Millions in Southeast Asia lack access to fair credit, pushing them into high-interest debt. More than 80% of consumers still lack access to Visa credentials, leaving them vulnerable to predatory lending and unsustainable debt. Visa is now piloting innovative microcredit solutions and leveraging alternative data to bridge this financial gap.
The initiative, led by Janice Yeo, Vice President, Head of Consumer Products and Solutions at Visa, aims to provide underserved populations with fair access to credit, especially in developing markets where traditional banking systems fail to recognize creditworthiness due to missing documentation like payslips or credit scores.
Data-Driven Credit Decisions
Visa is partnering with clients and high-tech fraud detection firms to assess creditworthiness using behavioral data. This includes insights such as food delivery spending habits, mobile subscription payment history, and geolocation data. “We know what’s your average basket size when you order food delivery. We probably know where you live. We also have other data about whether you are paying your mobile subscription fee on time,” Yeo told BackgroundBriefing.news.
This approach allows Visa to offer small but impactful credit lines—such as $500—to individuals who would otherwise be excluded from traditional financial systems.
Microcredit as a Bridge to Financial Inclusion
Visa’s microcredit pilot is designed to support consumers through critical financial moments, such as purchasing professional attire for a new job before receiving their first paycheque. By offering modest credit lines based on alternative data, Visa aims to reduce reliance on high-interest loans that can reach up to 60%.
The program is currently in pilot stages, with plans to expand across Southeast Asia, targeting markets most affected by financial exclusion.
About the speaker:
Janice Yeo
Vice President, Head of Consumer Products and Solutions
VISA
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5W1H summary
| Category | Answer Pointers |
| What | 1. We pilot |
| 2. We partner | |
| 3. We challenging legacy decisioning logic | |
| How | 1. Our alternative data |
| 2. Our proprietary analytics engine | |
| 3. Our microcredit cards | |
| Why | 1. To avoid unsustainable sources of funds |
| 2. To build consumer confidence | |
| 3. To drive economic prosperity | |
| Who | 1. Janice Yeo leads initiative |
| 2. Visa and tech partners | |
| 3. Underserved Southeast Asians | |
| Where | 1. Developing Southeast Asian markets |
| 2. Urban and semi-urban areas | |
| 3. Regions with low credit access | |
| When | 1. Currently in pilot phase |
| 2. Expansion plans underway | |
| 3. Timed with digital growth |
Frequently Asked Questions
1. What is the main issue Visa is addressing?
Visa is tackling the lack of access to fair credit in Southeast Asia, where over 80% of people do not have a Visa credential and often resort to high-interest loans.
2. How does Visa determine creditworthiness without traditional credit scores?
Visa uses alternative data such as food delivery spending, mobile subscription payment history, and geolocation to assess reliability and offer microcredit.
3. Why is microcredit important for underserved consumers?
Microcredit helps individuals manage essential expenses—like buying work attire—before receiving their first paycheck, reducing reliance on predatory lending.
4. Who is leading this initiative at Visa?
Janice Yeo, Vice President and Head of Consumer Products and Solutions at Visa, is spearheading the effort to expand credit access through data-driven solutions.
5. When will these solutions be available to the public?
Visa’s microcredit program is currently in pilot phase, with plans to scale across Southeast Asia as digital infrastructure and partnerships mature.
Transcript the interview:
In many of our developing Southeast Asian markets, more than 80% of these people don’t have access to a Visa credential today. And to me, that’s a really important question to solve because when they don’t have access to credit, these consumers are going over to not unsustainable sources of funds, and sometimes they’re paying interest rate of up to 50, 60% and going into debt in the case.
And at Visa, I want to solve that problem because that matters to me. And the way we’re doing that right now is:
- One we’re piloting with our clients.
- Two, we’re partnering with fraud detection capabilities and high technology people out there to be able to bring that.
- And three, we are bringing micro microcredit solutions as well.
Let me tell you a little bit about the fraud detection capabilities that we’re bringing and the data that we’re actually bringing to the table to be able to decision these people. So take yourself, for example, you maybe imagine yourself today, maybe fresh out school. You’ve got a nice job. Maybe in an investment bank, you need your first suit, but you don’t have the thousand $500 to pay for that today.
And a credit card will be really helpful, but you haven’t gotten your first pay slip. You probably don’t have a credit score, so a bank can give you the credit card the way they usually would. But they would love to. And here’s where Visa can play a role. We can bring other data because we can see what you’re spending on.
We know what’s your average basket size when you order food delivery. We probably know where you live. We also have other data about whether you are paying your mobile subscription free on time. And with that, I can actually tell if you’re a reliable data, reliable credit user, and I can give you maybe not.
The full credit amount, but I can give you $500 today and that would be really helpful to you to your first paycheque. And so with that, visa is really trying to solve the really important issue in our economy today and bringing credit to people that can really need it.