P2P FINANCING

Peer-to-Peer (P2P) Lending

What is P2P Financing?
• Peer-to-peer (P2P) lending or financing is a way for individuals or businesses to
request funds from investors via a digital platform.

• The digital platform serves as the middleman or intermediary between the applicant
and the investor.

• Multiple investors then contribute their funds towards a request made by the small
and medium enterprises (SMEs).
How does P2P works?
Current Status of P2P Financing
• The P2P industry is still in its early stages in Malaysia with such service offered only
about two years ago, but as of June this year it has already raised RM377.16 million
in funds.

• According to statistics from the Securities Commission Malaysia (SC), this

comprised 4,438 successful campaigns and 1,139 successful issuers.
Trend of P2P Financing
• P2P platforms are looking to create a secondary market where customers can resell their
P2P loans and give them more flexibility.
 This will encourage more people to invest as they know they can choose to liquidate their stakes more
quickly if they are in urgent need of the money.

• The government’s attention has also been attracted to the success of P2P platforms.
 It was announced in Budget 2019 that a co-investment fund will be developed and used to invest in
equity crowdfunding and P2P funding.
Industry Status of P2P Financing
• In an effort to expand P2P financing access for SMEs, the Securities Commission
of Malaysia (SC) appointed six P2P operators to run P2P platforms namely
Funding Societies Malaysia (Modalku Ventures), Fundaztic (Peoplender), Quickash,
Alixco, Nusa Kapital, and B2B FinPal.
Funding Societies Malaysia –
Modalku Ventures Sdn Bhd
• Funding Societies at the time of writing is Malaysia’s first and
largest P2P lending platform.

• It is also the only P2P lending company to be featured in the

2018 Top Fintech 100 list of Emerging 50 Rising Stars.

• Based on the latest update, Funding Societies had successfully

disbursed more than RM2 billion worth of loans across the
region.
Fundaztic – Peoplender Sdn
Bhd
• Fundaztic was founded by a group of prominent ex-bankers
and a lawyer. In July 2017, it started its operations. Jeffrey
Chew is the company’s founder and chairman.

• Currently, he is also the Group CEO of Paramount

Corporation Bhd, a company listed on Bursa Malaysia’s Main
Market. Kristine Ng is Fundaztic’s current CEO.

• As of today, Fundaztic had successfully disbursed closed to

RM53 million loans to SMEs with an approximately 3%
default rate.
Description Initial Deposit for Minimum Maximum Investment Financing Type Financing Service Fee
Registration Investment for Individuals Tenure

Funding Societies RM1,000 RM100 RM50,000 Business loan or 1 – 24 months 0.16% – 2% of

Invoice financing each repayment or
15% on interest

Fundaztic RM0 RM50 Recommended RM50,000 Business loan 3 – 60 months 1% of each

repayment
Quickash RM0 RM100 No Limit Business loan 1 – 24 months 1.25% – 1.5% of
each repayment

Alixco RM0 RM500 Recommended RM50,000 Business loan 6 – 24 months 1% of each

repayment
Nusa Kapital RM0 RM500 RM50,000 Business loan 2 – 6 months 10% on return

B2B FinPal RM1,000 RM100 RM50,000 Business loan or 1 – 6 months 30% sharing on
Invoice financing interest
Advantages and Disadvantages of P2P Lending

Advantages Disadvantages
• It provides higher returns to the • Peer-to-peer loans are at high risk
investors of debt
• Providing more accessible source • No insurance/government
of funding protection
• Lower interest rates • Legislation
How P2P Financing Will Change The Way We Use
The Internet and We Do Business?
• Peer to Peer Lending Platform provides new ways for lenders to grow their money with an
unconventional route that benefits lenders.

• A P2P lending platform offers a better way for people to invest money.

• If one looks at P2P lending from an investor’s point of view, the platform provides access to the
credit instruments without the involvement of any middlemen.

• Lenders can diversify their investments and choose the deals or projects, which they wish to fund.
THANKS FOR LISTENING !