Leveraging fintech

partnerships to

fuel SME growth

Anand Periwal, Head of Partnerships

C O N F I D E N T I A L - D O N O T D I S T R I B U T E

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What is FinTech

Financial Technology, nowadays better known under the term 'fintech', describes a business that aims at

providing financial services by making use of software and modern technology.

E.g. Mobile payment services; Robo-Advisory Crowdfunding platforms,

C O N F I D E N T I A L - D O N O T D I S T R I B U T E

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How FinTech is transforming SME lending

AI-driven fraud & credit assessment

• Digitised data sources

• Automated fraud checks

• Sentiment analysis, news tracking

• Cluster analysis on monitoring

and early collections

✓ Reduce human error and biases

✓ Reduced due-diligence costs

✓ Faster loan approval processes

✓ Better risk-adjustment; fewer

losses from fraud

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• Pay for operational expenses and supplies

• Maintain short-term cash flow to pay workers on time

• Purchase or upgrade of equipment to support the business

• Upskill staff, upgrade or maintain their processes or services

• To capitalise on growth opportunities, e.g. take advantage of increased demand, take on new projects, expand operations

Why SMEs Need Financing

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Landscape of SME pain points

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Fintech Lender’s solution

• Uses technology and data analysis to reduce cost of financial intermediation and loans can be approved within 48 hours

• Offers unsecured financing up to S$500,000 at personalised, affordable rates

• Typical products include Invoice Financing, Purchase Order financing, Working Capital Loan

SME’s Challenges

• Failure to get financing on time because of lack of sufficient collateral

• Lack of credit history to be eligible to apply for conventional business loans

Fintech Lender: Addressing the SME financing gap

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FoodXervices

ST Engineering

Xero

SMRT

Sunray

Foodpanda

VISA

APM

Forging partnerships for

a ‘SME 360’ View

Prudential

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How can we use ecosystems to win in the SME market?

Scale of SME Banking

Underserved Middle

Change is coming

Why ecosystems offer SMEs a winning proposition

• Given SMEs’ significant unmet needs, it’s easy to understand the attraction of ecosystems.

• The ecosystem idea is to offer a broad range of services SMEs need, including but not limited to banking, in a single integrated platform.

• This provides the convenience SMEs seek, and reduces the amount of time spent searching for and accessing other products and services.

• And an ecosystem makes new and better services possible for SME owners

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WHY PARTNER?Win/Win partnerships that

fuel SME growth

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Singapore’s largest

SME Financing platform

B A C K E D B Y

A A A - r a t e d F M O , V e r t e x V e n t u r e s

L I C E N S E D B Y

S i n g a p o r e ’s M o n e t a r y A u t h o r i t y o f S i n g a p o r e

A P P R O V E D O N

G o v t e - p r o c u r e m e n t p o r t a l G e B I Z

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Validus has become Singapore’s largest lending platform

due to ability to forge partnerships with industry leaders, FIs, corporates

2015 2016 2017 2018 YTD 2019

Q1 19: Closed

Series B with marquee

strategic investors

Q2 19: Received OJK

approval; Indonesia &

Vietnam go-live

Founded in Jul 15 May 17: First pilot

started under Visa

and Citibank

partnership

Q2 18: Started

proprietary fundSep 15: Partnership

inked with NUS-CRI to

develop credit risk algo

Oct 15: First test

loan disbursed

Q1 16: Target

market defined;

risk algo refined

Jul 16: Partnership

with EQ Insurance

(first in ASEAN)

Apr 17: Perfected invoice

discounting product

structure (ring fenced

repayments)

Jun 17: Series A round

Dec 17:

Obtained MAS

CMS licence

Q1 18: First

corporate vendor

financing

programQ3 17: Launched

data-driven

campaigns

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Our ability to crack partnerships is a key differentiator

Marquee Shareholders

Theodore Rachmat& Family

Astute shareholders who provide strategic guidance and access to key partners and local corporates to drive the

anchor-led customer acquisition strategy

Financial Institutions

Access to institutional capital and alternate sourcing channel for acquiring most creditworthy (bankable)

customers along with surrogate data for analysis

Insurance & Credit Algo

Unique partnerships with NUS-CRI for robust fraud detection and credit algo; EQ Insurance for first of its kind

(in ASEAN) insurance cover against default for lenders

Corporate Anchors

Large corporate anchors provide access to thousands of SME suppliers along with performance data allowing a

unique customer acquisition strategy

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Supporting SMEs – the backbone of

the economy.

HELP SMEs

GROW

PROMOTE

ACCESS TO

FINANCE

SUPPORT

LOCAL

ECONOMIES

MISSION

To facilitate financing of over SGD 1 billion

by 2020

VISION

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Validus has proven experience in bridging the cashflow gap SMEs face

7,000+

Total no. offacilities disbursed

48 hours

Average fundingturnaround time

90%

Repeat borrowers

Information displayed is calculated based on internal analytics. 1 In SGD, as of 02 Oct 2019.

T O T A L F U N D S D I S B U R S E D 1

$300 mS M E A N N U A L R E V E N U E G R O W T H

20%

Awards Won and Nominations

Excellence in Finance - Companies

CONFIDENTIAL

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Validus has built one of the strongest fintech team in the region

with experienced financial services leaders

Nikhilesh GoelCo-Founder

Over 12 years of Private Equity, M&A and Investment Banking experience

Vikas NahataCo-Founder & Executive Chairman

Over 20 years’ in managing financial services and real estate companies

Ajit RaikarCEO & Co-founder

Over 30 years of SME banking experience at DBS, Citibank and

Fullerton / Bank Danamon

Sonal JainChief Data Officer

Over 14 years of risk management experience at Amex and Indifi

Deepika Deshpande Chief Operating Officer

Over 26 years’ experience in Commercial and SME Banking in Citi

across the region

Swaroop ShahDirector, Sales

Over 20 years in banking - Sales and consumer lending at Prudential and

Citibank

Anand PeriwalHead of Partnerships

Over 13 years of Consulting, Banking, Treasury and business build out experience

with Ernst & Young, ANZ Bank

Arvind RaoChief Technology Officer

Over 25 years’ experience at Citi and Barclays

THANKYOU

Anand Periwal

Head - Partnerships

anand@validus.sg

+65 9715 7618

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Q U E S T I O N S ?