In recent years FinTech, has grown tremendously and is making its presence felt across the globe. The Singapore FinTech Consortium presents our slide deck: Introduction to Financial Inclusion in Southeast Asia to give you a preview of our research in the Southeast Asian landscape. If you are keen to learn about P2P Lending, please view our slide deck at: http://www.slideshare.net/SGFinTech/singapore-fin-tech-consortium-intro-to-p2p-lending If you would like to receive a pdf copy of any of our slide decks, please drop us an email at info@singaporefintech.com and we'll be happy to oblige. For more information about us and our service offerings, please visit our company website at www.singaporefintech.com.

1. Introduction to Financial Inclusion
in Southeast Asia
July 2015

2. Global Views on Financial Inclusion
2
“It is critical that regulators create an open and level playing field for
mobile money services, as there is evidence that regulatory barriers
can slow down both market uptake.”
Simone de Castri, Director of Advocacy & Regulation of GSMA
“Financial inclusion can help individuals cope better with poverty, especially
the challenges of irregular income and occasional large bills.”
Joseph Torbey, Chairman of the World Union of Arab bankers
“For so many people living in poverty, lacking access to finance and not
having the means to be productive is a significant hindrance to improving
their standard of living.”
Ann Miles, Director of Financial Inclusion of The MasterCard Foundation
“Financial inclusion also coincides with greater local economic activity
and decreased economic inequality at the macroeconomic level.”
Robert Cull, Lead Economist of the World Bank

3. Defining Financial Inclusion
“The provision of accessible, affordable and relevant financial
products and services to individuals, households or
groups.”
3

4. Other Definitions to note:
Unbanked – Situation where an individual (>15 years old) does not have their own bank account.
Underbanked – Situation where consumers have limited to no access to any financial services,
which are normally offered by banks.
Scope of Financial Inclusion
Bank Accounts Immediate Credit Savings Products
Remittances and
Payments Services
Insurance
Mortgage
Financial
Advisory Services
Entrepreneurial Credit
Types of Financial Services Offered by Banks in Developing Countries
4

5. Lack of Financial Infrastructure
• Weak Laws & Regulations to allow banks to
share information or set up public credit
registries.
Lack of Personal Documents
• Without much personal documentation, no
proof of credit worthiness of borrower.
Restrictive Regulations
• Fear of exploitation of the poor while
requiring financial institutions to stick to good
credit, limits banks’ incentives to seek
business with the poor.
Unsuitable Financial Products
• Banks fail to tailor their products accordingly
to the needs of the poor. Hence, with lack of
knowledge and understanding, the poor are
reluctant to adopt such products.Logistic and Delivery Challenges
• Due to the remote areas the poor live in, it
makes the financial services costly as banks
factor in the expense of travelling.
5
5%
13%
19%
20%
23%
25%
30%
0 5 10 15 20 25 30 35
Religious reasons
Lack of trust
Lack of documentation
Too far away
Too expensive
Family member already has an account
Not enough money
Adults without a bank account (%)
Barriers to Financial Inclusion
Other Cited Reasons by Survey Reports (2014)
Source: Global Financial Inclusion, Standard Chartered Research 2014.
Reasons for Being Unbanked or Underbanked

6. Though more have been financially included, there is much room for improvement in less developed countries
such as Myanmar and Cambodia.
Possible Areas of Improvement:
1. Need for affordable and financially viable financial products, which are country relevant.
2. Strengthen regulatory environment to support financial inclusion.
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Singapore Malaysia Thailand Indonesia Philippines Vietnam Cambodia Myanmar
Southeast Asia Banked Population
% of Banked Population in SEA (2011 & 2014)
6
2011
2014
Source: (Global Findex) Database, World Bank 2014.

7. '10 '11 '12 '13 '14
Sub-Saharan Africa
North America
Middle East and North Africa
Latin America
Europe
Commonwealth of Independent States
Asia Pacific
2,798
3,013
3,210
3,463
3,636
Mobile Phones Penetration
Mobile Penetration in the SEA region has enabled provision of Financial Services to the unbanked & underbanked.
Southeast Asia Mobile Penetration & Penetration Growth Rate (YoY, 2014)
Source: The Mobile Economy 2015, GSMA & Digital, Social, And Mobile In APAC 2015, We Are Social & IAB.
Unique Subscribers by Region (Millions, 2014)
7
-20%
0%
20%
40%
60%
80%
100%
120%
140%
160%
0
20
40
60
80
100
120
140
160
Singapore Thailand Vietnam Cambodia Malaysia Brunei indonesia Philippines Laos Myanmar
PenetrationRate(2014)
PenetrationGrowthRate(YoY)
Penetration Rate (2014)
Penetration Growth Rate (YoY)

8. Mobile Money Mobile Insurance Mobile Savings Mobile Credit
8
Allows transferring of
money and making
payments via feature
phones.
Provides micro-
insurance services
through feature phones.
Allows consumers to
save by using their
feature phones.
Provides credit
services via feature
phones.
Mobile Financial Services
Insurance
Investments/ Long-
Term Savings
Borrowing
Electronic payments starting with everyday
needs like P2P payments and bill payments
Secure transactional account that is used to receive and
store funds (eg., salaries, remittances, benefits)
Pathway to Full Financial
Inclusion
More complex needs, order
may vary by market
Basic money management –
foundational for all markets
Hierarchy of Consumer Financial Needs
Source: A Progressive Approach to Financial Inclusion, MasterCard, MasterCard Advisors Analysis 2014.

9. Big Data & Data Analytics
Mobile transactions in financial
services such as payments
and repayments are recorded.
Predictive analytics on the
data collected, can improve
providers’ insights about
customers’ needs leading to
more suitable products for the
unbanked.
Big Data
A person’s mobile airtime and
mobile money is used as part
of a decision process to decide
the creditworthiness of the
individual.
Better screening and
predictive analytics produces
relevant financial products,
which reduces risk of lender
and reduce premiums charged
to clients. Operational
efficiency translates to cost
savings for both service
provider and customer.
Mobile data serves as a strong
source of data capture for
emerging markets. The
diffusion and adoption of
mobile phones has created
billions of data-generating
devices across emerging
markets.
High penetration of mobile phones in the unbanked and underbanked regions helps to support
financial services and the collection of data.
Data Collection
Solution to Financial Inclusion Data Analytics
Credit Risk Assessment
9

10. GDP PC
$6,728
72.7m
256m 36.1%
121%
INDONESIA
GDP PC
$3,383
44.2m
31.3%101m
113%
PHILIPPINES
GDP PC
$64,584
5.4m 96.4%
4.45m
152%
SINGAPORE
GDP PC
$17,748
30.5m 80.7%
20.1m137%
MALAYSIA
35m
64.9m 78.1%
150%
GDP PC
$7,907
THAILAND
GDP PC
$2,589
41.0m
31.0%
90.7m
141%
VIETNAM
2.6m
51.4m 22.8%
26.0%
GDP PC
$1,040
MYANMAR
GDP PC
$1,818
3.8m
22.2%15.4m
157%
CAMBODIA
GDP PC
$2,054
0.85m
- %6.8m
103%
LAOS
53.1%1.27b
75%
INDIA
243m
GDP PC
$2,653
98.9%23.8m
126%
AUSTRALIA
21.2m
GDP PC
$67,035
99.5%4.57m
125%
NEW ZEALAND
GDP PC
$31,999
4.16m
Total Population (m)
Mobile Penetration
Rate (%)
Population with a bank
account (%)
Total Internet Users
(millions)
GDP Per Capita (PC)
($US)
*As of Q4, 2014
10
Market Potential

11. https://www.facebook.com/FinTechSG
Singapore Fintech @ Tanjong Pagar
26 Duxton Road
Singapore, 089490
Singapore Fintech @ One-north
Ayer Rajah Blk 79
Singapore, 139995
For futher information, visit our website at www.singaporefintech.com
For research and inquiries, email us at info@singaporefintech.com
https://www.linkedin.com/company/singapore-fintech-consortium
@SGFinTech
Contact