Money 20/20 Asia – Alternative Lending

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2040

Money 20/20 known to be a conference focused on payments too moves with the tide and provided great insight and sharing of the next wave in money and financial inclusion – credit. The alternate lending track had some good solutions advocated by entrepreneurial and innovative leaders of startups and companies.

A list of the companies across panel discussions and key-notes (in no particular order).

CreditEase WeLab
Wecash PayU
Kreditech Paisabazaar
Dianrong IceKredit
Tala BankBazaar
SocietyOne Accion
PaySense Lenddo

Companies presented their unique approaches to lending. Most of the companies were B2B  solutions working with banking partners to provide the technology such that banks could also lend to those who do not have traditional credit scores. These companies look to use social, behavioural, and transactional data which then draws an analysis and projections on the choices potential borrowers make and how credit worthy they are. Social data helps lenders understand their borrowers better and potentially also offer favorable terms, when these very individuals possibly would have not received any credit (from those other than loan sharks) to begin with.

We continue to see the use of artificial intelligence and machine learning capabilities in this space which provides accurate predictions on the credit behavior of consumers based on non-traditional data sets.

WeLab opines that the cost of finance for $5 and a $5000 loan should be the same.

  • The company prides itself in a solution which is effectively a robo-advisor for debt and helps offer better lending products and also restructure outstanding debt.
  • It also has an e-KYC process and an AI chatbot, which in the last 3 months since its launch has answered 73% of the questions and a client satisfaction rate of 93%.

Wecash projects that similar to China where interest rates are capped, the rest of southeast asia will potentially benefit from such a model. The ~4 year old China based company is expanding in line with its projections for SEA and has a joint venture – Tunaikita, an Indonesian technology company – with JAS Kapital and Kresna Usaha Kreatif (both which have market knowledge and local know-how). Wecash’s technology has processed more than US$7 billion in unsecured loans since 2014.

Kreditech uses over 30 different data sources from mobile information and government information to geolocation and this leads to typically over 20,000 data points.

Aside from the talks, there were companies with their booths – CredoLab and Credit Karma.