“ It ' s been a long journey ,” he says , " but through that journey I ' ve realised one thing : that when the middle class starts developing in a country , it typically happens at around 3,000 to 5,000 GDP per capita . Then the disposable income growth is disproportionate to the overall income growth , and that disposable income becomes the engine for fueling this real hockey stick with consumer finance , when people trade in their current income for getting the goods .”
Krasnov believes this lending trend is on an upwards trajectory in Southeast Asia , and that fintech is powering the drive because it enables businesses to reach customers faster and more cheaply . Another trend is the more prevalent availability of credit scores . Customers that haven ' t been lent to previously and are new to banking , are now exploring their options .
180 May 2022