Dave Ng
Netbank’s Series B, led by Singapore’s Altara Ventures, signals a subtle but important shift in Southeast Asian fintech: investors are betting less on flashy consumer apps and more on the regulated banking plumbing that makes those apps possible.
In a market where compliance, bank integrations and product rollouts remain slow and finicky, Netbank’s rural banking licence and steady B2B traction convinced Altara to double down.
Also Read: What stands in the way of fintech growth in Asia?
We asked Dave Ng, General Partner at Altara, why his firm chose Netbank now, what separates genuine fintech infrastructure from mere “API” buzz, and how investors underwrite the messy trade-off between regulatory defensibility and execution risk. His answers reveal why patient, execution-focused founders — not growth-for-growth ‘s-sake product teams — may hold the keys to the next phase of Philippine fintech. Below is our full Q&A.
Fintech infrastructure is not exactly a fashionable category in tougher funding markets. Why lead this round now, and why Netbank specifically?
It boils down to a specific company or business, because each is unique, and a big part of that is due to the people behind it. As a category, it may take businesses longer to show results because, when you are building a platform or infrastructure, your go-to market is often B2B. Hence, it takes time to get customers: to convince them to try, onboard them for proof of concepts (POCs) and eventually convert to real paying customers. And very often, it is determined by how well you can execute.
We are seeing this in Netbank: their ability to turn ideas into real products and services and to gain good customer traction. They are now looking to scale further, and we believe it is a good time for us to join and value-add along the journey.
Netbank is building on a full banking licence, which creates both advantages and regulatory complexity. As an investor, how do you underwrite that balance between defensibility and execution risk?
To be clear, they already have a rural banking license. Hence, less so of building on a full license. As with most businesses, the differentiating success factor lies heavily with execution capability. The risk doesn’t go away, but we are encouraged by how the Netbank team has been thinking about their business strategy, future opportunities and how they have consistently navigated ups & downs and grown the business. I think the ability to be creative, to be resilient in handling challenges, and to be focused on delivering successful customer stories are very important to any startup. We see these qualities in them.
What are the biggest risks to this thesis from here: regulatory change, credit exposure from embedded lending, slower partner adoption, margin pressure, or competition from incumbents waking up?
Execution risk and continuing to be a good and responsible ecosystem player.
Many venture firms say they back infrastructure, but many still prefer consumer-facing growth stories because they scale faster and are easier to market. Why do you believe the real long-term value in Southeast Asian fintech may sit deeper in the stack?
There are always winners across the stack. I don’t favour one over the other. Rather, in every team and company, I look for certain core principles that I believe are essential as a starting point, and putting that against the track record will tell me how likely (or not) they could succeed.
Also Read: SEA’s fintech boom: Market demand is real, but the numbers need context
Being consumer-facing is typically associated with speed to scaling. But entrepreneurs will need to get the economics right, which is often a struggle in the region. Going deeper into the stack often puts you in the B2B or B2B2C territory. That means you need the grit, stamina, and efficiency to run an enterprise GTM motion. But if you do that successfully, your customers are sticky, and every new logo you onboard successfully builds on a stronger and stronger base.
The post “The risk doesn’t go away; execution decides everything”: Altara’s Dave Ng appeared first on e27.