Good Financial exists to serve the financial needs of domestic helpers and empower them to thrive.
The idea for Good Financial was conceived during the PhD research done by Dr. Joy Arenas.
She learned that there are 360,000 domestic helpers in Hong Kong and 90% of them have taken a loan before.
However, the experience of getting a loan is awful and full of pain points. The financial industry for migrant workers is horribly broken and dysfunctional.
Domestic helpers describe the loan-taking process as ‘scary’, with lenders being aggressive and intimidating. Moreover, the interest rates can be exorbitant – 120% per annum or more.
Some lenders also require them to have guarantors, which is the single biggest problem which causes the most trouble. Many borrowers are vulnerable, living on the knife's edge of poverty. When a financial emergency happens they cannot pay their loan.
The lending companies aggressively collect from both the borrower and the guarantor which usually results in employers being contacted, which then leads to the helper being terminated.
The worst part is this spreads. The guarantor has their own loans, with guarantors too. When the guarantor gets terminated, more people are dragged into the mess. This all dominoes until 5-10 borrowers end up in financial ruin because of 1 initial emergency.
The guarantor system has to stop. It is time for change.
Good Financial exists to provide ethical financial services for domestic helpers to trust. With No Guarantors. Fast and Convenient Service. Ethical Loans and Savings. Low Interest.
We care more than just P&L. We are purpose-oriented: developing bold solutions and re-inventing financial products with an inclusive and customer-centric approach.
We are improving access to financial products with the goal of empowering women and generating social value. This part comes from the heart.
