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25-30-year-olds apply for short-term financing online most often

According to the internal research of Robocash Group, loans issued in South and Southeast Asia online for up to 30 days are most popular among borrowers in the age of 25-30 years.
Comparing different age groups in the Philippines, Vietnam, Indonesia and India, the analysts found several patterns. Thus, 29.1% of Filipinos, 44.7% of Vietnamese, 34.6% of Indonesians and 38.0% of Indians among borrowers are in the age of 25-30 years, which is the largest group.

Customers in their 18-24 years take the second place with 22.3% in Vietnam, 20.1% in Indonesia and 20.0% in India. In the Philippines, the situation is different. The second largest category there is represented by 35-40-year-olds making 19.8% of borrowers.
It is notable that the third biggest age group across all countries is the same – 31-34 years. This category makes up 17.4% in the Philippines, 17.6% in Vietnam, 17.1% in Indonesia (the same share as in the age group of 35-40) and 19.1% in India.
The fourth biggest age category is different across the considered countries. In Vietnam, Indonesia and India, it is represented by 35-40-year-olds, whereas in the Philippines – by 18-24-year-olds.
Remarkably, it is not connected with the gender aspect as the distribution in the age groups by gender looks similar.  It is worth mentioning that female borrowers prevail significantly in the Philippines, while in the three other countries men make the biggest share among borrowers.
The younger age of borrowers in Vietnam, for example, can be explained by the rapidly growing confidence of the young people in the level of financial well-being. This is indirectly confirmed by the data of The Asian Banker on the growing local auto lending market and the data of Fitch Ratings on the declining share of bad debt in the country.
In the Philippines, the reason for the older age of borrowers probably lies in the high level of digitalization of the population, which involves the older age groups as well. The level of Internet penetration in the Philippines is 71%, which exceeds the world level by 14%. It’s no wonder that the people there feel much more confident than in the neighbouring countries when it comes to mastering virtual financial space.

Jung Min-seo

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