Grab and go: analyzing the dash for Home Credit’s SEA business

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Hello there,

When I started out as a tech reporter a few years ago, the buzzword du jour was big data. For large tech companies, data is the one thing that could bring about major revenue, profits, and long-term sustainability.

At the time, big data’s benefits were mostly talked about in abstract terms, but that has changed since then. In Southeast Asia, a region with low rates of institutional borrowing, big data has powered fintech lending, which appears to be the holy grail for many tech companies including Grab.

In this week’s big story, my colleague Miguel looks at the super app’s potential acquisition of Home Credit’s Southeast Asian business. The Netherlands-based company targets borrowers in emerging markets with little to no credit history, helping them purchase durable goods like washing machines or television sets.

It’s looking like a good fit. An acquisition would provide a boost to Grab’s financial services business, especially with Home Credit’s 24 million customers in the region. In turn, that user base can increase significantly, powered by Grab’s vast presence across Southeast Asia.

But it’s far from being a done deal. A number of prominent Japanese banks are also interested, and financially, they can bring the fight to Grab.

Meanwhile in Indonesia, a fintech-related scam has captured both media and public attention lately, and it’s not the only one. These fraudulent schemes highlight the growing need for tighter, preventive regulations and for better financial literacy among the general public. We go into more detail in this week’s Hot Take.

— Putra

THE BIG STORY

1️⃣ Will Grab’s bid for Home Credit bolster its fintech ambitions?

Image credit: Timmy Loen

Acquiring Home Credit’s SEA business will provide Grab access to 24 million customers in the region, but a trio of Japanese banks stand in the way.

THE HOT TAKE

Indonesia’s fintech Wild West

NEWS YOU SHOULD KNOW

FYI