The alternative finance industry, or marketplace lending, has become increasingly popular regionally in recent times and has been growing at an impressive pace.
In 2016, Southeast Asia’s alternative finance market grew 363% from 2015 to a value of US$215.94 million, with marketplace business lending amounting to more than half of the market’s value. Further data showed that the market size of Singapore’s marketplace business lending grew almost 10x from US$9.43million in 2015 to $88.4million in 2016. In 2016, MAS created regulations for securities-based crowdfunding. Funding Societies was one of the first to acquire a CMS license and has grown significantly to become the leading platform in Indonesia as well as Malaysia.
In response to the potential growth, the Singapore Fintech Association (SFA) announced the creation of Marketplace Lending Committee.
Marketplace Lending Committee aims to represent all marketplace lenders, nurture and build relationships, design and promote good practices, and play a part in ensuring that the industry remains a reliable and viable source of alternative financing for business owners.
Funding Societies is hereby proud to announce that Kelvin Teo, our CEO and Co-Founder, is the Co-Chair of the core committee for Marketplace Lending. The committee is made up of online lenders licensed by the Monetary Authority of Singapore of the Capital Market Service License.
Marketplace Lending Committee’s initial tasks are to design and promote best practices, industry guidelines and codes of conduct in a collaborative and open manner. This is to encourage transparency between market participants.
Kelvin Teo, Co-Chair of Marketplace Lending, CEO of Funding Societies, stated:
“Working together, we believe this is the first step towards building a healthy and sustainable marketplace lending industry.”
To find out more about Marketplace Lending committee or the Singapore Fintech Association, visit https://singaporefintech.org/marketplace-lending/
Here are some images taken during the event to announce the launch of Marketplace Lending: