The Growing Alternative Finance Industry

From James Mackonochie at OFF3R Ltd:

“Peer to peer lending levels continue to rise in the UK. The first half of 2017 has an increase of over £350 million from the previous half year period at the end of 2016.The news is positive for the P2P Lending sector that is benefitting from the low interest rate environment the economy is currently in. As with equity crowdfunding, it will be very interesting to see how the P2P lending sector performs in the second half of 2017. ”

Peer to peer lending is fast growing in UK and other western areas. The similar trend is to be observed in Asia as well. Singapore, the Fintech Hub in Asia, has a large market of P2P lending especially in SME financing sector. A billion-sized market is helping SMEs obtain better working capital solutions. The range of products offered by P2P lending contains invoice financing, PO financing and a lot of new things are coming soon in the market.

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A Blockchain-Based Solution to Liquidity Needs

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