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I’m a firm believer that competition can bring the best out of anyone.
The operative word in that sentence is “can,” as a few factors need to be in place for competition to benefit all parties involved. For example, it needs to be fair competition, so no one feels cheated if they don’t come out on top.
There also needs to be the possibility (even if it may be remote) for success, whether that means lifting a trophy on the football pitch or securing an exit for a startup. Anyone who’s competed with someone far above them in skill can attest to how demotivating such a matchup can be.
Today’s featured story looks at fintech innovation in Thailand, and it seems how the sector operates in the country is capping startups’ growth. Competition can drive progress, but only if the resources needed to compete are there.
Today we look at:
- Wherefore art thou, Thai fintech unicorns?
- Grab snapping up another Malaysian supermarket chain
- Other newsy highlights such as AWS planning to invest US$8.2 billion in Indian cloudtech firms and Malaysia vowing to investigate fraud involving Nvidia AI chips.
Premium summary
Thailand’s fintech unicorn drought
Image credit: Timmy Loen
Thailand may seem like a fertile market for fintech unicorns, given its sizable gross domestic product and strong banking ecosystem.
However, the reality is that those very banks stifle fintech innovation in the Land of Smiles.
- Stunted growth: Fintech insiders say the country lacks VCs and private equity funds, with most VCs actually being corporate venture capitalists. This holds back the potential of Thai fintech startups to evolve into unicorns.
- Banks got there first: Thailand’s six largest banks have invested heavily in digitalization efforts in recent years. This has left fintech startups with little room to add value for consumers.
- Not much help incoming: Foreign VC firms could offer another option for Thai fintech firms to scale. However, the small size of the market and tough competition from corporate venture capitalists are big hurdles to overcome.
Read more: How Thailand’s big banks shape – and stifle – fintech innovation
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