(L-R) MoneySmart Group CPO Max Del Vita and CFO Raymond Ong
MoneySmart, a fintech group operating a financial content and comparison platform in Singapore and Hong Kong, recently announced that its H1 2023 revenue grew 37 per cent to SGD24 (US$18) million whilst achieving positive operating cash flow.
On the back of this growth, MoneySmart Group is looking to launch an IPO within the next two years. It also plans global expansion and to enhance its products by introducing new features.
e27 spoke with MoneySmart Group CPO Max Del Vita and CFO Raymond Ong to learn more about its plans, IPO, and the fintech industry in general.
Edited excerpts from the interview:
MoneySmart has experienced substantial revenue growth in H1 2023. Can you share the key factors contributing to this growth, and how do you plan to sustain it?
Raymond Ong: Our revenue growth in H1 2023 can be attributed to strategic efforts and customer-focused innovations. Key factors include improved customer service, increased engagement from financial institutions and a rewards programme that has enabled a growing customer base – we saw a 3x increase in H1 2023.
To sustain our growth, we plan to focus on enhancing customer-centric innovations to make the discovery and selection of financial products easier, robust loyalty rewards and customer engagement programmes, and marketing optimisation.
With an IPO on the horizon, what are the primary goals and strategies you are focusing on to ensure a successful public offering in the next two years?
Raymond Ong: As we approach the possibility of an IPO in the next two years, MoneySmart Group will maintain sustainable growth by exploring international expansion opportunities, strategic acquisitions, investments in technology and critical initiatives to drive further growth and profitability.
These initiatives include:
- Enhancing customer retention by elevating the customer experience through personalisation, loyalty and rewards programmes across both the MoneySmart and Bubblegum (travel insurance) brands.
- Leveraging artificial intelligence (AI) and automation to improve customer experiences and operational efficiency. These include areas such as product recommendations, customer service and back-end automation.
- Advancing the development of value-driven insurance products under the Bubblegum brand.
You were planning to hit the bourses via a reverse takeover (RTO) deal. Do you still stick to this plan, or do you plan to go for a direct listing?
Raymond Ong: We are currently evaluating our options as part of our plan to go public in 2025 and will consider the best possible option for our shareholders.
MoneySmart is looking to expand internationally. What regions or markets are you targeting, and what challenges do you anticipate in entering these new markets?
Raymond Ong: We are eyeing regional and global expansion and evaluating the respective markets. Our immediate challenge would be to secure the respective licenses and navigate the regulatory landscapes in each market while ensuring sustainable growth.
We also recognise the importance of understanding the specific cultural and financial nuances in each market to ensure that our brand and offerings resonate with local customers.
How do AI and automation play a role in improving customer experiences and operational efficiency at MoneySmart? Can you provide specific examples of the technologies you’re using?
Max Del Vita: We intend to use automation to improve efficiency and customer experiences by speeding up typically manual reconciliation for rewards qualifications, customer service and personalised customer engagement. To achieve this, we are using technologies such as robotic process automation (RPA), workflow automation and proprietary machine learning algorithms.
When it comes to AI, we are currently in an exciting phase of exploring its potential impact on both our internal operations and customer experience.
Also Read: MoneySmart to list on SGX via a US$161.7M reverse takeover deal with APS
Earlier this year, we introduced a personal recommendation feature that leverages machine learning algorithms to provide customised financial advice to our users. While we are in the early stages, our cross-functional teams are committed to continuous learning and iteration to improve this feature. The goal is to help our customers make informed and effective decisions in their personal finance journey.
Being data-driven is also a fundamental part of our DNA. We use data to inform our decisions and tailor our services to meet the unique needs of our customers, ensuring they make informed and effective choices in their personal finance journey.
Financial services and fintech are highly competitive sectors. What sets MoneySmart apart from its competitors, and what’s your long-term vision for growth and impact?
Raymond Ong: Ultimately, it comes down to understanding the needs of the customers and our financial institution clients. We understand our customer needs better than other industry players, and our purpose is to leverage technology to push the boundaries of how financial products, knowledge and advice come together to empower consumers. We need to do this in close partnership with financial institutions to achieve the right outcome for all and continue to drive both quantity and high-quality customers.
Over the longer term, we intend to go deeper across the value chain in financial products, expand to more markets and reward customers for loyalty and engagement.
Can you tell us more about MoneySmart’s sustainability initiatives and commitment to sustainable growth?
Raymond Ong: Our sustainability initiatives are deeply rooted in our commitment to long-term growth and efficiency. We prioritise sustainable practices by strengthening partner relationships, innovating customer experiences and automating processes for operational efficiency, all aimed at driving scalable growth and optimising capital utilisation to enhance value for our customers, partners and shareholders.
How do you envision the future of personal finance and the role MoneySmart will play in helping consumers make informed decisions about banking, insurance, and investments?
Raymond Ong: As we look ahead, we see an evolving landscape where consumers are increasingly empowered to make informed choices around personal finance.
MoneySmart’s vision is to be at the forefront of this transformation, where we build innovative products to push the boundaries of how financial products, knowledge and advice come together to empower consumers. We aim to play a pivotal role in equipping them with the knowledge and tools to navigate such decisions confidently.
Also Read: How did MoneySmart grow its revenue by 25 per cent amidst a pandemic?
Our commitment to this purpose will continue to be a driving force. We envision a future where individuals can access personalised financial advice, aided by AI-driven insights and automation. With our platforms and services, we want to be a trusted partner for consumers on their financial journey, empower them to make the right choices and find products most suited to their needs.
Can you share your insights on the evolving regulatory landscape in the financial industry and how MoneySmart ensures compliance while staying innovative and competitive?
Raymond Ong: The complexity and fragmentation of the operating environment in the financial industry are increasing. We are witnessing a confluence of factors — such as the rapid digitisation of services, adoption of innovative technologies such as blockchain, fintech, digital payments and more, shifting economic climates, the persistent challenge of financial crimes, and the growing importance of sustainable practices and environmental risk management – all contributing to the evolution of financial regulations.
The financial sector is undergoing a profound transformation, with regulators focusing on adapting to these changes and overseeing non-traditional entrants in the financial services sector.
As licensed financial advisor and broker, we remain vigilant in staying abreast of these shifts. We continuously allocate resources to embed and manage risk and compliance while nurturing a culture that emphasises prudent financial management and compliance with regulations. This includes enhancements to our KYC and AML/CFT compliance, as well as robust data protection measures.
Lastly, do you think generative AI should be regulated, and why?
Max Del Vita: Generative AI is undoubtedly a breakthrough technology with transformative potential across multiple domains. However, it’s still relatively nascent and evolving, which makes the question of regulation a nuanced one.
On one hand, excessive regulation at this early stage could stifle innovation and slow down the pace of discovery and development. Such limitations could inadvertently hamper the positive impact generative AI can have on various sectors, including healthcare, education and finance.
On the other hand, the technology does pose risks, especially when it comes to the potential for misuse and impersonation. Ethical considerations must be taken into account to safeguard against detrimental applications of the technology, whether it’s creating deepfakes or generating misleading information. This is especially important for complex industries like finance, where customers highly value trust and reliable advice.
I believe that a middle-ground approach is prudent. Instead of heavy-handed regulation, establishing guiding ethical principles can be the initial framework to ensure the responsible use and development of generative AI.
Technologies like blockchain can also play a complementary role by enhancing the trustworthiness of AI-generated content. By providing a tamper-proof, decentralised data record, blockchain can verify and trace the source of AI-generated material, adding a layer of security and reliability that contributes to responsible use and mitigate potential risks.
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