Alternative Lending Landscape in Southeast Asia
Added on 2020-04-21
9 Pages2657 Words54 Views
FinanceEntrepreneurship
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ALTERNATIVE LENDING LANDSCAPE IN SOUTHEAST ASIA
Table of ContentsIntroduction.................................................................................................................................................3PART 1:......................................................................................................................................................3PART 2:......................................................................................................................................................4PART 3:......................................................................................................................................................6PART 4:......................................................................................................................................................7Recommendation.........................................................................................................................................8Conclusion...................................................................................................................................................8References...................................................................................................................................................9
IntroductionAlternative Lending is a broad term used to describe the wide range of loan options available toconsumer and business owners outside of a traditional bank loan. These alternative options aremost commonly used when an individual or business owner cannot obtain a traditional bank loanfor any number of reasons.Alternative lending refers to a growing industry of digitally basedlending platforms for differently borrowing needs, including consumer, small and mediumenterprise, student loan and mortgages.The alternative lending platform provides a loan experience digitally, which includes deliveryfrom application and organization to underwriting and services. The efficiency, digitalcapabilities as well as reduced cost provide a clear advantage to customers when compared withthe traditional bank that could take multiple days for generating a loan. this study would beevaluated in the following paragraphs. PART 1:Identification of the gap to key findingsDetermining the credit gap in Vietnam:1.1 The rise of alternative finance is attributed to two reasons. First, the inability of traditionalmonetary institution to cater to convinced segments of the marketplace that required access tosecure economic services. As opined by Khan et al (2017, p.90), the second, because financingdomain have documented these gaps, fruitfully experimented and developed solution to fix thesegaps.1.2 Lack of access to basic financial services has created major barriers for people to overcomepoverty, huge income gap and poor standards of living in the society.1.3 The traditional financial service players are limited in executing the crises so their lies a hugeopportunity for alternative lending institutions to take the mission to improve the livelihood ofthe unbanked by providing them with innovative financial platforms that will createopportunities for them to improve their standards of living.A. Relevant demographic statistics of Vietnam:A.1 Mobile device dominance and the use of Smartphone is growing in a vast level Vietnam,with over four in five online consumers accessing the internet daily on smart phones as estimatedby research firms.A.2 Mobile connection in Vietnam is higher by 21% than the global average of 103%.A.3 According to reliable to data only 27 percent of Vietnam population has bank accounts.About 438 million do not have any bank accounts.A.4 In Vietnam GDP rises and the country becomes richer there is a trend of a widening ofincome inequality. According to relevant research works Vietnam has income inequality profilemore than the third world countries despite being good GDP per capita income.
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