Advances in modern technology have enabled seamless access to financial services for customers in developed economies. However, limited infrastructure and services hinder similar access for those in emerging markets.
In Southeast Asia, an estimated 225 million people lack access to a financial account, while more than 350 million people lack access to formal credit.
As a result, many financial services that are often taken for granted, such as receiving wages, payments or welfare benefits and even accessing loans, paying bills and running a small business, remain out of reach for large sections of the population.
Serving the unbanked in Southeast Asia
Ascend Money together with TrueMoney, both subsidiaries of Thailand’s CP Group, believe that technology has a powerful role to play in addressing financial disparities in the region and creating a positive impact on society in a way that promotes social mobility and alleviates poverty. Through a financial application and a network of 88,000 registered agents, Ascend Money is able to provide financial services in Southeast Asia, including Thailand, Cambodia, Myanmar, Vietnam, the Philippines, Indonesia and Malaysia. The company creates an easily accessible and seamless financial platform and network so that people have a lower entry barrier to use various financial tools to improve their lives. The main driving force is to help improve the accessibility, affordability and impact of financial services for people in the region.
Creating equal access to basic banking services for all
In rural communities where the lack of adequate banking infrastructure is a significant challenge for people in need of basic banking services, Ascend and TrueMoney have established TrueMoney Centers through partnerships with local shops, convenience stores, pharmacies, coffee shops or even through street vendors to provide service points that support transactions such as cash withdrawals, prepaid credit top-ups, utility and phone bill payments, and even facilitate cash withdrawals from overseas remittances. Most TrueMoney agents are local entrepreneurs and shop owners looking to make ends meet. Apart from earning more income, they have played a vital role in helping people in their community to access easy, safe and transparent transactions.
The World Bank estimates that remittance flows to low- and middle-income countries around the world are expected to grow by 1.4% to $656 billion in 2023. Many in developing countries depend on remittances from families working in abroad as an important source of income – this is especially true for those living in harder-to-reach rural areas. In times of cash shortages, such remittances can act as a lifeline to meet basic needs, from buying food to financing education and accessing healthcare. Therefore, TrueMoney centers and agents provide a hassle-free option for families to receive such remittances from abroad.
Fueling economic growth through nano-lending
In developing countries, access to nanocredit and capital also opens the door for aspiring micro-entrepreneurs. Traditional banks often refuse applications for a small loan or credit due to difficulties in checking creditworthiness. This lack of access to basic financial services hinders the growth of small businesses and limits the creation of new job opportunities. Limited financial options can also lead people to turn to illegal moneylenders and loan sharks, driving them into debt traps.
Ascend Money aims to expand financial inclusion by offering small dollar equity loans to empower businesses and people in rural communities. Through the TrueMoney app, individuals or small businesses can apply for loans under 10,000 baht (280 USD) using only their national ID. The loan approval process and credit limits are based on applicants’ monthly payments, with the credit limit limited to four times the customer’s monthly mobile phone bill (not exceeding 10,000 baht). A simplified loan application process can provide for practical and urgent needs such as agricultural working capital, labor for planting seasons, medical needs and more.
Empowering communities through technology
With a vision to improve livelihoods and quality of life, CP Group believes that advances in financial technology can empower communities to create better opportunities and build better lives. Through Ascend Money, CP Group is driving financial transformation through technology and innovation in changing the ways people access financial services every day.
