know the impact of experienced entrepreneurs, and IMI makes this a priority. Research shows that second-time founders are twice as likely to deliver a successful exit compared to first-time founders, and it is easy to see why. These founders bring a playbook of tools that has been battle-hardened in their previous entrepreneurial experience. They bring in a network of established investors and mentors that can guide them and potentially become venture backers. They know how to attract top talent to the organization. But maybe most important, they understand the urgency of hitting critical milestones early. As a result, they maximise runway and accelerate toward both commercial and investment goals. 

Why would these highly-qualified founders choose to build with IMI and run corporate-backed ventures? The answer is compelling: to ensure founders have the best possible chance of success, IMI provides dedicated resources tailored to their needs. This includes access to those same expert venture builders who guide the process. This enables Founders to benefit from a rigorous three-month sprint designed to validate their ideas. As a result, they develop a viable business model and go-to-market plan. During this sprint, critical startup assumptions such as customer pain points, willingness to pay, product prototyping, and financial modelling are thoroughly tested. By the end of this phase, founders are equipped with a clear and actionable roadmap to turn their ideas into scalable businesses. 

IMI also offers seed capital commitment, starting them with rigorously validated ideas, and a mission that aligns with a greater impact than mere financial returns: IMI’s commitment of breakthrough engineering for a better world. Most critically, the venture starts its growth journey alongside a strong strategic partner from day one. This strategic partner is capable of offering market access and expertise. 

Leveraging the corporate advantage 

Corporate venture studios like IMI provide a springboard for founders, significantly increasing their chances of success in competitive markets. The company’s ventures have the opportunity to leverage IMI’s corporate advantage. They do this by tapping into IMI’s extensive availability of industry veterans and engineers with deep domain expertise. These experts have access to hundreds of customers across global markets, industries and applications through IMI’s long-established market reputation. 

Moreover, IMI’s Venture Studio team offers a set of tools that strengthen the venture’s potential. This includes sourcing top co-founders through a curated pipeline of interdisciplinary talent. This year alone, they vetted over 500 potential candidates, building a powerful roster of talent ready to lead ventures.  

IMI also delivers a best-in-class governance foundation. This includes legal structures, such as founder agreements and employee incentivization plans. This gives IMI-backed ventures a distinct edge over similar early-stage startups. Finally, their extensive network of partners and investors allows ventures to spend more time on rapid scaling. As a result, they spend  less time fundraising. 

Equipped with these powerful tools, the venture is strategically positioned for accelerated commercial growth and expedited fundraising. This is unsurprising, given that venture studio-backed startups achieve exits 33% faster than their independent counterparts. 

Also read: As the demand for energy soars, climate tech is here to save the day

Working with IMI Venture Studio  

IMI Venture Studio is passionate about fostering innovation and building ventures that shape the future of the energy and industrial sectors. If you are interested in partnering with IMI Venture Studio and its ventures, whether through collaboration, investment or in building new ventures together —we invite you to join us in this journey.  

To explore partnership opportunities, reach out to the IMI Venture Studio team at general@imiventures.com. Let’s build new ventures for a better world together.

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This article is sponsored by IMI

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Featured Image Credit: IMI

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When I first began experiencing hair loss as a university student, I found myself frustrated with the lack of accessible, effective solutions for precise scalp analysis and personalised hair care. That personal struggle became the spark that led to the creation of Lushair Scalp Explorer, an AI-powered device that I hope will transform the way people care for their hair and scalp.

My journey started while I was still a student at Zhejiang University in China. Together with two classmates, I began working on an ambitious idea: developing a device that could offer highly accurate diagnostics and tailored recommendations for scalp health. Our academic backgrounds in biology, AI, and engineering came together perfectly for this project, but translating that knowledge into a working device was anything but simple.

After graduating, I moved to Singapore and launched Genpulse, the company behind Lushair. With the support of the Graduate Research Innovation Programme by NUS Enterprise, my team and I embarked on a two-year development process that was as challenging as it was rewarding.

One of our biggest hurdles was sourcing the right data to train our AI algorithms; a diverse set of scalp images was essential for accuracy. Partnering with Hangzhou First People’s Hospital and over 200 salons in China, we gathered more than 22,000 scalp images, which allowed us to fine-tune our technology to deliver results that align with clinical standards.

Also Read: How mental health startup Intellect’s founder catalysed his personal battle with anxiety

In April 2024, we launched Lushair Scalp Explorer in Singapore, and the response has been beyond our expectations. Within two months, we broke into the Asia-Pacific market, received orders from the United States, and achieved over US$10,000 in revenue.

Priced at US$129, the device is available online, allowing users to access a professional-grade scalp analysis experience from the comfort of home. Lushair analyses 16 different metrics in just four seconds, providing insights into follicle density, white hair ratio, damage state, and more.

But my vision for Genpulse extends beyond hair care. We’re now developing diagnostic tools and treatments for other skin conditions, including acne and eczema, with plans to expand into the North American market. I’m inspired by the idea that advanced diagnostics should be accessible to everyone, empowering individuals to take control of their skin health with tailored solutions.

This journey hasn’t been easy, but it’s taught me the power of perseverance and resilience. I often think of Elon Musk’s words, “When something is important enough, you do it even if the odds are not in your favour.” Despite the obstacles, I am committed to bringing Lushair to as many people as possible, inspiring other young innovators along the way.

With Lushair, I want to change the way people approach hair and skin care, making it accessible, personalised, and backed by science. This is just the beginning of what I hope will be a transformative journey for beauty and health care worldwide.

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I discussed the perils of implementing a Lift and Shift approach in a recent article about “Cloud Value Realisation (CVR)”. Increasing cloud infrastructure costs due to monolithic applications being unable to leverage cloud-native scaling is one of the biggest challenges technology executives face.

FinOps has been posited as a white knight to solve this problem and has resulted in a myth that implementing FinOps automatically reduces cloud infrastructure costs.

This article breaks this myth and makes a case for leveraging FinOps to understand cloud spending and how to profit by deriving business value from cloud investments instead of focusing on reducing costs.

Implementing FinOps may increase cloud infrastructure costs, but it provides tremendous benefits such as revenue growth, understanding where investment dollars are spent, and matching investments to direct business outcomes.

Problem statement

Technology executives are facing the following three big challenges in managing cloud costs:

• Lack of governance: Having no link between cloud infrastructure and business outcomes creates a challenge to justifying cloud investments.
• Overspending: Technical resources spin up infrastructure which is difficult to track because hyper-scalers have thousands of SKUs with constant changes in pricing models.
• No single pane of glass: Technology executives find it very difficult to budget, forecast, monitor, and control consumption because it is a big challenge to create a single dashboard by consolidating information from different hyper-scalers. This problem is exacerbated because each hyper-scaler has variable pricing models, there is no standardisation of billing models, and tagging/ allocating costs internally implies the need to navigate through internal organisational dynamics.

FinOps is an evolving cloud financial management discipline and cultural practice that enables organisations to get maximum business value by helping engineering, finance, technology and business teams to collaborate on data-driven spending decisions.

Also Read: Exploring the rise of finance-as-a-service in APAC

The most important goal of FinOps is to bring accountability to cloud spending by providing information to business and engineering teams for making investment trade-offs between time to market, quality, and costs.

Steps to implement FinOps

Based on discussions with numerous C-level executives, I recommend that organisations start with the following three steps to implement FinOps:

Step 1: Create and empower a core team

A cross-functional team comprised of business leaders, finance team members, IT/engineering team, and FinOps practitioners must lead the way to derive business value from cloud investments. This cross-functional group is responsible for calculating cloud costs, tagging cloud resources, monitoring where cloud investments are focused, mapping investments to business outcomes, and, most importantly, breaking down silos to get a unified perspective.

Step 2: Shift the mindset of business and technology teams

During a lift & shift exercise, IT teams may focus on the speed of delivery and leveraging cloud computing but ignore cost-related matters, such as the impact a product enhancement or modification might have on cloud investment. Similarly, business teams may not be keen to understand the cost of implementing new functionality because they want a faster time to market.

Mindsets must be shifted for business, IT, and finance teams to design and develop software with costs in mind and tie these costs to business objectives. The cross-functional team must be able to justify the business benefits of adding a new product feature when compared to additional cloud infrastructure costs needed to implement the functionality.

The team can then properly make the necessary trade-off decisions ensuring business value is created daily.

Step 3: Create a framework to understand cloud investments

The cross-functional FinOps team must create a framework to understand cloud infrastructure spending and determine whether cloud resources are being used cost-effectively to derive business value. FinOps presents a big data challenge because there is a huge amount of data to reconcile across multiple hyper-scalers.

Each hyper-scaler creates a unique line-item charge every second a cloud service runs, resulting in a bill with more than a million line items. The core team must dive into these large data sets, reconcile them, and understand cloud costs and business benefits. The results of this framework should be shared as regular reports which are easy to understand by business, technology, and finance teams to make the right decisions.

How FinOps enables “money-making” instead of focusing on “cost savings”

FinOps provides organisations with tools and data to leverage the cloud for increasing business value via a real-time account of which cloud investments are delivering the biggest business results.

It also highlights areas that can do a better job of optimising cloud resources, such as shutting down idle resources or infrastructure not yielding forecasted revenue growth/profits. Cloud consumption then becomes more efficient and creates a mindset that extra consumption is tied to revenue generation, adding more customers, or increasing customer satisfaction.

Also Read: Bridging the gender gap and boosting women entrepreneurship with embedded finance

FinOps also democratise information and gives power to the team working at the ground level to make decisions about whether provisioned resources are producing sufficient business value and adjust those resources for an immediate financial impact.

Teams can measure the impact of that spending and take corrective actions such as improving time to market, adding new functionalities with existing resources, or leveraging hyper-scaler innovation to build new products.

Call to action

Create a centralised team to drive FinOps

The FinOps core team must be cross-functional, consisting of leaders from finance, business, and IT to drive best practices through the creation of easy-to-use reports that map cloud investment to any business value created.

They also focus on rate optimisations through commitment-based/ enterprise discounts and by shutting down idle resources that are not delivering business value.

Drive decisions by the business value of the cloud

A FinOps practice maximises the impact of cloud investments on business outcomes. This may result in spending more to drive innovation by leveraging hyper-scalers. It is critical to deliberately decide on increasing cloud spending instead of allowing spending to creep up slowly with an engineering team that may create more cloud resources that do not deliver business value.

FinOps reports providing enough data to make informed decisions on how to optimise cloud spending for various business priorities.

Create a framework providing timely and accessible FinOps reports

Today, cloud vendors provide cost data on a real-time basis using per-second compute resource billing. Business and engineering teams need self-serve access to cloud usage reports to understand the impact of infrastructure decisions.

This leads to an “ownership mindset” where everyone is accountable for deriving business value from cloud spending.

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Editor’s note: e27 aims to foster thought leadership by publishing views from the community. Share your opinion by submitting an article, video, podcast, or infographic

Join our e27 Telegram group, FB community, or like the e27 Facebook page

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This article was first published on June 12, 2023

The post Debunking misconceptions about FinOps and cloud spending reduction appeared first on e27.

This article reflects my time as an Entrepreneur in Residence at Digital Dialogue Company Limited. I’ve been privileged to participate in the creation of an innovative business platform designed to tackle the pain points associated with fragmented carbon data analysis.

Our mission is to provide organisations with the predictive big data analytical tools they need to accurately quantify their carbon emissions, enabling stakeholders to develop effective ESG strategies for reducing their carbon footprints and transitioning towards renewable energy sources globally. 

In an era where climate change poses an existential threat, accurately tracking carbon emissions has become paramount for businesses worldwide. Organisations are striving to understand and mitigate their environmental impact, yet fragmented data analysis continues to be a significant hurdle. Recognising this pressing challenge, Digital Dialogue Company Limited is developing a robust platform to revolutionise carbon emission accounting.

Understanding the role of GHG accounting

Greenhouse Gas (GHG) accounting is a critical component of the global carbon accounting system, providing a framework for measuring and managing emissions. This process involves quantifying emissions from various sources, including direct emissions from owned or controlled sources (Scope 1), indirect emissions from the generation of purchased electricity (Scope 2), and all other indirect emissions that occur in a company’s value chain (Scope 3). Accurate GHG accounting is essential for identifying emission hotspots, setting reduction targets, and tracking progress over time.

The imperative of accurate carbon accounting

Carbon accounting is a systematic approach to measuring and managing GHG emissions. Carbon accounting—a systematic approach to quantifying carbon emissions—is essential for organisations aiming to understand and mitigate their environmental impact.

It serves as the foundation for developing effective strategies to reduce carbon footprints. It is the foundation for organisations to identify emission hotspots, set reduction targets, and monitor progress over time. Despite its importance, carbon accounting faces significant challenges:

• Data fragmentation: Emissions data often come from diverse sources and formats, leading to inconsistencies.
• Scope 3 emissions complexity: Tracking indirect emissions across supply chains is intricately daunting. According to a Sphera Scope 3 Global Survey Report 2024, 59 per cent of companies struggle with external data quality, and 43 per cent find it challenging to quantify these emissions accurately.
• Resource intensiveness: Collecting and standardising extensive data can be resource-heavy and time-consuming.

Rising emissions amid global goals

The annual Global Carbon Budget report projects that carbon dioxide emissions from fossil fuels will reach a record 37.4 billion metric tons in 2024—a 0.8 per cent increase from the previous year. When including emissions from land-use changes, total emissions are estimated to rise to 41.6 billion metric tons. This trend jeopardises global targets established by the 2015 Paris Agreement to limit global warming.

Also Read: As the demand for energy soars, climate tech is here to save the day

The role of big data and machine learning

To address the complexities of carbon accounting, integrating advanced technologies is essential:

• Big data analytics: Harnessing vast volumes of data allows for real-time, auditable emissions tracking. Big data facilitates the development of robust carbon markets, projected to save an estimated US$250 billion annually by 2030 in climate action implementation.
• Machine learning algorithms: These tools can identify patterns and drivers of carbon emissions, processing factors like economic activities, policy interventions, and external influences. For instance, machine learning models have outperformed traditional methods in predicting emissions in 254 Chinese cities from 2011 to 2020 (Scientific Reports volume 14, Article number: 23609).

This synergy between big data and machine learning enhances the precision and reliability of emissions data, contributing to more effective climate change mitigation strategies. The effectiveness of green finance hinges on high-quality emissions data. Accurate carbon accounting is crucial for building stakeholder trust and attracting green investments with best practices in reporting standards.

Green finance: Catalysing sustainable transition

Green finance plays a pivotal role in advancing renewable energy projects by providing essential funding mechanisms:

• Green bonds: Effective in financing large-scale renewable projects in emerging markets, green bonds reduce reliance on fossil fuels. In E7 countries, these bonds have facilitated investments in solar, wind, and hydroelectric power.
• Economic resilience: By encouraging environmentally friendly investments, green finance fosters new markets and job creation, contributing to financial stability.

By prioritising data sustainability, organisations can significantly improve the integrity of their carbon accounting processes. Ensuring that emissions data is accurate, reliable, and consistent over time allows businesses to make informed decisions to reduce their carbon footprints effectively. Robust data management practices and advanced analytics provide actionable insights, enabling companies to optimise their sustainability strategies and contribute meaningfully to global climate goals.

Enhancing data sustainability is critical for effective carbon accounting:

• Accuracy and reliability: Implementing robust data management ensures that emissions calculations are consistent over time.
• Advanced analytics: Leveraging analytics provides actionable insights, enabling companies to make informed decisions to reduce their carbon footprints.

By prioritising data sustainability, organisations can improve the integrity of their carbon accounting processes.

Driving change through transparency

Corporate climate disclosures are becoming both regulatory requirements and strategic tools:

• Building trust: Transparent reporting of GHG emissions and reduction initiatives enhances reputation and stakeholder confidence.
• Strategic alignment: Disclosures offer insights into climate-related risks and opportunities, allowing companies to align business strategies with global sustainability goals.

Also Read: Balancing economic growth and climate action: Decarbonising SEA’s built environment

At Digital Dialogue, we’re addressing the fragmentation in carbon emission data analysis by developing a platform that leverages:

• Centralised data integration: Our platform consolidates data from various sources, providing a holistic emissions overview.
• Advanced analytics and machine learning: We utilise these technologies to identify emission patterns, predict trends, and optimise reduction strategies.
• User-friendly interface: The platform is designed for ease of use, enabling organisations to track and manage emissions effortlessly.
• Regulatory compliance support: We ensure that companies meet international standards and best practices in GHG accounting.

Renewable energy: A beacon of hope and challenge

The International Energy Agency’s (IEA) Renewables 2024 Report offers a promising outlook, projecting a 2.7-fold increase in global renewable capacity by 2030. The significant growth is propelled by the cost-competitiveness of renewables and supportive policies in over 140 countries.

However, financial barriers, especially in developing nations, could impede the widespread adoption of renewable technologies.

Similarly, the UN Environment Programme’s Climate Technology Progress Report emphasises the need to triple renewable energy capacity and double energy efficiency by 2030. Achieving these ambitious goals requires overcoming significant challenges, including technology development and global transfer.

Overcoming the challenges of fragmented data in carbon emission accounting is crucial for achieving global sustainability goals. By harnessing big data and machine learning, we can significantly improve emissions tracking and reduction efforts.

At Digital Dialogue, our commitment is to empower organisations with Big Data tools and AI for Enterprise insights needed for this journey. Through innovation and collaboration, we aim to facilitate the transition to a low-carbon economy for the stakeholders and drive meaningful progress toward a sustainable future for the global industries.

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Editor’s note: e27 aims to foster thought leadership by publishing views from the community. Share your opinion by submitting an article, video, podcast, or infographic.

Join us on Instagram, Facebook, X, and LinkedIn to stay connected.

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At Echelon Philippines 2024, Sabrina Tan, Co-Founder of Lhoopa, joined Adriel Yong of Ascend Network for an insightful fireside chat titled ‘Beyond Walls and Roofs: Lhoopa’s Journey of Empowering Individuals and Transforming Lives’. The session highlighted Lhoopa’s efforts to revolutionise homeownership in emerging markets.

Lhoopa’s mission is to make affordable housing accessible while creating economic opportunities for brokers and contractors. With over 3,000 homes sold, the company uses innovative technology to decentralise real estate operations, empowering local partners to scale their businesses and achieve financial independence.

Also Read: Echelon Philippines 2024: The funding landscape for Filipino startups

During the discussion, Tan outlined Lhoopa’s approach to balancing profitability with social impact. The company tackles challenges such as regulatory compliance and technology adoption, all while staying true to its core values of providing quality housing solutions to underserved communities.

She also emphasised the importance of mental health support for founders, suggesting peer-to-peer networks and coaching as crucial tools to manage the pressures of leading a mission-driven venture.

The fireside chat underlined Lhoopa’s broader vision: not just building homes, but fostering community transformation and empowering lives. This conversation demonstrated the critical role startups like Lhoopa play in addressing systemic challenges in emerging markets, proving that purpose and profit can coexist.

Watch the session video above to learn more about these insights and the strategies shaping the future of entrepreneurship.

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Dear reader,

GCash’s reported plans for a US$1 billion to US$1.5 billion IPO could mark a pivotal moment for the Philippines’ fintech sector, potentially becoming the largest IPO in the country’s history. As the dominant fintech platform serving 94 million Filipinos, GCash has transformed how the nation manages money, from bill payments to peer-to-peer transfers.

The move toward public listing signals the company’s confidence in its sustained growth and strategic ambitions, bolstered by investments from major players like Mitsubishi Corp and MUFG, which value GCash at US$5 billion.

The IPO aligns with a broader regional trend of fintech companies seeking to capitalise on their robust user bases and expanding service ecosystems. However, market conditions and investor sentiment will heavily influence the offering’s success.

If GCash achieves its target, it could not only redefine the Philippine IPO landscape but also solidify the country’s position as a burgeoning hub for fintech innovation in Southeast Asia.

Sainul,
Editor.

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NEWS & VIEWS

GCash said to weigh record Philippine IPO of up to US$1.5B
The Filipino fintech giant intends to list in the second half of next year; An IPO of that size would likely make it the biggest ever in the country.

Figma sues Singapore rival for copyright infringement
The case’s outcome could throw Motiff – a startup that was established just over two years ago – off its brief growth trajectory; Like Figma, Motiff offers collaborative UI/UX design tools for product teams and software developers to build digital products.

Partior adds Deutsche Bank as strategic investor in US$80M fundraise
The fintech startup’s blockchain-based network aims to address the inefficiencies inherent in traditional payment systems, including delays, lack of transparency, and high operating costs.

ByteDance sues intern over AI sabotage claims
ByteDance claims that the former intern with the surname Tian tampered with code, disrupting the training of an LLM and allegedly led to substantial resource wastage.

Amazon Japan raided by anti-monopoly authorities
The e-commerce giant is under suspicion of inappropriately urging vendors to lower their prices on its online shopping platform in return for better product placement.

Pi-xcels secures US$2.7M to lead retail’s shift to paperless transactions
The investors include Headline Asia, Wavemaker Partners, and Hustle Fund; Pi-xcels allows customers to receive digital receipts with a simple tap, replacing traditional paper receipts with an eco-friendly, interactive alternative.

Former Peak XV MD Piyush Gupta launch Kenro Capital for investments in India, SEA
Kenro Capital plans to deploy US$20-30M per investment, with the flexibility to invest larger amounts through co-investment opportunities.

SGX-listed 17LIVE acquires Japanese VTuber company mikai
This strengthens 17LIVE’s virtual IP business, enhancing its platform with mikai’s well-established virtual influencer portfolio; With this, 17LIVE will accelerate its V-liver business by integrating mikai’s strong brand and expanding its portfolio.

AI helps India’s Meesho cut some customer call costs by 75%
The Softbank-backed online shopping site has rolled out a GenAI-powered voice bot among Indian e-commerce firms for customer support; The AI bot currently handles 60,000 customer calls daily in English and Hindi.

TikTok Shop to launch in Spain
ByteDance, the parent company of TikTok, aims to increase its presence in the ecommerce sector by inviting store owners in Spain to join the platform since August.

FEATURES & INTERVIEWS

How tech is transforming the pet care market in Asia, Oceania, and Africa
Machine learning, AI, and computer vision are all emerging technologies that are used by startups to solve pet owners’ pain points.

How Polymatech advances semiconductors with sustainability at the core
Polymatech has invested significantly in automation, with robots playing a key role in reducing human intervention, and its goal is to achieve zero manpower in certain verticals.

Following MAS’s in-principle approval, Gemini flexes its growth muscle in Asia
Outside of Singapore, Gemini’s growth relies on organic user discovery rather than targeted marketing exercises.

Echelon Philippines 2024: Funding strategies for startups in emerging sectors
The Echelon Philippines session brought together key investment leaders to discuss opportunities and challenges in the Philippine market.

The future of payments in SEA: Regional cooperation remains critical in pushing for progress
Southeast Asia’s early adoption of IPS and commitment to collaborative payments innovation provide valuable lessons for other regions.

Rouge Ventures: To succeed, agritech startups need to go out, experience field work, and produce data from it
Rouge Ventures MD Desmond Marshall notes that agritech founders often position themselves as “scientists working in the lab”.

FROM THE ARCHIVES

What I learned after launching a successful business in Asia
Learn from Statrys’ founder as he shares practical advice on entrepreneurship, including risk-taking, timing, location choice, and performance measurement.

Leadership is key in promoting data literacy, governance in organisations: Qlik’s Geoff Thomas
The most pressing issue that companies are facing today is finding balance between protecting data and using innovative tools.

Data-driven healing: The potential of analytics and AI in advancing mental health
I presented three ‘calls’ that are thematics of what will drive real-world application in mental health and here are some examples of global innovators that showcase these themes.

How data centres adapt to shortages with advanced tech solutions
Data centres harness advanced tech for global demand with hyperscale tech, AI integration, and sustainable growth strategies.

How to stay creative in the age of Generative AI and Web3
Amid an avalanche of technology news in creative industries, we navigate an unprecedented era of fear of being left behind.

Beyond blocks, we need builders for Singapore’s digital domain too
We need to boldly prepare and empower locals to lead Singapore’s digital journey, ensuring wider participation in our digital workforce.

Breaking into the data centre sector: Beyond technical expertise
Data centres are complex projects, and the exponential growth of demand in this sector infers tight design and construction program timelines.

Connecting clouds in SEA: How to ensure interoperability in the hybrid and multi-cloud context
Understanding the importance of direct connections to clouds empowers Asian companies in their digital transformation journeys.

The future of startup fundraising in Singapore
Taking a deeper look into Singapore’s startup ecosystem by exploring some of the more popular means for startup fundraising.

Banks must solve their core banking conundrum – or fail
While the prospect of modernising a bank’s core may seem daunting, the right roadmap can indeed pave the way for lasting success.

Holding tight or letting go: A paradox I face as a father and a corporate venture builder
The age-old parenting paradox of holding tight and letting go holds true for corporate venture builders aligning corporates and ventures.

Money talks: How tech can boost Filipinos’ financial literacy
With parents and schools silenced by cultural taboos, money management apps are filling the gaps in Filipino youths’ financial knowledge.

The evolution of investing: How fintechs and neo-brokers are empowering retail investors
Fintechs and neo-brokers have made stock trading more accessible & affordable for retail investors, empowering them to take control of their financial futures.

THOUGHT LEADERSHIP

My journey with Lushair: Bringing AI-powered scalp diagnostics to life
Despite the obstacles, I am committed to bringing Lushair to as many people as possible, inspiring other young innovators along the way.

How does audience intelligence help startups make informed decisions?
Startups can use real-time audience intelligence to gather demographic and psychographic data, improving consumer insights.

Showcasing the future of healthcare, the Estonian way
Estonia’s healthtech ecosystem is focusing on integrating AI and machine learning, particularly in preventive care and early diagnosis.

You are what you eat: Opportunities in Southeast Asia’s agri-food sector
Explore the agri-food market potential in Southeast Asia, where startups leverage test beds and corporate support to scale products.

AI isn’t magic: Why smart marketers should be skeptical of the hype
Discover why AI isn’t a silver bullet in marketing and how to harness its power while keeping human elements central to effective strategies.

Save and invest as you shop: The triple ‘A’ of financial accessibility
The post-pandemic financial challenges Malaysians face are undoubtedly formidable, yet we now have potent tools to shape our financial futures.

Mastering the VC pitch: Crafting your winning exit strategy
Crafting a compelling exit strategy is not only about securing investment but also about setting a strong foundation for your business’s future.

The entrepreneur’s dilemma: Fundraising or taking a loan?
This article will break down all the pros and cons so that any entrepreneur deciding between the two may make a more informed decision.

Ethiopia: A haven for Bitcoin miners?
Ethiopia is becoming a Bitcoin mining hub due to its abundant renewable energy, low electricity costs, and improved regulations.

The post Ecosystem Roundup: GCash said to weigh IPO of up to US$1.5B | Figma sues Singapore rival | 17LIVE acquires Japan’s mikai appeared first on e27.

Singapore’s venture capital (VC) market is declining, reflecting a global trend of reduced investment activity.

This downturn, often referred to as a “funding winter,” has been observed across major startup ecosystems worldwide, including Silicon Valley, London, and New York City.

This trend is evident in Singapore’s decline in deal volume and value in the first nine months of 2024.

Also Read: The future of startup fundraising in Singapore

Data from Enterprise Singapore and PitchBook reveals that venture funding deal volume by Singapore-headquartered firms has decreased steadily since 2022. In the first nine months of 2022, there were 518 deals, dropping to 410 in the same period in 2023 and further down to 369 in 2024.

Similarly, the deal value has also fallen from US$8.5 billion in the first nine months of 2022 to US$4 billion in the corresponding period of 2024.

This decline can be attributed to various factors, including:

• Global economic uncertainty: Rising interest rates and inflation have made investors more cautious, leading to a pullback in venture capital investments globally.
• Extended fundraising timelines: Startups face longer fundraising timelines as investors conduct more comprehensive due diligence and seek more favourable valuation targets.
• Emphasis on profitability: Investors increasingly prioritise companies with a clear path to profitability, making it more challenging for early-stage startups to secure funding.

The decline in Singapore’s VC market is particularly pronounced in the deep tech sector, characterised by longer funding cycles and higher capital requirements. Deep tech venture activity has experienced a steeper downward trend than general tech, indicating investors are becoming more selective in their deep tech investments.

However, despite the current downturn, Singapore remains a prominent player in the Southeast Asian VC landscape. The country leads in ASEAN deal activity, accounting for 58 per cent of deal volume and 68 per cent of deal value in the first nine months of 2024.

Moreover, the island nation remains among the top five global startup ecosystems, demonstrating its strong foundation and attractiveness to investors.

The Singapore government is actively addressing the challenges posed by the funding winter and remains committed to fostering innovation and growth, particularly in the deep tech sector.

Key initiatives include:

• Increased funding for deep tech startups: The government has allocated an additional SGD440 million to the Startup SG Equity scheme, expanding the total pool of government funding to over SGD 1 billion. This will enable the government to co-invest with global and local VCs in Singapore-based deep tech startups, supporting their growth and global expansion.
• Support for early- and early growth-stage startups: In 2025, two government-backed investor arms, SEEDS Capital and EDBI, will merge to form SG Growth Capital. This merger will expand the funding range to cover both early-stage and early growth-stage startups, providing more comprehensive support throughout their development.
• Collaboration with venture builders: The government is strengthening its partnerships with local and global venture builders, leveraging their expertise and proven business models to bring impactful technologies from lab to market.
• Launch of Stage One: A multi-agency initiative led by Enterprise Singapore and the Economic Development Board, Stage One will be a one-stop platform to support startups throughout their journey, from setting up in Singapore to scaling globally. This platform will connect local and global startup communities, fostering collaboration and growth.

The report also includes insights from prominent figures in Singapore’s VC ecosystem, who offer a mix of caution and optimism for the future. While acknowledging the challenges of the current funding environment, these industry leaders emphasise the long-term potential of deep tech investments and the opportunities for Singapore.

Also Read: Shifting tides: Vietnam and Philippines challenge Singapore and Indonesia in startup investment

Overall, while the current funding winter presents challenges, Singapore’s venture capital market remains resilient, supported by a strong foundation, government initiatives, and a vibrant startup community.

The country’s strategic focus on deep tech and its commitment to fostering innovation position it well to emerge stronger from this downturn and capitalise on technology’s transformative power.

The post Singapore’s VC market cools down in 2024, mirroring global trend appeared first on e27.

In the evolving landscape of Asian fintech, super apps are proving pivotal in advancing artificial intelligence (AI) innovation. With their all-encompassing functionality and deep integration into daily life, these platforms have become more than just conveniences. They are catalysts for transforming financial services, particularly in regions where traditional banking infrastructure falls short.

Prevalent in markets such as China, Indonesia, and India, super apps thrive in a context where users expect a single platform to handle multiple aspects of their lives. This ecosystem presents fertile ground for AI innovation, offering practical applications such as chatbots, data-driven personalisation, and advanced analytics.

Scarlett Sieber, Chief Strategy & Growth Officer at Money20/20, tells e27 that the prevalence of super apps in Asia provides unique opportunities for AI use cases that are less common in Western markets.

For instance, AI-powered chatbots in Asia are significantly more advanced compared to their counterparts in the US or Europe. They not only address customer inquiries but also support sales and collections processes. Sieber points to examples such as DANA in China, where in-branch AI assistants deliver real-time, avatar-based customer support. These innovations enhance operational efficiency while also creating new revenue streams.

Regional variations in adoption

Asia’s diverse economies exhibit varied rates and methods of AI adoption. According to Sieber, a joint study by Money20/20 and Acrew Capital found that 80 per cent of leading financial institutions in Asia are already implementing AI initiatives, outpacing Europe and matching strides with the US.

However, the type of adoption differs. Markets such as Japan and South Korea leverage AI for high-tech applications within banking, while Indonesia’s super app ecosystem caters to a mobile-first, geographically dispersed population.

Also Read: How to revolutionise the banking and finance industry with Robotic Process Automation

Indonesia serves as a prime example. With its younger demographic and mobile-first (often mobile-only) users, super apps dominate as the primary interface for financial and non-financial interactions. The blurring lines between B2B and B2C services within these apps further underscore their role as a testing ground for AI-driven innovations.

Super apps have also emerged as crucial tools for addressing financial inclusion in underbanked regions. Many users in Asia interact with financial services through consumer platforms they already trust, such as ride-hailing or e-commerce apps. This inherent trust allows super apps to integrate AI-based financial tools seamlessly, reducing barriers for first-time users.

AI’s ability to analyse vast datasets becomes particularly valuable in these contexts. By examining users’ spending patterns, these systems can recommend financial products tailored to individual needs.

Sieber explains how AI could highlight better financial choices for users, such as optimising credit card rewards, a seemingly small change that can have substantial impacts for underbanked populations over time.

On efficiency and revenue generation

While efficiency remains a core objective of AI adoption in financial services, Asian institutions are increasingly exploring revenue-generating opportunities. Approximately 50 per cent of AI initiatives focus on creating new income streams, particularly in wealth management and customer support.

This dual focus enables financial service providers to not only cut costs but also expand their offerings, making them more competitive in a crowded market.

Super apps amplify these benefits by serving as integrated platforms where AI can be deployed at scale. From managing loan applications to offering personalised investment advice, these apps demonstrate the scalability and versatility of AI technologies.

Also Read: Debunking misconceptions about FinOps and cloud spending reduction

A broader perspective on innovation

The rise of AI in Asian fintech also reflects a broader commitment to innovation. Institutions such as Indonesia’s Mandiri Capital are combining financial services with sustainability initiatives, demonstrating a multi-tiered approach to driving economic and technological growth. By investing in regional startups and fostering AI development, they aim to bridge gaps in financial accessibility while accelerating technological adoption.

China, meanwhile, continues to lead in the development of AI technologies, especially in banking. From customer service innovations to AI-driven branch technologies, Chinese companies exemplify how super apps can redefine traditional banking operations. Their influence extends beyond national borders, serving as models for neighbouring countries and beyond.

Despite its successes, AI integration into financial services via super apps is not without challenges. Regulatory frameworks across Asia vary widely, posing hurdles for consistent implementation. Moreover, ensuring data privacy and building consumer trust remain critical issues, particularly as these apps handle sensitive financial information.

The future of AI in Asian fintech is undoubtedly tied to the evolution of super apps. These platforms, with their unparalleled reach and versatility, provide a robust foundation for AI-driven innovation. As the region continues to embrace AI at scale, the potential for creating more inclusive, efficient, and customer-centric financial ecosystems becomes increasingly apparent.

In this dynamic environment, super apps do more than serve consumers—they shape the future of financial services. By leveraging AI to enhance user experiences and drive business growth, they exemplify the transformative power of technology in one of the world’s most vibrant fintech landscapes.

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Image Credit: Money20/20

The post Super app remains primary driver of AI innovation in Asia’s fintech industry: Money20/20 appeared first on e27.

Estonia stands at the forefront of healthcare innovation, exemplifying a digital-first approach that has transformed its national health system. With nearly all healthcare services digitalised, Estonians benefit from secure, comprehensive access to their medical records. By leveraging robust infrastructure, data-driven insights, and one of the world’s largest biobanks, Estonia has become a model for personalised, predictive healthcare solutions. 

Estonia has set a groundbreaking example in digitalising healthcare, with 99 per cent of its healthcare system implemented digitally. Since 2008, when the government opened the Estonian National Health Information System (HIS), all healthcare operations across the nation have been stored within this system, ensuring patients’ health data is securely protected.

The system covers visit summaries, treatment plans, prescription medicine, referrals, diagnostics, analyses, dental records, medical procedures, discharge details, information about vaccinations, and a log-book overview, allowing patients to see who has accessed their data.  

All previously mentioned activities are digitalised, including an e-prescription system and a medical digital image bank. Estonia has designed its system with an opt-out model, meaning the patient has full access to their medical data and can control who sees it. As citizens own their health data, they have the right to question officials about viewing it for appropriate purposes. Patient records are only accessible to the healthcare professionals directly involved in their care. 

How does Estonia have the ability to build the world’s most advanced digital society? 

Estonia has a digital-first approach — all of our nationally provided services are digitally run and connected through central systems, allowing Estonian citizens to access them digitally, regardless of their location. Since 2001, the government has been developing X-road, a distributed data exchange layer for registers and information systems.

It is the backbone of e-Estonia, enabling Estonia’s public and private sector information systems to link and operate seamlessly. As a result, 99 per cent of public services are accessible online, 24/7.  

Also Read: How home-based care is changing the face of the health sector

The success of digital nation lies on the strong infrastructure Estonia has built, which supports different sectors — health, finance, education, defence, industry, environment, energy, and more. To support business growth, attract new entities and bring in new talent, Estonia launched the e-residency program in 2014 — being the first digital nation for global citizens.

Estonian unicorns also support the growth of new digital services, such as the remote verification system for notaries launched in 2020 in partnership with Veriff to securely enable remote authentication. The only thing not yet digitalised in Estonia is filing for a divorce, although it is likely to soon shift to a digital format as well. 

Technological advancements in Estonian Healthtech 

Estonia has made significant advancements in telemedicine, personalised medicine, and data-driven healthcare. Various telemedicine solutions are being used to reach patients in remote areas to provide equal and timely access to healthcare services.  

Estonia has one of the largest population-based biobanks in the world, consisting of the data of more than 200 000+ individuals, which is more than 20 per cent of adult population. This valuable resource enables the development of precision medicine solutions tailored to individuals’ genetic needs.

The primary goal is to design patient-centric systems by using genome data for predictive analysis, based on secondary data usage. In June 2024, Estonia launched My Gene Portal for genome donors, offering personalised genome information related to specific diseases, medication suitability and genetic background. 

Artificial intelligence (AI) is also gaining large interest in the field of Estonian healthtech, with companies exploring AI-driven diagnostics and treatment recommendations. The government actively supports the adoption of new AI technologies to streamline processes and improve diagnostic accuracy.

Also Read: How I nurtured and scaled a mental health ecosystem during the pandemic

Key trends in Estonia focus on the use of AI in clinical decision support systems, early detection of cancerous cells in the human body, elderly care solutions that help predict and enhance safety in environments like hospitals, antiviral drug discovery platforms, mental health support tools, and more. 

Future plans for Healthtech 

Estonia’s healthtech ecosystem is focusing on integrating AI and machine learning, particularly in preventive care and early diagnosis. There is a strong interest in developing solutions that predict emerging health risks, enabling more proactive management of the growing number of multimorbid conditions. This is closely linked to using genetic information for predictive activities’ secondary data applications. 

Another priority is enhancing cross-border healthcare collaboration. Estonia has already established partnerships with 13 EU countries to exchange e-prescriptions, with a broader focus on cross-border health data sharing. This initiative was launched in 2017 by European countries to sustainably facilitate health data exchange across Europe.

The aim is to strengthen regional hub, e.g. Tehnopol HealthTech activities to foster healthtech innovation that benefits from the collective expertise and resources of multiple nations. 

Additionally, cybersecurity in healthcare is a top priority. As healthcare becomes increasingly digitalised, so do the risks of data breaches and cyber-attacks. In 2023, according to one of the top telecommunication providers, Estonia experienced a 2600 per cent surge in cyber-attacks compared to the previous half year, with healthcare being the second most targeted sector.

In response, we need to actively design, implement and integrate safe and secure systems. Estonia is investing heavily in secure digital infrastructure to protect patient data, while also exploring new ways to safeguard health technology solutions against emerging cyber threats. 

Conclusion 

Estonia’s healthtech ecosystem serves as a model for how digital innovation can transform healthcare. With strong government support, a commitment to data-driven solutions, and a clear vision for the future, Estonia has reached the top of global healthtech advancements.

The country’s focus on AI, personalised medicine, and international collaboration provides a solid foundation for developing the next generation of healthcare technologies and alleviating healthcare challenges.  

While technology cannot replace healthcare professionals, it can effectively support them in precision medicine, clinical decision-making, diagnosis and treatment, leaving the final judgement for the healthcare professional. This support helps to save valuable time and also lives across the globe. 

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The post Showcasing the future of healthcare, the Estonian way appeared first on e27.