[Han Dae-hoon] The power of super apps
[Han Dae-hoon’s investment tips] We are in the process of turning into a hyper-connected society. A hyper-connected society is a concept that was first introduced by Canadian social scientists Anabel Quan-Hasse and Bary Wellman. It is a phenomenon in which communication in a society is multi-dimensions. The catalysts for connection aren’t hardware but rather software. This is why today’s platform companies are in lead. Since the invention of the smartphones, many companies have been trying through apps to maximize connections with consumers. This is confirmed by data. As of 2019, the hours of smartphone use per person surpassed that of TV. Now smartphones are in the center, and this trend will accelerate. #The era of BaaS(Banking as a Service) We’re in a time when finance is now a service. Microsoft founder Bill Gates in 1994 said “banking is necessary, banks are not.” And his prediction is becoming reality. Platform companies are already optimized for the era of BaaS (Banking as a Service). Platform companies that already have secured a large number of users are planning to provide financial services with ease. Platform companies that already have super apps only need to add new financial services. That’s much faster and easier than financial companies creating a super app of their own. Even Southeast Asia’s Grab and Korea’s Kakao Talk are in the process of launching their financial services using their super apps. It’s only a matter of time before big tech companies take the lead. Goldman Sachs declared itself an IT company and is transforming into a digital bank. Although it will take some time due to regulations, platform companies will likely be hoping to “scale up” by advancing into the financial industry. Year one would be 2020. It’s time to take notice of tech and platform companies that are newly entering the financial industry. It is a critical time even for financial institutions. #Reasons for MS and Twitter showing interest in bitcoin Korea companies are looking into oversea cases. The most representative cases are Microsoft, Twitter and Square. One commonality is that these companies have a strong interest in bitcoin. If Microsoft, Twitter, and Square were focused more on developing super apps or on expanding the number of subscribers, it would have taken them more time or they wouldn’t be where they are today. Instead they have strategically positioned themselves for utilizing bitcoin, which has become the key digital asset for many users. And the results so far are more than expected. One can’t win against major platform companies in the U.S. and China in securing users. It’s best to take interest in the digital currency that many are already using. We should think about the reasons why so many countries including the U.S. and China are competing in bitcoin. There’s no need to take the long road when you have an easy road ahead.