Grab company rolling out financial assistance beyond transport servicing
On Tuesday, Southeast Asian transport giant firm, Grab, reveals it’s rolling out financial services across the region. That includes an online checkout account system that will enable sellers to accept digital payment services, the GrabPay.
Furthermore, the company is also planning to create a post-paid payment credit choice. That will accumulate every user’s spending on the company’s services and products including transport or a food-delivery. Altogether, users ate to pay the whole month consumed services without any additional charges.
Availability of the product
Moreover, the said credit services will be first available for users within Singapore and will expand soon to other countries. There are also other options available, such as buying goods and paying for it in installments via Grab Financial. That of which is in the developing process.
In April, Grab also plans to launch an online insurance marketplace. That will exist for entrepreneurs interested in a joint venture earlier this year with China’s Zhong An.
Just last year, the company partnered up with a Japanese financial servicing company, Credit Saison. It was to lend in the region, a joint venture to provide working capital loan for small businesses in Singapore. As to where Grab mainly aims to lend licenses in other markets.
The company’s financial products are present for small to medium-sized enterprises in Southeast Asia. Those are the one which frequently grapples to have loans from banks and financial institutions as small businesses mostly considered as precarious.
On Tuesday, senior managing director of Grab Financial Group, Reuben Lai address the small-medium businesses saying, “We’ve experienced that ourselves,” Lai added, “I have launched four businesses in Grab and, in particular, there was this incident — it was one of my projects where I knocked on the doors of 20 banks to get financing.”
According to Lai, banks are to decline loans because they are “not able to score us or to assess our creditworthiness and non-traditional methods.” He added that their company also experience over two years ago as Grab already is an established start-up company within the region.
There are about 640 million people living within Southeast Asia, and mostly are connecting to the internet for the first time. Google and Singapore’s Temasek Holdings estimates the region’s internet economy is to surpass $240 billion in 2025. There will be affordable mobile internet and fast growth in such sectors, for instance, e-commerce and online transport services.
According to Lai, the company also aim to “level the playing field for all the small businesses in Southeast Asia.” Lai believes that Grab can generate money by offering financial services in various ways. For instance, insurance, the starting could take commission base off the policy that is sold. For lending businesses, money comes thru either a revenue share agreement or commissions.
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