Digital Lending Can Turn the Dial on Financial Access for MSMEs - Hero

Digital Lending Can Turn the Dial on Financial Access for MSMEs

Yulius Yulius Davids Tjhin Yohanes Lukiman Verra Wijaya Yang Yu Yi Xian Chew Qi Yang How

Micro, small, and medium-sized enterprises (MSMEs) form the backbone of the economy in Southeast Asia. Yet, they face persistent challenges in accessing finance from traditional banks to fund, grow, and sustain their businesses.

With advancements in technology leading to a significant increase in digital lending over the past decade, this new wave of digital products and services provides MSMEs with alternative solutions to meet their financial needs. But while the ASEAN region has seen a positive trend in digital lending, there are opportunities to further improve the landscape.

Our joint report with the ASEAN Business Advisory Council (BAC) explores the key factors that can contribute to accelerating digital MSME lending, featuring case studies that complement our insights on how the right ecosystem can be created in order to uplift MSMEs and ensure inclusive economic growth in ASEAN.

BCG is the Knowledge Partner of the Digital Working Group of ASEAN BAC 2023 under the Indonesia Chairmanship. This report forms the foundation of the Digital Working Group’s legacy project on MSME Digital Lending.