Orapong Thien-Ngern from Digital Ventures presents on DevDay at CordaCon 2019.

1. Blockchain for Procure to Pay
October 2019

2. DV CONFIDENTIAL
Digital Ventures is a subsidiary of Siam Commercial Bank (SCB), one of the largest
banks in Thailand.
• Asset – USD 100 Billion
• Employees – 27,000
• Revenue – USD 4.6 Billion
• Branches – 961
Venture Capital Products & Labs Accelerator
DV Highlights
• Established in February 2016
• Managing USD 150m investment
consisting of USD 100m in international
markets and USD 50m in China
• Aiming to disrupt traditional banking
businesses by applying leading edge
technologies
• Initiated U.reka program to stimulate deep
technology startups in Thailand
• Having approximately 120 employees with
the majority having deep technical
capabilities
• Build relationships
with leading VCs to
gain access to
technology
startups
• Invest in VCs’ funds
and startups for
technology access
and capital gain
• Apply leading
edge
technologies to
create new
products and
services
• Explore new
business model
to disrupt
traditional
banking services
• Keep track of
local startup
developments
• Help the
country to be
more
competitive in
financial
technology
creation

3. DV CONFIDENTIAL
We are facing disruptive forces in Thailand similar to banks in other countries.
ROE (%) Price/Book Ratio
2010 2011 2012 2013 2014 2015 2016 2017 2018
11%
15%
17%
20%
22%
21%
20%
12%
12%
16%
10%
15%
13%
14%
12%
10%
15%
16%
2.3
2.2
2.9
2.0
2.2
1.3
1.6
1.4
1.2
1.7
1.9
1.7
1.2
2010 2011 2012 2013 2014 2015 2016 2017 2018
1.1
1.4
1.5
1.1
1.3
Banking ROE Banking P/B
Thailand banking industrySCB
SOURCE: Bloomberg
Industry de-rating Industry de-rating

4. DV CONFIDENTIAL
One way to survive is to create “Bank as a Platform”, which, in this case, focuses on
addressing complexity in supply chain management.
Payment Banks
• Competing to be the main
operating account
• Cutting fees for cash
management & payment to
zero
• Bearing cost for uncertain
revenue
Financing Banks
• Consuming time and resources to
sell and process supply chain
lending
• Susceptible to Fraud
• Assuming collection risk and
consuming resources to perform
collection
• Unable to offer competitive rate
Buyers
• Handling a lot of documents
(PO, GR, Invoices) and
variations
• Consuming time and
resources in complex
document verification
processes
• Having big burden on
document retention
• Susceptible to errors, fraud
and leakages
Suppliers
• Waiting for long
payment cycle
• Spending a lot of time
chasing the payment
• Limiting access to
supply chain financing
Government
• Too many documents,
too complex to audit
• Consuming significant
time and resources
• Adding negative impact
to ease of doing business
& national
competitiveness

5. DV CONFIDENTIAL
B2P was developed on Blockchain DLT, which enabled us to tackle the complex
problems with simpler solution not achievable with traditional technologies.
Payment/Financing Banks
• Compete on added values to
customers rather than reducing
fees
• Acquire mass customers all at
once
• Offer differentiated lending
services
Buyers
• Get all documents in
electronic forms without
complex integration
• Automate the complex
document verification
process
• Keep all electronic records in
a better organized manner
• Eliminate errors, fraud and
leakages
Suppliers
• Same day invoice
approval
• DIY for approval &
payment status
• Instance access to
invoice financing
• Lower borrowing rate
Government
• 100% Auditability
• More Complete Audit
with Financial
Transactional Data
• Significant Reduction of
Time & Resources
• Increase Ease of Doing
Business

6. DV CONFIDENTIAL
Our first customer, SCG, has provided a strong testimony based on the initial results
shared in the public stating significant productivity improvement.
Key Highlights
• The solution was launched in August
2018.
• So far, only 275 suppliers were
onboarded.
• SCG has indicated that they achieved
substantial saving of 50% in time and
70% in cost reductions.
• The slow ramp-up was due to significant
variations of requirements.
• The solution has reached the maturity
that will enable us to scale.
• We are planning to bring up the total of
2,400 suppliers by the end of this year.
• In addition, we have already onboarded
San Siri (the largest developer) and
Minors (a leading Food & Beverage
company).
• The platform has processed more than
THB 1.5 Billion transactions.

7. DV CONFIDENTIAL
The remarkable results were achievable with the combination of applying blockchain
DLT and modern application design focusing on increasing labor productivity.
Design Principles
• User Focus – Workspaces based on
users’ roles & responsibilities (i.e.
Purchasing Manager, Account Payable
Officer, etc.)
• Modern Architecture – Dashboard
style customizable by users
• Simple and Intuitive – Breakdown to
simple tasks to facilitate faster
onboarding
Blockchain – Disruptive Technology
• Simpler Integration – DLT enables data to be
shared and processed simultaneously across
multiple blockchain nodes overcoming the
limitation of having to rely on complex and costly
point-to-point system integration.
• Global Scalability – Secured transactions can be
exchanged through the Internet making it highly
scalable.
• Ideal for Trade Transactions – Blockchain is ideal for
trade transactions where records need to be
audited for tax, fraud detection, etc.
• New Business Model Enablement –These include
different ways of facilitating cross-boarder trades,
foreign exchange (FX), cryptocurrency, etc.

8. DV CONFIDENTIAL
We are planning to further expand by building a network of leading banks, which will
offer comprehensive services and opportunities to create more innovative solutions.
Global Expansion – Bank Partnership
• Customer Reach – Banks in general
have very strong relationship in their
local markets, especially with large
corporation (buyers) and SME
(suppliers).
• Credibility – Banks normally have
higher credibility than Fintech. Having
banks as partners will make it easier
for customers to be onboard.
• Differentiated Solution – Banks can
provide comprehensive financial
services on top of B2P platform
creating a market differentiation.
• Innovation – Having cross-regional
banks as partners, will offer
opportunities to create more
innovative services to disrupt the
current business model such as using
crypto currency to facilitate Foreign
Exchange (FX), bank-to-bank
guarantees without using Letter of
Illustrative

9. DV CONFIDENTIAL
We have a solid roadmap to continue enhancing our platform and expanding the
business with an aspiration to become a major global platform for trade.
B2P for Domestic
Trade in Other
Countries
Order to Cash for
Domestic Trade in
Other Countries
Global Trade Platform
Leveraging the
Network
• Crypto Currency
Issuer
• Market Maker
• Etc.
B2P for Domestic
Trade in Thailand
Order to Cash for
Domestic Trade in
Thailand
Augmented
Solution to ERP for
Thailand
B2P for Cross Border
Trade
Order to Cash for
Cross Border Trade
Augmented ERP
Global Solution
Augmented Solution
to ERP in Other
Countries

10. DV CONFIDENTIAL
The solution won two international awards in 2019 from The Asset in Hong Kong.
Source: https://www.theasset.com/awards
The Best Supply Chain Solution
Editors’ Triple Star Award
The Asset – Asset Asian Awards