KUALA LUMPUR: The peer-to-peer (P2P) finance operators approved by the Securities Commission (SC) have unveiled their business strategies in their first engagement with the media.
Of the 50 that applied for the licences, the following six were approved, namely, B2B Finpal, Ethis Kapital, FundedByMe Malaysia, Managepay Services, Modalku Ventures and Peoplender.
B2B Finpal, which operates under parent company B2B Commerce running supply chain services, plans to focus on small and medium enterprises (SMEs), noting that many SMEs’ cash-flow issues have caused them to be unable to complete orders, resulting in significant cash loss.
Meanwhile, FundedByMe Malaysia, which was also one of the six equity crowd-funding or ECF operators registered by the SC in 2015, is a joint venture between Alix Global and FundedByMe Sweden.
The Swedish company is one of the fastest-growing crowdfunding platforms in Europe, having raised 28 million euros for more than 500 companies.
As for Ethis Kapital, it aims to capitalise on the rapidly growing Muslim middle-class in the Asean region, as well as Malaysia’s strength as an Islamic finance hub by providing syariah-compliant offers.
ManagePay Services is an arm of ACE market-listed ManagePay Systems Bhd, which expects to leverage on its existing customers by offering them P2P loans over a three, six or 12-month period, as a more affordable form of credit.
Besides that, ModalKu Ventures, through its P2P platform Funding Societies, already operates in Singapore and Indonesia. It has raised RM50mil in invoice financing and business term loans for SMEs.
ModalKu Ventures’ chief operating officer Kah Meng Wong said a good rule of thumb was to charge only when value has been created from successful listings, or when a loan is returned with interest.
As a financial technology company itself, Peoplender will focus on micro financing, as there is huge potential in the underserved market, adding that starting investments would range between RM20,000 and RM200,000.
“We need to start low, otherwise younger people will not be able to start investing until they are in their 30s or 40s.
“To make it palatable, we want to allow people to invest with just RM50,” said Peoplender CEO Kristine Ng Wei Miem.
All six operators said that they would likely charge service fees from companies that list through them, though not all were decided if and what percentage they would take from the interest accrued by the loan.