With 1.7 billion people around the world unbanked or underbanked, there is still much to do to bring the underserved into the financial mainstream. Access to finance and the formal economy can unleash economic opportunities and raise standards of living for the underserved.

This is especially true in Southeast Asia. According to the World Economic Forum, six in 10 people in this region are unbanked or underbanked today. In Vietnam, it’s as many as seven in 10.

AI is transforming industries at a rapid pace, and Southeast Asia’s consumer finance landscape is no exception. By speeding up data collection and analysis, these technologies enable quicker pre-lending assessments and lending procedures. Lenders benefit from enhanced efficient risk management and streamlined processes and can now serve customers who were previously unbankable due to a lack of credit history.

However, there are two drawbacks to AI that have to be carefully considered.

First, automated processes can speed up decision-making and enable access to finance but are not perfect solutions. For example, AI assumes a borrower’s creditworthiness on standardised characteristics, which can exclude borrowers that don’t always fit, especially when you’re credit invisible. If the data sets used to train the AI system are biased, it may also lead to skewed processes that may treat prospects and borrowers unfairly.

Secondly, technological advancements have also led to a surge in unregulated lenders. Indonesia had around 150 registered P2P lenders before President Joko Widodo ordered a moratorium on permits for fintech lenders in 2021 to clean up the sector.

The Reserve Bank of India found that more than 600 of the 1,100 digital lending applications operational between January 2020 and February 2021 were unregistered and illegal, which unnecessarily hinders the progress of financial inclusion.

There are two key principles lenders should consider increasing more safely and sustainably to ensure the development of the sector: responsibility and financial literacy.

Responsible lending practices

To achieve financial inclusion, we need to ensure the consumer finance industry is properly regulated and doesn’t harm populations already at risk. Without government oversight, predatory lenders may intentionally introduce products with unfavourable terms and engage in deceptive and coercive practices.

These could include providing misleading information about terms and conditions, exorbitant hidden fees and penalties, or illegal and unethical debt collection tactics, such as harvesting data from phones to harass debtors when they are unable to repay their loans.

Also Read: How Salmon aims to promote financial inclusion with AI banking in the Philippines

People with limited financial knowledge are most likely to fall into these traps, perpetuating a vicious financial cycle and creating further financial distress for these vulnerable populations.

Unregulated lenders also exploit AI to speed up the lending process, giving less time for borrowers to make informed decisions and making them more susceptible to debt traps. Automated processes reduce transparency in application processing, making it harder to detect discrimination or predatory lending targeting specific groups.

As technology and the economy evolve, consumers need even better protection from the growing array of complex financial products. That’s why government oversight is needed.

Regulated financial services can offer access to sustainable and responsible credit products in ways that can be supercharged by AI. For example, combining AI with traditional credit bureau data helps lenders to balance risks and maximise financial inclusivity, ensuring loans are offered responsibly based on repayment capabilities.

Home Credit has embraced this type of lending model – for instance, 42 per cent of its customers in 2022 were first-time borrowers using regulated financial services for the first time. This was a 19 per cent increase from 2021.

Responsible lenders can also offer consumer protection services, like payment holidays or repayment insurance, shielding customers from credit risks. For example, Home Credit provided 2.2 million customers with the option of paid holidays and deferred payments during the peak of the Covid-19 crisis in 2021.

Many companies in the region now offer cooling-off periods, allowing people to cancel loans free of charge. This allows borrowers time to properly consider their decisions and facilitates informed decision-making.

As Southeast Asian markets mature, regulated lenders can expand their offerings to include a wider array of financial products, such as insurance. Life insurance penetration in emerging Asia Pacific markets rose to 2.4 per cent in 2021 but still lagged substantially behind developed Asia Pacific markets (8.4 per cent). Regulated lenders have the advantage of existing customer relationships and data and can offer accessible, personalised insurance products tailored to individual needs.

For example, Home Credit now partners with more than 20 insurance providers, offering various solutions to customers that range from life insurance to accident insurance for mobile phones. These broader offerings help clients better manage their financial health, supporting them in enhancing living standards and financial security in the long run.

Financial literacy

Educating customers and prospects on the vast array of financial products and services available as well as basic financial management principles is also essential, as this knowledge in making better financial decisions beyond our relationship with them.

Also Read: How affable.ai aims to dive deeper into GenAI with its new magic search feature

Consumer finance firms needn’t limit themselves to educating or working with existing customers even though Home Credit serves around 140 million customers around the world and has reached 225 million people globally in 2022 through financial literacy activities.

Financial literacy activities can take the form of publicity campaigns through popular mediums, such as radio or social media, direct community workshops and consumer-facing campaigns. While a significant investment, consumer lenders can reach new markets, build a stronger brand and enable inclusion, improving the long-term well-being of customers.

Consumer finance players can also better enable societal development and inclusion by focusing financial literacy efforts in particular ways. For instance, research shows that women generally have reduced access to formal financial services than men.

They also have specific financial literacy needs, as they tend to live longer and earn less than men, according to an OECD study. Through programmes tailored to improve women’s financial literacy, lenders can potentially increase their economic participation, promoting gender equity and making an impact on individual women, their families, and the wider society.

Digital literacy is also a crucial component, as many of the financial transactions are now processed online. It is also a big factor contributing to customer protection in this digital age. An Asian Development Bank Institute research study shows that digital literacy has significant positive effects on saving and borrowing as well as risk management behaviours. The crucial point is that despite the rise of AI and its enormous capabilities, a human approach to financial inclusion is more important than ever.

According to a PwC study on digital pathways to financial inclusion, AI could have a transformative impact on the lending business. They estimate that a 15 to 30 per cent rise in AI-facilitated credit approvals could take place with no impact on loss rates for lenders. Despite the genuine promise that new technology offers in this space, financial literacy and broader inclusion efforts cannot be ignored.

As technology transformation accelerates changes in multiple industries, the financial services sector cannot lose sight of the critical goal of empowerment and inclusion of communities.

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On my first Echelon in 2019, I had the wonderful opportunity to speak about cybersecurity in one of the Echelon stages. Along with my AntiHACK.me co-founder, Dexter Ng, we gave a series of live demos on how easy it was for hackers to scam potential victims with only an email address or a phone number.

Fast forward four years, and we’re back as exhibitors in Echelon. This time, we represent our cybersecurity and data protection firm, Privacy Ninja. It was a great experience to physically mingle with the startup community again!

Having witnessed the ebb and flow of startup businesses over the years, my recent experience at Echelon reinforced one unwavering truth: cybersecurity remains as crucial as ever in an increasingly advanced threat landscape.

Businesses acknowledge the need for cybersecurity, but they don’t know where to start

The consensus of the young business owners I spoke with echoed throughout the event. This, is despite the well-documented rise of industry-shattering hacks and the escalating numbers associated with such incidents. In light of this reality, businesses and startups have become acutely aware of the perils they face and the critical need for cybersecurity measures to avoid falling victim, as countless others have done before them.

However, many find themselves at a loss as to where to start. At Privacy Ninja, we emphasise that one of the keys to business success lies in a proactive approach to addressing cybersecurity concerns. By adopting this approach right from day one, organisations can ensure comprehensive protection at every juncture, leaving no room for exploitation or compromise.

Outsourcing to experts for effective cybersecurity

To address the challenges faced by businesses, seeking the assistance of cybersecurity experts is a strategic choice. When it comes to effectively navigating the complex landscape of cybersecurity, outsourcing to experts offers numerous advantages.

Also Read: Time to elevate the CFO’s stake in cybersecurity

For instance, when young startups engage the services of a trusted and CSA-licensed VAPT provider like Privacy Ninja, they gain access to a wealth of knowledge and expertise. This enables them to quickly address queries and concerns regarding pen testing activities, including frequency and timing. We also value-add by guiding businesses on the specific exercise that will satisfy their requirements.

Additionally, outsourcing to experts offers numerous advantages, allowing startups to harness specialised knowledge and experience while avoiding resource-intensive endeavours. Building an in-house team of Data Protection Officers (DPOs) and penetration testers, for instance, requires significant time, training, cost, and practice before these individuals can effectively contribute. Moreover, investing substantial resources in training comes with the risk of trained professionals leaving the company, resulting in a loss.

Finally, outsourcing to third-party service providers provides the added benefit of cost-effectiveness. Privacy Ninja, for example, provides a price-beat guarantee, understanding the financial constraints that startups face, particularly when focused on revenue generation.

Having once been a startup ourselves, we appreciate the importance of maintaining a healthy cash flow while ensuring top-notch cybersecurity measures are in place. By partnering with service providers, startups can secure their digital defences without breaking the bank.

Prioritising cybersecurity from day one of business planning

With funding and achieving MVP taking centre stage (and nothing wrong with these), cybersecurity is often put on the back burner. Organisations must establish a solid foundation for protecting all aspects of their entity, especially the proper management of the personal data it manages.

Also Read: The future of cybersecurity: A plan to fill the workforce gap and protect the world

When cybersecurity is treated as an afterthought, it may result in uncovered and unprotected areas of concern, leading to organisational consequences. In Singapore, the consequences may include a hefty financial penalty of up to US$1,000,000 (a significant burden for small enterprises and startups), business disruption, reputation damage, and loss of potential clients and customers due to credibility issues regarding sensitive information.

In a recent case involving Fortytwo, the breach could have been prevented if only the e-furniture company had conducted a vulnerability assessment and penetration testing on its e-commerce website to properly determine the severity of the existing vulnerabilities, which they decided not to patch, eventually leading to exploitation by malicious threat actors.

The same fate was also suffered by Vhive when it fell prey to a preventable ransomware attack. With this, rather than considering cybersecurity as an afterthought, prioritising it can save organisations the trouble of going through the consequences.

In an ever-evolving threat landscape, the importance of cybersecurity for startups cannot be overstated. Given the ever-evolving threat landscape, cybersecurity holds paramount importance for startups, demanding proactive measures from day one. 

As the startup community, including exhibitors like us, are relishing the post-Echelon high, here’s my advice to startups out there: don’t delay, prioritise cybersecurity from day one to protect your business and ensure long-term success. Take proactive steps today to safeguard against potential threats and secure the future of your business.

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Malaysia-based iMotorbike, an e-commerce platform for preowned motorcycles, has raised RM12 million (US$2.6 million) in a Series A funding round led by Gobi Partners and Ondine Capital.

Penjana Kapital, The Hive Southeast Asia, 500 Global, SOSV’s Orbit Startup, Goodwater Capital, Seedstar Capital, Permodalan Negeri Selangor Berhad (PNSB), and other undisclosed institutional VCs also joined.

The funds will be used to strengthen its operations in Malaysia and Vietnam, besides investing in technology and talent.

iMotorbike has secured US$4.2 million since its pre-seed funding round.

Founded by Gil Carmo and Sharmeen Looi, iMotorbike enables users to buy and sell preowned motorcycles. With connections of 5,000 dealers across Malaysia and Vietnam, it also provides financing options, insurance and road tax. In 2022, the firm generated over 2,500 transactions with over US$3.5 million in total revenue.

Also Read: Is there a sudden slowdown of the pace of digital transformation globally?

iMotorbike has 170 inspection points, six days return, six months warranty, countrywide delivery and a bundle of finance, road tax and insurance.

CEO Gil Carmo said: “This infusion of capital will be instrumental in fueling the next growth phase for the company as we spearhead the transition towards a circular economy in the two-wheeler market. We will expand our efforts to promote sustainability, create a robust ecosystem for the reusing of motorbikes, parts and accessories to reshape the future of mobility.”

Gobi Partners Co-Founder and chairperson Thomas Tsao said: “In Malaysia alone, there are 1:1 motorcycles for every car, and this ratio increases to 6.5X in Indonesia and a staggering 14.2x in Vietnam. This represents a combined market size of 216 million motorcycles which iMotorbike is poised to tap into.”

With rising inflation and higher cost of living amid surging fuel prices, iMotorbike expects to see more people turning to motorcycles as a mode of transportation and generating income.

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Southeast Asia’s thriving digital economy is priming for huge innovation in the payment services ecosystem. Across the region, everything from payment apps to wallets and even digitised national currencies are at play.

However, SEA’s payments ecosystem remains hampered by a chronic lack of interoperability between different platforms. Because how can you use one payment method when it remains completely cut off from any other?

The absence of interoperability has created a huge missed opportunity for the financial technology (fintech) industry. SEA’s burgeoning consumer base is expected to reach 623 million people by 2030. The region’s digital economy reached a US$200 billion gross merchandise value in 2022.

In addition, digital finance is the top investment sector in SEA, and the segment is projected to reach US$226.60 billion this year. These are big numbers indeed: but they could be so much more.

Unfortunately, SEA’s size and diversity mean there is a complete lack of uniform regulations. There is neither a common currency nor a consistent economic agenda within SEA, which makes it difficult to integrate payments across the region.

Similar to other large regional markets like Latin America, the banking and financial infrastructure in many SEA countries is outdated and fragmented, and the legislative framework does not support most cross-border and e-commerce business models.

Although the answer could be to simply launch local subsidiaries in new growth markets, this can be cost-effective and risky for payment firms.

Differing habits, but the same goals

At the moment, e-commerce is one of the biggest driving forces behind SEA’s digital economy, with its growth rate of 22 per cent spurring the region towards US$230 billion in GMV by 2026. Cash wallets and super apps are predicted to grow more than fivefold to exceed US$114 billion by 2025. Retailers, such as Singapore’s Cheers, are even developing their own apps to link customers’ shopping carts to their wallets. 

Also Read: Breaking the cycle: How Paywatch grows your business while taking care of your employees

However, creating a seamless and efficient ecosystem across SEA is challenging. First, payment habits differ dramatically from country to country. While the European Union (EU) has successfully built a single economic market, the correlating Association of Southeast Asian Nations (ASEAN) has a highly fragmented payments landscape. 

In Indonesia, e-wallets are booming, with transaction values rising by over 200 per cent in 2019. Malaysians tend to prefer payments made through bank transfer apps, as well as e-wallets. Cash remains king for Filipinos, even in online transactions. Vietnam, lastly, shows a tendency towards credit cards, as well as playing home to dozens of licensed non-bank payment service providers.

Nevertheless, there are clear moves towards improving interoperability. As recently as March 2023, Singapore and Malaysia announced the launch of a new QR code payment code link for Nets and DuitNow users, which will enable cross-border payments across the Causeway. Singapore and India have also linked their digital payments systems, UPI and PayNow, in an effort to increase instant and low-cost fund transfers between the two nations.

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

India has also made enormous waves with UPI, a real-time online payment system that allows instant funds transfer between accounts. This is a benchmark payment method in the largest market in Asia – an example for others to emulate. As of now, 382 local banks are integrated with UPI, and more than 100 million users use it monthly. This is the kind of interoperability banks and fintech players in SEA should be seeking.

There is potential for greater payment interoperability through Central Bank Digital Currency (CBDC). This is a digital version of a country’s legal tender backed and issued by its central bank. Although no Asian nation has officially launched a CBDC yet, 35 countries are either in research, development or pilot exploration. CBDC projects can drive further financial inclusion across markets, especially as these enable users in rural areas to transact digitally. However, time will tell whether these pilot projects will turn into tangible products.

SEA has a bright future for developing a world-class digital payments ecosystem. Indeed, based on the success of UPI and the promise of CBDC, there is huge potential for SEA to gain an inclusive and user-friendly payment system. 

Within the six nations of ASEAN alone, there are 60 million people, of whom are some of the world’s most digitally engaged e-commerce consumers. Today there is significant demand for a region-wide digital system that will enable efficient and transparent payments across platforms and borders. 

While the problem is not easily solved, it is navigable with the right approaches. Based on our experience in Latin America, a similar market in terms of nuance and complexity, success is achieved from a combination of local expertise, especially regarding the legal and regulatory frameworks.

Operations in a new territory can evolve quickly, but if you are prepared and, importantly, compliant, you can benefit and positively impact payments and business ecosystems. The dots are already there in SEA: all that’s left to do is connect them. 

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Despite being some of the most talented, adventurous, and resilient individuals, startup founders are found to be susceptible to mental stress and depression. This is often due to the high-risk, fast-paced, and demanding nature of the tech startup world. Such environments often require founders to lead extreme lifestyles with few hours of sleep, isolation from non-work related peers resulting from long hours spent at work, and loss of control over personal life. 

According to a survey, 72% of startup founders revealed that their work had detrimental impacts on their mental health, with the most common symptoms including stress (44%), anxiety (37%), burnout (36%), depression (13%), and panic attacks (10%). In some severe situations, some even considered suicide.

Also read: WAOHire: Empowering both developers and the businesses that need them

Consequently, before finding themselves under the global spotlights for creating the next “unicorns” in the startup ecosystem, many entrepreneurs reported living through devastating moments of despair and self-doubt which can greatly impede their decision-making process and business acumen, further exacerbating the situation. For instance, a decision made by a startup founder under extreme stress can yield adverse consequences for the company, causing their business to lose profit or face legal action from investors or regulators. This also creates deeper damage to the psychological, emotional, and mental well-being of the said founder. 

As a result, it is therefore essential for entrepreneurs to not only take care when making business-related decisions but also look out for themselves mentally — taking regular breaks and seeking professional support when necessary.  

How Anapi tackles the mental toll on startup founders

To help address issues with the mental well-being of startup founders, there exist several products and services including mindfulness classes and professional counselling to counter burnout and other mental health issues. 

Anapi, one of the pioneering insurance brokers for startups based in Singapore understands the needs of founders. They offer a unique proposition by including mental wellness counselling for startup founders as an added value service under their new Startup Director & Officers (D&O) Insurance.

Also read: Unlocking potential: The evolving role of corporate accelerators

D&O is a liability policy that covers founders, directors and management staff from any legal actions taken against them for errors resulting from their management decisions. “As it is primarily taken out by founders to protect themselves from their individual liabilities, it makes sense to provide founders with a more rounded offering. After all, mistakes occur more often due to stress and pressure”, says Andrew Lai, COO of Anapi. “Anapi helps Singapore’s startup and entrepreneurial ecosystem by enabling companies to protect themselves through insurance. We believe this protection should extend to the individual founders themselves as they are the ones driving innovation and change in the market”.

What is included in the new D&O offering by Anapi

The policy protects founders, directors and other high-level officers of a company from any legal actions taken against them for errors resulting from their management decisions by covering the legal defence, settlement and investigation costs. Common sources of risk come from other shareholders, employees or regulators and include claims arising from employment disputes, errors in statements to shareholders, breach of regulation and alleged fraud claims. This type of coverage has become increasingly important for businesses as it helps mitigate legal risks faced by their key persons as they scale their business and manage multiple stakeholders, thereby giving them more peace of mind and empowering them to try more daring and innovative solutions.

On top of the insurance coverage, Anapi provides three sessions of counselling for the startup founders. This is extremely helpful for first-time founders or even serial entrepreneurs. Having an outlet to speak with an impartial professional is necessary during times of stress. Knowing that you have the channel to access professional help so easily will be a game changer for many founders, especially because stressful events can happen unexpectedly.

Also read: Marketing best practices? Indonesian business leaders weigh in

This special D&O offering is aimed at new startups incorporated in Singapore. Anapi’s solution is backed by a specialist Lloyds of London insurer which provides extended coverage compared to other Singapore policies. An example is that the policy also covers the entity itself which is needed in cases of lawsuits from vendors or breaches of contract.

Anapi’s new startup D&O Insurance is very easy to sign up for Singapore-incorporated startups. You just need to complete a simple form to provide some basic information about the company. There is no need to provide financial statements for review. Coverage can start within a matter of days, meaning that founders get protected quicker and get access to mental health benefits sooner. Anapi has also reduced the barrier for startups to get insurance by offering monthly payment options. This brings insurance more in line with how startups are used to paying for other services, making it easier for them to manage their cash flow.

Who is Anapi

Founded in 2018 in Singapore, Anapi strives to be the pioneering insurance broker for new and emerging businesses based in Singapore. They work mainly with startups and entrepreneurs in the finance, technology or medical space, providing deep yet concise advice and helping clients to obtain specialised insurance coverage all over Asia from Anapi’s wide network of general and specialist insurers.

To learn more about Anapi’s all-inclusive insurance products, please visit: https://www.anapi.co 

 

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This article is produced by the e27 team, sponsored by Anapi

We can share your story at e27, too. Engage the Southeast Asian tech ecosystem by bringing your story to the world. Visit us at e27.co/advertise to get started.

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The success rate of an influencer can be drilled down to several factors. While there is no fixed formula for success, certain factors generally play a significant role in determining an influencer’s success rate.

Firstly, the quality of content produced by an influencer is crucial. It should be engaging, unique, and resonate with the target audience. High-quality content is more likely to attract and retain followers, ultimately leading to a higher success rate.

Engagement and interaction also play a vital role. Successful influencers actively engage with their audience by responding to comments and messages and participating in discussions. Building a community and fostering relationships with followers increases engagement and develops loyalty.

In addition to content creation, influencers need to have business savviness. Understanding the business side of their industry, including negotiations, contracts, and branding, can significantly contribute to their success. Knowing how to effectively monetise their influence and manage partnerships is essential for achieving a higher overall success rate.

Why brands should tap into influencer marketing in Indonesia

Influencers in Indonesia are categorised by follower count and are split into end-users (100 – 1,000 followers), nano-influencers (1,000 – 10,000 followers), micro-influencers (10,000 – 100,000 followers), followed macro-influencers (100,000 – 1,000,000 followers), and finally mega-influencers (over 1 million followers) in 2023.

Also Read: How can influencer marketing help the travel industry in a post pandemic world

Influencer marketing has evolved beyond its initial purpose of engaging and raising awareness among target audiences. It now plays a significant role in creating trends and driving various marketing strategies.

These include influencers expanding into video content, affiliate programs, and live shopping experiences, which present new and compelling opportunities for brands to connect with their target audiences.

According to the State of Influence Report 22/23, brands in Indonesia, particularly in the food and drink, fashion and beauty, lifestyle and home, and entertainment and hobbies industries, utilise influencer marketing as an effective way to reach their desired audience.

Besides selecting appropriate influencers, brands should also be aware of their objectives when running an influencer marketing campaign, which includes choosing the right social media platform.

Based on the same report, Instagram dominated the market in Indonesia, accounting for 69.9 per cent of total influencer marketing campaigns. Additionally, TikTok has quickly gained popularity, with nearly 1 in 4 campaigns delivered through the AnyTag platform in the past year.

Influencer marketing is a collaborative effort between the brand and the influencer. By maintaining strong relationships, providing value to the influencer and their audience, and tracking results, brands can harness the power of influencer marketing to effectively reach and engage their target audience.

Is your brand ready?

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Last week, PepsiCo announced the 10 startup finalists for its inaugural Greenhouse Accelerator Program -Sustainability Edition in APAC. These startups came from various countries across the Asia Pacific (APAC) region, including China, Australia, New Zealand, Thailand, Vietnam, and Singapore.

“PepsiCo’s collaboration with the ten startup finalists in the APAC Greenhouse Accelerator Program marks a pivotal moment in our journey toward responsible growth and environmental stewardship. By embracing innovative solutions and integrating sustainability across our operations, we aim to redefine industry norms and inspire the next generation of business leaders to drive positive change,” said Wern Yuen Tan, CEO of PepsiCo, APAC, in a press statement.

These startups were the results of an open call that PepsiCo did in March when it sought innovative solutions for sustainable packaging and climate reduction. A committee of leaders within PepsiCo selected the finalists based on their ability to deliver innovative solutions that effectively mitigate climate impact.

They will receive valuable support, including US$20,000 in grants during the four-month business optimisation programme designed to accelerate their growth. They will also benefit from personalised mentorship from experts across different functional areas within PepsiCo.

At the end of the program, one standout startup will be awarded an additional US$100,000 and the opportunity to continue partnering with PepsiCo on future projects.

Also Read: Collaboration with corporates plays a crucial role in climate tech startups’ success

The programme includes a list of four startups from countries in Southeast Asia, from Singapore to Thailand to Vietnam. The following is an email interview with the startups that e27 has done.

MEDS Venture

MEDS Venture provides end-to-end decarbonisation solutions for industries through the combination of the extensive energy industry and EPCM experience of its founding partners and digital platform DECAPLAN originated at Energy Research Institute @ NTU.

This combination allows MEDS Venture to deliver carbon footprint assessment and verification; net zero master planning and solutions; tender and green financing management; turn-key implementation management; net zero operations optimisation; and carbon footprint reduction verification and certification.

The company focuses on market segments that are known to be large energy consumers with electric and thermal loads, including infrastructure, manufacturing, and smart districts.

“At the moment, MEDS Venture is working based on a consulting business model, using DECAPLAN as an internal tool to deliver projects. However, we are also working on further DECAPLAN improvement in order to make it a stand-alone SaaS platform,” the company explains.

MEDS Venture has recently completed two major projects, and it considered being selected by PepsiCo as one of its key milestones.

“Our plans for this year include the development of DECAPLAN Light, which should become our first SaaS version, expansion to new APAC markets and to new industries such as F&B, which is perfectly aligned with PepsiCo Greenhouse Accelerator APAC Program since we will be closely working with PepsiCo mentors to learn about F&B business and processes, identify a pilot project in APAC region and based on these learnings improve DECAPLAN.”

Also Read: How climate tech companies in Asia measure the impact of their work

Green2Get

Green2Get describes its product as a circular economy platform that aims to revolutionise the way stakeholders in the recycling value chain connect and collaborate.

“The problem we address is the lack of a seamless and efficient solution for consumers, recyclers, and brands to promote sustainable recycling. We connect consumers with recycling centres through our user-friendly Green2Get app, provide recyclers with a marketplace for new waste types through the Hero Recycle app, and enable brands to communicate directly with consumers for responsible waste management,” the company explains.

Its revenue model is based on transaction fees between recyclers (“junk shop”) and recycling factories, as well as brand partnerships and sponsorship opportunities. By facilitating transactions and providing marketing opportunities, the company generates revenue while driving the circular economy forward.

Regarding the different types of users of their platform: “Consumers are attracted to our app’s user-friendly interface and the rewards they can earn through responsible recycling. Recyclers join our platform to expand their client base and gain access to new waste types. Brands utilise our platform to communicate directly with consumers and enhance their green image. We acquired our users through a combination of targeted marketing efforts, partnerships with recycling centres, and word-of-mouth referrals.”

Some of the milestones that Green2Get has made include over 30,000 downloads of its Green2Get app, partnerships with more than 1,000 recycling centres, and engagement with numerous brands.

“We aim to streamline the recycling process further, introduce new tools for junk shops, and attract more brands to join our platform. Participating in this programme [with PepsiCo] will provide us with valuable mentorship, coaching, and connections to industry experts. It will accelerate our growth, help us refine our strategies, and provide access to resources that can support our plans for expansion and impact.”

Also Read: How to navigate the investment opportunity in climate tech sector

Muuse

“At Muuse, we provide a convenient alternative to disposable packaging: a smart platform for reusable packaging that allows for optimised inventory management and accurate impact data. With our platform, we make it easier to reduce or even eliminate disposable packaging!” the company explains.

Muuse works directly with corporates, cafes, food courts, and event organisers to bring reusable packaging to their customers. It charges a monthly service fee which allows them to use the Muuse platform, either by using the Muuse reusables or integrating their own branded items into the platform. It also provides logistics and cleaning services, return infrastructure, and smart data analysis where required and works with strategic partners to help them build out reuse platforms for their communities.

“We provide our reuse platform in Singapore, Hong Kong, and Toronto. Our users are people who are looking for convenient and easy ways to reduce their waste footprint. We aim to make the reuse experience as seamless as possible for them: our service is free to use, and there is no need for cash deposits. Most of our users hear about us from the clients we work with, which are often their offices or workplaces, their favourite coffee spots, their neighbourhood food court, or their friends and family!”

There are several milestones that Muuse made this year, including a strategic partnership with Starbucks in Hong Kong and a hawker centre programme with the Singapore Government.

“Our plan this year is to accelerate growth in our three core markets and build out our brand partnerships. Through the Greenhouse Accelerator, we aim to work with PepsiCo to build out a reuse model to serve their clients best. It will help us tap into PepsiCo’s experience and expertise in the F&B industry and help us modify our model where necessary to reduce as much disposable waste from the trash as possible.”

Also Read: Preference for green jobs is the “most exciting” climate tech development: Lightspeed

HRK Group

HRK Group is the company behind Aquaflex, a water-soluble plastic technology made in Vietnam. Made from PVA, a non-toxic synthetic polymer, Aquaflex is a recyclable, biodegradable, compostable, marine-safe, and animal-safe alternative to traditional plastics.

“Our PVA PRO tech combined with paper and finished with a beautiful eco-friendly water-based printing, is a perfect packaging solution for the circular economy,” the company explains. “It comes in rolls for auto-packing lines or in preformed bags that performed well and remains 100 per cent recyclable in the normal paper recycling stream making it a unique solution for the circular economy.”

Implementing a direct sales model to businesses, Aquaflex users are businesses in various industries–from farming to retailers to e-commerce companies–that are looking for better packaging and have an eco-friendly conscience. The company has secured big-name clients that include L’Oreal, Decathlon, PepsiCo, and Takashimaya.

“We came up with this idea because we saw a need for a better packaging solution that is more sustainable. We knew that many businesses were struggling to find a good solution, and we saw an opportunity to solve their problem and make a difference in this world for a better society.”

This year, HRK Group aims to expand its business and raise funding to increase its production capacity. It also wants to reach 100 employees by the end of the year.

Also Read: How Third Derivative assesses the impact of a potential climate tech investment

“Participation in this programme will help us achieve our goals in a number of ways. First, we will have the opportunity to connect with other businesses that are working to reduce plastic pollution. This will give us a chance to learn from each other and share resources. Second, we will have the opportunity to meet with PepsiCo, one of the world’s leading FMCG companies. This will give us the chance to pitch our product to them and hopefully secure a partnership,” the company says.

“Third, we will have the chance to receive mentorship from experts in the field of sustainable packaging. This will give us valuable advice and guidance as we grow our business. Together we have a chance to tackle plastic pollution and give a real dynamic, starting a needed change in the supply chain to build a sustainable industry.”

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Image Credit: Nik on Unsplash

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In a riveting interview with the visionary leaders at OpenAI, CEO Sam Altman and CTO Mira Murati, profound insights were revealed that shed light on the transformative power and potential risks of artificial intelligence (AI), a technology that has taken the world by storm.

According to recent statistics, the global AI market size is projected to reach a staggering US$190 billion by 2025, with industries such as healthcare, finance, and retail embracing AI-driven solutions to drive efficiency and innovation. With AI technologies becoming increasingly prevalent in our daily lives, it is imperative to delve deeper into the implications and possibilities they present.

This interview provided a unique opportunity to gain invaluable perspectives on AI’s exponential growth and its impact on society while also addressing the critical need for responsible and ethical AI development.

Here are the key takeaways from this thought-provoking discussion:

• The CEO, Altman, expressed a nuanced sense of apprehension regarding the enormity of what has been built. It is a sentiment that resonates with us all, as the implications of AI’s capabilities are both awe-inspiring and potentially daunting. However, rather than allowing this fear to cripple us, it should serve as a catalyst to empower us in our pursuit of responsible and beneficial AI development.
• Acknowledged as the pinnacle of human technological advancement, AI also carries the weight of being potentially the most dangerous creation thus far. The interview underscored the imperative for OpenAI to diligently establish appropriate boundaries, addressing the numerous challenges and potential pitfalls that lie ahead.

Also Read: Exploring AI capabilities for business advancement

• Despite the risks involved, the sheer magnitude of AI’s positive impact on society overwhelmingly outweighs the negative aspects, at least thus far. It is crucial not to stifle its progress due to unwarranted fears, as the benefits and opportunities it presents are vast and transformative.
• While AI models can provide valuable insights and guidance, complete reliance on their outputs should be avoided. Over time, dependency on AI for “correct” answers can undermine the critical thinking abilities of humans, making it essential for us to maintain a discerning perspective.
• AI’s true essence lies in its capacity for reasoning, surpassing mere regurgitation of facts or rote memorisation. It opens up new possibilities for intelligent problem-solving and creative exploration.
• The interview shed light on the challenges posed by the rapid pace of technological change. If the adoption of new technologies forces humans to adapt too quickly, significant pushback and resistance can be expected. To truly appreciate and harness the value of emerging technologies like AI, it is crucial to allow for time, experimentation, and gradual acclimation.
• The responsibility of establishing appropriate safeguards and regulations for AI rests with society as a whole rather than solely with companies or governments. Collaborative efforts are needed to define the right guardrails that can ensure AI’s responsible deployment and mitigate potential risks.
• The interview emphasized the importance of candidly addressing the downsides of AI. While certain jobs may become obsolete, new and better opportunities will arise. It is imperative for humanity to collectively strive for a brighter future while also acknowledging and addressing the impact on the current workforce.
• The interview raised the prospect of implementing temporary slowdowns in the progression of AI technology. Such measures would prevent overly rapid advancements that may lead to disruptive societal changes. Striking a balance between progress and the pace of change is vital for the well-being of humanity.

Also Read: How Salmon aims to promote financial inclusion with AI banking in the Philippines

• It was clarified that ChatGPT, a creation of OpenAI, should not be seen as a competitor to Google or approached merely as a search tool. Its true effectiveness lies in its ability to engage in meaningful conversations and provide personalised assistance beyond traditional search functionalities.
• Getting AI “right” and effectively navigating the associated risks were highlighted as paramount concerns for the future of humanity. A concerted effort must be made to develop AI technologies that are aligned with the broader interests and well-being of society.
• “Right” in the context of AI means ensuring that the majority of people perceive themselves as better off with the integration of AI into their lives. Striving for widespread benefit and improvement is a key metric of success.
• The interview dispelled notions of AI resembling the malevolent superintelligence depicted in science fiction movies like Skynet. AI, including ChatGPT, remains far from dystopian.

As we delve into the realm of AI, it is crucial to approach its development responsibly, with a keen understanding of the risks and rewards it presents. By fostering collaboration, addressing downsides, and striving for widespread benefit, we can shape an AI-powered future that enriches humanity rather than replaces it.

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The world embraced digital means to survive the disruptions caused by COVID-19, mainly on the communications front. After the pandemic, communication platform-as-a-service (CPaaS) grew at a CAGR of over 10 per cent. Infobip, a cloud communication platform-as-a-service company, saw B2C communication grow 80 per cent on WhatsApp, 75 per cent in SMS, and 91 per cent in email in 2022 compared to 2021.

However, a 2022 survey by Workday found that the sudden frenetic pace of digital transformation triggered by the pandemic has started losing steam, and companies started putting off their digital transformation.

What caused the sudden change in things?

We spoke with Matija Kapic, Regional Director of Customer Services at Infobip, a full-stack, cloud communication platform-as-a-service, to understand about this trend.

Edited excerpts:

What caused the sudden slowdown of the pace of digital transformation globally? Why are companies putting off their digitalisation plans? Does it have anything to do with the economic slowdown?

In 2020, Workday reported that 36 per cent of companies expected digital transactions to account for 75 per cent or more of their revenues in the next three years. However, in 2021, only 13 per cent affirmed this, a mere 12 per cent increase from what was reported in 2019.

Additionally, most businesses that initially adopted a “fail fast” experimental mentality went from 77 per cent in 2020 to 53 per cent in 2021. Most (59 per cent) of businesses agree that changing to an automated business practice may take a considerable amount of time to have it properly in place, slowing down the transformation even further.

However, despite the challenges, companies are still keen to enhance their organisations’ capabilities further to meet the changing consumer behaviour.

Also Read: Cloud communication platforms: How to choose one for your business

B2C communication has moved from transaction-based messaging to end-to-end conversational journeys across multiple channels, and businesses will need fast and reliable ways to meet customers’ demands. With a reliable partner, these businesses will be able to acquire a solid omnichannel foundation and build rewarding conversational experiences.

In which specific sectors/industries do you see the trend?

At Infobip, we have seen the use of rich digital channels skyrocket. There have been 107 per cent more WhatsApp interactions, 2x more mobile app messaging interactions in retail and e-commerce, 3x more Messenger interactions in transportation and logistics, and 4x more RCS (rich communication services) interactions in the banking and finance sector that have taken place on our platform in 2022.

Most parts of the world have digitalised themselves in all aspects of their organisation. If the other industries are delaying this practice, there is a high chance they will fall behind in progress and business growth. Board leaders must act fast to get up to speed, overcome digital unfamiliarity, and not decline further.

How does it affect the global communications market in general?

If businesses refrain from adopting digitalisation, they will lose approximately US$145 billion of GDP growth. As mentioned before, the world is now digitalised, and there is a risk that they will lose their most valuable asset – their pool of customers.

It’s important to note that the B2C landscape has drastically changed and is becoming more competitive due to a need for faster one-to-one interactions. This is especially so when customers are engaging with brands that they favour.

The shift in communication preferences has led to industry-wide transformations, and at Infobip, we observe more conversational interactions day by day on various platforms.

If businesses are late to implement digitalisation in their communication channels, they will soon be out of touch with their target audience. They will also lose potential profits as a result of dwindling brand awareness.

When do you expect digitalisation to gain steam again? What factors will contribute to it?

Digital transformation is still complex for businesses to understand and acquires multi-layers of processes, especially after the impact of the pandemic. Even so, more and more brands have moved towards providing conversational experiences now more than ever.

It is vital to remember that digital transformation is beyond just technological implementation but a reformation of business processes and customer experiences. It automates customer communication while maintaining a sense of human touch through every interaction.

Such experiences are set up on various channels, utilising different features, functionalities and technologies to facilitate engagements between the brand and its customers.

Through the opportunities of 5G and cloud-based systems, we can see emerging markets in APAC becoming more driven by a rapid-growth mentality. This is mostly because customers are more than ready to adjust and quickly change their environment.

In effect, we specifically expect to see conversational experiences continuing to expand across sectors, from ride-sharing to healthcare as well as the public sector, as organisations try to become more open to such change and embrace a new conversational landscape through digitalisation. Businesses in Asia Pacific will soon pivot towards digitalisation to keep up and cater to the needs of their consumers.

Given the resumption of brick-and-mortar operations, should businesses maintain investment in customer contact centres (physical or virtual) or explore digital solutions alone?

Brick-and-mortar operations offer an “instant experience” where consumers can experience a “right now-right here” concept. However, it’s important to note that the customer journey will not end there – it will move beyond a customer’s first interaction with the brand and continue even after they have made the first purchase.

Also Read: Unlocking growth and retention: Harnessing the power of omnichannel communication strategies

With a growing e-commerce market, customers seek faster one-to-one engagements with their favourite brands.

In 2022, the average internet penetration in APAC alone was 62 per cent. This surge in digital availability has driven organisations to keep up with their customers’ varying needs and preferences, constantly evolving quickly. Because of this, taking up digital solutions allows businesses to seamlessly engage their target customers without fear of losing loyalty and visibility. Digital technologies also provide access to customer data – helping organisations better understand their customers and how they can offer new or improved services.

Based on a survey we’ve done in 2022, customers expect a uniquely personalised shopping experience. This is where businesses need to step in and reframe their approach to focus on improving and elevating the brand experience for their customers. A better experience can enable customers to make favourable decisions when businesses coordinate the buying journey to tailor fit their needs.

This is echoed by 30 per cent of our respondents that customers will become loyal to a brand thanks to personalised communication content.

Over 448 billion interactions took place on the Infobip platform, and in 2022, we found that the most popular two-channel combination used was SMS and WhatsApp (29 per cent), followed by SMS and email (14 per cent). Businesses can greatly benefit from implementing digital solutions to meet growing demands by identifying the right methods and platforms to contact consumers.

Are SaaS and CPaaS cost-efficient solutions for businesses to improve customer service to drive scalable growth or fear digitalisation?

It is no secret that businesses today are expected to be present on multiple channels to engage with their customers effectively. Implementing SaaS and CPaaS allows businesses to manage these different touchpoints seamlessly and deliver a more consistent and personalised experience to their customers – no matter where they are and what platform they choose to be in.

Providers like Infobip offer a service that covers multiple channels on a single platform – meaning instant access to all the communication methods that are readily available without spending unnecessary time and expense of building the system from scratch. This allows the organisation to focus on its core operations with the peace of mind that it comes with no further costs and resources.

Businesses can unlock unparalleled customer experiences when they work with the right partner. For example, our platform enables brands to kick-start their conversational commerce journey through omnichannel capabilities, an ecosystem-first approach, integration of ICT systems, and speed and agility supported by use cases that drive business growth.

Solutions like these are highly customisable as they can cater to a wide range of business needs resulting in increased customer satisfaction and loyalty. It simplifies communication workflows for businesses that, make the management of internal and external communications easier and smoother.

Adopting CPaaS and SaaS is an effective way for businesses to deliver conversational experiences. For example, about 20 per cent of global organisations today use CPaaS APIs to enhance their digital competitiveness, and by 2023, Gartner foresees that nearly 90 per cent of organisations will use CPaaS. We at Infobip have seen CPaaS traffic double in 2022 compared to 2021.

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Singapore-based Apeiron Bioenergy, which converts food and agricultural waste into biodiesel, has secured SG$50 million (US$37 million) by issuing green bonds to organisations, including CGIF, a trust fund of the Asian Development Bank, and an ASEAN+3 initiative to develop local currency bond markets.

Apeiron will use the fresh funds for modernising the collection points and pre-treatment facilities of waste-based feedstocks in the Philippines, Thailand, and Vietnam.

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Founded in 2007, Apeiron Bioenergy collects and recycles waste to use it as feedstocks for producing biodiesel and renewable diesel. Its first product is UCO, a clean waste-based feedstock for biofuel production. It is a major feedstock for renewable biodiesel products like sustainable aviation fuel (SAF).

The firm collaborates with local communities and collects waste from restaurants, hotels, and food manufacturers.

Apeiron’s strategic advantage lies in its extensive network of suppliers across Asia, providing an opportunity to address the bottleneck in feedstock availability and establish itself as the central hub for consolidating waste-based biofuel feedstocks in the region, in line with the projected 42 per cent compound annual growth rate of the SAF market.

“We are delighted by the overwhelming response to our green bond issuance supported by CGIF, demonstrating strong investor confidence and our shared mission with the Asian Development Bank. This will allow Apeiron to expand our operations and maintain our position as a leader in the bioenergy sector,” said Chris Chen, Co-Founder of Apeiron.

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