Collectively, Indonesia, Thailand, the Philippines, Vietnam, Singapore and Malaysia have a GDP of close to $US3 trillion and that was growing by between 5 and 6 per cent a year until the COVID-19 pandemic led to movement restrictions and a dip in global trade.
But according to figures from Euromonitor and The World Bank, 50% the adult population in the SEA Region remain unbanked with no access to financial products, and a further 18% are underbanked – lacking access to anything other than a bank account.
With 70 percent of the population using smart phones there’s an opportunity for Fintech companies to step in and deliver digital financial services such as lending and wealth management to consumers who previously did not have access due to a lack of credit history.
So should we be optimistic about the concept of embedded finance? How does it help a businesses grow? Does financial inclusion and access to credit deliver impact to developing nations?
To answer these questions, I speak to Chris Sirisereepaph, Partner at Saison Capital for his insights.