Fintech, Smallholders, and Sustainable Agriculture in Southeast Asia: An Economist Intelligence Unit Research Programme Commissioned by USAID Green Invest Asia

Smallholder agriculture is a major part of the economies in Southeast Asia, with agricultural employment representing roughly one third of the labor force. Owing to inadequate access to traditional banking systems however, most smallholders are unable to scale production and advance agricultural techniques.

Fintech has made financial services more accessible to groups that traditionally fell outside of formal finance. They can provide alternative and automated models to facilitate smallholder-focused lending and channel private sector investments more effectively to accelerate adoption of sustainable agricultural practices.

The research addresses three key questions:

1. What are the key technologies for reaching smallholders with financial services, such as payments, loans, and insurance?
2. What financial business models have the most promise for facilitating investment in sustainable agricultural practices at scale among smallholders?
3. What are the limitations of emergent technology and how can novel financial products or services help to overcome last mile obstacles?