The firm added the JV will offer credit scoring services to financial institutes who can use the information to provide other services such as virtual credit cards as well as seeking constant partnership with other banks and financial institutions in Southeast Asia and beyond.
Grab, the ride sharing platform we are all familiar with, has become a little more unfamiliar to us with the launch of its new product.
What's new with Grab Financial is the addition of loan and insurance services to individuals around in Southeast Asia.
Grab Financial Services Asia, puts in place a much-needed infrastructure that will accelerate financial inclusion in Southeast Asia.
The service will be rolled out this year to all the Southeast Asia markets Grab is in now, the executive said.
"We aim to make these micro-entrepreneurs who used to be invisible more visible to financial institutions", Anthony Tan, Grab CEO, said during the Money20/20 fintech conference in Singapore, calling the new lending business "core to our business". "GFSA is building a reliable alternative to traditional credit scoring methods that is customised for the unbanked majority of consumers and small businesses in Southeast Asia, which will create economic opportunity for millions across the region", said Jason Thompson, Managing Director, GrabPay Southeast Asia.
It also unveiled new partnerships with Credit Saison and Chubb, setting up a joint venture with the former to offer loans and credit assessment services.
It added that the joint venture with Credit Saison would tap the Japanese consumer financing company's expertise in credit assessment and consumer lending as well as Grab's access to consumer data through its mobile and payment apps. It plans to leverage Grab's network of millions of customers, including small businesses as well as data on consumer behavior, then combines it with the Credit Saison's intel in credit annals and consumer lending. Grab is active and operates in eight countries, and the Grab app has over 86 million downloads on smartphones, and it offers taxi and on-demand food delivery services.
Grab's joint venture (JV) with Credit Saison will allow them to offer access to funding that is crucial to helping them grow their income streams.
Chubb will provide in-app insurance solutions for Grab's 2.6 million driver-partners, including accident, hospitalisation and other insurance coverage.
And they may be the bigger victor behind the scenes.