Posted on

Echelon: Charting a path for Southeast Asia’s fintech unicorns

Echelon

Andrea Baronchelli, Co-Founder and CEO of Aspire and Sheryl Chen, Head of Content, Asia, for Money20/20

Use our special promo code: GO for 75% off your Echelon tickets!

The 2023 Echelon Asia Summit is happening at the Singapore EXPO on 14-15 June 2023. Are you a startup founder, investor, corporate, or tech enthusiast? Don’t miss out on one of the most anticipated tech conferences in the region! For more information, visit the official Echelon page.

In Southeast Asia’s dynamic tech ecosystem, we have witnessed the region’s digital economy grow at an impressive pace, accompanied by a rapidly expanding middle class and supportive regulatory policies. As a result, Southeast Asia has become an ideal ecosystem for innovations across different verticals.

With its increasingly potent digital economy and wider internet penetration, the region has become ripe for fintech startups to flourish, giving rise to multiple fintech companies addressing gaps and challenges in the financial space. With all this promise and room for exponential growth, it begs the question: “What will it take to build Southeast Asia’s next fintech unicorn”

The pursuit of Southeast Asia’s next fintech unicorn is an ongoing endeavour, as the region continues to evolve and present new opportunities, as well as challenges to address. Building the next fintech unicorn demands a unique blend of strategic vision, adaptability, and execution prowess. It requires navigating a diverse array of markets, regulatory frameworks, and cultural nuances. So, what does it truly take to establish Southeast Asia’s next fintech unicorn?

Also read: Unleashing growth, learning, and networking at Echelon 2023

Firstly, we must understand the complex world of fintech and the fundamental factors that play a pivotal role in the journey towards creating a fintech unicorn in Southeast Asia. We must explore the ever-evolving landscape of the region’s fintech ecosystem, untapped market potential, the technological advancements shaping the industry, and the critical strategies that aspiring startups must embrace to gain a competitive edge.

By drawing insights from industry experts, investors, and successful fintech entrepreneurs, we uncover the essential ingredients needed to navigate the Southeast Asian market not only as a terrain for burgeoning tech startups to explore but also for everyday consumers to navigate. From forging strategic partnerships and fostering collaborations to addressing financial inclusion challenges, we must examine the multi-faceted nature of the region and the valuable lessons we can learn from those who have triumphed.

Answering the important questions

To start with, what exactly is a unicorn?

In the business and startup world, a unicorn refers to a privately held startup company that has reached a valuation of $1 billion or more. The term “unicorn” was coined to represent the rarity of such companies, as they were once considered to be mythical creatures in the investment landscape.

These unicorns are typically disruptive in nature, leveraging innovative technologies or business models to address significant market gaps or meet emerging consumer demands. They often attract substantial investments and garner attention for their potential to become market leaders or have a significant impact on their respective industries. Some of the most recognisable unicorns in the region include Grab, Gojek, Traveloka, and many others.

Just like these companies operating across different verticals, fintech startups in the region aim to address pressing challenges faced by everyday consumers — whether it is in the form of daily transactions or in the form of broad digital inclusions. Fintech startups play a pivotal role in expanding financial inclusion by leveraging technology and digital platforms. They provide previously underserved populations, particularly in emerging markets, with access to banking services, digital payments, affordable loans, and investment opportunities. This democratisation of finance empowers individuals, small businesses, and entrepreneurs to participate actively in the economy, reducing inequality and driving economic growth.

Also read: Meet the 18 investor-judges for this year’s TOP100 Program

Moreover, fintech startups challenge traditional financial institutions by offering innovative alternatives to traditional banking and payment systems. Digital wallets, peer-to-peer lending platforms, and robo-advisors are redefining how financial services are accessed and consumed. This disruption fosters healthy competition, driving down costs and enhancing transparency. Consumers benefit from more affordable and tailored financial products and services, as fintech solutions reshape the industry.

What ultimately sets fintech startups apart from traditional financial institutions lies in automation and digitisation. Fintech startups leverage technologies such as artificial intelligence, blockchain, and cloud computing to streamline processes, reduce paperwork, and enhance operational efficiency. This leads to cost savings for both financial institutions and consumers. Transactions become faster and more secure, while administrative tasks are automated, allowing for more efficient use of resources and improved customer experiences.

With such a massive impact also comes great strides not only on an operational level but also on a regulatory one. Reaching a unicorn status is no easy feat for startups in the fintech space. Several factors contribute to the challenges they face such as trust and customer adoption, capital intensiveness, competitive landscape, scalability and profitability, as well as compliance risks and regulatory hurdles that make it hard for fintech startups to cross borders — largely due to the strict and varying regulatory models specifically set for monetary movement across different territories.

Learning from the experts

With all these complex issues surrounding the topic, we turn to leading experts to fully diagnose the state of fintech in the region and to answer questions on how fintech startups must strategise as they gear for unicorn status. As such, the Echelon Asia Summit will be featuring a special fireside chat on the topic, “What will it take to build SEA’s next fintech unicorn?” with guest speaker, Andrea Baronchelli, Co-Founder and CEO of Aspire.

Aspire is the all-in-one finance operating system for new-age businesses that helps companies save time and money with borderless payments, corporate cards, expense management, and more. Their mission is to empower the next generation of entrepreneurs with the financial tools they need to realise their company’s full potential. Headquartered in Singapore with offices in Indonesia and Vietnam, Aspire is backed by some of the world’s best VCs, including Y-Combinator, dubbed as the number 1 startup incubator in the world.

Describing himself as an “entrepreneur at heart,” Andrea loves finding solutions to challenging problems, getting things done, and managing hyper-growth products. Apart from his role steering the ship for Aspire, he has also previously taken on roles for various other companies, such as the Chief Executive Officer and the Chief Marketing Officer for Lazada Group, as a Global Venture Development officer at Rocket Internet SE, and as an Investment Banking Analyst for Consumer Goods & Retail at Jeffries, among many others.

Also read: Echelon: Empowering Southeast Asia’s HealthTech revolution

With his plethora of experiences in fintech and beyond, Andrea will be bringing his expert insights and key industry knowledge to this year’s Echelon Asia Summit. He will also be joined by Sheryl Chen, Head of Content, Asia, for Money20/20. Money20/20 is a pioneer when it comes to organising the largest global events enabling payments and financial services innovation for connected commerce at the intersection of mobile, retail, marketing services, data, and technology.

Echelon Asia Summit 2023

Get to know these experts and more at this year’s Echelon!

Echelon Asia Summit 2023 is happening on 14-15 June, at the Singapore EXPO. Featuring a slew of speakers, exhibitors, business matching sessions, pitching stages, and more, the event enables participants to connect, network, and engage with the larger tech startup ecosystem.

At the Echelon Asia Summit, participants get the chance to attend a diverse range of sessions, including keynote speeches, panel discussions, and workshops, all exploring exciting topics like AI, blockchain, e-commerce, fintech, and marketing. You’ll also have the opportunity to join networking sessions and meet-ups where you can connect with fellow entrepreneurs, investors, and industry leaders.

To learn more about Echelon Asia Summit 2023 and sign up for the event, visit the official page here.

The post Echelon: Charting a path for Southeast Asia’s fintech unicorns appeared first on e27.