Fundaztic looks to collaborate with local banks

SHAH ALAM: With a target to raise RM40 million within the first year of its formation, peerto-peer (P2P) financing platform Fundaztic.com 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