Grab drives into Asia's banking scene

It will soon offer lending and insurance services.

On-demand transportation platform Grab is driving into Asia’s banking scene as it partners with Japanese consumer financing firm Credit Saison to launch a consumer lending venture which will provide loan and lending services to consumers, micro-entrepreneurs and small businesses across Southeast Asia, according to a press release. 

It is part of the wider launch of Grab Financial, a fintech platform located within the company’s ecosystem, which merges all of the company’s fintech offerings including payments services, rewards and loyalty services, financial services and agent services.

The partnership will tap on Grab’s extensive data cache including transport movements, geo-location, payment data and reach whilst leveraging on Credit Saison’s expertise in credit analysis and consumer lending.

In the early stages, the JV will focus on providing financial products like working capital loans, financing for smartphones and durable goods, as well as consumer goods financing to meet the needs of Grab drivers, agents and merchants but will soon expand to offer credit scoring services to financial institutes.

“GFSA is building a reliable alternative to traditional credit scoring methods that is customised for the unbanked majority of consumers and small businesses in Southeast Asia, which will create economic opportunity for millions across the region,” said Jason Thompson, Managing Director, GrabPay Southeast Asia.

Grab has also inked a deal with property and casualty insurance company Chubb to offer insurance services to partner drivers and customers as part of Grab Financial platform. Initial offerings include accident and hospitalisation coverage for Grab’s 2.6m driver partners.