Thailand’s first fintech unicorn Ascend Money Co., Ltd, having secured fresh funding of close to US$200 million recently, is laser-focused on growing its business to the next level by providing a wide range of financial services to the underserved and unserved segments.
Tanyapong Thamavaranukupt, Co-President of Ascend Money, the operator of TrueMoney, says the company has enjoyed tremendous growth since it was established more than 10 years ago.
More importantly, it has evolved from a digital wallet into a multi-service digital financial platform that empowers people and promotes financial inclusivity.
Humble Beginnings
Ascend Money’s journey to become Southeast Asia’s leading fintech platform started in 2013 as a unit of e-commerce firm Ascend Group, which is a spinoff from True Corp., one of Thailand’s top telecom operators. Today, Ascend Group operates as a subsidiary of conglomerate Charoen Pokphand Group Company (CP Group).
In its early days, Ascend Money’s core business was in payment processing, operating under the TrueMoney brand. At that time, the company found that avid gamers, who were mainly students and young adults, were having difficulty acquiring gaming credits.
“We saw the pain point they faced. They wanted to buy gaming credits during the wee hours, but there was nothing available online, and shops that sold these credits were closed,” says Thamavaranukupt. “So, we launched our first e-wallet app, allowing them to buy gaming credits using their prepaid credit cards.”
Ascend Money then started to expand TrueMoney’s payment use cases. It teamed up with convenience store chain 7-Eleven to enable customers to buy credits for mobile app store purchases.
On top of that, it continuously worked on improving the user experience of TrueMoney and, subsequently, evolved into a digital financial superapp—one that allows users to pay their utility and credit card bills, top up their mobile phone credits, and save and invest.
Thamavaranukupt says TrueMoney had only 200,000 monthly active users during its first year of operation. Today, it has about 20 million.
Despite the impressive growth, Thamavaranukupt believes the achievement is only the tip of the iceberg. “We want at least half of Thailand’s population, about 30 to 35 million, to use TrueMoney regularly within three years,” he says.
Achieving Unicorn Status
In 2021, Ascend Money raised US$150 million from a group of investors, including existing investors CP Group and China’s Ant Group, and new investor Bow Wave Capital Management, a U.S. investment firm. It was a major milestone for Ascend Money as it achieved the US$1.5 billion valuation as a result of the funding round, making it the first fintech company in Thailand to achieve unicorn status.
Thamavaranukupt says the company did not rest on its laurels and continued to develop and improve its suite of financial services for the underserved segment.
These efforts caught the eye of Mitsubishi UFJ Financial Group, Inc. (MUFG). The Tokyo-based financial group, through its subsidiary MUFG Bank, was the lead investor in a US$195 million funding round. Finnoventure Private Equity Trust 1, managed by Thailand’s KrungsriFinnovate Co., Ltd., was also an investor in this round.
These investments will help Ascend Money accelerate its plan to provide inclusive financial services for underserved consumers and micro, small and medium enterprises (MSMEs), fostering equitable economic growth and financial well-being in Thailand, Thamavaranukupt says.
“MUFG is a serious investor and having the company onboard raises the profile of Ascend Money. It has a good track record in investments in Southeast Asia. The dynamics between us and MUFG are good. They understand the region well and they understand our business,” he adds.
Serving the Underserved
While Ascend Money, through its TrueMoney app, has features that are catered to the masses and across different income groups, the company’s key strengths lie in promoting inclusivity and developing products to serve the underserved segments.
Although about 95% of Thais have bank accounts, Thamavaranukupt says, many do not have access to loan financing. “Only 5% to 7% of bank customers have their loan applications approved,” he states.
Most of the Thai adult population is underserved because many of them are self employed and do not have regular incomes. “This makes it challenging for traditional banks to evaluate their actual financial health, their ability to service loans and approve loan applications,” he says.
As part of Ascend Money’s mission to help address the needs of the underserved, Thamavaranukupt says the company started to expand from providing payment solutions to offering financial services as early as three years ago.
“There were two objectives for the decision. First, to serve the underserved. Second, since the profit margin in the payment business is very slim, we have to expand to other services in order to grow,” he explains.
Giving the Underserved Access to Financing
In 2016, Ascend Money launched Ascend Nano, a new business that provides micro credit and personal loan products to the underserved community.
Using state-of-the-art technology and alternative data, Ascend Nano helps customers and MSME owners gain access to loan financing. Ascend Nano is able to identify “good customers” using its revolutionary credit score software, which is now in its fourth version.
The company works with its partners to better understand customers’ behavior. “In this business, it is all about risk management. We examine their behavior when using mobile phones and mobile wallets, and use the data to determine their credit score and credit line,” Thamavaranukupt says.
The company also reduced its risks by providing customers with a small credit line, especially new customers. “If they have the capacity to repay the loan on time, we will be able to provide them with a bigger loan,” he explains.
He adds that while the credit lines may appear small, they can impact customers’ lives. “A majority of our customers need the money for emergencies, such as health issues or children’s education. They have the ability to repay the loan; it is just that they lack access.”
Today, about 78% of Ascend Nano’s customers are those who have either never received bank loan approvals or have had their loan applications rejected. “What we are doing here is new and revolutionary.
Our approach to credit is very different from the traditional players,” Thamavaranukupt points out.
Democratizing Wealth Products
Despite a population of over 70 million, Thailand has a relatively low investment penetration, with only 3 to 4 million Thais having investment accounts.
The low penetration rate also means that the lower-income group—which constitutes the underserved segment—does not have access to investment products. To provide the underserved with investment products, Ascend Money launched a mutual fund investment service on the TrueMoney app, enabling users to open investment accounts online. Users can browse various mutual fund options, including those that allow them to start investing with as little as 1 baht (US$0.029), offering an easy opportunity to learn through experience.
Another highlight investment product is gold saving. This service allows customers to buy gold for as low as 100 baht (US$2.93) via the TrueMoney app.
While gold investment may not be as “sexy” as stocks or mutual funds, Thamavaranukupt believes it is a product suited to the underserved segment. “Gold is something that many of us, across all income groups, understand well. For the low-income group, gold is typically their first form of investment. When they have excess cash, they buy gold.”
So far, this product has been well-received by customers. “We already have a few million users investing in gold. We are seeing growth in this segment.”
Besides mutual funds and gold investment, TrueMoney users are also able to invest in various assets, such as government bonds with tenures as short as three months. Nevertheless, Thamavaranukupt says there’s still a lot of work that needs to be done in this area, as there’s still a long way to go before hitting critical mass. “Investors’ awareness and education play a big role. Customers need to understand the importance of having long-term investments.”
Providing Peace of Mind
Another area that Ascend Money aims to address is insurance protection for the under served. According to Thamavaranukupt, many Thais understand the importance of having insurance coverage, but affordability is the main barrier. The average worker cannot afford annual premiums, which, in most cases, are required to be paid in a lump sum.
To make insurance more affordable for Thais, Ascend Money, via Ascend Assurance, has come up with “bite-sized insurance plans.”
“There are about 20 million motorcycles in Thailand, but most do not have insurance coverage, which typically costs around 3,000 baht (US$88) annually. The lower-income group cannot afford to pay this amount in one lump sum. So, we break it into a monthly premium of 250 baht (US$7), and it will be auto-deducted from their TrueMoney wallet,” Thamavaranukupt says.
Today, Ascend Money has one million customers buying insurance through its platform the company claims, and plans are underway to introduce more insurance products.
Strengthening Regional Presence
Seeing the growth potential of the Southeast Asia market, a region with a population of over 673 million, Ascend Money has been gradually expanding its presence across the region since 2016. While Ascend Money focuses on multiple products and business streams in Thailand, the company’s main focus in the overseas market is on TrueMoney.
Unlike in Thailand, where people can send money to one another using the TrueMoney app, such flexibility does not extend to all Southeast Asian countries due to regulatory reasons.
In some countries such as Cambodia, Indonesia, Myanmar, Philippines, Malaysia and Vietnam, TrueMoney users would need to go through an agent to perform domestic and cross-border money transfers.
Today, it has more than 88,000 agents in Southeast Asia, over 50 million users, and has processed payments of more than US$14 billion.
Over the long-term, Ascend Money’s game plan is to achieve synergy between its business in Thailand and across the region. “For example, we have the TrueMoney app in Cambodia. Cambodians can come to Thailand and make payments using their local TrueMoney app on our system, and vice versa,” Thamavaranukupt says.
He adds that plans are underway to ensure user experience is seamless across Southeast Asia.
Future Plans
What makes Ascend Money’s business model interesting is that each of its core products—payments, insurance, investments and micro loans—can synergize with one another. For example: A customer who owns gold via Ascend Wealth could one day use it as collateral to apply for a loan.
Thamavaranukupt notes there are similar plans in the pipeline. “Pawn broking is a big business in Thailand and it is an area we are exploring. We feel that we can digitize certain segments of the pawn business,” he says.
Nevertheless, Thamavaranukupt says it is important to remain focused on the company’s immediate goal—for TrueMoney to achieve 30 million monthly active users within the next three years.
“There are a few hurdles when it comes to the adoption curve. We have crossed the early adopter hurdle, and we are now on the verge of crossing the early majority hurdle. Having said that, it will be challenging, as people are used to making payments via the conventional method, or another digital platform,” he remarks. “We will have to continue to build and improve our platform, improve the stickiness and at the same time create digital awareness.”
He adds that there is still lots of room for growth across all business segments.
“For payments, we want to make TrueMoney an everyday payment app of choice. In terms of lending, we have spent the past two years working on the credit score model. I think we are good to go now, and we expect to grow faster in the next three years.”
Building Culture, Startup Mindset
Thamavaranukupt admits that having the right people and a committed team is crucial to Ascend Money’s success today, and in order to build a good team one needs to have a good company in place.
“In terms of building a culture, we set out four key values. First, we are committed to make a positive impact and to deliver beyond expectations. We focus on our mission, and we communicate this to everyone in the company,” Thamavaranukupt says.
The second value involves building a harmonious team. “We don’t want silos or boundaries. We respect clear communication. I believe good teamwork is important for a company’s success.”
At Ascend Money, curiosity is highly encouraged. “We want everyone to always be curious. We want them to be curious about their work, and how they can serve customers better.”
“Fourth, is to maintain the startup spirit. At Ascend Money, there is no hierarchy, we do not have many layers of management. Everyone can share their thoughts and discuss issues. I think this is very important,” Thamavaranukupt says.
He adds that by having the right culture in place, the company is able to reduce its employee turnover rate significantly. Five years ago, its turnover rate was 50% annually. “Today, most of our staff have been with us for more than five years.”
Constantly on its Toes
Although Ascend Money has built a strong foundation and company culture, and has grown into a leading digital finance player in Southeast Asia, Thamavaranukupt under stands that it is vital for him and his team to be constantly aware of the responsibilities they are shouldering.
“We have a very big platform,” he states. Therefore, the security of the platform, the stability and reliability of the platform are essential.”
Thamavaranukupt says the company invests heavily in technology and 55% of its employees are in tech-related roles. “We understand that in this business, the reputation we have built over the years can we have built over the years can disappear overnight if we are not careful.”
| Ascend Money at a Glance |
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| Ascend Money has Four Main Businesses |
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