What drove MoneyHero’s aggressive bid?

In The Top Up this week, we uncover the story behind MoneyHero’s US$8 million bid for rival MoneySmart. [Read from your browser]( The Top Up 💸 Welcome to The Top Up! Delivered every fortnight via email and through the Tech in Asia website, this free newsletter breaks down the biggest stories and trends in fintech. If you’re not a subscriber, get access by [registering here]( IN FOCUS In today's newsletter, we look at: - [The story behind MoneyHero’s aggressive bid for its rival]( - What stands out about Sea’s application for a virtual bank license in Thailand --------------------------------------------------------------- Hello {NAME} I think loyalty is vital when friendships are concerned. But when it comes to credit card sign-ups? Nah. Figuring out how to attract fickle consumers like me is key to the business prospects of a financial comparison site like MoneyHero. As my colleague Melissa shares in this week’s featured story, the Nasdaq-listed company’s customer acquisition efforts prioritize credit card sign-ups. Up to early this year, it was running promotions that included giving away free iPads. I’d like one, please. But this isn’t sustainable in the long term. Indeed, MoneyHero’s adjusted earnings have deteriorated over the past year, although the firm maintains that it will achieve adjusted earnings profitability on a monthly basis by the fourth quarter of this year. This, however, is just the tip of the iceberg of Melissa’s story. Having spoken to half a dozen former employees, she uncovers how the company has adopted aggressive tactics to beat its competitors. They include MoneySmart, which MoneyHero [made a bid for]( last month. There have also been significant changes at the firm since it went public in a [SPAC]( deal last year. Just a handful of staff members involved with that exercise remain. So far, the company’s share price is down by around 78% from its opening price during its market debut. However, MoneyHero’s management is convinced the company’s new leaders have a clear strategy and are “fully committed” to executing this. Meanwhile, in this week’s Hot Take, I take a closer look at Sea’s application for a virtual banking license in Thailand. As the company’s fintech business plays an increasingly important role in its growth and profitability, it is embracing local partners in its bid to secure a license. -- Simon  --------------------------------------------------------------- THE BIG STORY [Behind MoneyHero’s bold plan to beat - then buy - its key rival]( Numerous senior leaders, including those who led the firm to list last year, have departed since the start of 2024.  --------------------------------------------------------------- THE HOT TAKE Sea’s Thai banking dreams Here’s what happened: - Sea Group has partnered with four Thai companies to [apply for a virtual bank license]( in Thailand. - These partners are BTS Group, Bangkok Bank, Saha Group, and Thailand Post. - Thailand opened applications for virtual bank licenses in March. Here’s our take: Sea’s application for a virtual bank license in Thailand is a sign of the increasing importance of financial services to the tech platform, as well as its focus on onboarding strong local partners for its regional expansion. We’ve previously said that [investors should pay more attention]( to the fintech arms of Southeast Asia’s leading tech players. In the [second quarter]( of this year, Sea’s revenue from its digital financial services division was US$519 million, 21% higher than the same period last year. Adjusted earnings came in at US$165 million, which was up 20% year on year. According to Sea, most of this division’s revenue and income came from its consumer and SME loans business, with loans outstanding of US$3.5 billion as of June 2024. With its application for a virtual bank license in Thailand, Sea hopes to expand the reach of this business into the region’s [second-largest economy](. However, it will have a fight on its hands. The Bank of Thailand [received]( five applications, but it will only issue up to three licenses. While applicants have not been specified, the following names have been mentioned in various media reports. It’s noteworthy that Grab, which has been going toe-to-toe with Sea with digital banks in Singapore, Indonesia, and Malaysia, is not on the list. What also stands out is the importance of having local partners and how many incumbent banks - Bangkok Bank, SCB, and Krungthai - have thrown their hats into the ring. As for Sea, this application marks a continued shift in its fintech strategy. The company’s entry into the Singapore and Indonesia digital banking spaces were solo affairs, whereas its most recent foray into Malaysia was with local conglomerate [YTL Group](. Sea’s application for a Thailand virtual bank license marks a further embrace of partners. This may be a nod to the higher chance of securing a license with more local participation, as well as the opportunities that can come from tying up with players that have established businesses in the kingdom. It’s also an acknowledgement of a new era of higher interest rates and cost of capital - sharing the costs of starting up a new venture will ensure a lower hit to the company’s financials. But this will mean that future returns have to be shared. Will having too many cooks spoil the broth? We’d love to know what the joint venture agreement between the parties has to say about resolving conflict!  --------------------------------------------------------------- LEADERSHIP COLLECTIVE: BUILDING AT SCALE ON SEPTEMBER 26 The walls between design and engineering are coming down tomorrow Think you're ahead of the curve? AI is about to turn product development on its head. Join the brightest minds from CIMB, Figma, Carousell, ShopBack, Pelago, and more who are ready to exchange insights on how AI is breaking down silos, at Chijmes tomorrow. Indeed, AI is building better products faster and unlocking a future where these disciplines can work together seamlessly. We’re almost at full capacity, so [apply now for an invite]( to join us tomorrow at 6 pm.  --------------------------------------------------------------- EVENTS HAPPENING You can also check out a curated list of trending tech events [over here]( and Tech in Asia’s signature events [here](. [Gemini Day for Startups: Indonesia on September 26]( Everyone's talking about AI, but how many of the solutions actually deliver? Join Google Cloud’s Xavier Prasetyo to get hands-on with generative AI solutions built for real-world impact, walk away with actionable strategies, and leave ready to transform your business with AI. Few seats left - [apply for your invite now.]( [SYNC 2024 on October 08]( SYNC 2024, taking place on October 8 at Capella Singapore, will bring together Asia's leading minds in AI. We're excited to announce our full speaker lineup: Oliver Jay from OpenAI, and Min-Liang Tan from Razer. These industry leaders will share their insights and expertise, providing valuable perspectives on the latest AI advancements and their impact on various sectors. This exclusive event is by application only. [Find out more today.]( [Elevate Your Investment Strategy at TIA Conference Jakarta | October 23 - 24]( As an investor, you know how crucial it is for you to stay ahead of the curve in the tech industry. TIA Conference Jakarta offers you a unique opportunity to connect with the most promising startups in Southeast Asia. With the Investor Pass, you'll get full access to a startup database where you can discover hidden gems with the potential for significant returns. You will also enjoy exclusive [Investor Hour]( matchmaking events with founders, five-star catered meals, and on-demand sessions. But hurry, only 50 Investor Passes remain. [Grab yours now]( before it’s too late! [Tech in Asia Conference Jakarta on October 23 - 24]( As Indonesia’s startup scene continues to evolve, new opportunities emerge beyond the traditional hotspots. Join us at TIA Conference Jakarta to dive into the latest trends and discover new investment opportunities in Indonesia's maturing startup ecosystem. [Get your tickets now]( at a special rate of 30% off. This offer is valid only until October 2. --------------------------------------------------------------- That’s it for this edition - we hope you liked it! Do also check out previous issues of the newsletter [here](. Not your cup of tea? You can unsubscribe from this newsletter by going to your “edit profile” page and choosing that option in our preferences center. 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 soon! P.S. Don't miss out on the biggest tech news and analysis. Add newsletter@techinasia.com to your address book, contacts, or safe sender list. Or simply move us into your inbox. Too many emails? Switch to a different frequency or get new content through our [preference center]( or [unsubscribe](. You can also break our hearts and remove yourself from all Tech in Asia emails over [here](  Copyright © 2024 Tech in Asia, All rights reserved. 63 Robinson Road, Singapore 068894