Fun­daztic looks to col­lab­o­rate with lo­cal banks

New Straits Times - - Business / News -

SHAH ALAM: With a tar­get to raise RM40 mil­lion within the first year of its for­ma­tion, peerto-peer (P2P) fi­nanc­ing plat­form Fun­ is look­ing at a close col­lab­o­ra­tion with lo­cal banks to re­solve the gap in fi­nanc­ing, es­pe­cially for the mi­cro and small and medium en­ter­prises (SMEs).

Its chief ex­ec­u­tive of­fi­cer Kris­tine Ng said it is in talks with a cou­ple of banks to help SMEs gain ac­cess to fi­nanc­ing, if they can­not get it from the banks.

“We be­lieve that rather than look­ing at P2P fi­nanc­ing as a dis­rup­tive in fi­nan­cial tech­nol­ogy, banks are also em­brac­ing it at the same time.

“We are talk­ing with a cou­ple of banks in terms of col­lab­o­ra­tions and we see the pos­si­bil­ity of col­lab­o­rat­ing.

“As banks have a huge net­work and they have much big­ger sales force, wher­ever they meet SMEs that they are not able to give fi­nanc­ing to, it would be good if they can re­fer them to us.” said Ng.

Since its soft launch on July 7, Fun­daztic has hosted eight in­vest­ment notes on its web­site, of which three have been fully funded with a to­tal amount of RM180,000.

Five other notes are in the fundrais­ing process.

The sim­ple in­ter­est rate for these in­vest­ment notes ranges from 6.65 to 9.95 per cent. The ef­fec­tive in­ter­est rate, which takes into ac­count the re­duc­ing prin­ci­pal be­ing paid to in­vestors every month, ranges from 12.29 to 18.07 per cent.

The du­ra­tion for these notes is from six to 36 months.

Ng said the in­vest­ment notes listed on the Fun­daztic web­site come with their own credit rat­ing. Farah Adilla

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