Experian leads $28M investment in Southeast Asia fintech startup C88
Summary
More generally, the capital will go towards expansion, particularly around consumer marketing.Unlike some parts of the world, fintech challengers in Southeast Asia are working with the existing financial institutions to help them reach segments of the population that are not addressed today. Throw in that they are often seeking small- to mid-sized loans, and the potential value of the customer is likely lower than the resources that would be spent evaluating them.The system is broken but the good news is that the advent of smartphones is bringing usable data to the fore. Southeast Asia counts over 300 million internet users and thats growing at a rapid rate.In just the past month, Indonesia-based Kredivo which operates digital credit and SME-focused Aspire Capital have raised significant capital using a data-driven similar thesis.Instead of disruption, those companies, and C88, are guiding the banking industry into the previously unaddressable long-tail of customers by actively pre-verifying them and ascertaining not just whether they are eligible for financial products, but what kind and at what rate. Ellis said the company only offers new products when it sees an unmet need in the market, it doesnt intend to compete with whats already on offer from the industry, which remains its key partner.Beyond unsecured loans and insurance, the company is also dipping its toes into asset management, although the C88 CEO concedes that this market is smaller in terms of sheer numbers, at least.The deal marks the first major investment in Southeast Asia for Experian, the Dublin-headquartered firm valued at around \xa317.5 billion, or $23 billion, and listed in London. Were looking at organizations that we think are either disruptive in the market where we have a role to play, or those that are building into something we think we can grow with.Singapore-based Elliott pointed that nearly one-quarter of Southeast Asians have access to a bank account, so new methods of reach are essential.