Grab Financial Group, the financial arm of the Southeast Asia everyday-everything super app, has announced its business direction for 2020 and ambition to become Thailand’s full-service FinTech provider. After the initial success of its GrabPay Wallet, Grab Financial Group, through its GrabFinance business, is gearing up its lending solutions via new in-app lending for driver-partners and SMEs financing. Targeting its new lending volume at Bt3 billion, Grab Financial Group aspires to empower more than 100,000 Thai underbanked households by giving them access to affordable financial products that meet their needs.
“Driven by Grab’s principle of solving everyday problems with technology, Grab Financial Group is committed to delivering full-service FinTech solutions for the underbanked population. Earlier last year, we launched GrabPay Wallet in Thailand to enable more convenient and secure payments across Grab ecosystem. Within the first six months, the wallet’s transaction volume saw a significant sevenfold increase, driving cashless payment volume to contributing almost half of the overall services,” said Worachat Luxkanalode, Thailand Country Head of Grab Financial Group.
Grab Financial Group will expand its product offering this year and offer more comprehensive products and services for its ecosystem partners and users. With GrabPay as the fundamental infrastructure, the Group will be scaling up other financial service offerings, including affordable lending solutions and personalized insurance products.
Grab Financial Group’s lending business, GrabFinance, has become Thailand’s first data-driven end-to-end digital lender that is fully licensed and regulated by the Bank of Thailand and the Ministry of Finance. Operated by GFin Services and piloted in late 2019, the solutions use alternative data and credit scoring models in providing loans. GrabFinance currently offers three loan products, namely:
* In-app lending – Offering driver-partners non-collateral nano-financing for business purposes within the application via quick and simple steps;
* Daily instalment service – Providing driver-partners zero-interest daily financing plan for smartphones and electrical equipment; and
* SMEs financing – Providing small enterprises short-term low-interest loans for increased liquidity in business operations
“Grab driver-partners are among the micro-entrepreneur segment facing the challenges of the lack of official income proofs and traditional monthly instalment plans which are incompatible with their ability to pay. To address these issues, Grab Financial Group leverages not only driver-partners’ financial data but also alternative data such as behavioural data points that reflect both their ability and willingness to pay. Combining both traditional and alternative credit scoring allows us to have a more accurate assessment of a driver’s creditworthiness, thereby improving their access to our loan products. We also implement a daily repayment function to facilitate them to become more disciplined in financial management.”
Additionally, GrabFinance offers SMEs financing with entirely digital processes and no physical documents required. This solution was first launched to provide loans to selected fast-growing merchant-partners before expanding to provide other similar small businesses with more varied financing options,” Worachat said.
“With our enhanced infrastructure and Grab’s operational expansion plan from 20 to 30 provinces in 2020, GrabFinance’s overall loan products are expected to achieve the lending volume of Bt3 billion this year, empowering more 100,000 Thai underbanked micro-entrepreneurs. We strongly believe that our full-service FinTech solutions will not only fulfil Grab’s ecosystem but also play a significant part in elevating Thais’ quality of life through financial inclusion.”