The older customers become, the more financing they request when applying to fintech services. These are the findings of the financial holding Robocash Group based on the statistics of customer applications in Asia this year.
In particular, with an increase of customers’ age by one year in Vietnam, there is a rise in the average size of requested amounts by 0.3%. Meanwhile, Indonesia has 0.8%, the Philippines and India – 0.4%.
The analysis revealed a pattern according to which clients ask for more financing as they get older. Vietnam has shown the lowest contrast between generations. On average, 51-60-year-olds in Vietnam request by 11.7% more than clients in ages 18-24. It stands in contrast with Indonesia with its three times higher difference – 37.5%. India and the Philippines have 18.5% and 15.8%, respectively.
However, the size of the requested financing is also worthy of attention. For instance, Indonesia has the lowest figure of $93 although it is ahead of other countries by the nominal GDP per capita. It is 119th globally in the ranking of the IMF for 2018. As for Vietnam, it is very close to the Philippines on the income scale taking 130th and 134th places, respectively. As a result, the average amounts, which local customers ask, varies insignificantly too: $140 vs $135, respectively. In contrast, with its 145th place in the world, India has the highest size of the requested amounts – $156.
According to company analysts, people in the Philippines, Vietnam and India may have longer terms of gaps in their budgets. Then, in case of unexpected circumstances, the size of savings or reserved money may be insufficient too. As a result, it makes customers ask for higher amounts to cover the emerged gaps. At the same time, in countries with advanced incomes among the populations like in Indonesia, customers may take financing directly in a store to pay for a small desirable non-essential purchase.