An overview of Thailand's Fintech landscape and investment opportunities, presented by Paul Ark (Managing Director of Corporate Venture Capital at Digital Ventures) at the Next Money Asia Fintech Finals on 30 Jan 18.

1. 1
FINTECH POSTCARD: THAILAND
PAUL ARK
MANAGING DIRECTOR, CORPORATE VENTURE CAPITAL
DIGITAL VENTURES, A SUBSIDIARY OF SIAM COMMERCIAL BANK
JANUARY 2018

2. SHAMELESS PLUG
(Blockchain, San Francisco) (Social payments, Tel Aviv)
(Geolocation, Hong Kong) (Indoor positioning, Helsinki)
(New York) (Singapore)
(Hong Kong) (Singapore)
US$ 50 MILLION CORPORATE VC FUND
INTERNATIONAL
DIRECT
INVESTMENT
FUND OF
FUNDS
DOMESTIC
INVESTMENT

3. MACRO & BANKING LANDSCAPE

4. MACRO OVERVIEW – ASEAN’S LEADING 6 COUNTRIES
PENETRATION% IN = Internet MO = Mobile MS = Mobile Social SO = Social Media BK = Banked CC = Credit Card
THAILAND
69M PPL, $407BN GDP
IN 67%
MO 133%
BK 78%
MS 62%
SO 67%
CC 6%
MALAYSIA
31M PPL, $296BN GDP
IN 71%
MO 139%
BK 81%
MS 65%
SO 71%
CC 20%
INDONESIA
261M PPL, $932BN GDP
IN 51%
MO 142%
BK 36%
MS 35%
SO 40%
CC 2%
SINGAPORE
6M PPL, $297BN GDP
IN 82%
MO 147%
BK 96%
MS 70%
SO 77%
CC 35%
VIETNAM
93M PPL, $203BN GDP
IN 53%
MO 131%
BK 31%
MS 43%
SO 48%
CC 2%
PHILIPPINES
103M PPL, $305BN GDP
IN 58%
MO 126%
BK 28%
MS 52%
SO 58%
CC 3%
639M PEOPLE
$2.6 TRILLION GDP
306MM ON SOCIAL MEDIA
133% MOBILE PENETRATION
Thailand is a well-banked but largely cash-driven economy; its high mobile phone and social media
penetration makes it ripe for fintech innovation
Source: World Bank, AseanUp

5. DIGITALLY-SAVVY, MOBILE-FIRST POPULATION
Thais are among the world’s most voracious consumers of social & digital media content, and are twice
as likely to access the internet via a mobile device than a PC
As of May 2017
Source: Facebook, Google Thailand, Thoth
47
million users
2%
of global accounts
11
million users
2
of the Top 10 most
Instagrammed locations
in the world
9
million users
3
million active
users
50%
of online time daily
#1
in SE Asia and top 10
globally by watch time and
content upload

6. THAILAND’S BLOATED BANKS
In a different era, large numbers of staff & branches were a sign of strength. Today, they are a source of
vulnerability
Source: Bank of Thailand, Bangkok Post
400
branches
15,000
staff

7. ONLINE PAYMENT METHODS
Source: Digital Ventures
3%
97%
US
6%
33%
61%
China
67%
21%12%
SE Asia
96%
4%
UK
Credit/ Debit Cards, PayPal Cash on Delivery Others i.e. wallet, online transfers, OTC
Credit cards dominate online payments in western countries, and mobile payments in China, but in
Southeast Asia, cash is still king

8. STARTUP & FINTECH ECOSYSTEM

9. CAGR119%
$3.1
$9.7
$42.7
$33.2
$86.0
$156.6
2012 2013 2014 2015 2016 2017
THAILAND’S STARTUP ECOSYSTEM
Thailand’s startup ecosystem has grown 50-fold since 2012. However, the ecosystem is still embryonic,
accounting for less than 5% of Southeast Asia’s funds raised each year.
#FUNDED STARTUPS
2012 2015 2016 2017
3
60
75
90
#VC & CORPORATE INVESTORS
2012 2015 2016 2017
1
56
74
96
THAI STARTUP TOTAL FUNDS RAISED (USD MILLION)

10. FINTECH’S PLACE IN THE THAI STARTUP ECOSYSTEM
CAGR: 119%
$3.1 $9.7
$42.7
$33.2
$86.0
$156.6
2012 2013 2014 2015 2016 2017
#FUNDED STARTUPS
2012 2015 2016 2017
3
60
75
90
THAI ECOSYSTEM FUNDS RAISED (USD MILLION)
$0.02 $0.4 $3.2
$13.7
$31.6
$60.4
2012 2013 2014 2015 2016 2017
THAI FINTECHS FUNDS RAISED (USD MILLION)
CAGR: 383%
#FUNDED FINTECHS
2012 2015 2016 2017
2
8 12 15
Source: Techsauce, news posts
Through 2017, fintech startups account for
17% of total startups funded, but fintech as a
category accounts for 40% of total startup
funding, representing the 2nd highest-funded
category behind e-commerce.

11. THAI FINTECH ECOSYSTEM
Fintech startups comprise about 3 to 4% of the country’s estimated 2,500 startups, but received about
40% of venture funding (including ICOs) in 2017
Source: Techsauce, Thai Fintech Association, Bangkok Post

12. THAI FINTECH FUNDING
Payments, 90%
Financial Management, 1%
Trade & Investment Advisory, 3%
Insurance, 2%
Peer to Peer Lending, 1%
Others, 3%
Disclosed Funding by Category (2011-2017)
Source: Techsauce
The lion’s share of fintech funding has gone to a small handful of payments startups

13. DIGITAL BANKING BY THE NUMBERS
Source: Bank of Thailand, The Asian
when mobile banking
accounts overtook
internet banking
accounts
2015 26 56
million mobile banking
accounts, vs. 18 million
internet banking
accounts
million mobile banking
transactions, vs. 21 million
internet banking
transactions
US$ billions in mobile
banking transactions, vs.
US$77 billion for internet
14 87%
3-year CAGR in mobile
banking transaction
value, vs. 12% for internet
banking
40
million mobile e-wallets
issued by telcos,
messaging platforms &
fintechs

14. GOING CASHLESS: NATIONAL E-PAYMENT PLAN
PromptPay:
New Settlement Infrastructure
EDC Rollout:
Increase Card Acceptance Points
P2P Payments
Merchant
Payments
Bill Payments
• Enable P2P payments via mobile phone number or national ID number
• Reduce or eliminate the costs of domestic P2P payments and spur
mobile banking usage
• Launched January 2017; 28 mn unique users by year-end (40% pop)
• Increase payment options for smaller
merchants via distribution of EDC/
payment terminals
• MOUs signed by Thailand’s 7 largest
commercial banks in March 2017
• Over the next 9 months, 560,000
additional EDC devices were
distributed throughout the country,
increasing the number of POS
terminals by 140%
• Facilitate cashless commerce; displace cash as medium of payment
• Creation of national standards for QR codes
• Launched in October 2017; banks have aggressively marketed
payments & QR code programs to lock in merchant accounts
• Streamline invoicing and bill payments via biller ID scheme (based on
corporate tax ID + 2-digit suffix)
• Reduce operating & cash management costs for businesses
• Launched Q4 2017
• The Bank of Thailand has mandated a complete industry migration from legacy payments
infrastructure to the PromptPay settlement infrastructure by year-end 2018
BOT is aggressively pushing a cashless agenda, implementing in 2017 key initiatives proposed only a year
earlier

15. REGULATORY DEVELOPMENTS
Thailand’s regulators are never pioneers, but should be given credit for being very fast followers
Dec 2016
Thailand’s Digital Economy
Promotion Agency launches
$6.2m fund to invest startups &
SMEs.
Revenue Dept. grants tax
exemptions to VCs making
investments in 10 specific
sectors. Registration
effective from Jan 2017 –
Dec 2018.
BOI Launches SMART Visa to
attract foreign investors,
employees & entrepreneurs:
4 year-permit to work/invest in
Thailand in select high tech
industries.
Jan 2018
Electronic Transaction
Development Agency
(under ICT Ministry)
announces plans for
National Digital ID to
support e-KYC and
identity verification.
Nov 2017
Jan 2017
Mar 2017
SEC Launches
regulatory Sandbox
for Robo Advisory,
Algorithm Trading,
Fintech & Blockchain
for securities trading
applications
Feb 2017
Revenue Dept.
grants 5-year
corporate
income tax
exemption for
new startups in
10 business
sectors.
BOT Launches
Regulatory
Sandbox for
Payments, Loans,
and Funds
transfers use
cases. Live
Q12017.
Source: Bank of Thailand, Bangkok Post, Digital Ventures

16. THAILAND FINTECH OPPORTUNITIES

17. #1: TOURISM
Intersection of fintech, tourism/travel, and even health represent a relatively untapped US$50bn market
opportunity
Source: Publicar, Zion Research
(Million) (USD Bn)
Rank 2015 2016 Country of Origin (Million) % Rank 2015 2016
1 France 84.5 82.6 China 8.8 27% 1 United States 205.4 205.9
2 United States 77.5 75.6 Malaysia 3.5 11% 2 Spain 56.6 60.3
3 Spain 68.5 75.6 Japan 1.4 4% 3 Thailand 44.9 49.9
4 China 56.9 59.3 Korea 1.5 5% 4 China 45 44.4
5 Italy 50.7 52.4 Laos 1.4 4% 5 France 44.9 42.5
6 UK 34.4 35.8 India 1.1 3% 6 Italy 39.4 40.2
7 Germany 35 35.6 Russia 1.09 3% 7 UK 45.5 39.6
8 Mexico 32.1 35 Rest of the world 13.81 42% 8 Germany 36.9 37.4
9 Thailand 29.9 32.6 Total 32.6 100% 9 HK 36.2 32.9
10 Turkey 39.5 n/a 10 Australia 28.9 32.4
Thailand 2016 Tourist arrivalsInternational Tourist Arrivals International Tourism Receipts
Thailand is a Top 10 global
travel destination, and the
leading travel destination in
Southeast Asia
Over 50% of visitors to
Thailand come from within a 4
hour flight radius
Of the US$50bn in tourism receipts,
US$4.3bn are from medical tourism,
representing 8.6% of Thai tourism,
and 7.8% of the US$55bn global
medical tourism market

18. Finance
#2: ENTERPRISE BLOCKCHAIN
Blockchain has moved past a point of conversation, seminars and conferences; Thai corporates and
government agencies are testing and piloting blockchain for a variety of use cases
• International remittances
• Contract management
• Trade finance
• Bond issuance &
settlement
Energy Government Retail
• Peer-to-peer energy
trading
• Blockchain & IoT devices
to capture real-time data
of train arrival times
• Tracking of high value/
luxury shipments
• Digital currency

19. Thailand’s Convoluted Customer m-Commerce Journey
#3: SOCIAL COMMERCE
51% of online shoppers purchase directly through social media. However, a significant portion of Thai e-
commerce is not recorded, as a large number of online boutique merchants sell without any payment
acceptance scheme
3. Seller & Shopper
agree on item, Seller
shares bank account
details via messaging
platform.
5. Shopper sends
proof of payment
and provides mailing
address to seller via
messaging platform
6. Seller ships
product and provides
tracking number on
messaging platform.
2. Shopper reaches
out to Seller via
messaging platform.
4. Shopper
switches to mobile
banking app or
nearby ATM to
make the transfer.
1. Shopper discovers a
potential product
purchase on an Instagram
or Facebook storefront

20. THANK YOU