The size of the Southeast Asian alternative financing market grew from US$46.65 million in 2015 to a whopping US$215.9 million the following year. That’s almost a fivefold leap in market value in just the span of a year, according to a study jointly conducted by the University of Cambridge and Monash University.
The United Nations estimates that Southeast Asians make up approximately 659 million of the world’s population at the time of writing—and among these numbers, a plethora of them come from regions that have traditionally been underbanked or underserved during the days before the word ‘fintech’ made any sense.
Without access to a bank account, and even if they do, a trackable credit record, these populations have been precluded from receiving loans from traditional financial institutions and thus, takes away a lot of opportunities for many of these populations to bring themselves to a higher economic standing.
P2P lending platforms have risen to address this specific problem, many able to offer smaller loans, and thus more lax terms. Digitisation or a good mobile layout also means that these platforms are able to penetrate more communities more quickly and with less upfront cost.
The rising stars of this industry will probably be coming from Indonesia, that has seen both massive demand, and a permissive regulator that deems P2P lending a viable strategy for helping its constituents rise out of poverty.
Capital Match, which was established in 2014, provides business and SME loans and invoice financing facilities of S$50,000 to S$200,000. The platform had funded S$62 million in loans, as of December 2017. Capital Match has raised S$1 million in funding so far from Innosight Ventures, Crystal Horse Investments and CE-Tech Invest.
Capital Springboard is the latest venture by David Rawson-Mackenzie, who specialises in wealth and alternative financial strategies. David’s network of companies, the Centurion Group, offers a full suite of financial services for private and institutional investors. Capital Springboard is one of the the largest P2P invoice finance platforms with more than S$170 million worth of invoices transacted as of October 2017.
CoAssets Pte Ltd is a Southeast Asian public listed crowdfunding site with offices in Singapore, Australia, Malaysia, China and Indonesia. CoAssets Pte Ltd brings real estate developers, businesses and investors together, with in excess of S$43 million worth of transactions taking place through the platform in the last two years. They have also launched Crowdfunders.Asia, a magazine that is dedicated to all things related to crowdfunding to benefit the crowdfunding community.
Crowdo is a regional fintech company offering a full portfolio of alternative financing solutions across peer-to-business lending and securities / equity crowdfunding launched in 2013.
Crowd Genie is a platform where we match Small and Medium size companies who are looking to borrow funds with investors who are looking for better returns than what they get from the banks. Crowd Genie also launched their own token, CGCOIN.
FundedHere is the first registered equity and lending-based crowdfunding platform for promising businesses in Asia, issued by the Monetary Authority of Singapore (MAS). FundedHere has built an ecosystem for both investors and businesses, leveraging on Singapore as a springboard for the rest of Asia. The platform connects promising tech startups in Southeast Asia and Greater China with professional and accredited investors. Launched in March 2015, FundedHere obtained its CMS license from MAS in 2016.
Funding Societies is a regional P2P lending player operating in Singapore, Indonesia and Malaysia. The company was founded by Kelvin Teo and Reynold Wijaya who were both Harvard graduates. Funding Societies operates in Indonesia under the name Modalku.
Recognised as Asia’s Top 25 Fintech Company by APAC CIO Outlook, Minterest intends to use a broad spectrum of innovative technologies and our team’s financial expertise to overcome existing real world financial shortcomings.
Founded in 2013, MoolahSense is a Singaporean P2P lending platform connecting local SMEs with investors. MoolahSense is backed by East Ventures and Pix Vine Capital and signed a partnership with DBS Bank to refer successful borrowers to the bank for larger loans and other traditional banking services. Funding Societies is the first Singaporean peer-to-peer lending company to incorporate a trustee registered with the Monetary Authority of Singapore (MAS).