With age, Indians request higher amounts of financing

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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 India, there is a rise in the average size of requested amounts by 0.4%. This figure equals the result in the Philippines, while Indonesia has 0.8%, and Vietnam – 0.3%.

The analysis revealed a pattern according to which clients ask for more financing as they get older. On average, 51-60-year-old Indians request by 18.5% more than clients in ages 18-24. It stands in contrast with Indonesia that has the highest difference – 37.5%. Vietnam and the Philippines have 11.7% 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. It is quite opposite the result in India. Taking the 145th place in the world on the same scale, Indian request the highest amount – $156. Remarkably, Vietnam and the Philippines are very close on the income scale taking 134th and 130th places, respectively. As a result, the average amounts, which customers in these countries ask, varies insignificantly too. Vietnam has $140, the Philippines – $135.

amounts of financing

According to company analysts, people in India, Vietnam and the Philippines 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 population like in Indonesia, customers may take financing directly in a store to pay for a small desirable non-essential purchase.

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Neel Achary is the editor of Business News This Week. He has been covering all the business stories, economy, and corporate stories.