Funding Societies (Modalku) won the Global SME Excellence Award during the ITU Telecom World Awards 2017 that was held recently at Busan, South Korea. The prestigious award recognizes the most promising and innovative information and communications technology solutions developed by SMEs to deliver social impact. Every year, an international panel of International Telecommunication Union (ITU) judges, comprising global experts, selects the SME that most represents the award. In 2017, digital financing platform Funding Societies (Modalku) beat 35 other finalists and hundreds of other applicants globally to win — while also becoming the first Southeast Asian company to take the prize.
Funding Societies, a Malaysian-founded digital platform, is the first and largest peer-to-peer (P2P) financing platform in Malaysia. The platform connects SMEs with investors through an online marketplace, thereby increasing the access to financing for SMEs. By investing into SMEs, investors could earn returns of up to 14% per year, higher than fixed deposits, bonds, and other traditional instruments. Meanwhile, SMEs can obtain financing of up to RM 500,000 in working capital to expand their business, with fast approval and disbursement within 1 week, through a simple online process and without the need for collateral.
ITU Telecom World Award winners have a history of utilizing technological innovations for social impact, specifically through information and communications technology. ITU Telecom is United Nations’ neutral and not-for-profit platform, instrumental in bringing technological innovations to global communities.
Wong Kah Meng, CEO of Funding Societies Malaysia, said, “The positive social impact from supporting SMEs has always been our key focus and we are humbled to be recognized by the United Nations’ International Telecommunication Union (ITU) as a leader in this area. SMEs have traditionally been underserved by financial institutions given the high operational costs required, but being a leading regional digital platform enables us to serve SMEs at scale in a cost-effective manner.”
Funding Societies is currently the largest P2P financing platform in Southeast Asia. The platform also has operations in Singapore and in Indonesia (under the name Modalku). Regionally, Funding Societies has disbursed more than RM 200 million in working capital financing to SMEs across more than 1,000 deals. Funding Societies is one of six P2P financing operators recognized and regulated by Securities Commission (SC) Malaysia and has received various other awards and recognition both regionally and globally, including the prestigious Fintech 250 list, a select list of emerging companies working on ground breaking financial technology around the world.