Fintech firms flip the script on cash-centric Philippines

In The Top Up, we look at key players in the Philippines’ fintech landscape and analyze innovations from traditional insurer Great Eastern Life. [Read from your browser]( The Top Up 💵 Welcome to The Top Up! Delivered every fortnight 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](. IN FOCUS In today's newsletter, we look at: - [Why the fintech sector in the Philippines is all about GCash, Maya, and cross-border deals]( - Singapore’s 115-year-old insurer, Great Eastern Life, launches new products to keep up with the times, but will they make a difference? - How Thai food delivery firm Line Man Wongnai’s recent acquisition of a majority stake in local payments platform Rabbit Line Pay [furthers its ambition]( become the kingdom’s dominant tech platform for ecommerce services --------------------------------------------------------------- Hello {NAME} A friend of mine who recently visited China lamented that it was almost impossible to pay with cash or even non-Chinese credit cards. Everyone relies on either Alipay or WeChat Pay. This might not hold true for the Philippines just yet. As my colleague Miguel notes in this week’s Big Story, cash remains king in the archipelago. It’s still the predominant payment method, particularly in public transportation and small-scale businesses. However, there are swift changes underway, largely driven by e-wallets GCash and Maya. Both firms enjoy the backing of major local telecom companies - Globe Telecom and PLDT, respectively. Together, the two account for around two-thirds of the total funds raised by fintech startups in the Philippines. While GCash boasts a larger user base, Maya is also selling itself as a digibank and is one of the few homegrown entities to receive a digibank license from local regulators. Apart from these players, Tech in Asia has recorded over 40 fintech firms operating across various sectors in the Philippines, all making strides in the capital market. Meanwhile, for this week’s Hot Take, I look at some new products launched by Great Eastern Life, a traditional Singaporean insurer. -- Simon  --------------------------------------------------------------- THE BIG STORY [The players pushing the Philippines into the SEA fintech spotlight]( GCash and Maya are the dominant players in the country’s payments sector, having secured the most capital.  --------------------------------------------------------------- THE HOT TAKE Can Great Eastern go big with its new insurance plans? Here’s what happened: - Great Eastern Life, the Singapore-based insurer, has unveiled a new [flexible home and contents insurance plan]( priced at S$8 (US$5.9) a month. - The plan, developed in collaboration with existing partner Singtel, will be tied to the latter’s consumer broadband subscription. It provides coverage of up to US$59,000 for household contents (e.g., fixtures and fittings, furniture, other personal belongings) and renovations, along with US$366,000 for personal liability. - On September 6, Great Eastern also launched Singapore’s first insurance plan that [protects owners of electric vehicles (EVs)]( against electric shock, home contents damage caused by fire, and accidental damage to private charging stations. Here’s our take: The response of Singapore’s [big banks]( to the digital world and competition from fintech startups has been extensively discussed. However, let’s not forget that established insurers are also compelled to embark on their own journey to adapt to the ever-changing financial landscape. Great Eastern’s latest innovation, unfortunately, isn’t exactly revolutionary. It’s a variation - or as the parties involved describe it, an “enhancement” - of an existing plan that was [released]( in August 2020. The difference between the old and the new plans? The original required a one or two-year commitment, whereas the new version permits cancellations at any time. In the event of a customer’s relocation, the plan will be automatically updated with the new address, assuming that the customer maintains their broadband subscription. Meanwhile, the firm’s standalone EV insurance offering comes as the adoption of EVs in Singapore continues to rise. In 2022, the number of EVs on the city-state’s roads surged by 122% compared to the previous year. With Singapore’s vision of having all new vehicles running on cleaner energy by [2030]( total EVs on the streets, along with the implications of this for the EV insurance sector, has ample room to rise further. However, this transition may present a threat for traditional insurers, who may lack the network of distribution channels to reach EV owners. The key question surrounding these new initiatives is how many users Great Eastern expects to attract and whether the company can serve them profitably. Given the prevailing economic uncertainty and the rising cost of living, consumers may be reluctant to shell out more for such insurance products at this time. And because of these factors, it’s difficult to imagine that the premiums earned from these initiatives will significantly move the needle at Great Eastern, which wrote [US$13.6 billion]( in gross premiums in 2022. Nevertheless, Great Easten’s partnership with Singtel will help it reach a much wider base. In the broadband space, where this initiative is focused, the telco has nearly [700,000 customers]( in Singapore. It also has 4.3 million mobile subscribers. Looking beyond Singapore, Singtel, along with its subsidiaries and associates, serves over 770 million mobile customers across 21 countries. However, it’s worth noting that the only country where Singtel and Great Eastern currently intersect - other than in Singapore - is in Indonesia. In any case, Great Eastern has established numerous partnerships within the tech space in Indonesia, including collaborations with insurtech Qoala, super app Gojek, and online travel agents Traveloka and Tiket.com. Now, whether the 115-year-old insurer can successfully navigate and thrive in this dynamic landscape is still a story in the making. -- Simon Currency converted from Singapore dollar to US dollar: US$1=S$1.36.  --------------------------------------------------------------- NEWS YOU SHOULD KNOW Also check out Tech in Asia’s coverage of the fintech scene [here](. 1️⃣ [Netbank, Akulaku team up to provide loans to underserved Filipinos]( The former enables other fintech firms to open accounts, make payments, collect funds, and issue cards for their users. 2️⃣ [Kasikornbank launches $100m fund for fintech-focused AI, Web3 solutions]( In addition to investments, the fund will offer founders access to Kasikornbank’s network of corporate resources, SMEs, and consumers, as well as assistance from its partners. 3️⃣ [Indonesia’s Amartha, IFC to invest $206m in women-led MSMEs]( Amartha is also aiming to address regional disparities and will allocate over 70% of the funding to entrepreneurs beyond the Java island. 4️⃣ [Parallax raises $4.5m to help freelancers get paid faster]( The Philippine-focused firm lets users open virtual accounts to accept payments in US dollars as well as in stablecoins. 5️⃣ [Razorpay extends digital invoicing capabilities with BillMe acquisition]( Founded in 2014, Razorpay has made eight acquisitions so far.  ---------------------------------------------------------------  FYI [Line Man Wongnai looks beyond food delivery in quest to become the GoTo of Thailand]( Recent acquisitions are paving the way for the company to IPO in 2025.  --------------------------------------------------------------- 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 your “edit profile” page and choosing that option in our preferences center. 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 in a fortnight! 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 © 2023 Tech in Asia, All rights reserved. 63 Robinson Road, Singapore 068894