Digital banking customer segments in Singapore. Find further groups on my profile.

1. Rural Agri-Laborers
Debt profile – Thai farmers
Farming and Agricultural operations
employ 40% of Thailand’s 33 Million person
workforce, with an estimated contribution
of 10% to the national GDP.
Majority of the farms are family-run and
smaller in scale, making it difficult for them
to secure financing for their operations.
Context:
A financial institution was looking to implement a payment solution for one of
its major clients, a farming corporation with over 100,000 independent
farmers and 154 buying centers. Farmers would come to these buying centers
to sell their produce, and in return given cash. However this proved to be
problematic as on occasion, over €120,000 was being transferred daily,
leading to the potential of robbery, staff misappropriation of money, and the
added logistics of depositing large amounts of cash into bank accounts daily.
Opportunities:
Thailand’s agricultural export accounts for 8.4% of her GDP which amounts to
USD 38.2 billion.
Applicable solution:
• Implement a web based system that allows produce to be weighed, and
then processing payments to vendor accounts upon completion.
• Automate most of the sale process, by only requiring personnel to spot
check products for quality control before automatically weighing.
These farms rely on outdated methods of
recording transactions and contracts.
Payments
One-stop mobile solution that records
terms of contract and automates
payments.
Digital ledger that records
transactions and contracts to build
trust between buyers and sellers.
Insurance
A financial product that allows agri-
laborers to insure the most valuable
portions of their crops, hedging the
risk of a potential poor harvest and
minimize losses.
Rising need for crop insurance given
the wider variability in crop yield.
Financing
A growing segment of agri-laborers
need flexible loan arrangements for
seasonal fluctuations in crop
produce.
Implement a solution that allows agri-
laborers to instantly withdraw funds as
needed as opposed to a lump sum loan.
B$338
Billion
Average amount borrowed by
loansharks in a year to finance farm
operations and higher entry costs.
Accumulated debt for a rural-agri
farmers, due to high interest rate.
Estimated increase in average annual
income by 2037, stipulated in the
government’s “Thailand 4.0”
economic model.
B$21.59
Billion
700%
Client impact:
• Able to generate a credit score using historical earnings of farmers, which
can be utilized should they wish to apply for a bank loan.
• Increase bank efficiency by reducing the amount of cash the bank counts
and handles each day.
Varun Mittal
EY Global Emerging Markets
FinTech lead
varun.mittal@sg.ey.com
FinTech Hub
www.ey.com/sg/FinTechHub
Opportunities in the market segmentCustomer segment profile Case Study
How can FIs help?Addressable needs
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