Funding Societies and MoneyMatch, two leading local FinTech startups, announced an official strategic partnership to broaden access to alternative financial services for Malaysian small and medium-sized enterprises (SMEs). Funding Societies, Malaysia’s first and largest peer-to-peer (P2P) financing platform, will support efforts to build awareness for MoneyMatch, a cross border money transfer platform approved by Bank Negara Malaysia. In turn, Money Match will refer clients in need of business financing to Funding Societies. The arrangement is subject to SME customers’ consent.
The collaboration aims to provide businesses, particularly SMEs, with a wider range of options when searching for quality business financing and when performing cross border transactions. For example, an SME making a purchase of raw materials or inventory from overseas can utilize joint FinTech solutions from both startups. The SME can obtain working capital financing with no collateral requirements from Funding Societies to fund the purchase, while also executing remittance payments with lower fees and better exchange rates through MoneyMatch. The partnership also supports initiatives from government bodies, such as Securities Commission (SC) and Bank Negara Malaysia, to digitize financial solutions.
Funding Societies connects SMEs with investors through an online marketplace, thereby increasing access to financing for the SME sector. By investing into SMEs, investors could earn returns up to 14% per year, higher than fixed deposits, bonds, and other traditional instruments. Meanwhile, SMEs could obtain up to RM500,000 in working capital financing to expand their business through a fast and simple online-based process. SMEs do not need to provide collateral as part of the financing requirements, while interest costs are minimized due to short financing tenors.
According to estimates cited by the Securities Commission (SC), the Malaysian SME sector has a financing gap of more than RM 80 billion. Market-based financing options like Funding Societies can provide alternative solutions to address the needs of Malaysian SMEs.
Mr. Wong Kah Meng, CEO of Funding Societies Malaysia, stated: “This is a very exciting partnership as it is a first between platforms regulated by Bank Negara Malaysia and Securities Commission Malaysia. Through the collaboration, we aim to drive greater adoption of value-added FinTech services to more Malaysian businesses, particularly for smaller enterprises which are underserved.”
MoneyMatch is a comprehensive and fully digital cross border payments FinTech startup based in Malaysia. The platform offers a cheaper, faster, and more convenient online-based digital process for individuals to perform remittances and for businesses to perform cross border transactions.
Funding Societies is currently the largest P2P financing platform in Malaysia and Southeast Asia. The platform also has operations in Singapore and in Indonesia (under the name of Modalku). Regionally, Funding Societies has disbursed more than RM300 million in working capital financing to SMEs across more than 2,000 deals. Funding Societies is recognized and regulated by Securities Commission (SC) Malaysia and has received various awards and recognition both regionally and globally, including making the prestigious Fintech 250 list, a select list of emerging companies working on groundbreaking financial technology around the world and winning the Global SME Excellence Award from the United Nations’ ITU Telecom Unit, which recognizes the most promising and innovative information and communication technology developed by SMEs for social impact.
MoneyMatch is a Malaysian grown FinTech startup approved by Bank Negara Malaysia in the FinTech Sandbox delivering innovative solutions in cross border payments and peer to peer currency exchange enabled with their proprietary eKYC system. Since the official launch in October 2017, over RM38 million in transactions has already been processed with a coverage of 56 countries globally for their Transfer platform. The MoneyMatch Exchange mobile app for peer to peer currency exchange is currently available on iOS and Android platform as well.
Funding Societies is the largest regional P2P financing platform in Southeast Asia, connecting creditworthy SMEs with retail, high net worth and institutional investors. It is the only Southeast Asian P2P financing company selected to the Fintech 250, a global list of emerging private companies working on groundbreaking financial technology (FinTech).
As a result, SMEs will have better access to financing whilst investors are able to earn attractive investment returns of up to 14% p.a. (25% p.a. in effective terms) and invest from as low as RM100. The investments typically have a tenor of up to 12 months and come with monthly repayments, enabling investors to encash sooner and re-invest.
Funding Societies has disbursed more than RM310 million in SME financing across Malaysia, Singapore, and Indonesia. In April 2017, Funding Societies Malaysia announced a strategic collaboration with the RHB Banking Group to widen financing access for underserved local SMEs; it is the first partnership between a Malaysian bank and a P2P financing platform.
MoneyMatch is a Malaysian grown FinTech startup approved by Bank Negara Malaysia in the FinTech Sandbox delivering innovative solutions in cross border payments and peer to peer currency exchange enabled with their proprietary eKYC system. Since the official launch in October 2017, over RM38 million in transactions has already been processed with a coverage of 56 countries globally for their Transfer platform.