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1、The ASEAN Access to Digital Finance Studywith the support ofSeptember 2022The ASEAN Access to Digital Finance StudyThe ASEAN Access to Digital Finance StudyThe ASEAN Access to Digital Finance StudyTania Ziegler,Krishnamurthy Suresh,Zhifu Xie,Felipe Ferri de Camargo Paes,Peter J Morgan and Bryan Zhan
2、gPlease cite this study as:CCAF and ADBI(2022)The ASEAN Access to Digital Finance Study,Cambridge Centre for Alternative Finance and the Asian Development Bank Institute3Table of contentsForewords.5CCAF foreword.5ADBI foreword.6FCDO foreword.7Research team.8Acknowledgements.9Research partners.10Exec
3、utive summary.11Individual consumer and household users of digital finance.11MSME users of digital finance.12Policy implications and recommendations.131 Introduction.151.1 Study rationale and research objectives.151.2 Report structure.152 Methodology.172.1 Data source and collection.172.2 Data sanit
4、isation,verification and analysis.172.2.1 Analysis type.192.2.2 Limitations.192.3 Alternative finance taxonomy.193 Individual consumer and household access to digital finance.223.1 P2P/marketplace consumer lending.223.1.1 Profile of respondents .223.1.2 Relationship with traditional financial servic
5、es.243.1.3 Borrowing experience.263.1.4 Outcome of financing and Covid-19 impact.313.2 Buy now,pay later.333.2.1 Profile of respondents.353.2.2 Relationship with traditional financial services.363.2.3 Purchase experience.373.2.4 Outcome of financing and Covid-19 impact.4444 MSME access to digital fi
6、nance.474.1 P2P/marketplace business lending.474.1.1 Profile of respondents.474.1.2 Relationship with traditional financial services.494.1.3 Borrowing experience.544.1.4 Outcome of financing and Covid-19 impact.604.2 Invoice trading.654.2.1 Profile of respondents.654.2.2 Relationship with traditiona
7、l financial services.684.2.3 Borrowing experience.704.2.4 Outcome of financing and Covid-19 impact.714.3 Equity crowdfunding.744.3.1 Profile of respondents.744.3.2 Relationship with traditional financial services.764.3.3 Fundraising experience.784.3.4 Outcome of fundraising and Covid-19 impact.80Cou
8、ntry data sample at a glance.82Indonesia.83Malaysia.85The Philippines.87Singapore.89Thailand.90Appendix .925The ASEAN Access to Digital Finance StudyOver the last few years,the ASEAN region has experienced greater penetration of fintechs into their markets,serving a larger range of customers,from lo
9、w-income populations to more mature businesses.Fintech can play a vital role in supporting individuals and businesses to overcome shortcomings in the traditional banking system and offer innovative products and services,ensuring that basic financial services reach the most underserved populations in
10、 the financial system.To this end,it is critical to understand the rapid development of the fintech industry in the region and how the technological developments enable financial inclusion,in particular,fintech activities related to digital lending and digital capital raising,such as peer-to-peer(P2
11、P)lending and crowdfunding,both of which have grown significantly.Against this background,in 2019,the Cambridge Centre for Alternative Finance(CCAF)and the Asian Development Bank Institute(ADBI)jointly produced the seminal report The ASEAN Fintech Ecosystem Benchmarking Study,which focused on gainin
12、g a better understanding of the fintech landscape in the ASEAN region.This evidence-based report highlighted the rapid development of fintech and the emergence of innovative business models.The demand for fintech solutions in the region came mainly from individuals and businesses that were underserv
13、ed by traditional banking solutions.Further,this has been reinforced by the findings in The 2nd Global Alternative Finance Market Benchmarking Report,which noted a rise in the number of underbanked and unbanked customers served by these alternative finance providers in the region.In this ASEAN Acces
14、s to Digital Finance Study,we aim to provide valuable data and insights into the important role that fintech firms play vis-a-vis individual consumers and micro,small and medium enterprise(MSME)access to digital finance in the key ASEAN countries.The results of this study provide a comprehensive ana
15、lysis of the key opportunities and challenges facing fintech customers when seeking finance through fintech channels.The study is based on a sample of 600 responses from individual household and business users of digital finance platforms.Overall,the findings support the hypothesis that alternative
16、finance channels are a critical component to enable individual consumers and small businesses cope with their financial needs by enhancing their access to credit.Results show that most individual consumers accessing fintech platforms are Millennials who use digital finance channels to cover day-to-d
17、ay expenses and,in terms of businesses,it is mainly micro and small enterprises,mostly led by females,that use online finance channels to access funds for working capital.Further,most MSMEs reported improved business performance after receiving finance through these channels,highlighting the key rol
18、e of alternative finance in small business financing,especially during the pandemic.We hope that the insights from this study can support evolving regulations and policies,and further enable the growth of the fintech ecosystem while protecting the interests of customers.Finally,we would like to than
19、k ADBI for its support and remain grateful to the 19 fintech platforms and 6 fintech associations that collaborated on this study and ensured robust participation from individual consumers and MSMEs.Bryan ZhangCo-Founder and Executive DirectorCambridge Centre for Alternative FinanceTania ZieglerLead
20、 in Global BenchmarkingCambridge Centre for Alternative FinanceForewordsForewords6The new generation of financial technology(fintech)shows great promise in being able to promote financial inclusion and the efficient delivery of financial services.However,it also can create new risks and unintended c
21、onsequences,both for the financial sector and for users.Financial regulators face great challenges in determining the appropriate balance between supporting financial innovation and preserving financial stability,ensuring consumer protection,and maintaining standards for anti-money laundering,terror
22、ism financing and know-your-customer processes.A correct understanding of the underlying situation of fintech markets is vital for developing policies to foster and regulate the sector.The fintech sector has been growing rapidly in Asia.This timely report provides a detailed and comprehensive view o
23、f the use of fintech platforms for finance and fundraising by individuals,and micro,small and medium enterprises(MSMEs)in five ASEAN countries:Indonesia,Malaysia,the Philippines,Singapore and Thailand.As such,it should become a valuable reference for identifying the impacts of fintech on financial i
24、nclusion according to factors such as income,gender,sector and location.It also provides qualitative measures of the impacts of increased financial inclusion on firm performance.One of the more interesting findings of the survey is that the use of fintech services often proves to complement rather t
25、han compete with traditional banking services.In many cases,increased access to finance via fintech actually leads to increased use of banking services.The Covid-19 pandemic has accelerated the demand for fintech services and,in many cases,such increased access to finance has proved very valuable to
26、 both individuals and firms to weather the negative impacts of the pandemic.These results should provide important new evidence to justify the promotion of fintech as a way to promote sustainability in the face of various kinds of shocks,either man-made or natural.This important report should benefi
27、t regulators,business practitioners and scholars in this field,and ADBI is delighted to have supported this project.Peter J MorganSenior Consulting Economist and Advisor to the DeanAsian Development Bank Institute7The ASEAN Access to Digital Finance StudyThe UK Foreign Commonwealth&Development Offic
28、e(FCDO)welcomes the findings of this ground-breaking study by the Cambridge Centre for Alternative Finance(CCAF)in partnership with the Asian Development Bank Institute(ADBI).The ASEAN Access to Digital Finance Study provides evidence and insight into a rapidly developing sector and the role technol
29、ogy is playing to help previously excluded groups access credit,raise capital and cope with financial stresses and shocks.The UK has both regulatory and commercial expertise across the fintech ecosystem and is committed to sharing best practices with ASEAN.The reports findings on digital credit and
30、digital capital raising are of real interest to the UK where we are committed to strengthening domestic financial services markets globally,ensuring people and businesses can save,borrow and invest.The remarkable growth of digital financial channels in ASEAN is credited to the enabling environment a
31、cross the region.Regulators have set a great example;using these developments to pursue objectives such as financial inclusion,innovation and market development while maintaining focus on consumer protection.The UK is committed to continued coordination with ASEAN and the private sector,to share inf
32、ormation on the development of fintech to support industry progress,including hosting masterclasses across the region to support trade and investment.This report helps us better understand how fintech can more quickly and nimbly deliver where formal systems will take longer to adapt.Im excited by ho
33、w we can all use this research donors,policymakers,governments,entrepreneurs and asset managers to address some of the big challenges that affect all of our lives and economies,such as helping small-holder farmers to adapt to climate change,supporting energy transitions that are truly just for commu
34、nities reliant on fossil fuels for their livelihoods,or ensuring access to credit for individuals and MSMEs to build their resilience against climate shocks.We look forward to continued developments in digital finance to ensure fintech benefits reach those financially excluded and help accelerate pr
35、osperity in the region.Rachel TurnerDirector-International FinanceForeign,Commonwealth&Development OfficeResearch team8Research teamTania ZieglerTania is Head of Global Benchmarking at the Cambridge Centre for Alternative Finance(CCAF)and manages the Centres industry-facing research activities.She h
36、as authored over 25 industry reports and contributed to numerous academic and working papers since joining the CCAF.Tania is an expert on small and medium enterprise(SME)finance and leads the Centres work on SME access to finance.Tania completed an MSc at the London School of Economics,and a BA at L
37、oyola University Maryland.Tania is a 2010 Fulbright Scholar.Krishnamurthy SureshKrish is a Senior Market Researcher for the Asia-Pacific region at the CCAF and leads the work on SME access to finance in Asia Pacific.Prior to joining the CCAF,he worked with the Indian Institute of Management(IIM)in B
38、angalore,India.His research focus is on SME financing,new and alternative financing models for startups and SMEs,as well as fintech regulatory frameworks.He has a PhD from Tumkur University in India and was a Visiting Fellow(Pavate Fellow)at the Cambridge Judge Business School in 2018.Zhifu XieZhifu
39、 is Research Analyst at the CCAF and works with the Global Benchmarking team.She has a PhD in Economics and an MSc in Investment Management from Coventry University.Her research interests include monetary economics,blockchain and fintech.Prior to joining the CCAF,she worked as a researcher at Aston
40、University.Besides that,she has served as a subject-matter expert in finance,lecturer assistant and consultant assistant in various institutions.Felipe Ferri de Camargo PaesFelipe is a Research Associate at the CCAF,leads the work on SME access to finance in LATAM,has authored seven reports and has
41、participated in the development of the CCAF Alternative Finance Atlas.He pursued his BSc in Mechanical Engineering in Brazil and MSc in Management at the School of Economics at the University of Coimbra(FEUC)in Portugal,with a focus on the sharing economy.Peter J MorganPeter Morgan is the Senior Con
42、sulting Economist and Advisor to the Dean at the Asian Development Bank Institute(ADBI)and has been with ADBI since 2008.He has 23 years experience in the financial sector in Asia,most recently serving in Hong Kong as Chief Asia Economist for HSBC,responsible for macroeconomic analysis and forecasti
43、ng for Asia.He earned his MA and PhD in Economics from Yale University.His research interests are in macroeconomic policy and financial sector regulation,reform,financial development,financial inclusion,fintech,financial literacy and financial education.Bryan ZhangBryan Zhang is a Co-Founder and the
44、 Executive Director of the Cambridge Centre for Alternative Finance at the University of Cambridge Judge Business School.9The ASEAN Access to Digital Finance StudyAcknowledgementsOn behalf of the Cambridge Centre for Alternative Finance(CCAF),the research team would like to thank the Asian Developme
45、nt Bank Institute(ADBI)for making this report possible,and for their continued support of the CCAF and its research endeavours.The research team would like to thank the following individuals for their considerable support in survey dissemination and data collection(in no particular order):Georg Stei
46、ger(First Digital Finance/BillEase),Bellinda Caballeros(First Circle),Benedict Carandang(First Circle),Marcus Erlano(First Circle),Aria Widyanto(Amartha),Fachruriza Mubarok(Amartha),Markus Prommik(Danabijak),Djahill bahia(Danabijak),Kevin Zaprilan(Investree),Jimmy Kong(Fundaztic),Calvin Foo(Fundazti
47、c),Hailey Siew(Fundaztic),Tavatchai Engbunmeesakul(Wealthi),Lauren Pruneski(Tala),Vala Burton(Tala),Daniel Gorfine(Gattaca Horizons LLC),Shermain Chin(SDAX),Charis Liau(SDAX),Jun Jie Yoon(Capsphere),Mohamad Syazni Nizar(Ethis Malaysia),Mohamad Syazni Nizar(Ethis Malaysia),Najwa Azman(Ethis Malaysia)
48、,Dwiyana Rizkiah(Ethis Indonesia),Elain Lockman(Ata Plus),Hong Sin Kwek(Sinwattana),Bhayu Ravelli Arsyad(ALAMI),Mochamad Nizar Mustaqim(ALAMI),Jeffrey Oon(Atome),Richard Haris(Atome),Willy Apriando(Atome),Wawan Salum(Atome),Cythia Gonzales(PAYLATER Malaysia,KALE),Salman Alfarisie(Dana Syariah),and A
49、tis Sutisna(Dana Syariah).Further,we would like to thank the following individuals for their efforts in identifying the key fintech research partners and supporting outreach efforts:Reuben Lim(Singapore FinTech Association),Shadab Taiyabi(Singapore FinTech Association),Mercy Simorangkir(AFTECH),Citr
50、a Natasya(AFTECH),Lito Villanueva(FintechAlliance.ph),and Handika Surbakti(Asosiasi Fintech Syariah Indonesia).We appreciate these individuals significant contributions and willingness to participate as research partners to make this study possible.In particular,we would like to thank Georg Steiger,
51、Kevin Zaprilan,Bellinda Caballeros,Tavatchai Engbunmeesakul,Markus Prommik,Djahill bahia,Aria Widyanto,Reuben Lim and Pawee Jenweeranon(Thammasat University)for their valuable feedback in improvising the data collection tool and helping with survey translations.We are grateful to Cecilia Lpez Closs,
52、Dana Salman,Stanley Mutinda,Neha Kekre,Nick Drury,Herman Smit,Charles Wanga and Jill Lagos Shemin from the CCAF,and to our Cambridge Global Benchmarking Fintech Market Research Intern Anestia Fermay,for their valuable efforts and support throughout the study.In addition,we are very thankful to Nafis
53、 Alam(Monash University,Malaysia)and Alexander Apostolides(CCAF)for their valuable insights and contribution to this report.We would like to extend our utmost gratitude to Alpa Somaiya for the proofreading,Louise Smith and Cecilia Lopez Closs for designing the report,and Neil Jessiman for press and
54、communications support.In addition,we would like to thank Kaori Hitomi and David Hendrickson from the Asian Development Bank Institute for their immense help in disseminating this study.Research partners10Research partnersFintech partnersAssociationscapsphere11The ASEAN Access to Digital Finance Stu
55、dyExecutive summaryIn this first edition of The ASEAN Access to Digital Finance Study,we aim to provide valuable data and insights into how individual households,consumers,and micro,small and medium enterprise(MSME)customers use digital alternative finance channels,such as online digital lending and
56、 capital raising platforms,to access credit or raise funds across the key countries in the Association of Southeast Asian Nations(ASEAN)region.The report focuses on five ASEAN countries:Indonesia,Malaysia,the Philippines,Singapore and Thailand.This study has been jointly developed by the Cambridge C
57、entre for Alternative Finance(CCAF)at the University of Cambridge Judge Business School and the Asian Development Bank Institute(ADBI).It assesses various qualitative and quantitative factors of borrower or issuer activities related to financial access via an online fintech platform operating in the
58、 lending or equity space.The models observed in this study are peer-to-peer(P2P)/marketplace consumer and business lending,balance-sheet consumer and business lending,invoice trading,equity-based crowdfunding,and buy now,pay later(BNPL).The study looks at four aspects of digital finance use in the A
59、SEAN region:1 Respondent profile/demographics and company structure(for businesses)2 Relationship with traditional finance channels3 Financing experiences when using fintech-based financial services4 Post-financing outcomes and the impact of the Covid-19 pandemicIn terms of the quantitative factors,
60、it should be noted that it is not our intention to present precise or absolute figures for individual income,company revenue,borrowed or fundraised amounts,or overall performance,but rather to provide an assessment of how ASEAN borrowers and fundraisers experience and use fintech solutions for their
61、 financing needs.The survey responses were collected between 28 February and 15 April 2022 from respondents who had used a digital alternative finance platform to access credit or raise funds between 2020 and 2021.This study is based on 600 cleaned and verified data responses from both individual co
62、nsumer and business(MSMEs)respondents across all five countries sampled.The report is divided into two main chapters:individual consumer and household access to digital finance,and MSME access to digital finance.Each chapter analyses the relevant digital alternative finance models included in this s
63、tudy,and each model is discussed against the key research themes identified.The key findings are summarised below.Individual consumer and household users of digital financeTwo models that cater to individual consumers and households P2P/marketplace(and balance-sheet)consumer lending and BNPL were an
64、alysed.A total of 410 responses related to those two models were received.Millennials made up the greatest proportion of users of online consumer finance in the ASEAN countries analysed across the individual consumers facing alternative digital finance channels.Approximately 44%of P2P/marketplace co
65、nsumer lending respondents were between 25 and 34 years of age,followed by 34%who were between 35 and 44.Of BNPL users,54%were between the ages of 25 and 34.Across both models,most respondents were male,had an undergraduate degree,and were in full-time employment with an annual income slightly highe
66、r than their countrys minimum wage.Before turning to P2P/marketplace consumer lending platforms for financing,family and friends,and banks were the two most popular sources of finance for individual borrowers.Notably,the offer and acceptance rates for borrowers who approached informal finance provid
67、ers were relatively higher than for those who sought funding from the most popular traditional finance channels,despite having fewer borrowers.Executive summary12For individual household users of P2P/marketplace consumer lending,the primary purpose for borrowing funds was to cover day-to-day expense
68、s,while for BNPL customers it was to purchase fashion items and apparel.Nearly half the individual consumers who used P2P/marketplace consumer lending platforms borrowed funds to meet daily expenses or short-term needs,such as buying groceries,paying utility bills and top-ups.For BNPL users,fashion
69、items and apparel were the main types of purchases made.This was closely followed by home appliances,mobile phones,other electronics and daily expenses,each with a proportion of around one-third.The speed of receiving funds was the main decision-making factor that led individual households to borrow
70、 from fintech platforms.For BNPL users,it was paying zero or low interest.Platform use factors,such as transparency,better approval rates and flexible terms,also influenced P2P/marketplace consumer lending users.Similarly,convenience was the other top factor that influenced BNPL users,including flex
71、ible terms,easy application and approval processes,and better customer service.Alternative finance platforms in the ASEAN region complement traditional banking systems,as they mainly serve the underbanked and enable financial inclusion.Borrowers who used P2P/marketplace consumer lending platforms re
72、ported using banking products and services more often after receiving funds from online alternative finance platforms.More than half started to use or increased the frequency with which they used their personal savings or checking accounts.This was followed by an increase in the use of personal loan
73、 contracts,personal credit cards and overdraft accounts.MSME users of digital financeThree models that cater to MSMEs P2P/marketplace(and balance-sheet)business lending,invoice trading and equity crowdfunding were analysed.A total of 190 responses related to those three models were received.Female b
74、usiness borrowers made up a greater proportion of the respondents,but they borrowed less than their male counterparts.When looking at the gender distribution of business respondents,female borrowers represented 54%across all the business-facing models,57%of whom used P2P/marketplace business lending
75、 platforms.In terms of education level,most female borrowers had completed secondary school,whereas most male borrowers had an undergraduate degree.The results indicate that the alternative finance industry plays an important role in the inclusion of under-represented business borrowers into the fin
76、ancial system.Most MSMEs were young,micro and small businesses,and were operating either as sole traders or with few full-time employees.Most MSME respondents that had borrowed or raised finance were micro and small enterprises,operating with no(sole traders)or between one and five full-time employe
77、es.Most had been operating for between one and five years,and a smaller proportion was less than one year old.This reinforces the hypothesis that alternative finance plays an important role in providing access to finance to smaller businesses.Regarding the use of traditional finance facilities,MSMEs
78、 often used personal financial products to meet their business funding needs.MSMEs that used P2P/marketplace business lending and equity crowdfunding models reported using personal checking or savings accounts the most,followed by personal current accounts.The results suggest that the owners of thes
79、e businesses relied on personal financial products to meet their funding needs.Conversely,MSMEs that used invoice trading platforms mainly used business savings or checking accounts.MSMEs that used P2P/marketplace business lending and invoice trading platforms to borrow funds were strongly influence
80、d by better customer service,flexible terms,ease of getting funding compared to traditional sources and speed of receiving the funds.Non-financial benefits,such as public relations and marketing,and insights and expertise from the platforms investors,were the main decision-making factors for busines
81、ses that chose to fundraise through equity crowdfunding platforms.The main reason MSMEs borrowed funds,across all three models,was to raise working capital,followed by expansion and growth.13The ASEAN Access to Digital Finance StudyMost MSMEs reported growth in their business performance(net profit,
82、revenue and employment)after receiving finance through a fintech platform.Most MSMEs reported that the financing had a positive impact on their business,primarily through increased productivity and an expanded customer base.Further,alternative finance borrowers defaulted less compared to the non-per
83、forming loan(NPL)average(over 3%)in ASEAN countries,according to the World Bank,reporting an almost negligible default rate(1%).During the Covid-19 pandemic,most MSMEs reported they had not received any financial assistance from their government or fintech platform and hence had to adjust their busi
84、ness operations.For those MSMEs that received government assistance,it was mostly in the form of cash assistance/loan subsidies or tax relief.A slightly higher proportion received assistance from fintech platforms,mostly in the form of fee waivers,eased payment plans and additional credit facilities
85、.It should be noted that,in many cases,the governments themselves asked fintech platforms to reduce or eliminate fees,and even directed additional credit facilities through this channel.Policy implications and recommendationsRegulators may impose limits on the amount that can be borrowed through dig
86、ital lending channels.Some regulators in ASEAN countries have already implemented mandates setting limits on the total amount individuals can borrow through P2P platforms based on their annual income.For example,the Philippines limits consumers total borrowing to 5%of their annual income.To this end
87、,regulators should also communicate more with platforms to get a better understanding of the amounts consumers borrow.Regulators may impose caps on the interest rates charged by digital lenders.Some ASEAN countries reported illegal and unauthorised digital lenders engaging in predatory lending or co
88、llection practices and charging exorbitant interest rates.To overcome this issue,regulators in some ASEAN countries have imposed caps on the interest rates that P2P lenders can charge their borrowers.For example,Thailand caps the interest rate at 15%a year.Further,it is also important for regulators
89、 to create a whitelist of regulated digital lending fintechs that are operating in the country.There is a need for industry standards or guidelines for BNPL providers to ensure consumer interests are protected.Most respondent BNPL users were young(Millennials and Gen Z)and new to credit,making prote
90、cting consumers interests even more important.Regulators need to supply BNPL providers with clear guidelines(code of conduct)and ensure they carry out sufficient checks to confirm whether consumers can afford to take out such loans.Further,regulation could also focus on product design to ensure suff
91、icient information is provided at checkout points so users can make informed decisions.There is a need to promote adequate disclosure and digital financial literacy among digital finance users.In most cases,P2P lenders charged higher interest rates compared with banks and other financial institution
92、s.This study shows that most business borrowers are micro and small enterprises and generally have a lower education level.Hence,platforms must tell businesses what interest rate they are being charged and provide mandatory user education.Furthermore,regulators need to promote digital financial lite
93、racy among borrowers using digital finance platforms.1 IntroductionThe ASEAN Access to Digital Finance Study151 Introduction1 CCAF(2022).The 2nd global alternative finance market benchmarking report,Cambridge Centre for Alternative Finance at the University of Cambridge,Cambridge Judge Business Scho
94、ol,Cambridge,p.101.Available at:https:/www.jbs.cam.ac.uk/wp-content/uploads/2021/06/ccaf-2021-06-report-2nd-global-alternative-finance-benchmarking-study-report.pdfThis first edition of The ASEAN Access to Digital Finance Study aims to provide valuable data and insights into how individual household
95、s,consumers,and MSME customers use digital alternative finance channels,such as online digital lending and capital raising platforms,to access credit or raise funds across the key countries in the ASEAN region.The report focuses on five ASEAN countries:Indonesia,Malaysia,the Philippines,Singapore an
96、d Thailand.1.1 Study rationale and research objectivesDuring the last few years,the use of digital financial services(DFS)has grown exponentially across the ASEAN region.According to The 2nd Global Alternative Finance Market Benchmarking Report,since 2018,the use of online alternative finance channe
97、ls by individuals and businesses in this region exceeded USD2 billion in transaction values and,furthermore,the industry was resilient during the Covid-19 pandemic.1Fintechs offer innovative products and services to households,individuals and businesses.However,little is known about how fintech prov
98、iders engage with customers,and how these engagements impact individual customers and businesses short-to-medium-term financial health.When considering the types of fintech solutions that have recently emerged across the ASEAN region,the University of Cambridges research results suggest that digital
99、 lending and capital raising activities,such as P2P lending,crowdfunding and BNPL,experienced significant growth and may also have contributed toward increasing levels of financial inclusion.The evidence from this research supports the hypothesis that fintech service providers are a critical compone
100、nt of the financial lives of individuals and MSMEs,enhancing access to credit and bolstering alternative finance in the region.The CCAF and ADBI jointly conducted this study to assess how individuals and businesses use online digital finance(alternative finance or fintech)platforms to access credit
101、or raise funds.The study aims to better understand how new financial products and services are being used,how they complement consumers existing banking activities,and how they can evolve to serve consumers changing needs.This report provides valuable data and insights,and serves as a crucial public
102、 resource that can help regulators,policymakers and key stakeholders understand the critical role that fintech firms play in consumers and businesses access to digital finance in the ASEAN region.The results of this study provide a comprehensive analysis of the key opportunities and challenges facin
103、g fintech customers,and how evolving regulations and policies can further enable the growth of the fintech ecosystem while also protecting the needs of customers.1.2 Report structureThis report is divided into two main chapters:individual consumer and household access to digital finance(Chapter 3)an
104、d MSME access to digital finance(Chapter 4).Each chapter analyses the relevant digital alternative finance models included in this study,and each model is discussed against the key research themes identified.162 MethodologyThe ASEAN Access to Digital Finance Study172 Methodology2.1 Data source and c
105、ollectionThe primary dataset used in this report was collected through the ASEAN Access to Digital Finance Survey,developed for this study by the CCAF and ADBI.The survey was distributed as a stand-alone online survey and collected both quantitative and qualitative data.Survey logic was used so that
106、 the flow of questions catered to either individual consumers or MSMEs,based on the type of fintech platform through which they received finance.Respondents had to answer a maximum of 38 questions;the number of questions depended on the alternative finance channel they used.The survey comprised four
107、 key research themes:1 Respondent profile/demographics and company structure(for businesses)2 Relationship with traditional finance services3 Financing experiences when using fintech-based financial services4 Post-financing outcomes and the impact of the Covid-19 pandemicAfter defining the scope of
108、the report,a syndicate of 19 research partners was built,made up of online fintech platforms that provide individuals or MSMEs with debt or equity finance.To be chosen,these partners needed to be active in one of the five ASEAN countries included in this study,have a substantial customer base and ha
109、ve been active for at least three years.Partner firms were invited to collaborate with and assist the research team to refine and test the survey,and provide substantial support in the data-collection process.The online survey was distributed in collaboration with these syndicate partners.To enhance
110、 accessibility,the survey was translated from English into five languages:Bahasa Indonesia,Malay,Thai,Tagalog/Filipino and Simplified Chinese.Participants were encouraged to respond to the online survey via the fintech platform they were using.(The CCAF provided each partner fintech platform with a
111、unique survey link.)It should be noted that although surveys were distributed through the syndicate partners,only the Cambridge research team could access the raw data,ensuring participants anonymity throughout the process.The survey was distributed in a phased and multi-pronged outreach campaign.Th
112、is included social media and other press activities to raise awareness of the study and direct outreach from the fintech research collaborators.In addition to the fintech platform partners,the study also benefitted from the assistance of six leading fintech associations in the ASEAN region that serv
113、ed as research collaboration partners.Data was collected between 28 February and 15 April 2022.Survey responses were received from individual consumers/households and MSMEs located in Indonesia,Malaysia,the Philippines,Singapore and Thailand that had used a fintech platform(digital lending and/or di
114、gital capital raising)between 2020 and 2021 to access credit or raise funds using debt and investment-based alternative finance models.Specifically,the models surveyed in this study are the following:Debt-based models:P2P/marketplace consumer and business lending,balance-sheet consumer and business
115、lending,invoice trading,and buy now,pay later(BNPL)Equity-based models or investment crowdfunding:equity-based crowdfundingIn addition to the survey responses received from the 19 platforms within the syndicate,responses from customers who had used other fintech firms were also received.Those respon
116、ses had to be validated carefully before being included in the analysis.This inclusion resulted in a more robust coverage of activity across the region.2.2 Data sanitisation,verification and analysisThe raw data was sanitised and verified between 15 April and 15 May 2022.Adhering to the EU General D
117、ata Protection Regulations(GDPR)and the University of Cambridge data controller and protection rules,all personal and firm-level identifying information was removed,for example,fintech platform name,contact name and email Methodology18address.Token IDs were assigned to each platform to maintain the
118、anonymity of the responses.Hence,analysis was performed against an anonymised file and reported at an aggregate level(by different business models).A total of 10,580 unique entries were received from the survey.During the initial sanitisation,entries that did not match the inclusion criteria were re
119、moved.The data collected underwent a multi-stage validation process,including cross-checking for abnormal and inconsistent survey responses.To ensure that only the responses from alternative finance platforms were included,any entries corresponding to banks,incumbents,cooperatives and other financia
120、l institutions were removed.Additionally,any entries from fintech platforms that could not be traced back to their operating business models were also removed.The quantitative data elements,such as individual income,company revenue and amount borrowed/raised,were verified and outliers removed.Amount
121、s that were reported in local currencies were converted into US dollars(USD)using the OANDA average rate for the period between 1 January 2020 and 31 December 2021.It should be noted that it is not our intention to present precise or absolute figures for these quantitative data elements,but rather t
122、o provide an assessment of how ASEAN borrowers and fundraisers experience and use fintech solutions for their financing needs.After the data cleaning and validation processes,there were 8,886 cleaned responses(approximately 16%of the total responses received were removed).Most responses(8,523)were f
123、rom the Philippines and,to ensure a balanced dataset for analysis,a stratified random sampling method was adopted by selecting 200 sample responses from the Philippines dataset across all the business models included in this study.As such,this study is based on 600 data responses from both individua
124、l consumer and business(MSMEs)respondents across all five countries sampled.Tables showing the distribution 2 Criteria for company size:Indonesia:https:/www.oecd-ilibrary.org/sites/9789264306264-5-en/index.html?itemId=/content/component/9789264306264-5-en Malaysia:https:/www.smecorp.gov.my/index.php
125、/en/policies/2020-02-11-08-01-24/sme-definition?id=371 The Philippines:https:/pnl- the sample by countries and business models studied,before and after adjusting for responses from the Philippines dataset,are included in the appendix(Tables A1 and A2).The following are some additional data cleaning
126、and manipulation features that were implemented during the analysis:Banking products were grouped into their respective lines and reclassified as personal finance products,business finance products,equity investments and other financial products.For the MSME respondents,each entity was categorised b
127、y size micro,small or medium based on its reported 2021 annual revenue and number of full-time employees(FTEs),according to the respective countrys criteria for determining company size.2 Notably,the average sizes of firms varied considerably between the MSME business models,with relatively larger f
128、irms generally using invoice trading and equity financing.This variation mainly occurs because of how these different models operate (Tables 2.1 and 2.2)and how financing is obtained.Firms using the P2P/marketplace business and balance-sheet lending models are relatively smaller in size and apply fo
129、r small-ticket loans for shorter periods.Further,these loans are mostly unsecured,while those obtained through the invoice trading model are secured against the invoices,and funds raised through equity crowdfunding are secured against the equity shares issued.The terminology or definitions for commo
130、n company legal structures used across the five countries studied were combined.Those legal structures that could not be combined or that applied to only one country are shown separately using the symbol.The ASEAN Access to Digital Finance Study192.2.1 Analysis typeFor this study,qualitative and qua
131、ntitative data was collected through an online survey.Descriptive analysis was applied to the quantitative dataset(established by the Global Benchmarking Alternative Finance programme as related to quantitative time-series data analysis)and content analysis to the qualitative dataset to better under
132、stand the participants responses.Also,case studies were analysed by business model and country,the results of which are contained in this report.2.2.2 LimitationsThere are some limitations to this study regarding sample size and response distribution,as the number of responses was not evenly distrib
133、uted among the countries and verticals analysed in this study.Hence,we could not perform any cross-business-model or cross-country analysis.In this study,we did not attempt to measure the quality,price and diversity of loan offers.Neither was it our aim to measure the behaviour of MSMEs(such as herd
134、 behaviour and anchoring)in deciding between online financial products or services and traditional banking products or services.Thus,further research is needed to analyse these aspects of financial products and services.2.3 Alternative finance taxonomyThis report focuses on online alternative financ
135、e or fintech models as they relate to digital lending and digital capital raising activities.Though a somewhat vague term,at its core,alternative finance includes digital financing activities conducted outside incumbent banking systems and traditional capital markets.In particular,the alternative fi
136、nance ecosystem comprises various lending,investment and non-investment models that enable individuals,businesses and other entities to raise funds via a digital marketplace.As the ecosystem has evolved,distinct model types have emerged.In this regard,the CCAF has developed a taxonomy of 16 business
137、 models,grouped into three categories:debt,equity and non-investment.For this study,we discuss only relevant debt-and equity-based model categories.Debt-based modelsDebt-based models,commonly associated with P2P and marketplace lending activities,include online non-deposit-taking platforms from whic
138、h individual lenders or institutional investors can extend credit to individuals,businesses or other borrower entities.This debt can be in the form of a secured or an unsecured loan,a bond or another type of debtor note.Table 2.1 summarises the debt-based models included in this study.Table 2.1 Mode
139、ls included in the debt-based categoryCategoryBusiness modelStakeholdersP2P/marketplace lending*Consumer lendingIndividuals or institutional funders provide loans to consumer borrowers;commonly assigned to off-balance-sheet lending.Business lendingIndividuals or institutional funders provide loans t
140、o business borrowers;commonly assigned to off-balance-sheet lending.Property lendingIndividuals or institutional funders provide loans secured against property to consumers or business borrowers;commonly assigned to off-balance-sheet lending.Balance-sheet lending*Consumer lendingThe platform entity
141、provides loans directly to consumer borrowers;assigned to on-balance-sheet non-bank lending.Business lendingThe platform entity provides loans directly to business borrowers;assigned to on-balance-sheet non-bank lending.Property lendingThe platform entity provides loans secured against property dire
142、ctly to consumers or business borrowers;assigned to on-balance-sheet non-bank lending.Invoice trading*Invoice tradingIndividuals or institutional funders purchase discounted invoices or receivables from businesses.Consumer purchase financing/customer cash-advanceBuy now,pay laterA buy now,pay later
143、payment facilitator or store credit solution that is typically interest bearing.Methodology20*P2P lending:A group of individual or institutional investors that provide a loan(secured or unsecured)to a consumer or business borrower.In its most orthodox form,the P2P lending platform acts as a marketpl
144、ace connecting the borrower and investor(s)in such a way that the financial risk of the loan not being repaid lies with the investor and not the platform.Depending on the country/jurisdiction,this model is called loan-based crowdfunding,marketplace lending,collaborative financing or crowdlending.*Ba
145、lance-sheet lending:A digital lending platform that directly retains consumer or business loans(either whole or partial)using funds from the platform operators balance sheet.These platforms,therefore,function as more than just intermediaries,originating and actively funding loans so the financial ri
146、sk of the loan not being repaid lies with the platform operator.In this respect,the platform operator acts more like a non-bank credit intermediary.*Increasingly,invoice trading models are expanding into supply-chain finance activities.At present,this subset activity is too small to categorise as a
147、separate model.This model may subsequently need further refinement.Equity-based modelsEquity-based models(including equity-based crowdfunding)relate to activities where individuals or institutions invest in unlisted shares or securities issued by a business,typically a start-up.As equity-based model
148、s have advanced,subsets of the model,such as real estate and property-based crowdfunding,have flourished,with investors being able to own a property asset fully or partially by purchasing property shares.Table 2.2 summarises the equity-based model included in this study.Table 2.2 Model included in t
149、he equity-based categoryCategoryBusiness modelStakeholdersEquity-basedEquity-based crowdfundingIndividuals or institutional funders purchase equity issued by companies.3 Individual consumer and household access to digital financeIndividual consumer and household access to digital finance223 Individu
150、al consumer and household access to digital finance3 CCAF(2022).The 2nd global alternative finance market benchmarking report,Cambridge Centre for Alternative Finance at the University of Cambridge,Cambridge Judge Business School,Cambridge,p.100.Available at:https:/www.jbs.cam.ac.uk/wp-content/uploa
151、ds/2021/06/ccaf-2021-06-report-2nd-global-alternative-finance-benchmarking-study-report.pdfIn this study,individual consumer and household users of digital finance are individuals who had borrowed finance or accessed credit through an online digital finance platform operating in one of the countries
152、 included in this study.The study analysed two types of models that cater to individuals:P2P/marketplace(and balance-sheet)consumer lending and BNPL.As such,the findings reported focus on these two overarching models.A total of 410 responses were received from individual consumer and household respo
153、ndents.3.1 P2P/marketplace consumer lendingApproximately 66%(272)of the responses received from individual consumer and household respondents were from the P2P/marketplace consumer lending model.This is not surprising given it is the largest alternative finance model across Asia Pacific,consistently
154、 ranked as the leading online alternative finance model in the region.33.1.1 Profile of respondents Demographic of respondentsMost respondents from the P2P/marketplace consumer lending model were from Thailand (31%),the Philippines(31%)and Indonesia(26%).A small proportion was from Singapore(7%)and
155、Malaysia(5%).Figure 3.1 Country of residence:P2P/marketplace consumer lending(n.272)Overall,most P2P/marketplace consumer lending users were Millennials,had full-time jobs,had no or up to two dependents,were educated to degree level and had an annual income slightly above the minimum wage of their c
156、ountry.Most borrowers were male,though a substantial number of female borrowers(41%)also used this model.Almost half the clients using this model were Millennials:44%were between 25 and 34 years of age,and 34%were between 35 and 44.Most borrowers(76%)were full-time employees,17%were self-employed an
157、d only 3%reported being unemployed.Most respondents had a degree or technical education,with half indicating they were undergraduates.Twenty-two percent had completed secondary school and a negligible 1%had not attended school.The Philippines 31%Thailand31%MalaysiaSingaporeIndonesia5%7%26%The ASEAN
158、Access to Digital Finance Study23Figure 3.2 Gender,age,employment status and highest education level:P2P/marketplace consumer lending(n.272)4 Ayman Falak Medina(2021).Minimum Wages in ASEAN for 2021.Available at:https:/ of respondents lived with family or friends,22%rented property and 20%owned the
159、property in which they lived.In terms of the number of dependents,35%reported not having any,42%had one or two dependents,and 23%had three or more dependents.Looking at the estimated annual income of respondents,the median income was USD4,688,which was well above the minimum wage in four of the coun
160、tries studied(excluding Singapore).4 And for up to 75%(third quartile),the average annual income was USD9,130.By gender,the median income of female borrowers was USD4,170 and for male borrowers,it was USD5,177.Figure 3.3:Primary residence and number of dependents:P2P/marketplace consumer lending(n.2
161、72)Figure 3.4 Annual income:P2P/marketplace consumer lending(n.253)*Four outliers representing incomes greater than USD5 million were excluded.(Zero/nil values were also excluded from calculations.)*Outliers(too far/extreme values)are not shown in this boxplot.*X represents the mean.(A boxplot is a
162、type of chart often used in explanatory data analysis.It shows the distribution of numerical data and skewness by displaying the data quartiles(or percentiles)and averages.Boxplots show the five-number summary of a dataset,including the minimum score,first(lower)quartile,median,third(upper)quartile
163、and maximum score.)USD5,000USD-USD10,000USD15,000USD20,000USD25,000USD12,797USD9,130USD 3USD20,850USD4,688USD812Full-time employeeUnemployedSelf-employedPart-time employeeFull-time student1%76%3%17%3%55-64 years old1%45-54 years old35-44 years old18-24 years old25-34 years old8%34%13%44%Prefer not t
164、o sayFemaleMale58%41%1%Technical education or vocational trainingPostgraduate degree(Masters or above(PhD)Undergraduatedegree(Bachelors)Secondary school or lowerDid not attendschool(1%)50%14%13%22%32%22%20%12%7%4%3%055Percentage of respondentsNo;live with friends/familyNo;rent from a priv
165、ate landlordYes;own outrightYes;have a mortgageNo;live in public housingNo;but own a home that is not primary residenceOther21%21%11%12%35%1233+NoneIndividual consumer and household access to digital finance243.1.2 Relationship with traditional financial servicesTraditional financial facilities useW
166、hen considering the types of traditional finance facilities respondents had access to and were using,individual borrowers relied heavily on personal finance products from banks.The top three most used facilities were personal checking or savings accounts(72%),personal loans(58%)and personal credit c
167、ards(30%).A smaller proportion used business finance products,such as business checking or savings accounts(15%)or business loans(10%).For borrowers that used other types of financial products,10%used mortgages,bridge loans or another type of secured loan from a bank.Figure 3.5 Forms of traditional
168、finance use:P2P/marketplace consumer lending(n.272)*Other financial products or instruments that may cater to both consumers and businessesBanking products useWhen analysing the frequency of banking products use,personal loans and transfers were the two products used most often.The former was used m
169、onthly by more than half the respondents,while the latter was used weekly by 39%of respondents.Personal credit cards were also used weekly by 20%of borrowers.Conversely,the three least used or unavailable banking products/services were mortgages,business credit cards and overdraft accounts.72%58%30%
170、15%10%2%10%5%1%Personal checking or savings accountPersonal loanPersonal credit card(s)Business savings/checking accountBusiness loanBusiness credit card(s)Mortgage,bridge loan or another secured loan from a bankMortgage,bridge loan or another secured loan from a specialist providerOtherPercentage o
171、f respondents0Other financial productsBusiness financial productsPersonal financial products2030405060708010The ASEAN Access to Digital Finance Study25Figure 3.6 Frequency of banking products/services use:P2P/marketplace consumer lending(n.272)*N/A indicates not applicable or no relationship.Previou
172、s financing from other sourcesBefore turning to alternative financing platforms,borrowers first sought financing through other channels.The two most popular channels were family and friends(66%),and banks(63%).Of those borrowers who sought financing from family and friends,62%received an offer and 5
173、5%accepted that offer.Among borrowers who sought funds from banks,63%received an offer and 57%accepted that offer.The third most popular channel was microfinance institutions,with 44%of borrowers seeking funding from this source.Of those,more than two-thirds received an offer and one-half accepted i
174、t.It is important to note that the offer and acceptance rates for borrowers who approached informal finance providers were relatively higher than for those who sought funding from the top three most popular traditional finance channels,despite having fewer borrowers.Figure 3.7 Previous financing fro
175、m other sources:P2P/marketplace consumer lending(n.272)1%3%7%9%9%20%39%13%9%15%18%51%27%3%3%3%6%10%2%4%6%3%4%7%14%4%6%25%28%22%15%6%17%4%52%54%49%45%10%32%20%MortgageBusiness credit cardOverdraft accountCheque paymentsPersonal loanPersonal credit cardTransfersWeeklyMonthlyQuarterlyAnnuallyNeverN/APe
176、rcentage of respondents020304050607090801001066%63%44%39%36%31%62%63%66%72%66%69%55%57%56%66%54%53%0204060800180200Family and friendsBankCredit cooperativeNumber of respondentsInstitution funding sought fromThose that received funding offerThose that accepted funding offerMicrofinance ins
177、titutionInformal finance providerNon-bank finance institution25Individual consumer and household access to digital finance263.1.3 Borrowing experiencePrimary purpose of borrowingNearly half the respondents who used P2P/marketplace consumer lending platforms borrowed funds for daily expenses or to me
178、et short-term needs(Figure 3.8).Far fewer consumers(8%each)borrowed funds for education,student loans,business expenses or major purchases(for example,a car or travel).In addition,some P2P borrowers used the funds to cover other debts,such as a personal overdraft(5%),to repay a debt(4%)or to consoli
179、date existing debts(3%).Figure 3.8 Primary purpose of borrowing:P2P/marketplace consumer lending(n.272)Decision-making factors for borrowing from fintechThe main decision-making factors that led borrowers to use a P2P/marketplace lending platform were platform use and trust factors(Figure 3.9).More
180、specifically,factors such as the speed of receiving the funds,transparency,better approval rates and customer service were considered very important by more than half the borrowers.In terms of external factors,advice from friends or family was ranked as very important by more than one-third of borro
181、wers.Besides that,there were other important factors,such as less complex paperwork and the ease of getting the funds compared to traditional channels.Figure 3.9 Decision-making factors for borrowing from fintech:P2P/marketplace consumer lending(n.272)0%1%3%4%5%5%7%8%8%8%49%Pay or settle
182、a tax liabilityOtherPersonal overdraft facilityBuy or improve land or property(non-business premises)Major unexpected expenseMajor purchase,excluding land or propertyBusiness expense or in lieu of a business loanEducation/student loan(including tuition fees)Day-to-day expensesPercentage of responden
183、tsPay debt to person/organisation(non-financial institution)Consolidate/refinance existing debt/loan0203040506070908010010Advice from a financial advisorReferral from bank or other finance provider21%21%26%26%38%28%34%51%60%51%53%55%56%57%58%35%31%33%37%28%33%26%23%22%29%31%26%26%27%22%29%33%27%22%2
184、1%29%29%19%14%15%13%14%12%14%6%7%4%8%5%6%7%4%3%3%1%2%2%2%2%2%2%9%8%10%7%8%4%4%3%1%3%3%2%4%News,media or social media coverageCovid-19 mobility restrictionsAdvice from friends or familyUnable to get funding elsewhereLow credit scoreBetter interest rate/cheaper costSpeed of receiving fundsEasier to ge
185、t funding than through traditional channelsLess complex application process/less paperworkBetter customer serviceFlexible termsBetter approval ratesTransparencyExternal factorsFinancial factorsPlatform use/trust factorsVery importantImportantNeutralLess importantNot importantPercentage of respondent
186、s13The Global Covid-19 Fintech Market Impact and Industry Resilience StudyCase studyFintech platform:Wealthi TechfinIndividual consumer:Vichan Lertvichayakamol Country:ThailandBrief history of the individual consumerVichan Lertvichayakamol had been researching the topic of solar cell energy on the i
187、nternet for a long time.He was prompted to do this after a few households on his road installed solar cells.Unfortunately,he found out that they are very expensive,and it would take him many years to get a return on his investment.Why this individual consumer decided to access credit through the fin
188、tech platformVichan came across Wealthi by accident and saw that it offered leasing terms for solar equipment at a fair price.According to the platforms terms,to get the 3-kW solar cell he wanted,which cost USD3,000,he would have to provide a 20%down payment of USD600.Because he could afford this pa
189、yment plan,he contacted Wealthi.How the financing impacted the individual consumer Vichan learnt that Wealthi had more than 100 customers who,like him,did not want to wait for years to get a return on their investment.He chose Wealthi because the platform became involved in solar cells to help accel
190、erate the green energy movement,which he is proud to be part of.Wealthi also connected him with an expert solar cell vendor who gave him a ten-year warranty,which was longer than the instalment period.Now,the money Vichan saves on his electricity bill offsets the monthly instalments he pays toward t
191、he cost of the solar cells.Vichan saves money and also contributes to the climate change movement.27Individual consumer and household access to digital finance28Ability to get funding from another source Even though being unable to get funding from other sources was a very important decision-making
192、factor for many borrowers,when asked about their ability to get funding from another source,more than half(57%)believed they would have been able to borrow the same amount elsewhere.Thirty percent were not sure,and 7%reported they would not have been able to.Amount borrowedRespondents were asked how
193、 much they had borrowed in total in the last 12 months from their primary fintech platform/lender.After excluding outliers,consumers mainly borrowed small sums with a median of USD345 because they generally used the funds to meet short-term needs or cover day-to-day expenses.For most borrowers(up to
194、 75%),the maximum amount borrowed was USD1,431(Figure 3.10).Overall,the mean amount borrowed was USD15,847.Figure 3.10 Amount borrowed:P2P/marketplace consumer lending(n.258)*Two outliers(with borrowed amounts over USD63 million)were excluded.(Zero/nil values were also excluded from calculations.)*O
195、utliers(too far/extreme values)are not shown in this boxplot.In terms of the amounts borrowed against the gender and income level of respondents,overall,the average amount borrowed by female consumers was 1.5 times higher than that borrowed by male consumers,which was mainly due to the greater amoun
196、ts borrowed by females with an annual income above USD50,001(Table 3.1).However,the overall median amount borrowed was similar:USD344 for females and USD396 for males.Notably,female borrowers with an income below USD1,000 borrowed,on average,nearly twice 5 CCAF(2022).Fintech regulation in Asia Pacif
197、ic,Cambridge Centre for Alternative Finance at the University of Cambridge,Cambridge Judge Business School,Cambridge,p.33.Available at:https:/www.jbs.cam.ac.uk/wp-content/uploads/2022/03/2022-ccaf-fintech-regulation-in-apac.pdfas much as male borrowers within the same income range.Table 3.1 Amount b
198、orrowed by gender and annual income:P2P/marketplace consumer lendingGenderAnnual income range(USD)Amount borrowed(USD)MedianMeanFemaleBelow 1,000(n.25)2073941,0015,000(n.35)2764505,00110,000(n.25)2694,55810,00150,000(n.13)6306,362Above 50,001(n.7)145,011273,576Overall(n.105)34419,809MaleBelow 1,000(
199、n.44)1092,0941,0015,000(n.25)3445925,00110,000(n.36)6152,23910,00150,000(n.23)2,07015,751Above 50,001(n.15)51,55592,515Overall(n.143)39613,167*The table excludes respondents that chose the gender options prefer not to say and other.(Zero/nil values were also excluded from calculations.)*n refers to
200、the number of observations.Further,despite males with an annual income below USD1,000 borrowing a median amount of USD109,the average suggests that some borrowed an amount greater than their annual income.This study also found that 75%of these borrowers applied for additional financing over and abov
201、e the amount they had borrowed through a fintech platform.The main source of this subsequent financing was fintech platforms(42%)(Figure 3.14).Some of those borrowers used multiple fintech platforms to meet their financing needs and used them several times.They were able to do this because most onli
202、ne fintech lending platforms only perform soft credit checks before lending.This repeated borrowing could be due to higher interest rates and shorter repayment periods.Eventually,this may lead to debt accumulating,which may then affect the borrowers financial health.To tackle this,regulators could l
203、imit the amounts borrowed through digital lending channels.Some regulators in ASEAN countries have already implemented mandates that restricts the total amount individuals can borrow through P2P platforms based on their annual income.For example,the Philippines limits consumers total borrowing to 5%
204、of their annual income.5USD500USD-USD1,000USD2,800USD105USD7USD1,500USD2,000USD2,500USD3,000USD1,431USD345The ASEAN Access to Digital Finance Study29Interest rates6 Fitch Ratings,Inc.(2021).Indonesias Online Lending Clean-up Key to Bolstering Sector Credibility.Available at:https:/ 7 CCAF(2022).FinT
205、ech Regulation in Asia Pacific,Cambridge Centre for Alternative Finance at the University of Cambridge,Cambridge Judge Business School,Cambridge,p.33.Available at:https:/www.jbs.cam.ac.uk/wp-content/uploads/2022/03/2022-ccaf-fintech-regulation-in-apac.pdf 8 Reserve Bank of India(2021).Report of the
206、Working Group on Digital Lending including Lending through Online Platforms and Mobile Apps.Available at:https:/rbidocs.rbi.org.in/rdocs/PublicationReport/Pdfs/DIGITALLENDINGF6A90CA76A9B4B3E84AA0EBD24B307F1.PDF9 Raj,P.S.(14/090/2021).Critical Need for Digital Financial Literacy,Fomca Org.Available a
207、t:https:/www.fomca.org.my/v1/index.php/fomca-di-pentas-media/fomca-di-pentas-media-2021-21/1460-critical-need-for-digital-financial-literacy 10 Bank of Thailand(2022).Repositioning Thailands Financial Sector for a Sustainable Digital Economy.Available at:https:/www.bot.or.th/landscape/files/consulta
208、tion-paper-en.pdf Most individual respondents(80%)reported they were charged monthly interest rates on their most recent loans,followed by 17%who were charged weekly interest.For those who reported being charged monthly interest rates,the most common interest rates ranged from 02.49%,followed by 2.5
209、4.99%.For those being charged weekly interest rates,most respondents reported rates ranging from 02.49%(Table 3.2).It is important to note that various factors influence interest rates,such as the risk profile of customers,cost of funds,and purpose and terms of the loan.Table 3.2 Interest rate:P2P/m
210、arketplace consumer lending(n.272)Interest rate/payment frequency(%)Quarterly(%)(Proportion of respondents:3%)Monthly(%)(Proportion of respondents:80%)Weekly(%)(Proportion of respondents:17%)02.492942652.54.9929331859.99141131014.9914881519.9914220+46Some ASEAN countries reported illegal and unautho
211、rised digital lenders engaging in predatory lending or collection practices and charging exorbitant interest rates.6 To overcome this issue,regulators in some ASEAN countries have imposed caps on the interest rate that P2P lenders can charge their borrowers.For example,Thailand caps the interest rat
212、e at 15%per year.7 Further,it is also important for regulators to create a whitelist of regulated digital lending fintechs operating in the country.8Digital financial literacy and consumer protectionDigital finance has huge potential in the ASEAN region,but awareness of digital finance solutions and
213、 digital financial literacy is key for growth in the region.However,because a large proportion of the population in countries such as Indonesia,Malaysia and the Philippines live in rural areas,access to and awareness of digital finance is still a challenge.Strengthening consumer protection to build
214、trust in digital finance is critical for regulators.For instance,in Malaysia,consumers need to understand the role of the Ombudsman of Financial Services,Consumer Forum of the Malaysian Communications and Multimedia Commission(MCMC),Bank Negara Malaysia,Consumer Tribunal and the police in addressing
215、 complaints related to online fraud and financial issues.The Federation of Malaysian Consumers Associations(FOMCA)has called on policymakers to formulate and implement a national programme for digital financial literacy to empower all consumers so they can take full advantage of digital finance,unde
216、rstand the risks and take measures to mitigate these risks,and better understand their rights as consumers.9 Similarly,in Thailand,the Bank of Thailand(BOT),in their consultation paper on repositioning the financial sector,has emphasised the need for financial and digital literacy among households s
217、o access to financial services can be expanded without leading to financial vulnerability.10Individual consumer and household access to digital finance3030Frequency of borrowing from fintech platformsAccording to this study,more than 75%of borrowers had used a digital lending platform more than once
218、.Of those,37%used the platform to borrow funds more than five times,16%twice and 13%three times.Additionally,when asked if they had borrowed from other fintech platforms,more than half(57%)reported they had.Figure 3.11 Frequency of borrowing from fintech platforms:P2P/marketplace consumer lending(n.
219、272)Ease of using fintech platforms In terms of ease of using a fintech platform,most borrowers reported that it was very easy or easy to use across all activities.The top three activities borrowers reported as being very easy to use were registering on the platform,completing loan applications and
220、getting the funds once approved.Figure 3.12 Ease of using fintech platforms:P2P/marketplace consumer lending(n.272)*N/A indicates not applicable or that the respondent did not wish to rate the activity.0205251030401535More than five times24%16%13%8%2%37%OnceTwiceThree timesFour timesFive timesPercen
221、tage of respondents1%1%33%34%39%39%41%46%48%36%34%37%38%34%32%32%22%20%19%17%20%17%15%4%7%3%2%3%3%1%4%2%1%4%1%1%1%1%Communicating with the platformMeeting interest paymentsVerifying personal informationGetting funds once approvedCompleting loan applicationRegistering on the platformVery easyEasyN/A2
222、%Percentage of respondents0203040506070908010010Refinancing initial termsNeither easy nor difficultDifficultVery difficult2%1%2%The ASEAN Access to Digital Finance Study313.1.4 Outcome of financing and Covid-19 impactLoan repayment statusMost respondents(58%)reported they had never missed a loan rep
223、ayment and that their payments were ongoing,and 26%had fully paid off the loan.A small proportion(1%)had defaulted on their loan,which is lower than the non-performing loan(NPL)average reported by the World Bank.11Figure 3.13 Loan repayment status:P2P/marketplace consumer lending(n.272)Subsequent/ad
224、ditional borrowing After borrowing funds through a fintech platform,75%of respondents reported applying for additional finance.The main source of this subsequent financing was fintech platforms(42%),which tallies with earlier findings that many consumers use different online platforms to meet their
225、financial needs.This was followed by banks(31%),friends and family(28%),and microfinance institutions(17%).Of note,these were also the top funding sources from which borrowers had previously sought finance before approaching a fintech.Figure 3.14 Subsequent/additional borrowing source:P2P/marketplac
226、e consumer lending(n.272)11 World Bank Group(2022).Bank nonperforming loans to total gross loans(%).Available at:https:/data.worldbank.org/indicator/FB.AST.NPER.ZS?end=2021&start=2021&view=map&year=202058%26%9%5%1%1%Never missed a payment;payments are ongoingNever missed a payment;loan has been paid
227、 offUnable to repay when payment was due,but full amount eventually repaid with some delayTemporarily missed a payment due to platform error,but now currentDefaulted on loanUnable to repay,but platform rolled over debt/offered new loan to pay off old one020502%31%28%17%13%11%6%6%4%4%Finte
228、ch platform(n.113)Bank(n.84)Friends and/or family(n.77)Credit cooperative(n.16)Government/public funder(n.12)Percentage of respondentsMicrofinance institution(n.45)Non-bank financial institution(n.35)Payday lender(online or offline)(n.30)Informal finance provider(n.17)Additional finance required not
229、 received(n.11)0205255Individual consumer and household access to digital finance32Banking relationship impactHaving access to digital fintech lending enables customers to build their credit history and access other types of financial products.Borrowers were asked whether their relationsh
230、ip with bank products and services had changed since receiving funds from alternative financing platforms.The results show that more than half had begun to use or had increased the frequency with which they used savings or checking accounts,indicating a more organised financial situation.This was fo
231、llowed by an increase in the use of personal loan contracts,overdraft accounts and personal credit cards.This emphasises the fact that fintech complements traditional banking systems,as they mainly serve the underbanked12 and enable further financial inclusion.Figure 3.15 Banking relationship impact
232、:P2P/marketplace consumer lending(n.266)Covid-19 government financial assistance During the Covid-19 pandemic,governments in each country across the region provided various types of assistance in the form of programmes/packages.Most borrowers(74%)reported they did not receive any Covid-19 financial
233、assistance from their government.For those who did,the main type of assistance received was an income transfer scheme(42%),followed by an income transfer scheme for low-income populations(19%)and vouchers(10%),as shown in Table 3.3.Table 3.3 Covid-19 government financial assistance:P2P/marketplace c
234、onsumer lending(n.31)Scheme*Proportion(%)Income transfer scheme(cash assistance/transfer)42Income transfer scheme to low-income populations19Other(unemployment/healthcare/food assistance)19Vouchers10Tax relief/rebates7Wage subsidy3*The schemes were grouped according to the responses received.This is
235、 not an exclusive list,and the objective is not to list all the schemes provided by the respective governments to the respondents.There may be an overlap in the schemes listed.12 Cornelli,G.,Frost,J.,Gambacorta,L.,Rau,P.R.,Wardrop,R.and Ziegler,T.,2020.Fintech and big tech credit:a new database,BIS
236、Working Papers,page 1425%18%15%10%8%6%27%15%15%16%10%9%28%23%15%16%12%15%7%9%8%3%3%3%4%3%5%3%5%10%31%49%45%64%62%Savings or checking accountPersonal loan contractsOverdraft account/facilityPersonal credit cardBusiness credit cardMortgagesBegan usingIncreased useAbout the sameDecreased useStopped usi
237、ngN/APercentage of respondents3%0203040506070908010010The ASEAN Access to Digital Finance Study33Covid-19 platform assistanceSimilarly,fintech platforms also offered several types of assistance to their customers during the Covid-19 pandemic.Half the P2P/marketplace consumer lending borrowers report
238、ed they did receive some type of Covid-19-related relief or assistance from their platforms.For those who did,the most common types were related to payments or financial support,such as fee waivers(19%)and eased payment plans(18%).This was followed by payment holidays and additional credit facilitie
239、s,both at 15%.It should be noted that,in many cases,the governments themselves asked fintech platforms to reduce or eliminate fees and provide eased payment plans,and even channelled additional credit facilities through them.13Figure 3.16 Covid-19 platform assistance:P2P/marketplace consumer lending
240、 13 Sugandi,E.A.,(2021).The COVID-19 Pandemic and Indonesias Fintech Markets.SSRN Electronic Journal.doi:10.2139/ssrn.3916514.14 Rahil Sheikh(2021).Buy now pay later:How does it work?online BBC News.Available at:https:/www.bbc.co.uk/news/explainers-59582188Increase in borrowing frequency due to Covi
241、d-19Over one-third of respondents(35%)indicated they had increased the frequency with which they borrowed funds due to Covid-19.The reasons for this increase in frequency were to compensate for financial difficulties due to lower or no income,or meet additional needs created by the pandemic,such as
242、purchasing medicine,food and other basic household necessities.3.2 Buy now,pay laterApproximately 34%(138)of responses from individual consumers were related to the buy now,pay later(BNPL)model.BNPL is a form of short-term financing that offers convenience and easy access to credit for small-ticket
243、purchases.It allows shoppers to spread the cost of purchases over a short period(typically a few weeks or months),by paying the amount back in instalments rather than in full at the time of making the purchase.14 However,the BNPL provider typically settles the bill outright with the merchant on the
244、buyers behalf.BNPL providers sometimes charge interest,but mostly offer interest-free periods.If individuals pay off the balance before the repayment period ends,they avoid paying interest or other charges.50%19%18%15%15%12%10%5%No support received(n.137)Waived fees(n.53)Eased payment plans(n.50)Add
245、itional credit facility(not related to a government assistance scheme)(n.41)Payment holiday(n.40)Additional credit facility(related to a government assistance scheme)(n.32)Insurance or other coverage(n.28)Percentage of respondents0203040506010Non-financial add-on services or products(n.14)Individual
246、 consumer and household access to digital finance34BNPL regulatory developments in the ASEAN regionThere has been considerable growth in the BNPL model in Asia Pacific,particularly in Southeast Asia.This growth has largely been driven by the increased adoption of digital finance solutions for e-comm
247、erce purchases.15 With a rapid increase in the number of players offering BNPL services and expanding into other markets within the region,the BNPL sector is becoming highly competitive and fragmented.Other regional-specific factors have also driven this growth,such as the increase in digitalisation
248、 of businesses,growing internet penetration among consumers,16 digital technologies and readily available data,unbanked and underbanked populations,and credit opportunities.The BNPL model is mainly used by retail consumers who are young,new to credit and may have limited or no access to formal lines
249、 of credit.17 The facility offers convenience and easy access to credit(for smaller ticket purchases),and consumers creditworthiness is generally assessed through soft checks.However,this rapid increase in the use of BNPL services has raised some concerns,especially that they may lead the Gen Z popu
250、lation to overextend themselves by buying items they cannot afford,which may result in over-indebtedness.18 Currently,there are no specific regulations or policy guidelines regulating this space in the ASEAN region.However,regulators are carefully monitoring the sector and taking steps to implement
251、necessary regulations.The Monetary Authority of Singapore(MAS),in their parliamentary replies dated 5 April 2022,19 noted that the current BNPL trends in Singapore do not pose significant risks regarding consumer indebtedness.However,a code of conduct is expected to be released in the second half of
252、 the year that seeks to mitigate the risk of consumer over-indebtedness and establish minimum standards to ensure consumer protection.The Singapore FinTech Association(SFA),under the guidance of MAS,has established a BNPL working group(BNPL WG),which is an industry-led initiative to develop a code o
253、f conduct or framework for the Singapore market in advance of formal regulation.20 The BNPL framework will outline behavioural guidelines and enforcement mechanisms for players offering BNPL solutions in the country.Similarly in Malaysia,the central bank(the Bank Negara Malaysia(BNM),is working with
254、 the Ministry of Finance(MoF)and Securities Commission Malaysia(SC)to regulate BNPL schemes by enacting the Consumer Credit Act(CCA)later this year.21 Further,BNM indicated it had worked with financial education networks to inform consumers about the risks of using BNPL schemes.With the BNPL market
255、expanding to other countries in the ASEAN region,we can expect to see more regulations surrounding BNPL services in the future.15 Ritchie,M.and Nejal,J.(2022).Buy Now Pay Later:the Regulatory Landscape in the Asia Pacific Region.online Deloitte.Available at:https:/ Asian Development Bank(2020).Asia
256、Small and Medium-Sized Enterprise Monitor 2020.Available at:https:/www.adb.org/sites/default/files/publication/646146/asia-sme-monitor-2020-volume-1.pdf17 Dhanorkar,S.(2021).5 things to know about buy now,pay later schemes,The Economic Times.Available at:https:/ Barclays(2022).Two in five Gen Z shop
257、pers using unregulated BNPL feel overwhelmed by repayments.Available at:https:/home.barclays/news/press-releases/2022/03/two-in-five-gen-z-shoppers-using-unregulated-bnpl-feel-overwhel/19 Monetary Authority of Singapore(2022).Reply to Parliamentary Question on Buy Now Pay Later Schemes.Available at:
258、https:/www.mas.gov.sg/news/parliamentary-replies/2022/reply-to-parliamentary-question-on-buy-now-pay-later20 Singapore Fintech Association(2022).BNPL industry group to develop BNPL Framework for Singapore market.Available at:https:/singaporefintech.org/bnpl-industry-group-annoucement/21 Ministry of
259、Finance Malaysia(2022).Bank Negara teams up with MoF,SC to regulate BNPL schemes.Available at:https:/www.mof.gov.my/portal/en/news/press-citations/bank-negara-teams-up-with-mof-sc-to-regulate-bnpl-schemesThe ASEAN Access to Digital Finance Study353.2.1 Profile of respondentsDemographic of respondent
260、sOver 80%of BNPL respondents were from the Philippines,Indonesia and Singapore,while a smaller proportion was from Thailand(11%)and Malaysia(8%).Figure 3.17 Country of residence:BNPL(n.138)22 Ayman Falak Medina(2021).Minimum Wages in ASEAN for 2021.Available at:https:/ users were young people,in ful
261、l-time employment and had an undergraduate degree.Their annual income was also generally higher than the minimum wage of their respective countries.More than half(53%)of BNPL users were male and 45%were female.Notably,most(54%)respondents were in the 2534 age bracket,and 17%were aged between 18 and
262、24.This shows that the main users of BNPL facilities were Millennials and Gen Z.The third-largest group of respondents were between 35 and 44 years of age(18%).Most respondents were in full-time employment(78%),followed by those who were self-employed(10%).In terms of education level,all respondents
263、 had attended school.More than half had an undergraduate degree(64%),and the remaining proportion was evenly distributed between having a technical education or vocational training,being educated to secondary school level,and having a postgraduate degree or higher.Figure 3.18 Gender,age,employment s
264、tatus and highest education level:BNPL(n.138)Regarding users primary residence(Figure 3.19),nearly two-thirds did not own their residence,and either lived with family or friends,or rented from a private landlord.Fourteen percent owned the property in which they lived and 13%had a mortgage.Nearly hal
265、f the respondents did not have any dependents,one-third had one or two,and 16%had three or more.The median income of BNPL users was USD5,072(Figure 3.20),which was much higher than the minimum wages of four of the countries studied(excluding Singapore).22 Up to 75%(third quartile)had an annual incom
266、e of USD11,650.In terms of gender,the median income of female BNPL users was USD3,475 and for male users,it was USD7,441.The Philippines 37%Thailand11%MalaysiaSingaporeIndonesia8%20%24%53%45%2%FemaleMalePrefer not to say4554 years old3544 years old1824 years old2534 years old65 years old or above1%1
267、7%54%18%10%Self-employedFull-time employeeFull-time student1%RetiredPart-time student 1%Unemployed1%Part-time employee78%6%10%3%Secondary school or lowerTechnical education or vocational trainingPostgraduate degree(Masters or above(PhD)Undergraduatedegree(Bachelors)64%12%14%10%Individual consumer an
268、d household access to digital finance36Figure 3.19 Primary residence and number of dependents:BNPL(n.138)Figure 3.20 Annual income:BNPL(n.127)*Four outliers(with values over USD100,000)were excluded from the chart.(Zero/nil values were also excluded from calculations.)*Outliers(too far/extreme value
269、s)are not shown in this boxplot.*X represents the mean.3.2.2 Relationship with traditional financial servicesTraditional financial facilities useUnsurprisingly,the main traditional finance facility BNPL respondents used was personal financial products.Personal checking or savings accounts were the m
270、ost popular(72%),followed by personal loans(44%)and personal credit cards(38%).Far fewer individuals used business financial products:6%had business savings or checking accounts,4%a business credit card and 3%a business loan.Another 9%of users had a secured loan from a bank.Figure 3.21 Forms of trad
271、itional finance use:BNPL(n.138)*Other financial products or instruments that may cater to both consumers and businesses20%16%8%8%48%1233+None34%20%14%13%8%6%5%5Percentage of respondentsNo;live with friends/familyNo;rent from a private landlordYes;own outrightYes;have a mortgageNo;live in
272、public housingNo;but own a home that is not primary residenceOther USD-USD5,000USD10,000USD15,000USD20,000USD 25,000USD5,072USD13,119USD22,323USD625USD40USD11,65072%44%38%6%4%3%9%4%2%Personal checking or savings accountPersonal loanPersonal credit cardBusiness savings/checking accountBusiness credit
273、 card(sBusiness loanMortgage,bridge loan or another secured loan from a bankMortgage,bridge loan or another secured loan from a specialist providerOtherPercentage of respondents0Other financial productsBusiness financial productsPersonal financial products203040506070801005The ASEAN Access to Digita
274、l Finance Study37Banking product use23 Credit Karma(2021).Buy now pay later surges throughout pandemic,consumers credit takes a hit.Available at:https:/ top three banking products/services most frequently used by BNPL customers were transfers,personal credit cards and personal loans(Figure 3.22).The
275、 top two banking products used weekly were transfers(43%)and personal credit cards(27%).A personal loan was the product most used every month(29%).Figure 3.22 Frequency of using banking products/services:BNPL(n.138)*N/A indicates not applicable or no relationship.3.2.3 Purchase experienceType of pur
276、chase using BNPL facilitiesThe main type of purchase BNPL users made was fashion items and apparel(39%).This was closely followed by home appliances,mobile phones,other electronics and daily spending,each with a proportion of around 30%.Much less significant were vehicle purchases or auto repair(3%)
277、and luxury retail(2%).A similar study shows that the top three types of purchases made by consumers in the US using a BNPL facility were home and furniture goods,electronics(such as headphones and speakers),and apparel (such as clothing and shoes).23 1%1%1%1%1%1%28%2%4%6%17%Transfers1%5%7%27%6%18%6%
278、8%29%20%3%4%14%6%2%4%4%17%3%36%29%34%30%12%17%55%47%54%49%21%27%Business credit cardMortgageOverdraft accountCheque paymentsPersonal loanPersonal credit cardWeeklyMonthlyQuarterlyAnnuallyNeverN/APercentage of respondents0203040506070908010010Individual consumer and household access to digital financ
279、e38Figure 3.23 Type of purchase using BNPL facilities:BNPL(n.138)Means of accessing BNPL facilitiesWhen asked about how they accessed BNPL facilities,more than half of BNPL users reported first accessing a BNPL service through merchant websites as a checkout option,followed by one-third who used the
280、 BNPLs own websites or apps.The least popular way of accessing a BNPL facility was through offline/mall merchants(11%).Figure 3.24 Means of accessing BNPL facilities:BNPL(n.138)Provision of additional engagement options The survey asked users whether the BNPL platform had offered any additional enga
281、gement options,such as reward programmes,attractive marketing campaigns and offers,and newer features including credit lines(Table 3.4).Of those that responded,35%reported that the BNPL platform had,26%indicated that it had not,and the rest were not sure.For those who had been offered further entice
282、ments,33%received additional discounts and vouchers,and 12%received free shipping,followed by an increase in credit limits and point rewards,both at 9%.Table 3.4 Provision of additional engagement options:BNPL(n.33)Additional enticements*Proportion(%)Further discounts and vouchers33Free shipping12Hi
283、gher credit limit9Reward points9Rebates60%interest3Cash loans3Endorsing a new shop or product3Cashbacks3Other19*The above-listed additional enticements were grouped according to the responses received.39%33%33%32%32%18%14%9%9%7%6%3%2%2%Fashion and apparelHome appliancesMobile phonesOther electronics
284、Daily spendingCosmetics and beautyFurnitureMedical/healthcareExercise/sports equipmentToys and entertainmentTravelVehicle purchase or auto repairLuxury retailOtherPercentage of respondents5404551%38%11%Through the merchant website as a checkout option Through the BNPL platforms website or
285、 app Through offline/mall merchant accepting BNPL05The ASEAN Access to Digital Finance Study39Being denied a purchase due to low income/credit score Users were asked if they had ever been denied a purchase due to their income or credit score,and 23%indicated that they had.The remaining three-quarter
286、s had never faced this challenge.Notably,35%of the users noted no credit check as a very important decision-making factor for using a BNPL facility (Figure 3.25).Decision-making factors for borrowing from a BNPL facilityOverall,convenience(which includes flexible terms,easy application and approval
287、processes,and better customer service)was the main decision-making factor that led participants to use a BNPL facility.The key financial influencer for BNPL users was paying zero or low interest,followed by flexible instalment payments.The least important decision-making factors were external,such a
288、s advertisements or inducements,news,media or social media coverage,and advice from a financial adviser or friends and family.Figure 3.25 Decision-making factors for using BNPL facilities:BNPL(n.138)15%20%22%27%31%36%38%38%41%49%65%35%53%53%55%57%59%60%62%33%27%33%33%30%29%30%27%31%28%17%29%30%26%30
289、%22%25%25%21%36%41%31%28%24%22%21%24%20%16%15%29%13%15%13%19%14%13%15%13%8%5%5%6%4%7%5%4%3%2%4%1%4%1%3%4%9%7%9%9%4%6%4%4%1%3%3%2%1%Advertisement or inducement from an e-commerce platform or merchantNews,media or social media coverageAdvice from friends or familyOvercome not having a credit cardAvoid
290、 additional charges to an existing credit cardStretch budgetOvercome a low credit card limitAccess items before paying for them in fullFlexibility of instalment payments after purchaseZero or low interestNo credit checkSpeed of receiving purchaseFaster payment one touch optionsEasier to manage payme
291、nt planEasier to understand statementBetter customer serviceEasy application and approval processFlexible terms1%1%1%1%1%1%1%1%Percentage of respondentsVery importantImportantNeutralLess importantNot important0203040506070908010010Advice from a financial advisorExternal factorsFinancialfactorsC onve
292、nienceIndividual consumer and household access to digital finance40Case studyFintech platform:BillEase/First Digital Finance Corporation(FDFC)Individual consumer:Charles EugineCountry:The PhilippinesBrief history of the individual consumerCharles Eugine is a 25-year-old Filipino living in Bacoor,Cav
293、ite.He has a Bachelors degree in Aircraft Technology and now works as a tech specialist at Accenture Inc.Charles has accounts at three local banks and owns one credit card.Difficulties or obstacles the individual consumer faced in obtaining credit from other sources,such as banks and financial insti
294、tutionsCharles has one credit card with an average credit limit.He only uses this credit card for instalment plans on big purchases,such as home appliances and gadgets.When he reached the maximum credit limit on his card,he asked the bank to increase the limit.However,the bank refused his request.Wh
295、y this individual consumer decided to access credit through the fintech platformIn January 2022,Charles downloaded the BillEase app so he could use the Lazada and e-wallet top-up facilities.He uses his BillEase available credit when he needs extra funds for groceries and other goods.Because the plat
296、form charges 0%or very low interest,he can pay back the amount he borrows in less than twomonths.How the financing impacted the individual consumer Although Charles has a credit card,he cannot use it for months because he is still paying for the appliances he previously purchased on an instalment pl
297、an.Having a BillEase account means he can still make purchases,paying back the funds with easy and quick instalments,without having to apply for another credit card.The BillEase app helps him pay for emergencies with the option of reimbursing the funds later in the month when he receives his salary.
298、He also likes that e-wallet top-ups are disbursed immediately because he mainly uses this facility for unforeseen day-to-day expenses.BillEase also has a lot of electronic merchants so he can easily buy new computer games simply by using his smartphone.He does not need to travel to Datablitzs physic
299、al store to make the purchase,potentially exposing himself to Covid-19.Paying for goods in instalments is easy and convenient for Charles,as all he needs to do is connect his Gcash account to the BillEase app to process the payments.40The ASEAN Access to Digital Finance Study41Purchases made through
300、 BNPL facilities and ability to get funding from another source More than half the participants indicated that the purchases they made using BNPL facilities were planned(Figure 3.26).Further,one-quarter reported the purchases were necessary,and 12%admitted they were impulse buys.When asked whether t
301、hey would have been able to make these purchases without using BNPL services,most respondents(59%)said they would have been able to,14%said they would not have been able to,and 22%were unsure.Figure 3.26 Purchases made through BNPL:BNPL(n.138)Average cost of BNPL purchases When excluding outliers,th
302、e median cost of BNPL purchases was USD162.For up to 75%of BNPL users,the maximum product cost was USD569.Due to some users purchasing more expensive products,the average product cost was USD1,314.Notably,the average cost of products purchased by females(USD331)through BNPL facilities was much lower
303、 than than that of their male counterparts(USD2,208).The median cost of products purchased by female users(USD120)was also much lower than that of male users(USD175).24 Monetary Authority of Singapore(2022).Reply to Parliamentary Question on Buy Now Pay Later Schemes.Available at:https:/www.mas.gov.
304、sg/news/parliamentary-replies/2022/reply-to-parliamentary-question-on-buy-now-pay-laterFigure 3.27 Average cost of products:BNPL(n.134)*Two outliers(with product costs of USD670,000 and USD1.1 million)were excluded.(Zero/nil values were also excluded from calculations.)*Outliers(too far/extreme valu
305、es)are not shown in this boxplot.*X represents the mean.In general,the median and average costs of products purchased by both male and female BNPL users were well within their estimated annual income(Table 3.5).Further,most users reported they had never missed an instalment payment and only 2%had de
306、faulted on their loans(Figure 3.31).These findings suggest that the users were not overextending themselves by buying items they could not afford,which may lead to over-indebtedness.This is in line with the MASs statement that current BNPL trends in Singapore do not pose significant risks regarding
307、consumer indebtedness.24 54%25%12%9%0Pre-planned purchaseNecessary purchaseImpulse purchaseGiftPercentage of respondentsUSD200USD-USD400USD600USD800USD1,000USD1,200USD1,400USD1,314USD55USD1USD162USD1,260USD5690Individual consumer and household access to digital finance42As most BNPL respo
308、ndents were young(Millennials and Gen Z)and new to credit,protecting the interests of consumers is even more important.Regulators need to provide clear guidelines(code of conduct)to lenders and ensure they carry out sufficient checks(as generally,most lenders carry out soft checks to assess consumer
309、s creditworthiness)to confirm that consumers can afford to take out such loans.Further,regulations could also focus on the product design and ensure sufficient information is provided at checkout points so users can make informed decisions.25Table 3.5 Cost of products by gender and annual income:BNP
310、LGenderAnnual income range(USD)Cost of products(USD)MedianMeanFemaleBelow 1,000(n.18)2813761,0015,000(n.15)992325,00110,000(n.18)99348Above 10,000(n.7)350472Overall(n.58)120331MaleBelow 1,000(n.14)911481,0015,000(n.12)1372675,00110,000(n.9)535936Above 10,000(n.30)6604,645Overall(n.65)1752,208*The ta
311、ble excludes respondents that chose the gender options prefer not to say and other.(Zero/nil values were also excluded from calculations.)*n refers to the number of observations.Frequency of using BNPL facilitiesParticipants were asked how frequently they used BNPL facilities.Approximately 48%report
312、ed they used them once or more than once a month,which shows their satisfaction driven by ease and convenience with the process.In contrast,23%of customers used the facility once a year or less.Figure 3.28 Frequency of using BNPL facilities:BNPL(n.138)25 Poll,H.and Byrne,G.(2021).Buy Now.Pain Later?
313、Available at:https:/www.citizensadvice.org.uk/Global/CitizensAdvice/Debt%20and%20Money%20Publications/BNPL%20report%20(FINAL).pdf20%28%18%11%23%1015202530Percentage of respondentsMore than once a monthOnce a monthOnce every six monthsOnce a year or lessOnce every three months05The ASEAN Access to Di
314、gital Finance Study43Preference for BNPL facilities over credit cardsFifty-one percent of respondents preferred using BNPL facilities to credit cards,29%preferred using credit cards,and 20%preferred using BNPL facilities sometimes.Of those who preferred using BNPL facilities to credit cards,over hal
315、f cited ease and convenience as the reason,11%used them because they did not have a credit card,and around 9%because of the low fees and no interest.For those who sometimes preferred using BNPL facilities,being offered promotions was the main deciding factor for 22%and for 17%,it was because of thei
316、r needs and budget.Also,4%of customers used BNPL facilities sometimes because they did not have a credit card.Figure 3.29 Preference for BNPL facilities over credit cards:BNPL(n.138)Ease of using BNPL facilitiesWhen asked about the ease or convenience of using a BNPL facility,more than half the resp
317、ondents indicated it was very easy or easy to use across all factors.More specifically,nearly half the participants found it very easy to process their BNPL payments on the merchant or e-commerce website,which was followed by communicating with the platform(39%).Over one-third found verifying person
318、al information,receiving the product or service purchased,and registering with the BNPL platform very easy.Figure 3.30 Ease of using BNPL facilities:BNPL(n.138)*N/A indicates not applicable or that the respondent did not wish to rate the activity.29%20%51%NoSometimesYes23%28%33%34%37%39%46%28%36%45%
319、41%40%40%33%35%27%16%19%16%19%15%3%4%4%4%4%4%3%1%1%2%1%1%7%3%1%1%1%1%1%Selecting payment planRegistering with BNPL serviceReceiving product or service purchasedVerifying personal informationCommunicating with platformProcessing BNPL payment on merchant or e-commerce websiteVery easyEasyN/APercentage
320、 of respondents0203040506070908010010Refinancing initial termsNeither easy nor difficultDifficultVery difficult3%Individual consumer and household access to digital finance443.2.4 Outcome of financing and Covid-19 impactInstalment payment statusMost customers had never missed an instalment payment,a
321、nd 36%had already paid off their loans (Figure 3.31).Some customers had problems repaying their loan or temporarily missed an instalment payment but did catch up.Only 2%defaulted on their loan,which was lower than the average bank NPLs for the relevant countries,as shown by the World Bank in 2020 an
322、d 2021.26 A similar study conducted in the US on BNPL users reported that more than one-third of users(34%),particularly Millennials and Gen Z,had missed at least one or more payments,27 which was considerably higher than the rate reported in this study.Figure 3.31 Instalment payment status:BNPL(n.1
323、35)Experience with items purchased using BNPL facilities Users reported mixed sentiments regarding their experience with the purchases they made through a BNPL service.Generally,respondents reported a positive experience when they were able to pay off their purchases faster than anticipated(44%)and
324、when they found it easier to keep track of their online purchases(42%).In contrast,32%reported a negative experience because the item or service purchased was more expensive than anticipated,and 20%because of other reasons such as the unavailability of the products they wished to purchase.Banking re
325、lationship impact In general,those with access to banking products or services reported that their banking relationship had remained the same after using a BNPL facility.Only a small proportion of users reported starting to use savings or checking accounts(13%),followed by personal loan contracts(11
326、%).Twenty percent of respondents reported using savings accounts more frequently and 13%used personal credit cards more often.26 World Bank Group(2022).Bank nonperforming loans to total gross loans(%).Available at:https:/data.worldbank.org/indicator/FB.AST.NPER.ZS 27 Credit Karma(2021).Buy now pay l
327、ater surges throughout pandemic,consumers credit takes a hit.Available at:https:/ missed a payment;payments are ongoingNever missed a payment;loan has been paid offUnable to repay when payment was due,but full amount eventually repaid with some delayTemporarily missed a payment due to platform error
328、,but now currentDefaulted on loanUnable to repay,but platform rolled over debt/offered new loan to pay off old onePercentage of respondents020045105The ASEAN Access to Digital Finance Study45Figure 3.32 Banking relationship impact:BNPL(n.135)Covid-19 impact on purchasing behaviour and fre
329、quency of using BNPL servicesCovid-19 affected the purchasing behaviour of more than half the respondents(53%),who reported spending more money overall on purchases since the pandemic.In addition,the results also indicated that 56%of respondents used BNPL facilities more often during Covid-19 and sp
330、ent more money on purchases through BNPL.Covid-19 government financial assistance Most respondents(76%)did not receive any financial assistance from their government during the pandemic.For those who did,income transfer schemes to low-income populations were the most common.Covid-19 platform assista
331、nce Payment assistance facilities were the most common types of assistance that BNPL platforms offered their users.One-quarter were offered fee waivers,followed by eased payment plans and additional credit facilities.Notably,38%of respondents did not receive any support from their platform.Figure 3.
332、33 Covid-19 platform assistance:BNPL 13%11%7%5%5%20%10%8%13%4%44%22%16%22%13%11%8%7%10%4%2%8%3%8%4%10%41%59%42%70%Savings or checking accountPersonal loan contractsOverdraft account/facilityPersonal credit cardBusiness credit cardPercentage of respondents0203040506070908010010Began usingIncreased us
333、eAbout the sameDecreased useStopped usingN/ANon-financial add-on services or products(n.4)0200538%25%10%9%6%5%5%2%No support received(n.53)Waived fees(n.35)Eased payment plans(n.14)Additional credit facility(not related to government assistance scheme)(n.12)Payment holiday(n.8)Additional credit facility(related to government assistance scheme)(n.7)Insurance or other coverage(n.7)Percent