From Max Bronstein at Nasdaq:
“In a world where growth moves faster than payments, many small businesses struggle to pay off their urgent capital expenditures. Companies of all sizes have short-term costs that are integral to their operations: Office rent, short-term investments and employee salaries are all generally paid on a weekly or monthly basis, while accounts receivables can remain unpaid for 90 to 120 days. Blockchains are great for tokenizing financial assets and enforcing complex changes in ownership. Given the vast number of intermediaries necessary to manually assess the risk of each invoice, factoring can be made much more efficient and equitable by decentralizing the verification and payment functions.”
The cutting technology is driving the current market of P2P lending as well as Invoice Factoring. In Asia’s Fintech hub Singapore, market players are investing in these technology development to help SME’s financing in a more innovative and efficient way. Thanks to the support and investment from government, it is foreseeable that in the near future the technology will change the way of banking. Continue reading
From Marketing Interactive:
“Throughout the history of banking, financial institutions have been the centre of all transactions for consumers and businesses. Large institutions held control of the industry.In the last ten years, the fundamental assumption that financial institutions are the only avenue to financial transactions is being called to question, especially by Millennials, who are by far the most entrepreneurial generation. This creates opportunities for peer to peer (P2P) lending marketplaces such as Prosper and Lending Club, platforms which create alternative ways to access cash loans while providing alternative yields on deposits. ”
Newly introduced peer-to-peer lending platforms are now an alternative source of yielding higher return with controlled risk compared with traditional banking. The banking system is now changed to a new ways where multiple players (e.g. Fintech) are filling gaps from traditional banking. In Singapore, the SME invoice financing sector is now moved to alternative lending side with big players such as Capital Match which provides professional services in credit assessment and factoring.