- Grab launched a number of new products in Southeast Asia to further expand the financial services space.
- Grab’s deep customer base in the underserved market is likely to contribute to increased sales.
The Singapore-based ride-hailing company has unveiled several new consumer products in the Southeast Asian Region (SEA), according to Finextra. Products include the AutoInvest microinvestment platform; Third-party loans through Grab’s consumer loan platform; buy a product now, pay later; and hospital insurance to expand insurance offerings.
Most of the new products fall under Grab’s broader strategy of diversifying its offerings into financial services through partnerships and acquisitions. For example, it used a partnership with the Chinese online insurance company ZhongAn via a shared platform that enables users to take out insurance via the ride-hailing app.
And Grab’s purchase of Wealthtech Bento in February this year enabled Grab to launch AutoInvest. Additionally, in December 2019, it partnered with Singtel with the intention of obtaining a Singaporean banking license, which is still pending.
We believe that Grab’s new products and entry into financial services will pay off in terms of revenue growth given the company’s already large reach and unmet demand for financial products in the region. His app has been downloaded by more than 187 million smartphones in SEA.
Additionally, there is both an unmet demand for financial services and a bias towards digital devices in the region: only 27% of the population have a bank account, but there is a mobile connectivity rate of 133% per CIO. This creates a significant opportunity for digital financial services in the region – and for non-financial service providers such as Grab, to enter the market with digital offerings and to win customers in order to increase sales. For example, tech giant Tencent’s WeChat app, which allows users to participate in an extensive list of financial activities, was key to its parent company’s revenue growth.
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