Fintechs in SE Asia face first big test as COVID-related delinquencies loom

Fintechs in SE Asia face first big test as COVID-related delinquencies loom

Online lending.

Fintech firms in Southeast Asia, which once lured investors with the promise of profitable, low-cost financial services, are now facing the first major test of that thesis amid COVID-19.

The pandemic’s economic disruption has resulted in a spike in loan delinquencies for both new-age lenders and traditional banks. However, fintechs, which do not have the deep pockets of banks and microfinance institutions, are facing the brunt of the crisis.

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