If the recent prevalence of Artificial Intelligence (AI) and Machine Learning (ML) shook up the fintech industry like an earthquake, compliance is the tsunami after. AI and ML are driving transformative changes across the fintech industry, with adoption rates continuing to rise. Despite a global decline, according to The KPMG Pulse of Fintech H2’23 report, AI fintech funding in Singapore skyrocketed to an impressive US$333.13 million in H2’23, as compared to the US$148.08 million recorded in H1’23.

The Asia Pacific region (APAC) is home to one of the fastest-growing fintech industries in the world and serves as the headquarters of numerous global and regional leaders. Over recent years, the fintech industry in APAC has experienced rapid evolution, driven by technological advancements and shifting consumer expectations for instant payments and digital access to financial services.

The region is on track to surpass the United States to become the world’s top fintech market by 2030, with a projected CAGR of 27 per cent. Amid this growth, AI has emerged as a key driver in fintech, transforming traditional fintech services with new capabilities for enhanced customer experience, automated services and predictive analytics. As fintech companies push the boundaries of innovation, it is crucial to ensure that regulatory frameworks evolve to keep pace with these advancements and address potential risks. 

Navigating the risks of AI in fintech

Despite promising advancements, the rise of AI in fintech introduces several critical risks that must be carefully managed. As AI becomes more embedded in financial services, it presents unique challenges that extend beyond traditional regulatory concerns.

Also Read: Five SaaS fundraising mistakes and how to avoid them

The increasing digitisation of APAC countries further heightens these risks, as the expansion of digital platforms and services lead to greater accessibility to malicious tools for digital fraud. AI-powered fraud, in particular, is becoming a significant threat, requiring vigilant oversight and adaptive regulatory frameworks to protect consumers and maintain trust in the financial system.

Deepfake technology, where Generative AI replicates a person’s likeness using videos, images and audio, saw a tenfold increase in deepfake cases from 2022 to 2023, posing significant challenges for identity verification and fraud prevention, especially in the financial sector.

Consequently, there is a stronger focus on security measures for fintech innovations being tested in regulatory sandboxes, including stricter consumer protection requirements and more rigorous compliance standards. Moreover, the rapid advancement of deepfake technology often outpaces regulatory updates, creating a “cat-and-mouse game” between innovation and oversight.

At the same time, AI systems often rely on vast amounts of sensitive data, making it crucial for data to be securely managed and protected from breaches. Misuse of personal financial information can have severe consequences for consumers and undermine trust in the fintech sector.

AI-powered solutions can enhance data security through multi-layered protection at different stages of the user journey. However, these tools require access to extensive datasets, which must be managed in compliance with data privacy regulations to prevent misuse and maintain consumer trust.

Shaping the future of AI-driven fintech through regulatory sandboxes

In 2020, there were approximately 73 sandboxes in 57 jurisdictions; By 2023, the number of sandboxes in Southeast Asia increased significantly, reflecting the region’s growing focus on fostering fintech innovation. Countries like Singapore, Australia, and Hong Kong, China are leading the way with regulatory sandboxes designed to support and oversee AI-driven innovations in fintech.

In Singapore, the Monetary Authority of Singapore (MAS) launched its first Fintech Regulatory Sandbox in 2016, which was later enhanced with the introduction of Sandbox Express in 2019 and Sandbox Plus in 2022, which allows fintech companies to test their solutions, including AI-driven technologies, with regulatory flexibility.

Similarly, the Australian Securities and Investments Commission (ASIC) Innovation Hub and Hong Kong Monetary Authority (HKMA) launched its Fintech Supervisory Sandbox (FSS) in 2016, which offers sandboxes where new financial technologies, including AI, can be tested under regulatory oversight. These sandboxes enable financial services innovators to experiment with new products and services with reduced regulatory constraints, offering greater flexibility and potential exemptions from existing rules.

Making AI in fintech a more level playing ground

Given the global nature of fintech, cross-border compliance is crucial for tackling AI security challenges. With APAC’s diverse digital landscape, countries are at varying stages of technological advancement, leading to significant differences in AI regulations across the region.

While countries like Singapore, Australia, and Hong Kong, are at the forefront of AI-driven fintech innovations, others like Indonesia and Malaysia are increasingly catching up. Indonesia is still in the early stages of developing a comprehensive regulatory framework for AI in fintech, with progress impeded by limited infrastructure and investment in AI research and development.

So far, the Indonesian government has issued ethical guidelines for AI use, such as the Ministry of Communication and Informatics’ Circular Letter No. 9 of 2023 on AI Ethical Guidelines and the Financial Services Authority’s (OJK) Ethical Guidelines on Responsible and Trustworthy AI in the Financial Technology Industry.

For Malaysia, the country has made significant strides in establishing regulatory sandboxes that support AI innovations. Specifically, the Malaysian Research Accelerator for Technology & Innovation (MRANTI), in collaboration with NVIDIA, launched an AI Sandbox Programme in April 2024. This initiative is part of the National Technology Innovation Sandbox (NTIS), which supports various sectors, including AI, to foster innovation and entrepreneurship in Malaysia.

Also Read: AI and healthcare: Navigating challenges and embracing the future

There is a need for more proactive policies and collaboration between regulators and the fintech industry to create a conducive environment for AI innovations. Despite these disparities, the frameworks established by leading nations in APAC offer valuable lessons and models for others to follow.

Singapore is effectively leading the region’s digital transformation by strategically positioning themself within international forums to shape global AI standards, ensuring that the region’s regulations are aligned with best practices.  This leadership provides a clearer direction for other countries in the region to expedite their AI development.

Balance is key to the sustainable fintech future

Navigating the balance between innovation and compliance is a pivotal challenge for fintech regulatory sandbox participants in Southeast Asia. As AI continues to transform the financial sector, regulatory frameworks must adapt to emerging risks while still encouraging innovation. To enable fintech companies to operate securely on a global scale, the region’s regulatory environment must emphasise data privacy, cybersecurity, and cross-border compliance.

The escalating threat of deepfake technology and other advanced fraud techniques calls for continuous vigilance and adaptation within regulatory sandboxes. In response, businesses should adhere to regulatory frameworks to safeguard their consumers and systems from malicious actors. Implementing robust identity verification and anti-fraud measures is essential to prevent financial fraud.

By embedding comprehensive compliance measures from the beginning, fintech innovators can effectively manage regulatory complexities while driving forward with new ideas. Striking this balance will not only safeguard consumers but also bolster the credibility and long-term viability of the fintech industry in the region. 

Disclaimer: The content provided in this article is for general informational purposes only. It does not constitute legal advice or financial guidance. While the author strives for accuracy and reliability, it is recommended that you consult with a qualified legal or financial professional to address your specific situation. The author disclaims any liability arising from actions taken based on the content published herein.

 —

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.

Image credit: Canva Pro

The post Balancing innovation and regulation: The rise of AI in APAC’s fintech sector appeared first on e27.

Deeptech gathers under a single terminological umbrella the technologies that are based on scientific breakthroughs and have the potential to be commercialised.

It covers the applications of artificial intelligence and machine learning, materials, advanced manufacturing, nanotechnology, drones and robotics, photonics and electronics, clean tech, and med tech. At their core, deeptech ventures are R&D intensive and multidisciplinary.

Deeptech is becoming global

Over the last decade, the volume of related financing with cross-border participation has increased sevenfold. But don’t make any mistakes.

It is only a fine-tuned and balanced mixture of scientific innovation, high talent density, and fast-growing industry that creates an ecosystem and an attractive location to scale deeptech startups and transform them into successful and sustainable businesses. The Bay Area, Boston, and Israel built their reputation of leading deeptech nodes by reuniting those three key pillars.

In this competitive paradigm, high talent density and diversity are paramount. The rhetoric of a global war for talent and the emergence of a new type of global meritocracy has mobilised many governments to change social and economic policies to attract and retain top talents.

Also Read: The reality of renewing your rent in Singapore

Singapore is no exception. In a small country without natural resources, human resources are the competitive advantage in the global marketplace, as the city-state jostles with the rest of the world for a slice of the lucrative pie in high-tech and high-value-adding service industries.

But instead of being overwhelmed by the tides of globalisation, the Singaporean government has always believed that it can anticipate and turn globalisation to its advantage. The city-state has continuously responded to the challenges of developing local talents, retaining them, and simultaneously welcoming and assimilating foreign professionals.

Early on, the country embraced the philosophy of attracting the best students and professors to craft world-class universities. Leveraging local job opportunities, many top global corporations set up their regional headquarters in Singapore, attracted by the general quality of the infrastructures, the solid foundations of the legal system, the country’s openness to international business as well as the cosmopolitan flavour of the city.

The Singaporean financial and technology ecosystem is now globally recognised. Foreign talent is not only an economic capital but also a symbolic capital that signifies that the pace of Singapore’s economic engine is a notch above others.

When it comes to deeptech, however, many of the best talents have contributed to others’ economies over the last decades instead of choosing Singapore first-hand. It is a facet of globalisation, enhanced regionalisation and industrial attractiveness that the city-state reflects and addresses.

While consumer tech, fintech and software-driven startups still largely dominate the local entrepreneurial landscape, deeptech has recently gained prominence, boosted by elite universities, a robust public stimulus, and the efficient ecosystem support of Singaporean governmental agencies.

Singapore is redefining the deeptech scene

Singapore is keen on refining a new taxonomy of roles, skills and aptitudes dedicated to deeptech. This valuable approach connects industrial strategy and operating model to people and skill requirements, which can be used to source and develop talent within and outside the country.

Thriving ecosystems do rely on future-proof approaches to workforce planning for talents. In the case of deeptech, far more than financial investments, knowledge, data, skills, expertise, contacts, and market access are all currencies that link ecosystem players.

Today, deeptech entrepreneurs in Singapore often find themselves in unfamiliar territory, while carving out CXO roles is complex. More high-level C-level executives and seasoned entrepreneurs will be key to having the ecosystem thrive.

Also Read: Unlocking deeptech for sustainable development: SDTA launches revamped venture building programme

Bringing a solid experience in deep science prototyping, pre-industrialisation and early industrialisation, those will be responsible for steering new ventures in the right direction, connecting projects with global B2B networks.

Obviously, the construction of business ecosystems is not new, but deeptech ecosystems are nascent and operating in emerging technologies and industries. Deep technologies can affect entire value and supply chains, requiring a different playbook to analyse the stakeholders’ interdependencies and value creation models.

Hard tech startups’ development cycles are rooted in the multi-stakeholder process of transitioning technology from a research lab to the market, differentiating them from digital ventures. As new commercialisation models emerge, Singaporean research institutions are reinventing their approaches to technology transfer and existing processes, creating new entry points for entrepreneurs and investors.

Final thoughts

The rise of these inspiring deeptech entrepreneurs and the ecosystem around them is one of the more exciting business developments of our time — and like other such developments, its impact will be felt far beyond the business itself. Obviously, not every society and city will succeed in this global competition for deeptech talents.

But the ecosystems that do will be those that look forward and look for ways of creating opportunities, new opportunities, for their populations. Regularly recognised as one of the top global nations regarding innovation capabilities, Singapore is well equipped to become one of these leading scenes in the years to come.

—

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

Image credit: Canva Pro

This article was first published on June 9, 2023

The post Unleashing the power: The fierce talent battle in deeptech innovations appeared first on e27.

As the world moves toward a cashless society, the digital payments revolution is reshaping how businesses and consumers interact. Southeast Asia (SEA), with its digital economy projected to hit US$100 billion and its young, tech-savvy population, stands at the forefront of this transformation.

By 2030, SEA’s consumer base is expected to grow to 623 million, becoming the fourth-largest economy worldwide. This demographic shift, coupled with increasing digital adoption, has created an ideal environment for the growth of digital payment solutions.

Yet, for these services to reach their full potential, payment service providers must prioritise accessibility, ease of use, affordability, and trustworthiness. Understanding these factors—and the broader global trends reshaping the payments industry—will allow businesses to adapt and thrive in an ever-evolving digital market.

The growing importance of digital payments for local and global users

Re-globalisation and the rise of digital financial services, such as digital wallets, are among the drivers of the digital economy’s growth. The world is generally moving towards re-globalisation, which has helped emerging markets step into the spotlight as global trade and digital commerce become more inclusive. Countries in Southeast Asia that were previously underserved or had underdeveloped payment infrastructures are now playing an increasingly important role in the global economy.

Simultaneously, domestic payment schemes ((like Indonesia’s DANA e-wallet)) have taken off in Southeast Asia over the past two or three years, with most being spearheaded by government initiatives such as unified QR payment codes to boost financial inclusion and reduce dependency on international payment systems. Within the past few months alone, payment systems in Vietnam, Cambodia, and Malaysia have announced new linkages to enhance cross-border capabilities. The rationale for developing local payment networks is to boost financial inclusion within the country as well as reduce dependency on international payment systems.

Also Read: Navigating fintech innovation: The role of regulatory sandboxes in APAC

In a globally connected economy, businesses expanding into new markets need flexible, seamless digital payment solutions to cater to local and international users. Cross-border transactions, once complex and costly due to currency conversion and regulatory compliance, are now simpler through platforms designed for real-time payments.

Challenges in implementing digital payment systems

As digital payments grow, so does the risk of cybercrime.  SEA has witnessed a significant increase in online scams, with companies in the regional reporting a 28 per cent rise in cyber threats. Cybercriminals are targeting digital transactions at an unprecedented rate, highlighting the urgent need for robust cybersecurity measures.

Payment platforms must employ advanced security protocols, such as biometric authentication and encryption, to safeguard against fraud. These measures not only protect users but also build trust, a critical factor for driving further adoption of cashless solutions.

Digital payments often span multiple jurisdictions, each with its regulatory requirements. Ensuring compliance across borders can be complex, and businesses must navigate these intricacies without compromising security or efficiency. Strong compliance frameworks within payment platforms allow for seamless cross-border transactions, ensuring that businesses operate within the law while maintaining smooth payment experiences for their customers.

To ensure seamless and compliant payment processing, businesses must prioritise a payment service provider with strong local payment capabilities, encompassing licenses, comprehensive payment method support, and in-depth local expertise.

Addressing these challenges requires a robust digital payment infrastructure that integrates advanced security and compliance features, creating a system that is resilient and capable of supporting sustainable growth.

Integrating value added services to enhance core competitiveness

Many companies expanding into new markets face challenges in navigating the local landscape. These challenges include understanding market dynamics, competitive landscapes, and complex regulatory environments, including entity setup, data privacy, and regulatory bodies. The need for a reliable payment partner becomes crucial.

Also Read: Innovating for impact: A better solution for household water treatment

To provide comprehensive solutions for businesses venturing into global markets, cross-border payment companies can expand their offerings beyond core payment services. By integrating value-added services such as risk management, foreign exchange (FX) management, payment marketing, and finance and tax support, these can empower their clients to navigate the complexities of emerging markets with ease.

Given the current global economic uncertainties, keeping a close eye on foreign exchange and risk management are critical especially in emerging markets. The heightened volatility of exchange rates presents a substantial hurdle for businesses. For example, the ongoing depreciation of the Rupiah in 2024, driven by geopolitical tensions and the strength of the US dollar, has created a challenging operating environment for businesses.

To address these challenges, payment platforms should offer robust exchange rate solutions to help clients mitigate potential losses arising from fluctuations. By providing regular market updates and accurate currency forecasts, these platforms can empower businesses to assess risks and implement proactive strategies to safeguard their financial health.

Meanwhile, payment platforms can proactively assess risks, classify preferences, and implement tailored risk mitigation strategies for different industry clients. PayerMax, for example, employs a robust anti-fraud system that operates across the entire transaction lifecycle, from initiation to completion.

This system leverages advanced AI and data analytics to identify and mitigate fraudulent activities, particularly in emerging markets prone to black market operations. By utilising sophisticated correlation analysis techniques, the payment platform can accurately pinpoint and control risks, safeguarding both businesses and consumers.

As businesses embrace the cashless revolution, secure, scalable, and flexible payment infrastructures will be key to staying competitive in the global digital economy. Integrating advanced technologies, maintaining compliance, and offering a seamless user experience will position businesses for success in the future of digital payments.

By investing in adaptable and trustworthy payment solutions, businesses in SEA and beyond can confidently navigate the complexities of the cashless economy and unlock new opportunities in an increasingly digital world.

—

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.

Image courtesy: Canva Pro

The post Navigating the cashless revolution: The future of digital payments and cross-border transactions appeared first on e27.

HiFeed, a startup focused on reducing the carbon footprint of cattle farming, has closed its pre-seed funding round, led by climate-tech venture builder Wavemaker Impact (WMi).

The investment aims to accelerate HiFeed’s innovative solutions designed to decarbonise cattle farming and transform livestock production into more sustainable and eco-friendly industries.

Also Read: SEA startup funding sees mixed results in December 2024

HiFeed operates on the principle that agricultural innovation is crucial in tackling climate change. The company is developing cutting-edge technologies and strategies to reduce the environmental impact of cattle farming, particularly addressing greenhouse gas emissions, with a focus on methane.

According to the company, livestock farming, particularly cattle farming, accounts for 9 per cent of global greenhouse gas emissions and is a major source of methane. HiFeed aims to significantly reduce methane emissions from cattle, improve feed efficiency and promote sustainable farming practices.

HiFeed’s approach is based on three core pillars: methane mitigation technologies, sustainable feed solutions, and carbon insetting solutions. The company is developing innovative feeds with anti-methanogenic properties and other technologies to enhance digestion and reduce methane emissions.

The startup is also investing in research to create nutrient-rich, eco-friendly feed options that lower the carbon intensity of cattle farming.

In addition, HiFeed provides tools that enable farmers to measure and reduce their carbon emissions, helping them to achieve net-zero targets while improving profitability.

Ihsan Akhirulsyah, founder and CEO of HiFeed, stated: “Cattle farming is a vital part of the global food system, but it also has a major environmental impact. Thanks to Wavemaker Impact’s support, we’re closer to revolutionising the industry with solutions that enable farmers to cut emissions while improving productivity. Our goal is to make decarbonisation not only accessible but also scalable and profitable for farmers worldwide”.

Also Read: What Asia’s smallholder farmers really need and why startups should lead this uncontested race

Wavemaker Impact shares HiFeed’s mission to drive sustainability in agriculture. Guillem Segarra, Principal at Wavemaker Impact, said, “Early results from HiFeed’s pilot projects have demonstrated promising outcomes—feed costs for farmers have lowered, alongside improved cattle growth rates. With Ihsan’s experience and passion for agritech, we’re confident in HiFeed’s potential to transform food systems in Southeast Asia and beyond.”

HiFeed plans to expand its research and development efforts, enhance its technology infrastructure, and scale its solutions to reach farmers in key regions.

The post HiFeed aims to revolutionise cattle farming with pre-seed funding appeared first on e27.

In the early days of the internet, known as Web1, users could only read the information presented on websites. This changed with Web2, where users could create content, but it was stored on platforms owned by major companies. Now, with the rise of Web3, users can both read and write content that they truly own, gaining control over their digital assets.

As the Web3 ecosystem expands, everyone — users, creators, builders, and investors — stands to gain. This sense of ownership encourages more people to engage with and invest in alternative cryptocurrencies or altcoins, which are becoming crucial to this new digital landscape.

Why is there confusion in the world of altcoin?

However, the world of altcoin might leave investors confused. Altcoins are largely unregulated and poorly understood. At the same time, they might be scared due to past incidences in the altcoin scene. For example, the OneCoin altcoin crypto scam between 2014 and 2017 duped investors of over SG$5 million (US$3.66 million).

Alternatively, investors might be worried of its volatility, as the price of Ether, the digital currency of Ethereum (ETF)’s blockchain network, plunged over 50 per cent in 2021 when it had seemed to be doing well.

The confusion on altcoins is apparent with studies such as the S. Rajaratnam School of International Studies’s “Altcoins: Hidden Gems or Outright Scams?” as recent as July 2021. This in turn has led to altcoin market capitalisation (SG$77.5 million) being only
4.31 per cent of BTC’s market capitalisation (SG$1.8 trillion), highlighting the lack of appetite for altcoins in comparison to Bitcoin.

How can we understand the value of altcoins?

Many investors still struggle to see the broader value of cryptocurrencies. While some institutions recognise Bitcoin as a hedge against inflation, many in the general public only view it as a speculative asset driven by memes. Bitcoin is certainly a store of value, but the real potential of cryptocurrencies lies in their ability to support on-chain applications and verify data assets.

Each cryptocurrency has a specific role to play. Bitcoin mainly acts as a store of value, and we’re seeing more countries and companies start to hold it as a reserve asset.

Meanwhile, ETH powers smart contracts, NFTs are transforming the art market, and stablecoins are bridging gaps in traditional finance. Decentralised Autonomous Organisations (DAOs) offer a new way for groups to govern themselves democratically. Yet, many aspects of currency remain untapped, pointing to a bright future for altcoins.

Also Read: Embracing AI and cryptocurrency: Is Hong Kong too ambitious?

Why has there been a change of attitudes towards altcoins in recent times?

Recent trends suggest a shift in perspectives towards altcoins. This may be driven from investors realising the market potential that altcoins have. The potential for growth in the altcoin market stems largely from the fact that many altcoins are still untapped. The growth rate of the altcoins’ mining market is also faster than Bitcoin’s as new projects continue to emerge in the Proof of Work (PoW) space, and with a significant number of unmined altcoins still available, there is considerable room for expansion.

At the same time, we have seen over the last decade that the proportion of Bitcoin’s market cap in the total crypto market has been declining, which indirectly highlights the market potential of altcoins. Indeed, we have seen that in the first half of 2024, the market cap of altcoins increased by 77 per cent.

Key milestones of positive reception of altcoins in recent times

This change of attitudes towards altcoins has led to the US Securities and Exchange Commission (SEC) approving the first ever spot ETF Exchange Trade Funds (ETF) in July 2024. We also saw that ETF providers on the exchange, such as Blackrock, saw net inflows on their ETF of over SG$460 million (US$337 million) in just three days from the ETF ETH approval.

Furthermore, experts feel that the approval of ETH ETFs can lead to a boom in the performance of altcoins. It allows everyday investors to dip their toes into the altcoin market for the first time by legitimising ETF as an investment asset.

It can also drive substantial capital flow and alter the mindset of traditional finance players who are now looking at launching another altcoin ETF, the Solana ETF. Intchains Group Limited (ICG), as a scarce publicly listed company focused on mining chip development can share some tips on how to seize the opportunity.

Researching altcoins

Miners should start by learning about the new narratives and watching the dynamics of  KOLs in the cryptocurrency industry. For example, meme coins such as Dogecoin that once saw a huge rise of 30 per cent in October 2024 after being mentioned by Elon Musk on X.

It is also important to keep an eye on emerging technologies such as Zero-Knowledge Proofs (ZKP) and Homomorphic Encryption (HE) in altcoins. ZKP and HE enhance privacy, security, and scalability by enabling confidential transactions. At the same time, they help to strike a balance between confidentiality and verification requirements in digital interactions. Having an understanding of such emerging technologies enables you to identify opportunities and make informed investment decisions.

Legal and tax considerations are equally important. Regulations vary widely by country, with some nations imposing strict bans on cryptocurrencies. For example, Denmark plans to tax unrealised gains on digital assets starting in 2026. Staying updated on legal
frameworks can help miners avoid pitfalls.

Researching on altcoins can sound daunting. Seasoned investors rely on trusted sources such as crypto news sites and follow KOLs on platforms like Telegram and X. As a prominent player in the blockchain scene, ICG also often shares industry insights on its social media channels to help investors remain informed on the latest development trends of altcoins.

Selecting the right mining hardware

Choosing the right mining hardware is critical for success in altcoin mining. Different cryptocurrencies use various algorithms, so it’s vital to select ASIC (ApplicationSpecific Integrated Circuit) hardware that matches the chosen altcoin’s algorithm.

It is perfectly normal to seek expert advice on software and hardware selection. ICG, a designer of altcoins ASICs and a corporate accumulator of ETH, frequently shares insights to help customers align their mining hardware with their altcoin strategies, focusing on aspects like mining power and energy efficiency.

Also Read: The rise of crypto ETFs: A new dimension in investing

Setting up a secure wallet and network

Mining can be done through solo or pool mining. Solo mining has the potential for higher rewards but also carries significant risks. In contrast, pool mining combines computational power, offering more consistent returns. When it comes to securing assets, cold wallets are typically the safest option. Distributing funds across multiple wallets and pools can also enhance overall security.

Maximising mining rig performance

To boost mining efficiency, miners should consider focusing on altcoins that haven’t yet achieved high network hash rates but show promise. Upgrading from GPUs to dedicated ASIC chips, choosing energy-efficient hardware, and operating in areas with favourable electricity costs can all lead to better performance.

Investing in altcoins is like panning for gold; it requires a deep understanding of emerging technologies and crypto applications. With clearer regulations, positive market trends, and a wider range of altcoins, there’s substantial growth potential ahead.

In conclusion, as we step into 2025, the world of altcoins invites those willing to look beyond Bitcoin. By understanding the unique features of altcoins and taking a strategic approach, investors can seize the opportunities that lie ahead in this dynamic crypto landscape.

—

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.

Image courtesy: Canva Pro

The post Navigating the future of crypto: How can we truly tap into the blue ocean of altcoins as we step into 2025? appeared first on e27.

Global employment solutions provider Employment Hero has announced the acquisition of Humi, a leading Canadian employment platform, in a deal estimated to be worth over CAD100 million (US$69.6 million).

This acquisition marks a significant step in Employment Hero’s global expansion strategy, specifically in the Canadian market.

The deal will combine Employment Hero’s global innovation and Employment Operating System (eOS) with Humi’s deep understanding of the Canadian market. This partnership aims to create a localised solution for Canadian businesses.

Also Read: Employment Hero rakes in US$167M to accelerate global expansion

Thousands of Humi’s small and medium-sized enterprise (SME) customers will gain access to an all-in-one platform for payroll, HR, and benefits specifically designed for the Canadian business landscape. The companies aim to double their customer base in the near future, solidifying their position as a leader in employment management solutions within the region.

Canada, with over one million SMEs, represents a significant opportunity for improved productivity amongst employees and employers. This partnership is expected to fuel further product innovation as Humi grows to meet the evolving needs of Canadian businesses.

Humi has been developing employment solutions for almost a decade, focusing on valuing, supporting, and inspiring employees based on the idea that businesses thrive when they prioritise their people.

Ben Thompson, CEO and co-founder of Employment Hero, said: “The Humi team has a deep knowledge of Canadian employment and an impressive track record of supporting businesses in Canada. Humi will remain Canadian-operated, and their team will continue to serve the unique needs of local businesses.”

Employment Hero’s eOS integrates HR, payroll, recruitment, and employee engagement tools. Serving over 300,000 businesses and managing over 2 million employees worldwide, Employment Hero aims to reduce administrative burdens, allowing businesses to focus on growth and employee engagement.

In October 2023, Employment Hero secured SGD229 million (~US$167 million) in a Series F growth round of financing for global expansion in 2023. Led by global growth fund TCV, the round also saw participation from existing backers Insight Partners, AirTree, Seek, and OneVentures.

Also Read: When your employer is quietly quitting you: The untold perspective

Since its inception in Australia in 2014, Employment Hero has expanded to New Zealand, the UK, Malaysia, and Singapore

Humi is known as a comprehensive employment platform for Canadian businesses, focusing on providing a unified payroll, HR, and benefits solution.

The post Employment Hero expands to Canada with US$69.6M acquisition of Humi appeared first on e27.

Indonesian e-commerce platform Bukalapak has announced a significant strategic shift, moving away from the sale of physical products to concentrate on its virtual offerings.

The company, which has been evolving since 2021 into a broader e-commerce platform, will gradually discontinue physical product sales starting in February 2025.

It is not immediately clear what virtual products the company plans to sell. We have reached out to the company seeking details.

This move is part of a broader transformation that has seen Bukalapak expand into areas such as virtual products, gaming, retail, investment, and Mitra Bukalapak services. The company stated that this pivot is essential to ensure long-term sustainability and competitiveness, noting changes in market dynamics and industry competition.

This plan was initially disclosed in an Information Disclosure announcement in late October 2024.

Also Read: Bukalapak spills the secrets on building a high-performing mobile development team

According to an official statement, the discontinuation of physical product sales will not materially impact revenue, as these sales account for less than 3 per cent of the company’s total revenue. Instead, the company views this change as a way to achieve positive EBITDA and maintain a healthy and profitable business.

Bukalapak will continue to operate its marketplace platform, including its app, website, and Mitra Bukalapak services, for its existing services.

The company believes that this strategic focus on virtual products will strengthen its position in the digital ecosystem. Bukalapak has also been developing new business lines such as Mitra Bukalapak, Gaming, Investment, and Retail over the past few years, which are seen as having positive business prospects.

Bukalapak has emphasised its strong financial standing, reporting cash reserves of IDR 19 trillion as of Q3 2024. These funds will be used to support the growth of the company and its subsidiaries.

The e-commerce firm will support its sellers by providing various guides and resources to ensure a smooth transition. The company also assures that customer rights will be upheld throughout the transition process.

Bukalapak’s decision reflects a significant shift in its business strategy to focus on higher growth potential areas within the digital ecosystem. The move signals the company’s intention to remain a key player in the industry by focusing on virtual products and services rather than physical goods.

Since its inception in 2010, Bukalapak has raised US$584 million in venture funding from over two dozen investors, including Microsoft, GIC, Emtek, SC Ventures, NAVER, BRI Ventures, Mandiri Capital Indonesia, Bank Rakyat Indonesia, Mirae Asset Global Investments, Ant Group, and Endeavor.

The post Bukalapak to shift focus from physical goods to virtual products in strategic overhaul appeared first on e27.

Visiting a friend with younger children, I had the excruciating moment of re-discovering stepping on a LEGO block. As I gouged out this little red block of sharp angles and contemplated it, I realised this toy and brand have been with me my entire life, and it looks exactly the same as when I played with it (which is definitely a few years ago).

It is such a simple design and idea, and yet it has persisted as one of the largest toy companies in the world. As I googled, I saw this Danish company’s US$9.7 billion revenue had “out-paced” the toy industry.  I also realised it had been around since the 1930s.  The actual patent expired in 1989.

So how has such a simple, aged toy maintained such a dominant position in the “Plastic Construction Toy” category?   And how has a Danish company with a small domestic market driven this global success?

Take a step back and ask where you have seen LEGO recently. As a Star Wars kit? As an amusement park experience (LEGOLAND)? At the Levi’s store, embedded into a jean jacket? At a retail mall with models on display? As a combined online and offline interaction? The answer is correct for all. And it is only the tip of the iceberg of where and how LEGO shows up in its ecosystem.

LEGO is not just plastic construction toy, it is an entire experience around their key sub-brand “Bricks World”, enabled primarily via a clear and compelling Ecosystem Strategy.

Think about the LEGO joint branding and marketing deals with the biggest brands out there. They don’t go small with their marketing alliances. It’s Disney (including Star Wars and Marvel Comics), Warner Studio (which also includes DC comics), Adidas, IKEA, or Levi’s. They do deals with governments for LEGOLAND (Malaysia, Dubai, USA, Germany, Japan). It’s education-oriented, similar to NASA or the Museum of Modern Art (MOMA).

But it’s also the huge digital component of the experience.   It’s offline but online as well, with over 180 video games released.  It’s “LEGO Star Wars: The Video Game”, but it’s the fluid experience across physical (retail, community, leisure park), online, and physical home-play.

“The entire Lego ecosystem is actually, I think, only at the beginning. So, it’s less about just creating an e-commerce store or an online store. It is really about this entire digital ecosystem and creating that future,” said LEGO CEO Niels B. Christiansen.

Also Read: Lead, don’t follow: The essential guide to category creation and market domination

It is clear that LEGO is executing an experience ecosystem strategy. They are the orchestrators for this and have a clear strategic intent to continue evolving this experience and ecosystem and to continue dominating the Plastic Construction Toy category.

From blocks to chips

Let’s shift our thinking from plastic interconnecting blocks to the more complex semiconductor chips.  Whether you know it or not, the smartphone device you currently have in your hand or beside you invariably has most of its chips linked to the company Advanced RISC Machine (ARM).

In fact, 90 per cent of smartphones produced globally have ARM designs in them (and thus pay royalties to ARM). For “higher-end smartphones”, the market penetration and share are an astounding 99 per cent.

As a global success story, driven by a UK based company, it has been largely driven by an ecosystem strategy, but one with a very different nuance than LEGO’s.

This category and ecosystem of “Processor IP” has brought together silicon, system and software companies to ship more than 250 billion ARM-based chips to date.  These players are often ruthless competitors (Apple and Samsung for example), but participation in the ecosystem means “the sum is greater than the parts” and specific benefits arise. Joint research into chip design benefits all players involved, even though they also compete with each other.

This is a design ecosystem that was built by ARM and continues to dominate.

“Ecosystem strategy” is eclipsing “platform as a strategy”

The above ecosystem examples go beyond the traditional model of a business network of suppliers, partners and customers. However, it also goes beyond the more recent models around a managed platform of products and services.

In both the LEGO and ARM cases, the domestic market and country of origin have not held back the success of the company but have, in fact, induced a “think different” approach around their category and ecosystem.

Also Read: Leading the category, then losing it all: What WeWork can teach us

Don’t find your tribe, build it

So, how do I get started with this design thinking and strategy?

Start with the category you are in or want to be in. What problem are we solving? What entire experience are we delivering? How can we tell a great point of view that leads with this perspective (and doesn’t immediately lead with your product or company)?

A category (or ecosystem) cannot exist as one company. Categories and ecosystems feed off of each other. Visualise (draw) the ecosystem with your company as one slice of it, but what other players/components/influencers are there?  Does this visualisation truly describe both the category and ecosystem?

What role will you play in the ecosystem? Will you be the instigator? Or do you believe you can be the orchestrator? Think carefully—the resourcing required to truly be the orchestrator and to maintain that role is substantial.

How will information and knowledge sharing occur and be managed across the ecosystem? Can you add this to the visualisation?

How do data, transactions, or the experience flow?  Will there be transaction and data sharing?

How will business and technology innovation occur via the ecosystem?

By designing and catalysing this category and symbiotic ecosystem, how big does it get?  What new economics are created (beyond the basic TAM (Total Addressable Market) of the existing market)?  How do participants in the ecosystem benefit?

Admittedly, these are rudimentary questions that require a lot of thought and delivery on very complex issues.  But start there and do not let your geo, market, or thinking hold you back.  It is about designing a category, ecosystem, and global levels!

Lead, don’t follow!

It has been my  privilege to work in, and with, companies who are truly designing and dominating their category, with the ecosystem strategy at its very heart.  Carpe Diem!

—

Are you ready to join a vibrant community of entrepreneurs and industry experts? Do you have insights, experiences, and knowledge to share?

Join the e27 Contributor Programme and become a valuable voice in our ecosystem.

Image credit: Canva Pro

This article was first published on July 30, 2024

The post Small country and market? Punch heavier with an ecosystem strategy appeared first on e27.

Corporate buyers, much like individual consumers, now expect quicker decision-making and tailored solutions that address their immediate needs. With more stakeholders and complex requirements involved, the B2B sales process has become longer and more intricate, making it essential for businesses to adapt to these shifting expectations.

In the security technology industry, AI-powered surveillance systems are gaining significant traction. In 2023, the demand for these systems saw a spike, with businesses increasingly adopting them to enhance both their operational and security needs.

Companies like i-PRO, a provider of advanced AI-powered surveillance solutions, have witnessed this shift firsthand. To meet this growing demand for more efficient, data-driven security, they are leveraging edge AI processing in CCTV cameras to enable real-time data analysis.

This approach reduces reliance on cloud-based systems and addresses businesses’ needs for quicker, more accurate security measures. It also highlights the growing pressure on suppliers to adapt to evolving demands, such as clients seeking more tailored solutions.

However, this shift has also led to a growing involvement of multiple decision-makers in the procurement process, resulting in longer closing cycles. Aligning the interests and balancing the requirements of various stakeholders often delays decision-making.

Companies are now challenged with securing deals in an environment where each stakeholder has differing views on a technology’s capabilities and requirements. As a result, companies are finding it increasingly difficult to navigate these complexities while staying competitive.

The need for new strategies

Technological advancements have changed the way sales strategies work: you can now reach a wider audience at a faster rate. The adoption of AI technology in retail, such as sales automation, has streamlined processes, benefitting both customers and companies alike. Companies must therefore continuously innovate to remain competitive, learning to balance advancing technology with the practical, often immediate, needs of buyers.

Given the challenges in the B2B sales environment, staying adaptable is crucial in response to shifting buyer behaviour, technological advancements, and longer decision cycles. Therefore, it is important to align business strategies with these evolving market demands and technological trends.

Also Read: The long and winding road to e-commerce profitability

This is where education and upskilling comes in.

For students at PSB Academy, access to information on emerging trends like AI, digital marketing, and data analytics is vast. Courses such as Global Business (Top-up) are designed for professionals aiming to start a career in management, covering areas like strategy, marketing, project management, and entrepreneurship.

More importantly, for established professionals in the industry looking to enhance their skills, the course prepares them to address the complexities of modern B2B sales. By learning from real-life case studies and industry experts around the world, PSB Academy helps adapt their approach to meet the needs of diverse stakeholders and ever-changing demands.

Staying adaptable in a rapidly evolving market means providing learners with growth and security in their careers.

As the demands for personalised, efficient, and data-driven solutions continue to grow, companies that fail to innovate risk falling behind. The key to success lies in continuous adaptation and a commitment to understanding and addressing the complexities of today’s B2B buying environment.

Businesses must embrace adaptability, invest in digital sales and marketing tools, and prioritise ongoing employee training to keep up with these changes. This means staying ahead of technological advancements, aligning with diverse stakeholder interests, and maintaining a customer-first approach to sales.

—

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.

Image courtesy: Canva Pro

The post Adapting to the new B2B sales landscape: AI and beyond appeared first on e27.

The post Bridging the financial inclusion gap in Asia: The role of fintech appeared first on e27.