Survey Finds 72% of SEA MSMEs Increased Income Through Digital Funding

Fintech launches green loans

SINGAPORE, Nov. 24, 2021 / PRNewswire / – Finance Companies, South East Asia largest digital financing platform for SMEs, today published its regional impact study. To mark a half-decade of FinTech lending, its 2020 survey measures the social and economic impact of its financing to MSMEs linked to finance companies (micro, small and medium-sized enterprises) in 2018 and 2019 through Singapore, Indonesia, and Malaysia. 72% of respondents said their income would decline without funding from FinTech companies. In its six years of activity, Funding Societies has funded more than US $ 1.8 billion through more than 4.8 million loans to nearly 100,000 MSMEs in the region.

Kelvin Teo, group co-founder and CEO, Funding Societies | Modalku

Applying the Global Multiregional Input Output (MRIO-GVC) method to estimate sector contribution, developed by the Asian Development Bank, the study also uses data collected from internal systems of companies in the sector. financing and user research to measure the impact of the lender. . Industry, income, expenses, depreciation and number of employees are some of the data points taken into account in the program that creates the results of the finance company survey. 84% of small businesses surveyed had used FinTech funding as working capital to pay for overhead, inventory, and business equipment, all of which were crucial in their efforts to maintain operations. The SME lender offers micro-loans of US $ 500 Up to US $ 1.5 million, which can be disbursed in as little as 24 hours, responding in a timely manner to SMEs facing the relevant challenge of accessing corporate funds.

One of these SMEs is IncuBaker, a local shared kitchen facility started by a former military officer. Terence ho. Terence asked for seed funding, but was turned down by mainstream financial institutions:

“Traditional financial institutions thought it was too fishy, ​​so we were turned down. The finance companies were able to bridge that gap for us. The whole application process took less than a week. The funds were disbursed in less than 48 hours. It was quick. . “

Co-founder and CEO of the Group, Kelvin Teo, said: “My co-founder, Reynold, and I have created finance companies to make a positive difference in South East Asia and we are encouraged to see the huge impact on SMEs over the past 6 years. We seek to empower SMEs not only in digital finance, but also to solve their other problems over time. “

According to a investigation conducted by Ernst & Young, 16% of SMEs are open to exploring other financial service providers, including non-banks, and 68% said they are open to non-traditional lenders because the call main is a much faster loan approval process.

“We are looking for other ways to create impact through ESG financing. It is in line with the government’s green plan, satisfies our investors’ demand for sustainable investment opportunities, and frankly the right thing to do,” continued Kelvin.

Blackrock Global Sustainability Investing Survey 2020 revealed that 54% of its respondents worldwide see sustainable investing as fundamental to investment processes and outcomes, and 57% of APAC respondents said that sustainable investing is already – or will become – at the heart of their investment strategies.

Funding Societies has launched its green loan product, in which it offers a 40% interest rebate on its unsecured microcredit offerings to small businesses that meet one of the following “green” criteria:

  • Green industry: the company belongs to an industry that promotes environmental and climate solutions

  • Green project: the company is embarking on a project that has clear tangible results for the environment and the climate

  • Green certification: the company is in the process of obtaining or already has an industry-recognized green certification

SMEs wishing to apply for green business financing can write to [email protected] for more information.

Access the full report on

Note: The full survey on the economic impact of finance companies is available to media upon request.

About finance companies

Finance companies | Modalku is the largest digital financing platform for SMEs in South East Asia. He is licensed in Singapore, Indonesia, Thailand, and saved in Malaysia. It is backed by Sequoia India and Softbank Ventures Asia Corp among many others, and provides financing to small and medium enterprises (SMEs), which is funded by individual and institutional investors. In 6 years, it has contributed to the financing of more than 4 million business loans with more than S $ 2.5 billion in financing. She received the MAS FinTech Award in 2016, the Global SME Excellence Award at the ITU Telecom World of the United Nations in 2017, KPMG Fintech100 in 2018, Brands for Good in 2019 and in 2020 recognized by IDC as one of the 5 FinTechs at the fastest growing. in Singapore, won the Stevie® Award for Innovation in Technology, and named ASEAN Startup of the Year by Global Startup Awards. In 2021, he was honorably mentioned as Responsible Digital Innovator of the Year by the SME Finance Forum and won the 3rd ASEAN Fintech at the Singapore Fintech Festival Global Fintech Awards.

SOURCE finance companies

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