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How This Singaporean Fintech Company Is Processing Over S$18 Billion Annually and Creating a World Without Currency Borders
As the world becomes ever more interconnected, the volume of cross-border transactions continues to soar, fueling an increasing demand for innovative solutions that streamline and enhance global business interactions.
Enter M-DAQ Global, a B2B fintech that has been at the forefront of transcending currency borders since 2010. Over the years, M-DAQ Global has pioneered and delivered cutting-edge financial solutions, crucial for diverse industries such as stock brokerage, e-commerce, and global payments.
In an interview with Asia Tomorrow, Richard Koh, the Founder and Group CEO of M-DAQ Global, delved into the inspirations that ignited his passion for eliminating currency boundaries over two decades ago. He shared compelling narratives about the customer challenges M-DAQ Global is dedicated to resolving and offered his forward-looking perspective on the future of the fintech industry.
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The Genesis of M-DAQ Global: From Concept to Creation
Q. Hello. Please introduce yourself and your team, company to our global readers.
I’m Richard Koh, the Founder and Group CEO of M-DAQ Global.
M-DAQ Global is a Singapore-headquartered financial technology group that empowers businesses and individuals in seamless cross-border transactions with foreign exchange (FX) clarity and certainty.
With a growing presence in 7 countries, we provide a holistic suite of cross-border FX and payment solutions, continuously strive to expand our ecosystem capabilities to support businesses in the Asia Pacific region and beyond.
Our diverse team, representing over 20 nationalities* and backgrounds, shares a common passion for utilizing data technology to revolutionize cross-border transactions towards our vision to create a World without Currency BordersTM.
*Note: Our team comprises employees of up to 20 nationalities as of 2024.
(Source : M-DAQ Global)
Q.What was the problem that M-DAQ tried to solve from the very beginning?
The idea first came to me over 20 years ago while I was working for a major international financial institution. Part of my compensation package included the bank’s US-listed stocks, and I often wondered what my net worth was at any given moment. This sparked the idea of developing a solution that allows investors to view US stock prices in Singapore dollars in real time.
In 2009, I was faced with a career crossroad and decided to take the leap of faith to put my idea into fruition.
Q.How did the team define the pain point of the customers and grab the momentum of rapid growth?
The concept of pivoting plays a crucial role in our growth journey. Initially focused on creating a stock market solution, our trajectory changed in 2015 when we seized a collaboration opportunity with Alibaba and Ant Group, transitioning into the realm of e-commerce.
Back then, buying from overseas sellers posed significant challenges, spanning payment complexities to logistical uncertainties. Drawing from our foundational solution, we adapted it for e-commerce, enabling global customers to view prices on marketplaces in their local currencies.
Over the years, we have identified the pain points in cross-border transactions across various industries and expanded our ecosystem capabilities, fuelling our growth momentum.
Q.Comparing with the past, how does your company's mission align with the current trends in the fintech industry?
The fintech industry is dynamic and rapidly evolving. Since our inception in 2010, we have remained steadfast and laser-focused in providing a seamless cross-border transaction experience for our partners and clients, ensuring clarity and certainty every step of the way.
As technological advancements and shifting customer behaviors increasingly blur geographical boundaries, the importance of efficient cross-border transactions grows. This ongoing trend aligns perfectly with our vision of creating a World without Currency BordersTM, where financial transactions are as effortless and transparent as possible, eliminating limitations of different currencies.
Our commitment to innovation and client-centric solutions also drives us to continually adapt and thrive in this ever-changing landscape.
Innovative Solutions for Cross-Border Transactions
Q.Could you explain M-DAQ’s product in detail?
3-1.Aladdin+ : E-commerce, fintech & payment services provider (PSP) enabler that addresses cross-border needs from home-currency pricing to FX risk management.
While Aladdin+ is offered for transactions across global currency corridors, we have identified that ASEAN currencies present unique challenges for businesses. Hence, we also offer the ASEAN Payments Hub, a one-stop solution that enables seamless ASEAN local collection and payouts.
Price uncertainty for shoppers due to FX conversion leads to lost sales and poor user experience. Our home-currency pricing solution makes it simple and risk-free for e-commerce platforms and merchants to offer localized prices to global customers. Today, we empower AliExpress and TMall to localise item pricing across 45 international markets.
3-2.Trading the Right ChartTM (TRC®): Real-time multi currency securities trading solution that empowers investors to trade foreign stocks with FX clarity and transact with certainty in local currency. Enabler for securities platforms and stock exchanges.
In the securities market, FX conversion exposure poses a challenge to cross-border trading. Presently, the FX rates applied in cross-border investments are unknown at the point of trade execution, and this uncertainty can significantly impact investment returns.
TRC®’s vision is to shift the FX conversion which currently happens at pre-trade or post-trade stage to the point when the securities trade is executed i.e., at-trade. Through this, a cross-border investor can trade with more certainty and confidence, in turn benefitting stock exchanges and brokerages with an increase in trading volume, velocity and market competitiveness.
3-3.Wallex: Small and Medium-sized Enterprises (SMEs) enabler as a one-stop platform to make international payments, convert FX, collect funds, and hold multiple currencies. Wallex empowers businesses in entering new markets by helping customers simplify cross-border transactions with speed and accuracy.
Q. What sets M-DAQ apart from other fintech companies addressing similar problems?
M-DAQ Global sets itself apart with a holistic suite of innovative cross-border solutions designed to address the FX and payment challenges faced by businesses across various industries and sizes.
Our proprietary technology underpins these solutions, allowing us to customize offerings to meet the specific needs of each client. By combining global reach with local expertise and a client-centric approach, we cater to the unique requirements of businesses in different regions. This alignment with our mission ensures that we provide a seamless cross-border transaction experience, offering our clients certainty and clarity in their international financial operations.
Q. Could you share more about your business model, please?
We are a B2B fintech group serving clients from various industries including e-commerce, securities exchanges, SMEs, corporates, and other fintech across 45 markets. We process S$18bn cross-border transactions annually.
Expanding Horizons: M-DAQ Global's Approach to Localization
Q.What motivated M-DAQ Global to expand its operation into each country? (ex : Japan, Thailand, South Korea)
Given the nature of our business, which is to support businesses in cross-border transactions, M-DAQ Global has been global from Day 1. Our motivation to expand into new markets is driven by a strategic alignment with our mission and to better serve the diverse needs of our clients.
By establishing a presence in key Asian markets like Japan and China, we are able to stay close to our clients, understand their unique challenges, and offer innovative solutions that help them thrive in a world without currency borders.
(Refer to : Inside Fukuoka's Global Startup Center: Real Cases and How-to for Market Expansion in Japan)
Q.How does M-DAQ Global approach localizing its products and services for different markets?
Forming effective partnerships is one of the most cost-efficient strategies for businesses to utilize when entering new markets.
With the right partnerships, businesses can access multiple markets without incurring the costs of setting up operations from scratch in each market. By partnering with local companies, businesses can tap into existing knowledge and resources and gain easy access to extensive networks of suppliers, distributors, and customers.
For example, in Japan, we are close partners with NTT Communications, one of the largest telco companies. This partnership has facilitated our foray into the Japanese market. In 2022, we officially set up our Japanese office in Fukuoka and have been working closely with local government agencies to promote business innovation through our solutions.
Q.What challenges does M-DAQ Global face in implementing its fintech solutions in each market / globally? (ex : competition, regulation, user acquisition etc)
Challenges such as navigating regulatory compliance and establishing presence amidst market competition are inevitable when expanding into new markets for any business. In addition, adapting to cultural nuances and business practices in each market is also crucial for gaining trust and traction.
To address these challenges, we employ strategic partnerships to leverage local infrastructure and market knowledge. Having localized teams ensures in-depth market insights and efficient compliance management tailored to regional requirements, while ensuring that client expectations are consistently met as M-DAQ Global expands its global footprint.
Future Vision: Navigating the Dynamic Fintech Landscape
Q. How do you foresee the fintech landscape evolving in the next five years, and where do you see M-DAQ Global’s role in it?
In the next five years, the fintech landscape will likely see significant advancements in AI, blockchain, cryptocurrency, and digital payments.
For a B2B fintech group specializing in cross-border FX and payments like M-DAQ Global, these changes present both opportunities and challenges. The demand for seamless, cost-effective, and efficient cross-border transactions will continue to grow as businesses expand internationally and look for ways to optimize their financial operations.
M-DAQ Global is poised to play a crucial role in this evolving landscape. Our expertise in cross-border FX and payments positions us well to meet the increasing needs of global businesses. By leveraging our proprietary data technology, we aim to provide the certainty and clarity to simplify and streamline international transactions, reducing costs and eliminating currency barriers.
Q.What are some long-term goals for M-DAQ Global, and how do you plan to achieve them?
We will focus on deepening our footprint within Asia while continuing to serve global businesses engaged in cross-border transactions. Simultaneously, we will strengthen our core capabilities, continuously innovate, and expand our ecosystem to empower businesses across different industries.
By adopting a "farm-to-table" business model, we aim to vertically integrate the value chain as part of our long-term strategy. For example, our acquisition of B2B cross-border payment solutions provider Wallex is one step in the direction. Licensed in Singapore, Indonesia and Hong Kong, and soon to be in Malaysia, Wallex’s strong presence in Indonesia has helped us gain a foothold in the market.
It is in our pipeline to continue exploring inorganic growth into new markets through other similar merger & acquisitions, that not only allows us to expand our footprint, but also fits into our product offerings to create synergy in the long run.
Throughout, we will remain committed to innovation as our core principle, continually building on our offerings to fulfill our mission of creating a World without Currency BordersTM.
Interviewed by Jinny Kim (underdogs)
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