Next in the series of well written articles in the ICAEW fit for Lending series deals with Fintech loans, the alternate source of loans that are targeting SMEs for loans where the banks are still fearing to tread.
We’ve dealt with these type of loans before in prior notes. We’ve covered P2P lending in Crowdsourced Loans in regards to Malaysia, these type of loans are becoming more prevalent in Asia as the regulatory structure relaxes, and non-banks are allowed to make loans, however Asia is still overprotective of investors and remains conservative in this regard – this compares to one of the larger UK lenders featured in the article, Funding Circle, which has made more the GBP800 million of loans ! I came across a Singapore online crowdlending site, MoolahSense recently, although this site seems to have few loans on its books. Clearly whilst this market is being hyped in a big way, the market still faces the normal e-commerce issues of very high competition and marketing budgets.
The article also covers invoice factoring which is a very old form of lending, now moving online with better algorithms to score the lendees and the billed clients against which the invoices are lent. This is covered in a prior article related to Asia in Start-up SME Loans
SME News Asia
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