Residents of urban areas fall back upon fintech services providing personal financing far more often than in less urbanized regions. These are the findings on the regional use of online financing in the Philippines, Indonesia, Vietnam and India mapped by the analysts of the financial holding Robocash Group. 

The study embraced the data of more than 2.5 million customers who have used the company’s online financing services in the Philippines, Indonesia, Vietnam and India in 2019. According to the results in the Philippines, residents of the National Capital Region (NCR) take advantage of such services 5.3 times more often than on average in the country. Indonesia has the most drastic situation in Jakarta, where local people fall back upon digital financing 16 times more often than on average. In contrast to its neighbours in Southeast Asia, Vietnam has much lower difference between regions. Thus, residents of South Eastern Vietnam with its most populous Ho Chi Minh City use online financing more than twice as often as on average in the country. As for India, Maharashtra is leading among the states, even taking into account its large population. The usage of relevant services there is 9.7 times more often than on average in the country.

These findings reveal that advanced economic development and urbanization are the main factors driving the expansion of online financing solutions across Asia. Supported by high penetration of the Internet estimated at 63% in SEA this year, advanced adoption of mobile solutions and digital technologies, they have altogether enhanced consumption and demand for consumer loans. At the same time, such a contrast in the usage rate of fintech financing services confirms that there is the immense untapped potential for further penetration of online solutions to rural areas throughout the region.

“People are still largely underserved by traditional banks. According to the findings of KPMG, only 27% of the population in Southeast Asia have a bank account, while the global average rate is 38%. From this perspective, high Internet penetration and the common use of mobile technologies in Asian countries will help to reduce the gap. An increase in the number of customers of digital services and growing usage of online financing tools will facilitate their even and gradual penetration in Asia in 1-2 years,” — expect the analysts of Robocash Group.