Grab to launch e-cash and Big Data-based micro lending in Thailand

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Ride hailing company Grab in its drive to expand in the financial services sector is planning to launch e-cash and micro lending in Thailand, the Bangkok Post reported.

The move would accelerate the trend towards electronic payments and also be a threat to the infamous, but ubiquitous loan sharks in the country.

According to the report, the Singapore-based company is in the process of applying at the Bank of Thailand for official licenses to operate e-wallet and micro lending services

Vee Charununsiri, Grab’s country spokesman in Thailand, said the company uses big data technology, particularly for taxi drivers who number in the hundreds of thousands, for credit scoring. Micro lending will give those unbanked drivers the alternative to having to rely on loan sharks that charge high interest rates.

Earlier this year, Grab announced the formation of Grab Financial Services Asia, a joint venture with Japanese financial services company Credit Saison, a company affiliated with Mizuho Financial Group, to provide loans and lending services to millions of unbanked and underbanked consumers, micro-entrepreneurs and small businesses across Southeast Asia.

Grab Financial Services Asia will have the ability to tap into Grab’s huge base of customer data gathered from the Grab app, which processes more than a billion transactions annually, to provide a resource for measuring creditworthiness and credit ratings of potential micro lenders By analysing behaviour and transaction data from the Grab app, including transport movements, geolocation and GrabPay transaction data.

Vee also said the e-wallet will enable consumers who do not have credit cards or are not eligible for them to use the e-wallet for their convenience, instead of paying by cash.

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Reading Time: 2 minutes

Ride hailing company Grab in its drive to expand in the financial services sector is planning to launch e-cash and micro lending in Thailand, the Bangkok Post reported.

Reading Time: 2 minutes

Ride hailing company Grab in its drive to expand in the financial services sector is planning to launch e-cash and micro lending in Thailand, the Bangkok Post reported.

The move would accelerate the trend towards electronic payments and also be a threat to the infamous, but ubiquitous loan sharks in the country.

According to the report, the Singapore-based company is in the process of applying at the Bank of Thailand for official licenses to operate e-wallet and micro lending services

Vee Charununsiri, Grab’s country spokesman in Thailand, said the company uses big data technology, particularly for taxi drivers who number in the hundreds of thousands, for credit scoring. Micro lending will give those unbanked drivers the alternative to having to rely on loan sharks that charge high interest rates.

Earlier this year, Grab announced the formation of Grab Financial Services Asia, a joint venture with Japanese financial services company Credit Saison, a company affiliated with Mizuho Financial Group, to provide loans and lending services to millions of unbanked and underbanked consumers, micro-entrepreneurs and small businesses across Southeast Asia.

Grab Financial Services Asia will have the ability to tap into Grab’s huge base of customer data gathered from the Grab app, which processes more than a billion transactions annually, to provide a resource for measuring creditworthiness and credit ratings of potential micro lenders By analysing behaviour and transaction data from the Grab app, including transport movements, geolocation and GrabPay transaction data.

Vee also said the e-wallet will enable consumers who do not have credit cards or are not eligible for them to use the e-wallet for their convenience, instead of paying by cash.

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