https://www.responsability.com/en/sectors/financial-inclusion
A responsAbility-managed private equity vehicle focusing on financial inclusion has acquired a minority stake in C88 Financial Technologies Pte. Ltd. C88 is a market leading fintech company
providing financial marketplaces for lending and insurance products in Indonesia and the Philippines. Through a partnership with Experian, C88 plans to increase financial inclusion in the markets by improving the matching of millions of underserved customers with appropriate financial products.

Through its online portals CekAja.com in Indonesia and eCompareMo.com in the Philippines, C88’s makes a range of alternative financial products available to customers, with comparison between alternative products and providers contributing to pricing transparency. Matching the customer’s profile with appropriate products, the Company also facilitates the purchase process and conducts know-your-customer research on behalf of its partnering banks and insurance companies.

Advanced marketing techniques focused on online search allows C88 to serve large numbers of customers. For instance, C88’s insurance offerings provide small ticket size insurance to hundreds of thousands of customers.

In Indonesia and the Philippines, banks in the retail segment lend almost exclusively to high income and upper middle class customers with an established credit track record, leaving a large proportion of bankable customers underserved or excluded.

The company plans to work with banks and insurance companies to develop and distribute new financial products suitable for broad segments of the population. There is substantial room to make better decisions about credit and pricing of credit to improve matching of customers with the right products, as well as for banks and other players to introduce new products to serve those who are currently excluded or underserved.

To scale business further and to deepen the relationship with new and existing customers, C88 has entered a partnership with Experian, a global leader in consumer and business credit reporting and marketing services. The collaboration will help C88 further increase its product offering. This will allow millions of customers to get their first loans and start building a credit history, which will in turn help them obtain further financing on better terms.

Speaking on behalf of responsAbility, Henning Haugerudbraten, Principal/Private Equity, said: “C88 already helps match customers with appropriate products and facilitates pricing transparency in the Indonesian and Philippine markets. The next objective is to use the platform to provide access to finance to millions of unbanked customers, creating an extensive positive impact for financial inclusion. This makes C88 an ideal addition to our growing portfolio of impact-oriented financial institutions in emerging markets.”

Access to financial services is vital to global development, making it easier to invest in health, education, and business. Accounts with a bank or mobile money service help families manage economic emergencies that can push them into poverty. According to the 2017 Global Findex database, financial inclusion is on the rise globally, but progress is uneven and 1.7 billion adults remain unbanked. The data also show that mobile phones and the internet are opening up access to financial services for millions of people for the first time, and the transformative power of fintech could bring financial services to millions more.

Design and animation by Loaded Pictures (http://www.loadedpictures.com)

The Global Findex Database 2017: https://globalfindex.worldbank.org/

As fintech continues to evolve in utility and popularity, regulation struggles to keep up with the pace of innovation. In years past, the fintech space was poorly regulated which either led to strict restrictions or loose rules. This evidently posed serious risks and regulators were forced to be proactive in finding ways to keep the innovation going at the same time mitigating risks. Now we’re being introduced to the concept of Regulatory Fintech Sandboxes. These are intended to be enabling environments to bring more alignment between Fintech’s and Regulators. In this video I explore the what, why and how of Regulatory Fintech Sandboxes.
#innovation #fintech #digitaltransformation #fintechsandbox #regulatorysandbox
Timecodes
0:00 Intro
3:05 What is a Regulatory Fintech Sandbox?
4:16 Why are Regulatory Fintech Sandboxes important?
5:30 How do Sandboxes work in practice?
7:53 Benefits of Regulatory Fintech Sandboxes
9:46 Regulatory Fintech Sandbox Risks
10:44 Summary & Outro

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Banks used to be the sole providers of formal financial services. They were responsible for both the customer-facing and back-end aspects of delivering these services. Nowadays, fintechs that specialize in specific financial products are competing with banks on those products and often benefiting consumers by providing more choice. Poor consumers especially benefit when these fintechs bring financial products that were previously unavailable or unsuited to their needs. In addition, fintechs that specialize in delivering the specific processes and elements that go into making financial services are becoming better at those tasks. They are making their services available to multiple financial service providers and thereby creating economies of scale. When combined with improved effectiveness as a result of specialization, these economies of scale can lower costs, bring higher quality services, and help reach previously underserved or unserved people. To learn more, visit www.cgap.org/fintech.