The Evolution of P2P Lending Platforms in Asia

| August 11, 2017 | 0 Comments

P2P Lending

The Future of Loans:

Peer-to-peer lending, also known as P2P, has become an attractive alternative for individuals and businesses in Asia that cannot access to traditional loans.

This revolutionary system puts lenders and borrowers in contact without using an institution as an intermediary, for instance a bank. And even though it appeared for the first time in the Western hemisphere in 2005, and is now a booming market, it is relatively new to Asia, but people and businesses here have accepted it with open arms.

The Perfect Solution for the Unbanked:

Without a good credit score – or even worse without one at all – most banks will refuse to give you a loan, and if they accept, then you are expected to pay much higher fees. That’s where P2P lending platforms come into play: they bring help to the unbanked.

This is where many start-ups have seen an opportunity, and in this article we will review some of the best. But before we get into that…

What about Cash Cards?

Cash cards can be a good solution for individuals, but for businesses that need more money, they are not a good option. And of course, we are talking about cash cards that do not require much.

For a person in Thailand who earns more than 7000 THB per month, the Umay Plus’s cash card is an excellent option, because almost anyone in this country can get it. And the best part is that the interest rate is not very high, never more than 15% per year.

And just like Umay Plus you can find many other options in several Asian countries like Singapore, Indonesia and Vietnam. They are okay for individuals, but as we said before, for businesses they’re not the best option out there.

But worry not, because there are several interesting P2P lending platforms that can help you. And the best thing is that they are present in different countries in Asia, because this type of service is gaining plenty of interest and that’s what is driving its growth in the region.

Thats the beauty of P2P: you can get all the money you need for your projects without problems, something that would be impossible for an “unbanked” through traditional means.

The Best Platforms: The Future Is Here

Even though this is still a novelty in Asia, many smart individuals have seen an incredible opportunity in this new market, and here you have the best ones at the moment.

MoolahSense – Singapore:

Backed up by big names like Pix Vine Capital and East Ventures, this start-up was founded in 2013 and since then it has become one of the most important P2P platforms in Singapore and the entire continent.

The platform is very active, and you can easily verify it when you check that their fastest funding was completed in just 30 seconds.

The listing are reviewed and approved quite quickly and it allows you to choose from business loans or invoice financing.

It’s also important to mention that they signed up a partnership with DBS Bank, so they can refer borrowers to the bank who may need larger loans.

Crowdo – Malaysia:

Founded in 2013, Crowdo is one of the most important P2P lending platforms in the continent and hence a strong referent.

It has more than 20,000 active members and has provided funding to a wide myriad of startups in the country. It is also important to note that it is licensed by the Securities Commission of Malaysia, something that makes it even better and safer.

Moreover, they also offer very competitive interest rates and plenty of opportunities for investors. Therefore, without any doubts, it’s one of the best examples of successful P2P platforms in Asia.

Creditease – China:

One of the most interesting features of this platform is that its user base is quite diverse:

  • Business owners
  • Professionals
  • Students
  • Individual investors
  • Farmers

It was founded in 2006 and is now serving 232 cities and 96 rural areas. The goal of this platform was to put funding at the reach of any person in China, and as it seems, so far now it has been working very well.

Although their website is not the most beautiful and modern in the internet, it is still the preferred P2P lending platform for many Chinese people and businesses.

WeLab Holdings – Hong Kong:

The most popular Hong Kongs P2P lending platform. It was founded 2013 and since then it has consolidated as one of the most successful internet finance companies in Asia.

This mobile lending platform has been awarded multiple prizes:

  1. China’s Top 50 Most Innovative Companies
  2. World’s Top 100 Fintech Companies
  3. 2nd Largest Fintech Series B Fundraising in the World

Its backed up by some of the largest investors in the region like Sequoia Capital. And their efficiency in fundraising has been proven over and over again, and a proof of it is that in January 2016 they raised $160 million in a Series B funding round where big names like Guangdong Technology Financial Group participated.

It is another proof that the P2P lending scheme is already successful in many countries.

Crowdcredit – Japan:

Crowcredit is a marvelous startup for these reasons:

  1. It has been in the market since 2014
  2. It has raised over ¥848 million in loans ($127+ million USD)
  3. Is trusted by individuals, investors and businesses
  4. It is a cross-border P2P platform

One of the best features about this platform is that it allows Japanese investors to lend money to businesses and individuals in the following countries:

  1. Italy
  2. Peru
  3. Spain
  4. Cameroon
  5. Finland
  6. Estonia

The business model has been working very well, because it incentivizes investors to lend money in exchange for good returns. And so far now it’s been functioning correctly.

Final Words:

As we can see, taking into account all the P2P lending startups present in Asia, the problems they solve and the opportunities they create, it is wise to say that this lending scheme is being very successful.


Category: Payday Loan

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