How Asia Is Adapting To The Alternative Finance Revolution

Based on data from The World Bank, more than 200 million micro, small and medium-sized enterprises (MSMEs) in emerging economies lack adequate financing, due to lack of collateral, credit history and business informality. Until recently, alternative finance platforms have witnessed staggering success and even reached a stage of maturity in the Western markets, particularly in the U.K and U.S. In recent times even the East has also joined the ranks and given the alternative finance industry a major boost. Countries such as China, Singapore, Hong Kong, and most recently Indonesia, Malaysia, the Philippines, and India have displayed a tremendously positive response to several platforms providing alternative forms of finance to enterprises and individuals. The collaborative approach with banks towards alternative finance will then continue to pick up pace, enabling banks to expand their services to a larger client segment. As the largest player in the Singapore P2P Market, Capital Match aims to provide the fastest and the most convenient way for SMEs to get financing options. 
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Hard and fast rules – Fintech

While venture funding into technology dwindled last year, the one sector bucking this trend was fintech in Asia. Venture capitalists poured a record $8.6 billion into Asian fintechs in 2016, almost 50% up from the year before. Meanwhile, funding for fintechs globally had almost halved. The Monetary Authority of Singapore (MAS), the island’s watchdog, has opted to regulate debt and equity based alternative finance platforms within existing regulatory frameworks akin to Hong Kong, while others take a more bespoke stance, such as Indonesia, Malaysia and Thailand. Not only do regulators need to straddle the difficult balance between innovation and customer protection, but they also need to be wary of creating an uneven playing field. But in the long run, new implementation on the rules of the industry will guarantee a trustable service provided for the clients who have strong business relationship with Fintech firms.  Continue reading