Of late, a new study revealed that digital financial services are estimated to produce a minimum $38 Billion in proceeds across Southeast Asia by the end of 2025. The report—which was co-authored by Google, Bain & Company (international management consultancy), and Temasek Holdings (Singapore state investor)—stated that number can even surge to $60 Billion in the upcoming 6 Years if there are persisted investments, supportive regulation, and better infrastructure. If those numbers are accomplished by 2025, it will represent a climb about 245%–445% from the $11 Billion in digital financial services earnings at the moment. Most of the consumers and small businesses still largely utilize cash at present.
During a news briefing, Aadarsh Baijal—Leader of Bain & Company’s digital practice (Asia)—stated, “Southeast Asian financial services market is comparatively underdeveloped when we compare it with developed markets standards.” The report analyzed markets in Indonesia, Vietnam, Thailand, Philippines, Malaysia, and Singapore. Over 70% of the region’s 400 Million customers are at present either underbanked or unbanked, the study reported. The unbanked are adults who don’t use financial institutions or banks. Baijal stated, “The underbanked are in fact clients who have a bank account but are not participating completely in the financial services market. They do not have access to essential things such as insurance or credit cards, they are under-protected and don’t have accurate long-term savings.”
On a similar note, recently, Uber announced a deeper pitch in financial services with Uber Money. Ride-hailing titan Uber is making a profound push in financial services. The company declared the development of a new division known as Uber Money to house its attempts, which comprise of a digital wallet and upgraded credit and debit cards. According to Peter Hazlehurst—who will direct the new division—at first, the prominence will be expanding Uber’s attempts to give its 4 Million-plus couriers and drivers globally access to a mobile bank account since they will be paid after each ride.