When you’re a small or medium sized business (SME) in need of funds, do you turn to a bank or a peer-to-peer (P2P) lender? Going by how P2P SME lenders in Southeast Asia are expanding, possibly a fair number have had to turn to the latter. Especially in times of crises, when banks overlook overlook The Ken Backs to the wall, Singapore’s SMEs see a saviour in alt lending companies Read more small businesses, as we’ve written before.
Shake it off
SME lenders Validus, Funding Societies shed P2P tag to grow in SE Asia
On one side are incumbent banks, and on the other, upcoming digital banks. P2P SME lenders need to maintain asset quality and collect enough data to stay relevant, all while fighting off the discredited P2P label
P2P SME lenders Validus and Funding Societies have been expanding into new markets and securing funding, in spite of the pandemic
They’re both trying to shake off the P2P tag, as their investor base turns towards institutions rather than individual investors
With the basics of lending being ‘get more good borrowers than bad’, these lenders have to get it right with their slim margins
While digital banks are on the horizon, traditional banks could pose a ever present threat—if they care to