How Informal Employment in Emerging Markets is Boosting Fintechs in Alternative Lending
By Sergey Sedov
The low unemployment rate characteristic for most developing countries can be attributed to the utter lack of unemployment benefits available. That’s what makes people ready for any job to satisfy the need in finance.
Fintech companies are developing actively all over the world. This is true in particular for alternative lending services that demonstrate the highest momentum in the Asian emerging markets distinguished for insufficient financial inclusion. However, the growing use of digital financial services steadily improves the situation in these countries. What are the reasons and characteristics of the local labour markets that drive the rapid development of alternative lending in Southeast Asia?
Photo courtesy of Casey Dlott/USAID.