MoMo Co-Founder: Tech Startups Must Forge New Industry Standards to Stay Competitive

Tech startups can no longer rely solely on adapting to existing industry standards as technological innovation accelerates across sectors, according to a recent statement by the co-founder of MoMo, a leading fintech platform. Speaking to Theinvestor, the executive emphasized that the pace and breadth of technological change—from artificial intelligence to digital payments—demand that startups become standard-setters rather than standard-takers in order to maintain relevance and competitive advantage.

Market Impact: Redefining the Rules of Engagement

The assertion comes at a critical juncture for the global tech ecosystem. Data from CB Insights shows that in 2023 alone, over $330 billion was invested in tech startups worldwide, with over 70% of that capital funneled into sectors experiencing rapid transformation due to emerging technologies. According to the International Data Corporation (IDC), areas such as digital finance, healthtech, and AI-driven enterprise solutions have seen existing standards struggle to keep up with the pace of product innovation and user expectations.

For fintech players like MoMo, the ability to define new protocols—such as digital identity verification, real-time payments infrastructure, and open API standards—has proven essential. Markets that fail to adapt often see fragmentation and decreased consumer trust, while those where startups lead standardization display faster adoption rates and more robust ecosystems.

Strategic Implications for Startups

The strategic calculus for founders is shifting. Rather than simply building products to fit within established frameworks, startups are increasingly incentivized to take an active role in shaping the regulatory and technical standards that will underpin their industries. In practice, this means investing resources in cross-industry collaboration, open-source initiatives, and participation in both national and international standards bodies.

Industry analysts point to the example of payment interoperability in Southeast Asia: startups that contributed to cross-border standards have captured larger market shares and established themselves as trusted partners for both consumers and regulators. Conversely, firms that resisted or ignored this role have struggled with compliance costs and integration hurdles.

Competitive Landscape: Innovation vs. Compliance

The ability to create new standards is emerging as a key differentiator in the hyper-competitive tech landscape. According to a 2024 McKinsey report, startups that lead or influence industry standards achieve, on average, 15-20% higher market penetration in their first five years compared to those that do not. This advantage is evident in sectors like digital banking, where early movers in security protocols and user authentication have shaped user expectations and regulatory requirements for the broader market.

However, standard-setting is not without risk. It requires significant investment in R&D, legal counsel, and stakeholder engagement. Moreover, startups must balance the need for innovation with the risk of regulatory scrutiny or backlash if new standards are perceived as exclusionary or anti-competitive.

Regulatory and Policy Relevance

Regulators are increasingly acknowledging the role of startups in shaping industry norms. Recent initiatives by the Monetary Authority of Singapore and the European Commission have incorporated startup-led working groups in the drafting of digital finance and open data regulations. This trend is likely to accelerate as governments recognize the limitations of legacy frameworks and the need for agile, future-proof standards.

For startups, early engagement with policymakers and industry consortia is becoming a strategic imperative. Those that proactively participate in regulatory sandboxes and contribute to white papers are better positioned to influence the direction of future policy and pre-empt compliance challenges.

Future Outlook

The MoMo co-founder’s comments reflect a broader industry consensus: as the pace of technological change accelerates, the ability to create and propagate new standards will be a critical lever for startup success. With the continued proliferation of digital-first business models and cross-border platforms, the next decade will likely see startups—and not just incumbents—define the operational and regulatory foundations of their industries.

Key Takeaways

  • The pace of technological change is rendering existing industry standards increasingly obsolete, especially in fast-moving sectors like fintech, healthtech, and AI.
  • Startups that take an active role in developing new standards gain competitive and regulatory advantages, including faster market entry and higher adoption rates.
  • Significant investment and cross-sector collaboration are necessary for effective standard-setting, but the risks can be offset by long-term market leadership.
  • Regulators are more open to startup involvement in policy and standards development, offering new avenues for early-stage companies to shape the future of their industries.
  • The next phase of tech industry evolution will likely be defined by startups that not only innovate products but also lead the creation of new norms and protocols.

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