Fintech
Fintech start-up harnesses surge in AI to bring ‘inclusive’ finance to underbanked markets
A start-up is trying to catch the artificial intelligence (AI) wave to bring financial services to underbanked populations in developing markets. Meet Surfin-Meta, a Singapore-based fintech company that’s making waves – and money – with its inclusive vision of financial empowerment.
The company, with services ranging from loans, credit cards, payment remittances and wealth management, primarily targets young people between the ages of 23 and 30 who have never had financial access before. It has more than 50 million registered users across nine markets.
Surfin uses artificial intelligence to generate an initial credit score for users to begin their financial journey, based on their behavior and Internet activity, according to Yanan Wu, founder, president and CEO.
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“As our name Surfin suggests, we want to ride the wave of technology to break down the barrier of equal financial access to a broader population,” Wu said in an interview in Hong Kong. “We want to focus on emerging markets’ rapid income growth, consumption growth and the emerging middle class over the next decade.”
Surfin primarily uses social channels such as Instagram, YouTube, Facebook and TikTok for user acquisition, Wu said. Internet activities on the user’s mobile device, such as social networking and search history, help the company create a user profile that it uses to produce the credit score.
Since its launch in 2017, Surfin has expanded into nine markets including Indonesia, the Philippines, India and Mexico.
The accumulated transaction volume over the past six years has exceeded $2.5 billion, and the company is profitable as of 2021, posting revenue growth of 50 to 60 percent, Wu said. Surfin generated more than $170 million in revenue and $20 million in net profit last year, and expects to double its revenue this year, he said.
Digital lending is growing rapidly in Asia despite high interest rates, especially in emerging markets. The balance of online loans to consumers and small and medium-sized businesses in Southeast Asia grew 26% year-on-year to reach $60 billion in 2023, and is expected to increase another 400% to $300 billion. dollars by 2030. to a study by Temasek and Bain Capital last year.
Traditional financial companies are also accelerating the use of digital services to retain users, heating up competition. This translates into a fight for “survival of the fittest” among pure fintechs, the study says.
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To differentiate itself and retain users, Wu said Surfin focuses on building long-term customer relationships. Lending is the beginning of the user journey, and the company has been working to expand its ecosystem of other financial services.
Pedestrians pass commercial buildings in Singapore’s central business district on April 11, 2024. Photo: Bloomberg alt=Pedestrians pass commercial buildings in Singapore’s central business district on April 11, 2024. Photo: Bloomberg>
Surfin underwrites its loan portfolio with equity and could tolerate a default rate of up to 20% during its current expansion phase, Wu said, adding that bad loans remain in check as the fintech focuses on credit management .
The company recently raised $10 million in debt capital from Europe and aims to secure another $20 million this year from Asian investors. It is also on track to close a $20 million capital round led by Singaporean venture capital funds, Wu said.
Over the next three to five years, Wu wants to transform Surfin into a “regional digital banking powerhouse and fintech leader.” Furthermore, he wants to be “inclusive, scalable and sustainable” by using AI suggestions to interact with customers and meet their needs.
“I hope to make customers feel more equal and appreciated through timely financial services,” he said.
This article originally appeared on South China Morning Mail (SCMP), the most authoritative voice covering China and Asia for more than a century. For more stories about SCMP, explore the SCMP application or visit the SCMPs Facebook AND Twitter pages. Copyright © 2024 South China Morning Post Publishers Ltd. All rights reserved.
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