Demand for Online Loans in Southeast Asia is Growing Steadily
- Investment , P2P Lending
- 28.06.2019 12:30 pm
This is evidenced by the results of the study conducted by Robocash Group with the help of services for search query analytics. The study inсluded Indonesia, the Philippines and Vietnam where the growth of fintech services is the most active now. Thus, in January 2017, the number of requests of online loans there amounted to 880, in January 2018 - to 8,100 and in January 2019 - to 18,100.
In addition, experts of the company analyzed and compared trends of popularity of online loans in these countries. First of all, outperforming growth rates are seen in Indonesia. At the beginning of 2017, online loans were more popular in the Philippines, whereas in Indonesia they were almost at the same level as in Vietnam. However, the rapid growth that started in Indonesia later allowed it to significantly overtake Vietnam and outperform the Philippines.
“The growth spurt of online lending in Indonesia took place earlier than in the Philippines and Vietnam, largely due to the earlier emergence of the legislation, which facilitated the process of remote identification and scoring of borrowers. Thus, the sharp increase in the number of companies and volumes of issued loans there occurred back in 2016, which affected the popularity of search requests of online loans,” - the report says.
The Philippines and Vietnam did not actually have this market in 2016. It was characterized then by several companies and a few tens of thousand dollars of issued loans. The full-scale emergence of alternative lending in the Philippines began in 2017, although today, the country has several dozen companies, including international players with large capital. In Vietnam, the number of requests is growing, but not so rapidly. This is partly due to the lack of a regulatory framework, but the country’s potential is huge.
The available data allow to predict that the popularity of online lending will continue growing significantly this year. The increasing Internet penetration, the development of legal and regulatory framework, as well as the growing capital of players in this sector will increase the supply, which will be followed by the demand for online loans among the population