Learning from YouTrip: Leveraging Singapore’s fintech magic

Summary

Singapore’s robust financial ecosystem and supportive regulatory environment have made it a chosen location for newer fintech startups. YouTrip’s success story highlights the importance of strategic partnerships, early market entry, and a strong focus on customer satisfaction. Navigating the competitive landscape and nurturing talent to learn and grow, businesses can leverage Singapore's position as a global fintech hub to achieve significant growth.

Singapore is often the most obvious choice for founders looking to establish a business in Southeast Asia. And for good reason. It is the fastest-growing startup ecosystem in the world, rising to fifth place in 2024 from 16th in 2020 in the global startup ecosystem index.

For fintech startups, Singapore’s robust regulatory framework, stable economy, and strategic geographic location are the perfect launchpads to expand their reach across the region. In 2023, Singapore was adjudged the top startup investment destination in Southeast Asia (SEA), ending the year with a total deal volume of $6.1 billion in 522 deals.

In 2023, Singapore secured 21% of all fintech deals in the Asia Pacific region, even as funding in the sector slowed down globally. The core of this resilience is Singapore’s financial ecosystem and a regulatory environment that has readily adopted technology and encouraged collaboration with the industry. The financial regulator, the Monetary Authority of Singapore, has a stated aim of supporting “a thriving and vibrant fintech ecosystem in Singapore”.

This may be true today, but when Caecilia Chu, the co-founder and CEO of the multi-currency mobile wallet YouTrip, launched her company in 2018 the world looked different. 

“Fin and tech were not put together as a word,” Caecllia says. The world around has evolved steadily since, especially for fintech firms.  

But Caecllia had spotted a trend that others realised much later. 

"Each Singaporean bank makes a huge profit each quarter," says Caecillia, talking about YouTrip’s decision to set up a base in Singapore. She explains that the large pool of revenue and profit generated by banks implies that the TAM in the country is large enough for financial services, which could leverage technology and create a true impact. 

"What is very unique about Singapore is the very strong private and public partnership model" - Caecilia

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This creates a fertile ground for startups, especially fintechs, to thrive and potentially collaborate with established giants.

YouTrip’s journey of entering Singapore and then expanding through the region is a blueprint for others who may want to scale and grow into this vibrant ecosystem. 
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Strong foundations
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For founders looking to establish a fintech business in the island nation, the first thing to get right is finding their unique space and market. “If you look at Singapore today, every kind of global fintech name you can imagine is here.

"It's a very rapidly evolving space. Ideally, it's important to find a white space" - Caecilia

For YouTrip, success in Singapore was helped by its strategic approach to partnerships. Caecilia explains that the company focused on building relationships with established brands rather than relying solely on organic growth. It partnered with well-established companies such as EZ-Link in Singapore, the contactless smart card commonly used for public transport payments. Similarly in Thailand, when it entered the market in 2019, the company partnered with one of the largest banks — Kasikornbank. 
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"It was part of our strategy to partner with a few household brands before we launched" -  Caecilia

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These partnerships helped YouTrip rapidly build trust and credibility. 

This strategic move accelerated customer acquisition and positioned YouTrip as a trustworthy company in the market. While building these partnerships required significant upfront effort, the long-term benefits in terms of trust and market penetration have been substantial. 
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Engaging constructively with regulators

Building trust with regulators is key for any industry, but more so for fintech. Caecilia talks about the importance of proactive engagement with regulators, with a focus on the broader industry perspective from a purely company-centric approach.

"The most effective way to engage the regulator or the government is actually to put aside your company agenda and truly think from the perspective of growing the pie" -  Caecilia

YouTrip has been an active participant in industry associations and working groups, resulting in strong relationships with regulators. This collaborative approach has been instrumental in shaping the regulatory landscape and ensuring a conducive environment for fintech innovation.

For instance, Caecilia chaired the payments subcommittee for the Singapore Fintech Association and is an active member of a committee that has quarterly roundtables with Singaporean regulators. She is also a part of a working group of the seven leading payments companies in Singapore looking at finding solutions to the evolving fraud and scam typologies. 

Talent Acquisition and Retention

Attracting and retaining top talent is a critical challenge for any startup. Singapore has a relatively young startup ecosystem. This means that the depth and breadth of talent may not match that of more established hubs such as Silicon Valley, Hong Kong or even Bengaluru but startups focus on identifying individuals with the right mindset.

“What makes a person the most effective in a startup isn’t necessarily experience, but the hunger to grow, to learn, curiosity, and resilience. We hire for potential,” says Caecilia. YouTrip, she adds, strives to provide a culture that encourages employee growth and development, empowering them to do “the best work of their life,” while taking pride in their achievements.  

Caecilia recommends creating an environment where employees feel empowered to take ownership and drive innovation, helping founders cultivate a high-performing and engaged workforce.
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Expanding Beyond Singapore
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While Singapore serves as a strong foundation, expanding into other Southeast Asian markets requires careful consideration. Each country has its unique regulatory landscape, consumer preferences, and competitive dynamics. Having a strong market understanding and localised solutions are essential for successful expansion.

When YouTrip expanded to Thailand, Caecilia says “Our market research enabled us to develop a strategy tailored to Thai consumers. Combined with our Kasikornbank partnership, this approach allowed us to build trust and establish a strong market presence by meeting local demands.” YouTrip has approvals to launch in other SEA countries and is executing those launches on similar lines. 

Once you find the initial traction and trust with customers in any geography, it is important to keep it up. “From the second year (of operations) onwards, it's really about keeping your customer promise, making sure your product is reliable, it always works and it delivers what it was meant to do,” she adds.

Singapore's forward-thinking approach to technology and startups is propelling it to the forefront of the global startup ecosystem. Its supportive regulatory environment and inclusive culture make it an attractive destination for entrepreneurs. To succeed in this dynamic market, startups must thoroughly understand local consumer preferences, identify a unique value proposition, and cultivate strong relationships with regulators. While challenges inherent to a developing ecosystem exist, Singapore's upward trajectory is undeniable.