SINGAPORE FINTECH ASSOCIATION LAUNCHES MARKETPLACE LENDING COMMITTEE

The Singapore Fintech Association has launched a marketplace lending committee, which aims to build trust in the alt lending industry. It wants to ensure that alt lending is seen as a credible route to secure financing for businesses in Singapore.

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The committee wants to achieve this by promoting best practices and by developing industry guidelines and codes of conduct. Additionally, it wants to promote transparency between players in the market.

The alt lending market in Southeast Asia saw growth of 362% from 2015 to 2016, reaching $215.94 million, according to the Singapore Fintech Association, suggesting the segment is booming. Large alt lending players in Singapore include Crowdo and Funding Societies, among others.

Here's what this committee means for Singapore's marketplace lending segment:

Marketplace lenders in the region will likely benefit from the committee's expertise.The committee is made up of senior figures who have experience working for alt lenders licensed by the Monetary Authority Singapore (MAS), including Kelvin Teo, CEO of Funding Societies. This hands-on experience and knowledge about possible hurdles will likely ensure the committee comes up with feasible guidelines to facilitate a smoothly running alt lending industry.

The more support alt lenders receive, the more trust investors will likely put in them. Having a specific committee dedicated to alt lenders will probably increase trust from potential customers, as it indicates the segment is taken seriously by associations in the country. This, in turn, will make them more likely to choose alt lenders for financing, potentially giving these firms a boost in customer numbers.

Singapore really puts effort into ensuring all segments have the chance to flourish.This latest move from the Singapore Fintech Association comes after MAS recently announced plans to establish AI guidelines, and fintech hub LATTICE80 chose to pivot toward blockchain companies in Singapore after seeing a high need for it. This segment-by-segment approach by influential groups in Singapore will likely ensure that all areas of fintech can flourish and get the support that they need. As more of these specific associations and projects are formed in the city-state, we expect Singapore to further cement its place in Asian fintech.