Logo of Phnom Penh Post newspaper Phnom Penh Post - Grab expands portfolio of financial products

Grab expands portfolio of financial products

Content image - Phnom Penh Post
A woman stands outside the Grab transport office in Singapore. AFP

Grab expands portfolio of financial products

Grab Financial Group, the financial technology arm of Southeast Asia-based ride-hailing app Grab, on Tuesday rolled out a series of consumer financial services, including microinvestment and microloan schemes.

The company’s new strategy, Thrive With Grab, includes microinvestments, third-party consumer loans, microinsurance and a pay-later programme, expanding its formerly merchants- and small businesses-focused fintech services to consumer financial services.

Grab Financial Group senior managing director Reuben Lai said: “By offering innovative microtransaction-based financial services, convenient financial management tools and access to products from leading global financial institutions, we hope to unlock the tremendous potential in financial services in the region in ways that serve all Southeast Asians.

“We aim to set a new benchmark for financial services in accessibility, convenience and transparency.”

Grab Financial will offer new products include AutoInvest – a platform that allows consumers to invest small sums of money – consumer loans and a buy-now-pay-later programme.

The fintech firm sees huge potential in Southeast Asia, where 70 per cent of the population is underbanked, according to a Bain, Temasek and Google e-Conomy report last year.

The report estimated that the revenue from the digital financial services is expected to reach $60 billion by 2025 and $75 billion in digital investment assets under management.

Another research report by Boston Consulting Group in May said more than one-third of Southeast Asian consumers are willing to shift some banking activities such as loans to nonbanking digital platforms.

The managing director said that even though the new services are not a direct response to Covid-19, the global pandemic has accelerated the transition to digital platforms.

Lai told reporters: “Even before Covid-19, it was relevant to Southeast Asia. The pandemic has accelerated the trend for several quarters, if not years.”

The announcement on Tuesday came as Grab raised up to $4.9 billion in February to spur its payment and financial services businesses. The company also secured $200 billion from Korean private equity firm Stic Investment Inc, Bloomberg reported on Monday.

Founded in 2012 in Malaysia as a taxi-hailing app, Grab has attracted several Korean investors, including Hyundai Motor, Kia Motors, SK Holdings, KL Investment, Naver and Mirae Asset Financial Group.

The company, valued at $14.3 billion according to CB Insights, has so far raised more than $10 billion.

THE KOREA HERALD/ASIA NEWS NETWORK

MOST VIEWED

  • South Korea’s first lady brings hope to ill boy

    South Korea’s first lady Kim Keon-hee – wife of current president of the Republic of Korea, Yoon Suk Yeol – met with a 14-year-boy with congenital heart disease during her trip to the Kingdom for the ASEAN Summit. After their meeting it was announced that the

  • Hun Sen gets Covid, shuns G20, APEC summits

    Prime Minister Hun Sen said he has tested positive for Covid-19 in Indonesia, where he is slated to attend the G20 summit in his capacity of the ASEAN chair. In a social media post addressing the Cambodian public, he said: “Before leaving Cambodia, I always

  • Moody’s sets outlook rating to ‘negative’ for Cambodia

    US global rating agency Moody’s Investors Service Inc on November 15 announced that it downgraded Cambodia’s outlook from “stable” to “negative” and maintained its B2 local and foreign currency issuer ratings. “The negative outlook reflects a deteriorating external position as illustrated by the severe

  • Hun Sen’s Covid infection caused by ‘weakened antibody’ after summit

    Prime Minister Hun Sen said exhaustion from heavy workload before and during the recent ASEAN Summit may have led to him contracting Covid-19 due to his weakened immune system, while rejecting speculations that the infection was caused by leaders of some countries who did not

  • Korean first lady paves way for ill boy’s surgery

    A 14-year-old boy with congenital heart disease who was lucky enough to meet with South Korean first lady Kim Keon-hee may get the chance of a lifetime and receive surgery and treatment at Asan Medical Center in Seoul, South Korea. After seeing his plight, many

  • Kingdom’s rice crowned world’s No1

    Cambodia’s Phka Rumduol jasmine variety has been crowned the World’s Best Rice for the fifth time at the TRT (The Rice Trader) World Rice Conference in Phuket, Thailand on November 17, according to leaders of the Kingdom’s apex rice industry body. Phka Rumduol