Frost Radar™: ASEAN Peer-to-Peer (P2P) Lending Market, 2020
Published on: 25-Sep-2020 | SKU: IT04172-AP-MR_24754

Need more details?
$4,950.00
DownloadLink
Need more details?

The Association of Southeast Asian Nations (ASEAN) peer-to-peer (P2P) lending industry is disrupting the small and medium enterprise (SME) loan market that is primarily served by banks. P2P lenders are launching products that use technologies such as machine learning and artificial intelligence (AI) to shorten the entire lending process from more than 4 weeks to 1 week or less. P2P lending platforms complement the existing financial system and empower individuals with an alternative investment opportunity that did not previously exist.

The role of SMEs among ASEAN member states is significant, contributing between 36% (Thailand) and 57.0% (Indonesia) to their country’s GDP. Despite underpinning the region’s economic growth, many SMEs in ASEAN countries cannot obtain loans from mainstream commercial banks (including government-assisted loans), which forces them to struggle with day-to-day business. P2P lending platform providers look to fill this gap by extending services to the un- or under-banked SME segment of the market. The gap is particularly large in Indonesia, the Philippines, and Vietnam.

For a P2P lender to grow at breakneck pace, it should continually invest in automating business processes. Although lenders have to a large extent automated on-boarding, loan disbursement, and loan servicing, work remains to fully automate the loan underwriting process. Automating their processes positions P2P lenders to focus next on acquiring new borrowers and new investors, which will bring down the overall cost of underwriting a loan to a fraction of previous rates.

P2P lenders must target more customer segments, offering them customized products that appeal to their specific needs. For example, Funding Societies’ introduction of a loan geared toward used car dealers is a first-of-its-kind offering in the region. P2P lenders should also look to expand beyond their local reach, taking their offerings and experience in servicing loans for SMEs from one geographic location to another.

In a field of more than 250 ASEAN industry participants, Frost & Sullivan independently plotted 16 notable companies in this Frost Radar™ analysis based on their excellent growth or innovation capabilities. The Frost Radar™ reveals the market positioning of companies in an industry using their Growth and Innovation scores as highlighted in the Frost Radar™ methodology. The document presents competitive profiles on each of the companies in the Frost Radar™ based on their strengths, opportunities, and a small discussion on their positioning. Frost & Sullivan analyzes hundreds of companies in the industry and benchmarks them across 10 criteria on the Frost Radar™, where the leading companies in the industry are then positioned. Industry leaders on both the Growth and Innovation indices are recognized as best practice recipients.

Author: Shailendra Soni

Strategic Imperative

Growth Environment

Frost Radar™: ASEAN P2P Lending Market

Frost Radar™: Competitive Environment

Frost Radar™: Competitive Environment (continued)

Acudeen Technologies (Acudeen)

Acudeen (continued)

PT Amartha Mikro Fintek (Amartha)

Amartha (continued)

B2B Finpal Sdn Bhd (B2B Finpal)

B2B Finpal (continued)

Beehive P2P Ltd (Beehive Asia)

Beehive Asia (continued)

Capital Match Holdings Pte Ltd (Capital Match)

Capital Match (continued)

CoAssets Limited (CoAssets)

CoAssets (continued)

PT Pasar Dana Pinjaman (Danamas)

Danamas (continued)

eLoan Joint Stock Company (eLoan)

eLoan (continued)

First Circle Growth Finance Corp. (First Circle)

First Circle (continued)

Peoplender Sdn Bhd (Fundaztic)

Fundaztic (continued)

Funding Societies Modalku Pte Ltd (Funding Societies)

Funding Societies (continued)

PT Investree Radhika Jaya (Investree)

Investree (continued)

PT Lunaria Annua Teknologi (KoinWorks)

KoinWorks (continued)

Peerpower Platform Company Limited (PeerPower)

PeerPower (continued)

SeedIn Technology Pte Ltd (SeedIn)

SeedIn (continued)

Validus Capital Pte Ltd (Validus)

Validus (continued)

Strategic Insights

Significance of Being on the Frost Radar™

Frost Radar™ Empowers the CEO’s Growth Team

Frost Radar™ Empowers Investors

Frost Radar™ Empowers Customers

Frost Radar™ Empowers the Board of Directors

Frost Radar™: Benchmarking Future Growth Potential

Frost Radar™: Benchmarking Future Growth Potential

Frost Radar™: Benchmarking Future Growth Potential

Legal Disclaimer

Frost Radar™: Benchmarking Future Growth Potential 2 Major Indices, 10 Analytical Ingredients, 1 Platform

Growth Index

Growth Index (GI) is a measure of a company’s growth performance and track record, along with its ability to develop and execute a fully aligned growth strategy and vision; a robust growth pipeline system; and effective market, competitor, and end-user focused sales and marketing strategies.

  • Market Share (previous 3 years)
    This is a comparison of a company’s market share relative to its competitors in a given market space for the previous 3 years.
  • Revenue Growth (previous 3 years)
    This is a look at a company’s revenue growth rate for the previous 3 years in the market/industry/category that forms the context for the given Frost Radar™.
  • Growth Pipeline
    This is an evaluation of the strength and leverage of a company’s growth pipeline system to continuously capture, analyze, and prioritize its universe of growth opportunities.
  • Vision and Strategy
    This is an assessment of how well a company’s growth strategy is aligned with its vision. Are the investments that a company is making in new products and markets consistent with the stated vision?
  • Sales and Marketing
    This is a measure of the effectiveness of a company’s sales and marketing efforts in helping it drive demand and achieve its growth objectives.

Innovation Index

Innovation Index (II) is a measure of a company’s ability to develop products/ services/ solutions (with a clear understanding of disruptive Mega Trends) that are globally applicable, are able to evolve and expand to serve multiple markets and are aligned to customers’ changing needs.

  • INNOVATION SCALABILITY
    This determines whether an organization’s innovations are globally scalable and applicable in both developing and mature markets, and also in adjacent and non-adjacent industry verticals.
  • RESEARCH AND DEVELOPMENT
    This is a measure of the efficacy of a company’s R&D strategy, as determined by the size of its R&D investment and how it feeds the innovation pipeline.
  • PRODUCT PORTFOLIO
    This is a measure of a company’s product portfolio, focusing on the relative contribution of new products to its annual revenue.
  • MEGATRENDS LEVERAGE
    This is an assessment of a company’s proactive leverage of evolving, long-term opportunities and new business models, as the foundation of its innovation pipeline.
  • CUSTOMER ALIGNMENT
    This evaluates the applicability of a company’s products/services/solutions to current and potential customers, as well as how its innovation strategy is influenced by evolving customer needs.

Significance of Being on the Frost Radar™

Companies plotted on the Frost RadarTM are the leaders in the industry for growth, innovation, or both. They are instrumental in advancing the industry into the future.

  • GROWTH POTENTIAL
    Your organization has significant future growth potential, which makes it a Company to Action.
  • BEST PRACTICES
    Your organization is well positioned to shape Growth Pipeline™ best practices in your industry.
  • COMPETITIVE INTENSITY
    Your organization is one of the key drivers of competitive intensity in the growth environment.
  • CUSTOMER VALUE
    Your organization has demonstrated the ability to significantly enhance its customer value proposition.
  • PARTNER POTENTIAL
    Your organization is top of mind for customers, investors, value chain partners, and future talent as a significant value provider.

Have questions about this research or need deeper insights?
Speak directly with our analytics experts for tailored recommendations.
Purchase includes:
  • Report download
  • Growth Dialog™ with our experts

Growth Dialog™

A tailored session with you where we identify the:
  • Strategic Imperatives
  • Growth Opportunities
  • Best Practices
  • Companies to Action

Impacting your company's future growth potential.

The Association of Southeast Asian Nations (ASEAN) peer-to-peer (P2P) lending industry is disrupting the small and medium enterprise (SME) loan market that is primarily served by banks. P2P lenders are launching products that use technologies such as machine learning and artificial intelligence (AI) to shorten the entire lending process from more than 4 weeks to 1 week or less. P2P lending platforms complement the existing financial system and empower individuals with an alternative investment opportunity that did not previously exist. The role of SMEs among ASEAN member states is significant, contributing between 36% (Thailand) and 57.0% (Indonesia) to their country’s GDP. Despite underpinning the region’s economic growth, many SMEs in ASEAN countries cannot obtain loans from mainstream commercial banks (including government-assisted loans), which forces them to struggle with day-to-day business. P2P lending platform providers look to fill this gap by extending services to the un- or under-banked SME segment of the market. The gap is particularly large in Indonesia, the Philippines, and Vietnam. For a P2P lender to grow at breakneck pace, it should continually invest in automating business processes. Although lenders have to a large extent automated on-boarding, loan disbursement, and loan servicing, work remains to fully automate the loan underwriting process. Automating their processes positions P2P lenders to focus next on acquiring new borrowers and new investors, which will bring down the overall cost of underwriting a loan to a fraction of previous rates. P2P lenders must target more customer segments, offering them customized products that appeal to their specific needs. For example, Funding Societies’ introduction of a loan geared toward used car dealers is a first-of-its-kind offering in the region. P2P lenders should also look to expand beyond their local reach, taking their offerings and experience in servicing loans for SMEs from one geographic location to another. In a field of more than 250 ASEAN industry participants, Frost & Sullivan independently plotted 16 notable companies in this Frost Radar™ analysis based on their excellent growth or innovation capabilities. The Frost Radar™ reveals the market positioning of companies in an industry using their Growth and Innovation scores as highlighted in the Frost Radar™ methodology. The document presents competitive profiles on each of the companies in the Frost Radar™ based on their strengths, opportunities, and a small discussion on their positioning. Frost & Sullivan analyzes hundreds of companies in the industry and benchmarks them across 10 criteria on the Frost Radar™, where the leading companies in the industry are then positioned. Industry leaders on both the Growth and Innovation indices are recognized as best practice recipients. Author: Shailendra Soni
More Information
Deliverable Type Frost Radar
No Index No
Podcast No
Author Shailendra Soni
Industries Information Technology
WIP Number PAEE-01-00-00-00
Is Prebook No
GPS Codes 99D5-A1

Frost Radar™: ASEAN Peer-to-Peer (P2P) Lending Market, 2020

Information TechnologyFrost Radar™: ASEAN Peer-to-Peer (P2P) Lending Market, 2020

A Benchmarking System to Spark Companies to Action - Innovation that Fuels New Deal Flow and Growth Pipelines

RELEASE DATE
25-Sep-2020
REGION
Asia Pacific
Deliverable Type
Frost Radar
Research Code: PAEE-01-00-00-00
SKU: IT04172-AP-MR_24754
AvailableYesPDF Download
$4,950.00
In stock
SKU
IT04172-AP-MR_24754