DONE: Provenir_Economic-Landscape_eBook_Dec 7 2022

Bharath Vellore, GM, APAC

Current banking/lending landscape: • While other regions may be staring down a recession, here in APAC we aren’t facing the same degree of economic uncertainty. The key markets here are more worried about slower growth rates, and how to support our customers when capital is not as easily obtainable. • The operating environment in APAC continues to be positive, with lots of opportunity in the markets. Fintechs continue to innovate and disrupt – digitization and helping the underserved remains a priority. The capital environment was very favorable, with many considering lending ‘easy money,’ particularly for digital businesses post-Covid, but it has become more strained recently with increased rates, the war in Ukraine, inflation, supply chain issues etc. How can financial institutions support their customers? • More mature lending organizations with an established/proven product and customers, need to ensure responsive, reactive, dynamic risk policies with a segmented approach to support their existing customers and still aim for growth with those upwardly mobile segments. • Earlier-stage startups experimenting with their value propositions need to focus on building a solid product (good risk management policies in place, superior customer experience) before bringing them to market and raising money – long-term planning is critical as is focusing on the sustainability of the business. New innovations and lending products from fintechs/ banks: • Fintechs are already bridging the gap that larger, less adaptive banks have created. Fintechs were previously very focused on retail segments from a lending/payments point of view and are now increasing their reach (i.e., working with SMEs, working capital for business owners, e-commerce players, etc.).

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