This article first appeared in The Edge Financial Daily on June 26, 2018 - July 2, 2018

KUALA LUMPUR: OCBC Bank (Malaysia) Bhd has teamed up with Peoplender Sdn Bhd to enhance access to financing for micro, small and new businesses.

In a joint statement yesterday, OCBC Bank and Peoplender said the effort will be operationalised through Peoplender’s wholly-owned peer-to-peer financing platform Fundaztic.com, which is licensed by the Securities Commission Malaysia.

The effort will see OCBC Bank referring to Peoplender viable small and medium enterprises (SMEs) seeking wider financing options to enhance and support their business growth.

According to OCBC Bank chief executive officer (CEO) Datuk Ong Eng Bin, the current effort represents a meaningful partnership with viable businesses that might not easily qualify for standard bank loans.

“With the emergence of peer-to-peer financing platforms, opportunities that were previously unheard of are now available. However, there continues to be a gap between those in need and those in a position to meet the need. We are delighted to play our part in bridging this gap through our partnership with Peoplender,” he said.

Peoplender CEO Kristine Ng said alternative funding platforms are part of an entirely new industry, with Fundaztic itself having been in the market for barely a year.

“This limits our ability to reach out to all the viable SMEs out there, which is why the collaboration with OCBC Bank is a promising endeavour as the bank has a much wider reach both in terms of network and personnel,” she said.

Ng said Fundaztic’s investors can expect to receive returns on investments of between 13% and 23% per year, depending on the risk grades of the SMEs they invest in.