B2B Payments Rethinking The SME Loan Underwriting Model In Southeast Asia
March 10th, 2020 – The small business credit gap is a global issue, a problem that banks and FinTechs continue to hack away at, yet one that remains stubbornly persistent.
In markets like Southeast Asia, high rates of credit-invisible, underbanked small businesses make filling the small business credit gap an even more difficult challenge.
At the root of the matter is often a lack of predictive data to ascertain the creditworthiness of these small- to medium-sized businesses (SMBs). Traditional banks will require credit histories and collateral to underwrite a small business loan, both of which many SMBs in Southeast Asian nations lack. It’s a self-perpetuating scenario that keeps barriers to capital in place.
In a recent conversation with PYMNTS, Raghav Mathur, head of data science and analytics at Singapore-based Grab Financial Group, discussed the opportunities in data technology that can address the region’s most pressing SMB lending needs.
Written by Pymnts
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