SEA’s digital banking frontrunners

The Top Up is Tech in Asia’s free newsletter that breaks down the biggest stories and trends in fintech. [Read from your browser]( The Top Up 💴 Welcome to The Top Up! Delivered every Wednesday via email and through the Tech in Asia website, this free newsletter breaks down the biggest stories and trends in fintech. If you’re not a subscriber, get access by [registering here](. Written by Melissa Goh Fintech Journalist Hello {NAME} I consider myself an average cook. If there’s one thing I learned from the home economics classes that I took in high school, though, it’s how food labels can be misleading. For instance, describing a jar of peanut butter as having “no cholesterol” is a misnomer since cholesterol can only be found in animal-based foods. The same goes with tech jargon, particularly when it comes to digital banks. In this week’s big story, Tian Wen maps out the most prominent players in Southeast Asia, and we worked hard to get the language right. For example, is there a difference between a neobank and a challenger bank? Aren’t they both just digital banks? Apparently not. There are clear distinctions between these terms, but like many other tech publications, we’ve been using them interchangeably. In the strictest sense, digital banks are digital-led outfits that are affiliated with traditional banks. Neobanks focus on specific financial functions like lending or accounting, while challenger banks offer a wider range of traditional banking services because they own the requisite banking licenses. Whatever the labels are, one thing is clear: We’re on the cusp of a new era of banking. We hope that you find this landscape piece useful in identifying who’s who in the region’s digital banking scene. THE BIG STORY 1️⃣ [Mapping SEA’s key digital banking players]( Image credit: Timmy Loen Digital upstarts and banking stalwarts all want in, but not every market in the region is game - yet. TRENDING NEWS Check out Tech in Asia’s coverage of Asia’s fintech scene [here](. 1️⃣  [Buy now, pay later loans help fuel India’s festive recovery]( Installment-based payments for small consumer loans have risen in popularity in India as the country emerges from the Covid-19 pandemic. A combination of factors like rising vaccination rates and job recovery has led to increased spending on consumer goods. In India, ecommerce players like Amazon, Flipkart, and Paytm as well as smaller fintech firms like LenDenClub, Simpl, ZestMoney and Cashe are offering such installment plans. Why it matters: Spending across different payment types is on the rise. A Bank of America report found that spending on credit cards also went up by 54% in August compared to a year ago. In India, fintech firm executives say payment volumes have been climbing by over 20% to 30% in the past three months. For example, LenDenClub has seen loan applications increase to 170,000 in September from February and expects a further jump to 250,000 in December, according to CEO Bhavin Patel. He also called the trend a three-way “win-win” for customers and lenders as well as BNPL platforms that serve as middlemen. While enticing, BNPL services run the risk of creating [a false sense of affordability]( among its end users - the customer. The Monetary Authority of Singapore, for one, has [warned consumers]( about the risk of chalking up personal debt. Earlier this year, the central bank said that it would be reviewing the appropriate regulatory approach for BNPL.  2️⃣  [Fintech firm’s founder handed 10 years’ jail time on charges of fraud]( Photo credit: Lattice80 Joe Cho Seunghyun, the South Korean founder of Marvelstone Group, a private investment firm that claimed to incubate Singapore startups, was sentenced to jail in his home country for fraud and other charges, The Business Times reported. Over 70 investors allegedly lost more than US$8.4 million in returns. Why it matters: The unraveling of Marvelstone - the operator behind Lattice80, which was once touted as the “world’s largest fintech hub” despite an [apparent lack of business and assets]( - raises questions on the amount or lack due diligence done on glitzy fintech firms. In his heyday, Cho was a frequent sight at international fintech conferences, where he would speak as a Marvelstone representative. The firm talked up [relocating its headquarters to the UK]( said it would set up an [AI hub in Singapore]( and even [launched an initial coin offering]( only to [delist its token]( later.  3️⃣  [Indonesian online lender UangTeman sued for $1m (updated)]( Photo credit: UangTeman Digital Alpha Indonesia, the legal entity behind online lender UangTeman, has been sued by a Japanese company called Real Capital for defaulting on its loan obligations, Detik reported. In a statement to Tech in Asia, UangTeman founder and CEO Aidil Zulkifli said that his company did not have any legal or contractual relationships with Real Kapital nor did UangTeman sign any related documents. Why it matters: The company has hit a few rough patches in the last few years. In 2018, [a string of resignations]( by senior executives and the suspension of its loan offerings at 13 branch offices sparked fury among its users. However, UangTeman seemed to have turned things around last year after [closing a US$10 million series B round](. STARTUP WATCH 1️⃣ Bizzi - [Ex-VNG, Rocket Internet exec’s bookkeeping startup lands $3m in fresh funds]( The Vietnam-based startup helps companies including Grab, GS25, Tiki, and Guardian handle invoices through robotic process automation and machine learning. [Bizzi]( says it processes over US$300 million in invoices monthly.  2️⃣ CoinSwitch Kuber - [A16z, Coinbase lead Indian crypto firm to unicorn club with $260m raise]( The India-based firm allows users to buy and sell various cryptocurrencies across different exchanges without having to create multiple accounts. [CoinSwitch Kuber]( plans to use the fresh funds to onboard 50 million Indians to its platform and introduce new crypto products such as lending and staking. That’s it for this edition - we hope you liked it! Do also check out previous issues of the newsletter [here.]( Not your cup of tea? You can unsubscribe from this newsletter by going to our preference center at the bottom of this email. In the meantime, if you have any feedback or ideas, feel free to get in touch with Terence, our editor-in-chief, at terence@techinasia.com. See you next week! P.S. Don't miss out on the biggest tech news and analysis. Add newsletter@techinasia.com to your address book, contacts, or safe sender list. Or simply move us into your inbox. Too many emails? Switch to a different frequency or get new content through our [preference center]( or [unsubscribe](. You can also break our hearts and remove yourself from all Tech in Asia emails over [here](  Copyright © 2021 Tech in Asia, All rights reserved. 51 Bras Basah Rd, #05-5061, Singapore 189554