Grab Financial Group (GFG), the fintech arm of Grab announced that it has cumulatively sold over 100 million insurance policies across Southeast Asia since the service was launched less than two years ago.
Since GFG launched its consumer insurance business last year, it has seen robust growth across the region and is now one of the largest digital insurance distributors in Southeast Asia for its insurance partner, Chubb.
This milestone shows how embedded finance works within Grab’s ecosystem. For example, consumers can opt in and purchase Ride Cover micro-insurance at S$0.30, at the point when they book a ride on Grab.
Growing Its Suite Of Digital Financial Services
In the last six months, GFG has launched multiple financial services products for consumers, such as micro-investment, third-party loans and buy-now-pay-later products.
This includes its first micro-investment solution, AutoInvest – offered by GrabInvest — a solution that allows users to invest small sums of money while spending in Grab’s ecosystem.
GFG has also expanded Small and Medium-Sized Enterprise (SME) lending to four countries to support its food and payments merchants with working capital loans.
At a time where healthcare is a top priority, GFG launched Hospital Cash Cover, a consumer hospitalisation product in Indonesia. Last month, it launched Community Cover, its second critical illness product.
More recently, the Monetary Authority of Singapore (MAS) also awarded a full digital bank license to the Grab-Singtel consortium.
According to Reuben Lai, Senior Managing Director of GFG, Grab’s goal is to “drive financial inclusion by bringing the most comprehensive suite of financial services into users’ daily lives, making them accessible, convenient and transparent.”
For example, it has unbundled banking and made it ala carte through fractionalised micro-products, embedding finance into the Grab services that people use daily, such as mobility and deliveries.
Financial services is a nascent, long-term, opportunity for Grab, especially since more than six in 10 consumers in the region are unbanked or underbanked.
GFG is part of Grab’s ambition to be a super app in the region. Besides financial services, the company also provides transport, delivery and attraction and hotel booking services.
Currently, the region’s first “decacorn” has 187 million users on the app as of June 2020. It is present in seven markets and has a market share of 11.4 per cent in Southeast Asia.
Featured Image Credit: Grab