DEG invests in online financial market place in Southeast Asia
News from 2018-08-01 / DEG
Around 400 million people live in Indonesia and the Philippines. Less than half of the adult population has a bank account. Fintech start-up C88 provides an alternative to a traditional bank branch by helping compare and apply for financial products online. In doing so, it also reaches parts of the population that previously had no access to financial services.
DEG is investing USD 4 million in the start-up, thereby contributing to driving financial inclusion in the two countries. Other investors include the global information services provider Experian.
Contribution to financial inclusion
Founded in 2013, fintech company C88 operates two platforms for online comparison - CekAja.com in Indonesia and Philippines’ eCompareMo.com. These help customers compare financial products, such as personal loans, deposits, credit cards, as well as health and property insurances, in an easy and transparent way. The potential customer can select the product best suited to him or her and conclude the contract directly with the respective financial institution. The new capital is earmarked for business expansion and for increasing outreach.
C88 already works with over 90 financial institutions. In addition to traditional banking and insurance products, C88 is also offering innovative, newly-developed financing products to its online customers, such as a special dengue fever insurance in the Philippines.
Expansion of fintech financing
"Fintechs have the potential to significantly increase reach of the traditional financial sector by providing financial services efficiently and in a cost-effective way also to segments of the population that have no access to banking and insurance products today. DEG is therefore planning to further expand its commitment in this segment," said Monika Beck, member of DEG’s Management Board.
Only recently, in June, DEG and 50 other organisations have jointly adopted the "Guidelines for Investing in Responsible Digital Financial Services" for investments in fintechs.