Our Insights and Perspectives

In this report, we examine the intricacies of the trade finance and cargo services ecosystem in Hong Kong and the broader Asia Pacific region, including the persistent credit gap and its underlying causes. We also explore the case for incumbent lenders to explore alternative data-driven lending solutions to bridge this credit gap.

In this report, we explore the various challenges encountered by SME lenders, including traditional and digital banks and non-bank financial institutions, that have contributed to Hong Kong’s persistent SME credit gap. We also explore the implications of these challenges on the SME customer journey, including outlining how local lenders can reinvent their SME lending propositions – in particular, by way of algo-based lending.

In this report, we explore three overriding structural challenges facing Hong Kong’s credit card industry: (1) oversaturation; (2) underutilisation; and (3) high churn. We also examine the case for issuers shifting their current focus from new customer acquisition (i.e. expanding the customer base) to activation (i.e. deepening customer spending) via better leveraging merchant deals.