Lendo has been studying fintech trends in the Southeast Asia market with a view to being a service provider in this growth area. We have noted that this region is ripe for major growth, and now that Lendo is trademarked in Singapore, it is well positioned to take advantage of the many opportunities presented to us here.
First, an important thing to note is that traditional banking services have a low penetration in this market. Only 27% of the regions population have a standard bank account according to KPMG. There are 600 million people in the area, and when you look at a country like Cambodia, the percentage of the population with a bank account is a tiny 5%. As KPMG says: “This is where the real opportunity for fintech lies. With the introduction of new and mobile technologies, fintech companies can radically shift the economic foundation of the region by creating opportunities for the unbanked to obtain the basic services they need to help improve their financial situation.”
Deloitte has also reported in early 2019 that the amount of capital invested in the fintech industry in Association of Southeast Asian Nations (ASEAN) countries in 2018 exceeded the $5.7 billion invested in 2017 by 20–30 percent.
Mobile payments, such as those offered by Lendo, are showing the greatest growth. Tech Collective writes that there are 330 million people using the Internet every day, with 90% of it on their mobile phones, and there is a significant demand for mobile wallets, mobile payment apps and mobile banking.
There are also countries like Vietnam where the government is pushing for a cashless society, and Indonesia saw the value of e-money transactions in the grow sixfold between 2012 and 2017 to 12.3 trillion Rupiah ($840 million USD).
The market in Southeast Asia for remittance services is also booming, because the large migrant worker population in countries like Indonesia, Vietnam and the Philippines, means there is a demand for easy access to low-cost remittance services.
There are many other areas of fintech that are showing growth in Southeast Asia, and Lendo plans to track these trends and discuss partnerships where necessary so that Lendo grows in this burgeoning market.