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The platform workers in Singapore, including delivery drivers and private rental drivers, have made considerable progress in the administration of their debts according to the latest findings of the Fintech platform Lendela.

The debt consolidation, the biggest reason for loans in platform employees, has decreased by 15 percent in the past two years, which means improving financial management.

However, the increasing cost of living remain a continuing challenge, whereby the cost of living is becoming the dominant reason for borrowing.

The Lendela report shows that 36.7 percent of the delivery drivers and 34.1 percent of private tenants initially took loans for debt consolidation.

However, the numbers have decreased in the past few months because the platform members have managed their debts more effectively.

Despite this progress, the cost of living has increased significantly.

Recurring legislation and household costs have proven to be the main motivations for loans, which indicates continuing financial pressure despite improved debt management.

Bryan Tay, Country Manager from Singapore at Lendela, said: “While platform workers in Singapore have shown a greater insight into debt management, the cost of living remains a continued challenge. This is a broader problem with the affordability that we still have to monitor closely.”

In particular, the study shows that older platform workers are hardest.

The proportion of loan inquiries from employees in the 1960s rose by astonishing 147 percent, while those in the 50s rose by 86 percent.

In contrast, in the demography of the under 30s, a decline in credit applications by 42 percent, which reflected a shift in credit behavior in different age groups.

“Four out of six of the most common reasons for borrowing between the platform workers relate to the cost of living,” added Tay. “From recurring invoices to household costs and education, platform members are increasingly appealing to personal loans in order to cover the essential requirements.”

The report also determines an increase in the number of platform members that take up larger loans between 10,000 and 20,000 US dollars in order to cover the essential costs.

If financial institutions tighten the credit ratings, the demand for flexible repayment options becomes more urgent.