Project Title

International Fintech Summit: Needs Assessment and Capacity Building 

Project Year

2018   

Project Number

SME 05 2018A 

Project Session

Session 2   

Project Type

Standard 

Project Status

Project in Implementation   
View Budget TableView Budget Table
|
PrintPrint

Project No.

SME 05 2018A 

Project Title

International Fintech Summit: Needs Assessment and Capacity Building 

Project Status

Project in Implementation 

Publication (if any)

 

Fund Account

APEC Support Fund 

Sub-fund

ASF: Micro, Small and Medium Enterprises (MSME) 

Project Year

2018 

Project Session

Session 2 

APEC Funding

118,990 

Co-funding Amount

24,860 

Total Project Value

143,850 

Sponsoring Forum

Small and Medium Enterprises Working Group (SMEWG) 

Topics

Small and Medium Enterprises 

Committee

SOM Steering Committee on Economic and Technical Cooperation (SCE) 

Other Fora Involved

 

Other Non-APEC Stakeholders Involved

 

Proposing Economy(ies)

Chile 

Co-Sponsoring Economies

Australia; Japan; Korea; Mexico; Peru; Singapore; Viet Nam 

Expected Start Date

01/12/2018 

Expected Completion Date

31/12/2019 

Project Proponent Name 1

Manuel Lopez 

Job Title 1

Advisor 

Organization 1

Ministry of Economy, Development and Tourism 

Postal Address 1

Av. Libertador Bernardo O'Higgins 1449, Torre, Piso 12, Chile 

Telephone 1

(56-22) 4733447 

Fax 1

Not Applicable 

Email 1

mlopezb@economia.cl 

Project Proponent Name 2

Not Applicable 

Job Title 2

Not Applicable 

Organization 2

Not Applicable 

Postal Address 2

Not Applicable 

Telephone 2

Not Applicable 

Fax 2

Not Applicable 

Email 2

Not Applicable 

Declaration

Manuel Lopez 

Project Summary

The International Fintech Summit: Needs Assesment and Capacity Building – from now on referred to indistinctly as “the Summit” and or “the Event” – aims to strengthen the knowledge and awareness of the Fintech industry in APEC economies through the review of topics such as Fintech’s impact on SMEs, investment, public policy and regulation. Through the exchange of successful experiences in each topic, this project will collect best practices and recommendations in order to enhance the bond between the Fintech industry and APEC economies, as well as to understand its potential for development. 

Chile will host the APEC Forum in 2019, during which this project will be implemented as a three-day Summit and Workshop. It will take place on September in Santiago, providing a platform for participating economies to share best practices and participate in solution-based conversations regarding the growth of the Fintech sector. This includes breakout sessions based on the aforementioned themes with panelists and case study presentations, brainstorming sessions and workshops to facilitate solution-based conversations.

Relevance

Relevance – Region: Technology and digitalization are transforming financial sector mainly because of the raise of financial technology or Fintech which is defined as innovative applications of digital technology for financial services. 

Data suggests the Fintech industry is growing at an exponential rate, registering a global investment level that went from ~$1.1b in 2010 to ~$31b in 2017 (The Pulse of Fintech, KPMG, 2018). 

In this sense, Fintech brings a series of benefits related to democratizing financial services by creating new ways to interact with financial service providers; assisting SMEs in accessing financial services that were once unavailable such as digital funding, promptly payment, B2B digital channels, and others; as well as facilitating structural change in financial markets such as improving financial inclusion, improving institutional security and compliance and increasing transparency. 

In parallel, APEC represents 40% of world trade and 50% of global GDP and its economies are undergoing transitions driven by the increasing access to internet and spread of technologies towards cashless societies and digital ways for managing finances (APEC Fintech e-Payment Readiness Index Report, RMIT University, 2016).

Considering the current stage of the Fintech industry and the benefits it brings, the relevance of this project relies on APEC economies being able to deepen and raise awareness on key topics of Fintech industry such as: its impact on SMEs, regulation, public policy and investment. The industry is still developing, and experiences provide an integral window to understand the potential of this industry. 

Relevance – Eligibility: This project supports further understanding of an industry that works to improves access to services for SMEs through technology and economic development opportunities, supporting the development of human resources and entrepreneurial capacity among MSMEs, especially in developing and lower-middle income APEC economies. In cooperation with stakeholders that range from government officials, and policy makers, to institutional representatives, this project will work to achieve key recommendations for the issues of regulation and public policy, Fintech´s influence on MSMEs and women-led SMEs and women entrepreneurs. 

Relevance – Capacity Building: Small and medium enterprises (SMEs) are considered the engines of growth and innovation in the APEC region. SMEs’ contribution to economy accounts for 97% of all business and for over 50% of the workforce across APEC economies. However, access to finance is a critical prerequisite for the development and creation of SMEs. Longstanding challenges in this area limit their creation and growth in many economies, which has often given rise to policy intervention (Financing SMEs and Entrepreneurs, OECD, 2018). In addition, women inclusion into entrepreneurial activity and financial sector is still a challenge to be tackled. 

Considering the above mentioned, this project aims to build capacity – with a special focus on developing economies – in the following areas:

1) Creating awareness on Fintech’ impact on access to financing for SMEs and woman-led SMEs.

2) Public policy and regulation to support SMEs through Fintech. 

The first two days of the summit will facilitate a discussion regarding best practices, statistics, public policies and lessons learned about the Fintech industry, regulation cases and lessons from developing economies, Financial sector strengthening through Fintech and women access to finance. In order to ensure the summit addresses the most pressing topics for participants, a pre-event survey will be sent to participants for consideration. 

In the process of creating a greater knowledge base, this summit will encourage investment to improve the financial access for MSMEs in APEC economies and opportunities for public-private investment, especially in developing and lower-middle income APEC economies.

In this matter, the project proposes a market-thought networking round between investors and Fintech startups in order to compromise the development of business deals. A Digital Toolkit with a summary and conclusion of best practices and strategies reviewed will be created and disseminated to participants within the first two months following the Event, targeted at MSMEs in developing APEC economies. 

1)  APEC’s goals for capacity building: This Event assists APEC SMEs to obtain comprehensive growth and equitable developments in the Asia-Pacific region as well as deepen the spirit of APEC community by addressing the need for building capacity of SME on creating new business strategies with technologies representing the Fourth Industrial Revolution. 

2) APEC’s objectives for capacity building: APEC member economies especially developing economies need to build capabilities in digital transformation and resilience through sharing and learning best practices and knowhow to achieve technology innovation in MSMEs and SMEs in the APEC region. 

3)  APEC’s operational principles for capacity building: This Event will follow closely to the APEC’s operational principles for capacity building listed on Appendix K of the Guidebook. For example, the forum encourages sharing proven best practices or the implementation and new approaches to solve existing problems in the region.

Objectives

1) To build capacity regarding the ways to attract investors, develop start-ups, and issues faced by the emerging Fintech industry in APEC economies;

2)  To develop key guidelines  APEC Economies on how to increase access to and awareness of the Fintech industry, specifically in topics such as Fintech impact on SME development and access to finance, public policy, regulation and investment; and 

3) To develop a round of networking between investors and Fintech Startups.

Alignment

Alignment - APEC:  This project corresponds to the three key pillars of the APEC Action Agenda on Advancing Economic, Financial and Social Inclusion in the APEC Region:

1) The projects focus on capacity building through a deeper understanding of the challenges facing Fintech industries, especially in developing economies (Economic Inclusion);

2) This project focuses on financial inclusion through the promotion of Fintech industries, creating awareness and broader access to Fintech services. (Financial Inclusion);  and

3) Through solution-based discussions of problems arising from Fintech growth, and ways to include everyone (developing economies, women) in its growth (Social Inclusion). 

The project will contribute to three priorities of the Boracay Action Agenda to Globalize MSMEs:

1) The project´s focus on investment in Fintech and regulation issues within Fintech economies supports measures to widen options on financing for MSMEs and further develop the infrastructure to facilitate lending to them;

2) The multi-stakeholder approach to the design and implementation of the project will allow participants to strengthen institutional support for MSMEs by fostering crosscutting relationships; and

3) A transversal approach of supporting gender equity and applying a gender perspective in both the project and the Fintech industry supports the priority to strengthen focus on MSMEs led by women.

Alignment – Forum: Through capacity-building activities and sharing of best practices this project aligns itself with the vision statement of the SMEWG strategic plan to help developing economies be prepared for the challenges of the 21st century by strengthening their Fintech industries. The Fintech industry itself and this project in particular, promote the four priority areas of the SMEWG strategic plan: entrepreneurship, innovation and the internet and digital economy; financing for business expansion and capability development; inclusive business ecosystem that supports SME growth; market access for SMEs. Strengthening the Fintech industry through inclusion responds to the objectives of SMEWG strategic plan.

TILF/ASF Justification

Not Applicable.

Beneficiaries and Outputs

Outputs: The outputs can be summarized in the following: 

1) Summit: 3-day Event that will include talks, panels, workshops surrounding the Fintech’s impact and a investors-startups networking. Pre-Summit work includes: 

a) Identification of priorities and needs assessment of the participant APEC economies in order to integrate them into the key topics of the Summit. The process will be run by the Ministry of Economy, Development and Tourism of Chile via e-mails for SMEWG focal points of the 7 co-sponsor economies (Australia; Japan; Korea; Mexico; Peru; Singapore; Viet Nam) but still open to all of the economies.

2) Participant engagement (APEC economies participants, investors, SMEs/startups), speakers’ selection; 

3) Elaboration of web site for participant APEC economies, which will communicate Summit’s key information: Summit’s program, speakers, logistics, key data, post Summit information such as speakers’ presentations, Digital Toolkit, etc. Website will be built and owned by the Ministry of Economy, Development and Tourism of Chile following APEC’s Guidelines. 

Digital Toolkit: which will summarize best practices, recommendations and conclusions on key subjects surrounding Fintech. 

Subject

Audience

Facilitating access to finance, specially to SMEs and woman-led SMEs

SMEs, women-led SME, women entrepreneurs

Public policy design targeting SMEs

Government officials

Insights for APEC economies of regulation’s impact on Fintech Industry development

Government official

Insights for developing technology-based business strategies

Startups

The Digital Toolkit will be disseminated via Summit’s web site and it’s expected to have no more than 20 pages of content. In addition, the Digital Toolkit will be part of APEC Publications. In this matter, it will be elaborated as a Routine and limited-run publication type, considering APEC Publications Guidelines. 

In relation to Summit’s agenda, since specific content of Summit will be defined through needs assessment survey it is only possible to state that the first two days will cover the activities related to the above subjects. Day 3 will cover a visit to Startup Chiles’s facilities where then a networking round will be held. 

Final Report: document that will contain the detailed content of all of the activities carried out during Summit targeting SMEWG and government officials related to the subject. Final Report will have the following structure: Title page, Abstract, Acknowledgements, Contents page, Introduction, Background, Body of report, Conclusions and Future Work, Bibliography, Annexes, User Guide. As the content will be result of needs assessment and Summit’s execution the specific content cannot already be given. 

The project will take on gender equity through fostering women participation through nomination process. A 50% rate of women participating is expected. In addition, even though Summit’s program is not closed, subjects will be part of a special discussion panel + needs assessment workshop called in principle “Fostering inclusion of entrepreneur women in financial sector through Fintech”. 

Outcomes: 

1)  Raise awareness on APEC developing economies’ SMEs and women-led SMEs on Fintech benefits for accessing finance market.
 

2) To foster women entrepreneur and women-led SMEs access to technology-based financial market. 

3)  To deliver actual business compromises to investors and Fintech startups. 

4)  To deliver an input for Government Officials for the developing of public policy for SMEs and regulation. 

Beneficiaries: Participants and panelists will be leaders in public policy, investment, and Fintech. The project may invite panelists from strong Fintech industries that may be outside of the APEC community. Promotion of women as participants and panelists is key to our project’s success and will be a priority concern in the recruitment of women as speakers and participants in the project. PO is committed to collect sex disaggregated data for all speakers and participants (not only the APEC funded) at the project event. This data will be included when submitting a Completion Report to the Secretariat at the completion of the project about what was achieved as well as giving future POs guidance on their own gender parity targets. 

All of the directions and recommendations that result from the Summit will be available for use to the public contained in the Final Report. 

Participant shall be listed as following: 

1) Government officials: government representatives from agencies in charge of designing instruments to support SMEs and startups financing policy and related regulation. 

2) Fintech Startups from APEC economies*. 

3) SMEs from APEC economies from sectors such as services, manufacturing, tourism, others. 

4) Investors such as venture capitalists, angel investors, bank representatives, others. 

* Startups will be identified and reached through the designated government officials. It is expected to have 10 startups from APEC economies.

Dissemination

All of the project outputs (Summit, Digital Toolkit and Final Report) will be disseminated through SME Working Group and APEC Secretariat when corresponding. The Summit’s website will serve for APEC participants and general public and it will help disseminate logistics information related to the Event and the Digital Toolkit. Content of document is listed in Outcomes section.

It must be noted that the Summit website will comply with APEC Websites Guidelines given that it is one of the project outputs and will use the APEC branding. 

There is no intention to sell any outputs related to this project. 

The measurable indicators of this program are as follows.

1)  15 to 20 beneficiaries of private sector plus local participants that are estimated at 300 people.

2)  7 to 10 APEC government officials participating in the forum.

3)  Digital toolkit containing summary of conclusions and recommendations of the Summit. 

It must be noted that the Digital Toolkit will be part of APEC Publications. In this matter, it will be elaborated as a Routine and limited-run publication type, considering APEC Publications Guidelines.

Gender

Promotion of women as participants is paramount to our project’s success. The project will specifically take on gender equity fostering women participation through nomination process. A 50% rate of women participating, both as audience and as speakers, can be expected. In addition, specific activities related to entrepreneur women’s financial inclusion will take place in the Summit. 

PO is committed to collect sex disaggregated data for all speakers and participants (not only the APEC funded) at the project event. This data will be included when submitting a Completion Report to the Secretariat at the completion of the project about what was achieved as well as giving future POs guidance on their own gender parity targets.

Work Plan

Time

Task

Deliverable

Needs Assesment Survey

Dec - Jan 2019

Survey design

List of Summit priority subjects

Feb 2019

Survey distribution

Feb - Mar 2019

Survey collection

Mar - 2019

Survey analysis

Mar - Apr 2019

Survey results summary

Summit

Dec 2018

Logistics

Venue, equipment and materials for Summit

Jun - 2019

Elaboration of informative documents

Invitation, Program Send & Logistics Manual

Jul - Aug 2019

Flight tickets purchase

Flight tickets

Feb - 2019

Website first layout

Summit's Website

Mar – 19

Website APEC validation

Apr - Jun 2019

Website final layout and publicarttion

Jan 2019

Elaboration of speakers profile

List of criteria for speakers selection

Mar - Apr 2019

Speakers Selection and Engagement

N/A

Sep - 2019

Summit execution

Summit

Digital Toolkit

Sep - Oct 2019

Drafting

Digital Toolkit

Oct - Nov 2019

Commenting and endorsement

Nov - Dec 2019

Final layout

Dec 2019

Submission

Final Report

Sep - Oct 2019

Drafting

Final Report

Oct - Nov 2019

Commenting and endorsement

Nov - Dec 2019

Finalizing

Dec 2019

Submission

APEC Formal Requests

Feb – 2020

Drafting, endorsement and submission of the Completion Report and all supporting documents to the Secretariat

Completition Report

Jun – 2020

Participation in the Long Term Evaluation of APEC Projects conducted by the Secretariat

Long Term Evaluation Responses

Risks

Risk

Management Strategy

Risk not accomplishing the proposed goal on women participation.

PO has set a goal of at least 50% participation of woman. PO will encourage women participation through nomination process.

In terms of APEC participants, as nomination process takes place, a list of 3 nominees for each economy will be asked by PO through invitation, with number 1 spot being the first priority nominee. The invitation will clearly state that first priority nominees shall be woman working on public related government agencies.

Same process will be conducted in on terms of speakers’ selection through related collaborators.

Risk of recruiting speakers who won’t meet specific criteria.

PO will build a speakers’ profile with specific criteria and undertake formal consultation for speakers’ recommendation with related local and international entities such as APEC’s SMEWG, Pacific Alliance, World Bank, Latin American Development Bank, OECD, others.

Endanger development of Summit due to venue restrictions.

Define specific criteria for the venue to have. Example: quality standard for International Summit; capacity; equipment availability; closeness to public transportation, accommodations, services, others.

Risk of low engagements in the needs assessment

Run needs assessment tasks through January to march 2019

Risk of low inclusion of gender in the discussions

Design 1 women-led panel + 1 workshop for entrepreneurial inclusion for woman-led SMEs into financial sector.

Risks of not being able to engage the private sector, especially the Fintech startups and investors

1)  To incorporate ABAC as a key partner in order to jointly design an engagement strategy for investors.

2)  To run an investors-startups networking round to foster the development of actual business deals.

Risks of not being able to engage eligible participants

The strategy in advance is to reduce the number of eligible participants informed in the first version of Project Proposal from 20 to 10.

PO will engage nominations from co-sponsor economies with a specific focus on public development agencies representatives in charge of designing instruments to support SMEs and startup financing and related regulation.

Economies not applying knowledge learned or adopting recommendations from the project

There will be an ex-post monitoring survey to collect actual data on this matter. In addition, as project proposes on Sustainability section, the project’s spirit is to organize the First International Fintech Summit, representing a milestone to APEC Forum and aims, especially for SMEWG, in a mid-long term, to develop a brand-like Event. PO will propose SMEWG to continue to make the summit in other APEC economies interested in order to become a permanent initiative.

Monitoring and Evaluation

The project’s team will focus, in one hand, on successfully deliver the outputs of the Summit. This, in order to develop content which is useful for APEC participants and general public and useful to contribute to meet outcomes proposed. 

In other hand, the project’s team will seek to meet the measurable indicators previously detailed:

1) 15 to 20 beneficiaries of private sector attending the International Fintech Summit: Needs Assessment and Capacity Building, plus local participants that are estimated at 300 people.

2) 7 to 10 APEC government officials participating in the forum.

3) Digital toolkit containing summary of conclusions and recommendations of the Summit.

The prior will be met through the development and implementation of surveys in all of the project’s phases and with a special focus on timeline so objectives and measurable indicators can be met.

Linkages

Engagement:

-  ABAC: in order to seek for speakers and investor.

-  Non-APEC stakeholders such as Organization for Economic Cooperation and Development (OECD), Pacific Alliance, Latin American Development Bank (CAF), Inter-American Development Bank (IDB), Finnovista, Fintech associations, local Banks.

Previous Work on APEC: There is plenty of previous experience worked out through different APEC instances. However, the majority revised work focuses on specific subjects of Fintech which makes them lack of strategic public policy vision which is the key capacity the Summit wants to build on participants, especially in developing economies. Note the following contributions:

1) Digital Transformation Workshop, Sydney, Australia, 2017

a)  Fintech Use Cases for Blockchain Technology, Submitted by: AgriDigital

b) The Fintech Opportunity – An Overview, Submitted by: FinTech Victoria

c)  The Fintech Opportunity Possibilities and Challenges - Two Examples, Submitted by: FinTech Victoria

d)  APEC: Capturing Opportunities from FinTech, Submitted by: ASX

2) Workshop on Secured Transactions: Best Practices for Dynamic Business Growth, México, 2018

a) FinTech and Distributed Ledger Technology – Effect on Secured Transactions, Submitted by: National Law Center for Inter-American Free Trade

b) Use and Regulation of FinTech and Digitized Movable Assets, Submitted by: World Bank Group 

3)  APEC Fintech E-payment Readiness Index Ecosystem Assessment and Status Report, TRPC – Australian APEC Study Centre, RMIT University

4)  Conference on Innovation for Micro, Small, and Medium Enterprises Through Credit Infrastructure and Achieving Greater Financial Inclusion Through Digital Finance, Philippines, 2016 Fintech in China, Submitted by: Dingding Loan Investment Advisory (Beijing) Co., Ltd.

Sustainability

The Summit will focus on emphasizing participation of women, developing economies and specifically on diversifying access to finance and digital inclusion on SME. driven business environment in APEC economies. Specifically, the forum will contribute to capacity building efforts to ensure MSMEs and SMEs are able to take advantage of opportunities to globalize their businesses, which is identified as an important goal of APEC. 

With the content captured in the different sessions of the Summit, the project team will then process it in order to develop a Digital Tookit that summarizes conclusions of the Event and also deliver recommendations on the discussed topics: impact of Fintech on SME access to finance, public policy & regulation and fostering of investment. As this Digital Toolkit is disseminated, the PO hopes the different APEC participants can use and apply it on their own economical contexts. In order to facilitate the flow of information the Digital Toolkit will be contained on the Summits Website. 

In addition, the project’s spirit is to organize the First International Fintech Summit, representing a milestone to APEC Forum and aims, in a mid-long term, to develop a brand-like event. In this matter, the PO strongly suggests APEC to take initiative and encourage member economies to hold the event on a yearly or biannual basis. This, with the long-term objective and impact vision to develop a source of knowledge that can serve APEC members, specially policy makers and SMEs.

Project Overseers

Mr.   Manuel López is a Senior Advisor of the SME Division of the Ministry of Economy, Development and Tourism of Chile which is the body that designs and implements public policy with focus on SME.

Cost Efficiency

Not Applicable.

Drawdown Timetable

Not Applicable.

Direct Labour

APEC will fund Speaker’s honorariums and the translation fees needed in order to have simultaneous interpretation.

Waivers

Waiver

Justification

Waiver for advance payment

Travel airfare, per diem for speakers, active participants – to encourage participation in the project.

Waiver to fund governmental officials from non-travel eligible member economies, non-APEC members and representatives of international organizations as speakers for airfare and per diem

Most of the time, even non-travel eligible member economies government officials are subject to budgetary constraints as such, withdrawal of commitment from the project is unavoidable. PO will seek for SMEWG’s approval in case of non-member participants/speakers attending the Workshop.

Simultaneous Interpreters

As some of the speakers selected and audience (participants and public) might not handle English so it is considered necessary to deliver simultaneous interpretation service to participants. Simultaneous interpretation would be from local language to English and vice-versa.

Day 3

As participants such as investors and startups are key for holding day 3 networking round in Startup Chile facilities, it is kindly requested to evaluate the pertinence to fund per diem. In this sense, PO proposes the Secretariat to determine during project implementation the actual amount of funds that will be required to support this item.


Are there any supporting document attached?

No 
Attachments
Version: 2.0 
Created at 21/12/2018 15:58  by Lucy Phua 
Last modified at 21/12/2018 16:08  by Lucy Phua 
Version HistoryVersion History

Project No.

Project Title

Project Status

Publication (if any)

Fund Account

Sub-fund

Project Year

Project Session

APEC Funding

Co-funding Amount

Total Project Value

Sponsoring Forum

Topics

Committee

Other Fora Involved

Other Non-APEC Stakeholders Involved

Proposing Economy(ies)

Co-Sponsoring Economies

Expected Start Date

Expected Completion Date

Project Proponent Name 1

Job Title 1

Organization 1

Postal Address 1

Telephone 1

Fax 1

Email 1

Project Proponent Name 2

Job Title 2

Organization 2

Postal Address 2

Telephone 2

Fax 2

Email 2

Declaration

Project Summary

Relevance

Objectives

Alignment

TILF/ASF Justification

Beneficiaries and Outputs

Dissemination

Gender

Work Plan

Risks

Monitoring and Evaluation

Linkages

Sustainability

Project Overseers

Cost Efficiency

Drawdown Timetable

Direct Labour

Waivers

Are there any supporting document attached?

hdFldAdmin

Project Number

Previous Fora

Secretariat Comments

Reprogramming Notes

Consolidated QAF

Endorsement By Fora

PD Sign Off

Batch

Forum Priority

Committee Ranking Category

Committee Priority

PDM Priority

Priority Within Funding Category

Monitoring Report Received

Completion Report Received

PMU Field 1

PMU Field 2

PMU Field 3

On Behalf Of

Proposal Status

Originating Sub-Forum

Approval Status
Attachments
Content Type: Standard Proposal
Version:
Created at by
Last modified at by
Go Search