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Hi readers,
I was struck by this term called the “credit invisibles” during my email interview with an executive from Kredivo Vietnam.
I’m not sure whether buy now, pay later is the right solution to support those who are unseen by the traditional financial system in Vietnam. Will getting them to buy more stuff eventually improve their lives?
About 70% of the population have no or limited access to banking services. Fintech companies have been shifting their focus to digital lending, which entails getting the population to move away from cash for their borrowing needs, though these firms’ business models might differ.
For those in the lower-income brackets, the risks are evident. Stories of people being harassed by lending apps have been constantly reported. For years, the industry has been awaiting an official fintech sandbox from regulators aimed at protecting consumers and spurring innovation.
In the meantime, as I noted in the landscape map, consumers just have to be smart about their choices.
— Thu Huong Le, journalist at Tech in Asia
Top stories this week
Image credit: Timmy Loen
1️. Mapping Vietnam’s latest fintech battlefield: digital lending
With roughly 70% of Vietnam’s population unbanked or underbanked, companies are finding new ways to lend to these underserved communities.
2. Making sense of Grab’s surprising U-turn from ‘no layoffs’ stance
Employees are upset by the job cuts, which CEO Anthony Tan insists are not motivated by hitting earnings targets.
3. How Singapore’s startup ecosystem compares to the rest of the world
The city-state has a shorter time to exit than the global average and has seen significantly more VC funding dished out than other ecosystems.
4. Bots, boosts, and backends: how generative AI can transform banking
This tech can transform how banks operate but concerns over regulation, data security, and systemic biases will act as constraints.
5. The brow-raising $150m valuation of SGX-listed firm’s EV brand
EuroSports Global’s Scorpio Electric says it will start producing and distributing e-bikes later in 2023. But its valuation may need justification.
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