Hello there ,

Over a decade ago, I started my career as a copy editor in New Delhi, India. The job provided me with my first taste of financial independence, and it felt thrilling. However, I was not able to manage my money and ended up spending everything I earned.

This was when my roommate suggested that I make a monthly Excel sheet so I could keep tabs on my spending. It actually helped: I was able to cut down on the wasteful expenses and started saving a bit every month from my paltry salary.

Little did we know that the idea of documenting our expenses would one day emerge as an important segment of the fintech world.

Like India, Indonesia is churning out several startups that record and analyze consumer spending by tracking users’ transactions at major banks and e-wallets.

Riding on the success of bookkeeping apps such as BukuKas and BukuWarung, personal finance management apps are drawing the attention of early-stage and angel investors.

In this week’s big story, my colleague Ardi explores whether personal ledgers can replicate the success of bookkeeping apps in Indonesia.

Almost half of Indonesia’s 270 million population have bank accounts, so the opportunity for money management players is big. But with bigger opportunities comes bigger competition.

Read on to find out what it will take for personal finance management apps to make the cut in this burgeoning market.

As for me, I’m still using my old-school Excel sheet to track my spending.

-- Samreen

THE BIG STORY

Indonesia’s personal finance apps see new tailwinds – and VC funding

Image credit: Timmy Loen

After the rise of BukuKas and BukuWarung, some startups are hoping to follow the same trajectory by putting a consumer spin on the two firms’ B2B products.

THE HOT TAKE

Crypto’s wave of MAS disapproval

Image credit: Timmy Loen

Here’s what happened:

• The Monetary Authority of Singapore (MAS) has imposed a ban on all advertising of crypto assets to the public in the city-state.
• This ban covers both online and offline advertisements as well as ads through third parties like social media influencers.
• Companies can only market on their websites, apps, and social platforms.

Here’s our take:

While MAS took pains to highlight that it “strongly encourages the development of blockchain technology and innovative application of crypto tokens in value-adding use cases,” it also cited that its decision is based on how the “the trading of cryptocurrencies is highly risky and not suitable for the general public.”

This move is part of a global trend. On the same day that MAS made its announcement, Spain unveiled restrictions on advertising of crypto assets. Advertisers and crypto companies are required to inform the country’s fiscal watchdog about the content of upcoming major campaigns and provide warnings about the risks of these investments.

Singapore’s approach, however, is notably stricter than Spain’s.

As with other businesses, most crypto companies don't set up shop in Singapore to access its domestic market. However, this decision may encourage a further shift away from the previous perception that the city-state was a friendly jurisdiction for crypto players.

On the flipside, crypto advertising does need to be controlled, given that many retail investors aren’t ready for the volatility of these digital assets. Also, the MAS directive doesn’t forbid crypto platforms from advertising on their own social media page - a curious loophole.
 

• is expressed as a unit
• is not denominated in any currency (or pegged to any currency)
• is a medium of exchange accepted by the public as payment for goods or services
• can be transferred, stored or traded electronically

Non-fungible tokens (NFTs) and stablecoins are unlikely to fall within the definition above. Arguably, the former is not expressed as a unit or a medium of exchange, while the latter are tied to currencies.

As with many other areas, Singapore is trying to walk a fine line and have the best of both worlds. How developments in this space play out will tell us how deft it is at doing so.

– Simon

NEWS YOU SHOULD KNOW

Also check out Tech in Asia’s coverage of the fintech scene here.

1️⃣ Ex-Google exec's fintech firm nets $75m in series D money

INDmoney hit 3.5 million registered users with a 20% month-on-month growth and has tracked US$15 billion in investments.
 

2️⃣ 🇸🇬 edfintech firm gets $15m debt facility

ErudiFi has partnered with over 100 educational institutions in Indonesia and the Philippines and served more than 12,000 students.

3️⃣ Series SEA: Who's investing in the region's fintech startups?

A list of investors that are pouring money into Southeast Asia’s fintech startups.
 

4️⃣ 🇻🇳 fintech firm gets $10m loan facility from Lendable

F88 aims to disburse nearly US$500 million in funds by 2022.

5️⃣ Sequoia joins Indian fintech firm's $75m round

In June 2020, FPL Technologies partnered with several banks to launch OneCard, an exclusive mobile-first metal credit card.

That’s it for this edition - we hope you liked it! Do also check out previous issues of the newsletter here.

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In the meantime, if you have any feedback or ideas, feel free to get in touch with Terence, our editor-in-chief, at terence@techinasia.com.

See you next week!