Southeast Asia Financial Service Providers 2023 Impact Report
This Southeast Asia Financial Service Providers 2023 Impact Report is an addendum to “Financial Inclusion in Post-COVID Southeast Asia: Accelerating Impact Beyond Access”, a study conducted by CIIP in collaboration with the United Nations Capital Development Fund (UNCDF) and Helicap and supported by 60 Decibels. This report was launched in June 2023 and can be found here. This addendum was prepared by 60 Decibels and funded by the Centre for Impact Investing and Practices (CIIP).
This study contributes to the mission of the the CIIP, established by Temasek Trust, to foster the growth of impact investing and practices in Asia and beyond by building and sharing knowledge.
“After receiving the loan from [FSP], my income increased. I am now able to cover some of the household needs. Additionally my child’s daily needs and school needs are more fulfilled.”
Female, 40
Top insights from the report
- Purpose: Clients in Southeast Asia predominantly use their loan for business purposes and are investing in a new or existing business.
3 in 4 clients used their loan towards investing in new or existing businesses while the rest used it for non-business purposes (consumption).
2. Access: Over half of clients are first time borrowers and half cannot find good alternatives to their FSP for all SE Asia Clients. Clients of fintechs are more likely to report they are first time borrowers and do not have access to good alternatives compared to traditional FSPs.
54% of clients are accessing a loan like the one FSP provides for the very first time and 48% cannot find a good alternative.
3. Technology & Digital: Clients in SE Asia report improvements in their use of financial services because of technology.
73% of clients report ‘very much’ or ‘slightly’ improved use of financial services because of technology such as mobile phones and the internet.
4. Client Protection: Clients in SE Asia report they understand their loan terms and conditions, demonstrating FSPs’ commitment to loan transparency and support in successful loan management.
Approximately 9 in 10 clients find FSPs fees, interest rates, and penalties easy to understand, consider the loan repayment to be not a burden, have never resorted to reducing households’ food consumption, and find FSPs agents to be fair and respectful.
5. Business Impact: 7 in 10 clients report increases in their business income because of their FSPs.
70% of all clients report an increase in their income, with 12% reporting a ‘very much increased’ income.