The platform is launching new products, which include a micro-investment solution, third-party loan platform and a «buy-now-pay-later» service for purchases with e-commerce partners.

The finance arm of Singapore-based ride-hailing and payments firm Grab has rolled out a new strategy to expand its consumer services ecosystem and «empower individuals to grow their personal wealth, manage their finances and protect what they value,» the firm announced on Tuesday.

«Thrive With Grab» brings an expanded range of new lending, wealth and insurance products, with which it hopes to tap into Southeast Asia’s vast mass market financial services opportunity. 

«By offering innovative micro-transaction-based financial services, convenient financial management tools and access to products from leading global financial institutions, we hope to unlock the tremendous potential in financial services in the region in ways that serve all Southeast Asians,» Reuben Lai, senior managing director, Grab Financial Group (GFG), said.

Retail Wealth Push

Grab will be pushing into retail wealth by focusing on accessible, convenient, and transparent investment products and solutions, while broadening its wealth management offerings that feed into its goal of strengthening its open fintech ecosystem, Lai said at a media briefing ahead of the launch on Tuesday.

The company will also provide customers with opportunities to invest in products and solutions traditionally limited to affluent individuals and institutional investors, Lai said, adding that Grab will also launch a series of financial education programs to help users make more informed in financial decisions.

Following its acquisition of wealth management platform Bento earlier this year, Grab will roll out micro-investment solution AutoInvest in September, which allows users to «invest as they spend» with their everyday Grab transactions from S$1 ($0.73), and invest from their wallet balance to earn returns of about 1.8 percent per year, which can then be cashed out directly to their GrabPay wallets.

Managing Finances 

Lai also noted the growing demand for online consumer lending, citing research from Boston Consulting Group that shows that more than one-third of Southeast Asian consumers are willing to shift some banking activities, such as loans, too non-banking platforms.

To meet this demand, it is launching a third-party consumer loan platform, starting in Singapore, before expanding to Malaysia and other countries. Consumers will be able to apply for personal loans offered by bank partners directly within the Grab app.

GFG will also expand its «buy-now-pay-later» line of offerings by launching «PayLater Instalments» and «PayLater Postpaid» on select e-commerce sites in Singapore and Malaysia in October, and launch its first hospitalization insurance plan for consumers in Indonesia.

Core Vertical

The company laid off 5 percent of its workforce in June, which founder and CEO Anthony Tan said would help it better face the challenges of a post-Covid economy. He also said the strategic roadmap for Grab Financial, which is a «long-term bet for the future,» remains unchanged.

Grab is also part of a consortium with Singtel that has applied for a digital banking license in Singapore.