Financial Technology – aka “Fintech” companies are now in a segment of their own. Entrepreneurs that innovate and invest in technologies that disrupt traditional methods used by financial institutions must be brave, take risks, but also ensure they deliver to first survive growing pains, and then to expand and compete.
Hughes Krupica has helped several Fintech companies with their new technologies and investment into the Thai market, through the Board of Investment. Although the BOI does offer contact with English speaking Government officials, the system used requires that investors are preprared, have the correct format of presentations and work through a fairly bureaucratic tick box system, the navigation of which does not always seem logical to foreign investors.
The approach of such institutions is to adopt a ‘what is good for Thailand’ approach, which might not always lend itself to the commerciality of business. That said, a balance can be struck by a positive and balanced approach to the disclosure process and the application process.
We assisted one particular Fintech company with adapting their ‘generic’ presentation into something more solid for the BOI to comprise the breakdown of investment in Thailand, the interlationship between the foreign company involved and the Thai company to be formed, a detailed description of budget and financial plans, a Human Resources chart showing anticipated development and growth, and an explanation of how the technology works and the involvement of third parties in order to explain the regulatory matter which were and were not applicable.
This development takes time, persistence and an awareness that whilst the application process is ongoing competitors are also preparing launch of their product, often in the same jurisdictions.
Hughes Krupica assisted perfect the application to the point where the BOI requested the capital to be injected in order to obtain the BOI certificate, and also assisted with parallel application procedures relating to the obtaining of an e-payment license from the Bank of Thailand.
Hughes Krupica successfully coordinated both application procedures and managed costs of follow up by timing correct formal contact with the BOI effectively and also informally checking on progress from time to time.
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