Peer-To-Peer Lending and Digital Lending Players In Hong Kongby Fintech News Hong Kong January 31, 2018
Despite being a global financial center with a thriving fintech sector, Hong Kong has lagged behind in the crowdfunding and peer-to-peer lending space. Experts and industry observers have argued that the lack of clear guidance and regulatory framework has hampered the growth of the practice in Hong Kong.
Peer-to-peer lending is a form of crowdfunding used to raise loans (personal and business) from the crowd. An increasing number of small and medium-sized enterprises (SMEs), notably in developing countries, are relying on the method to raise capital.
Several foreign players have started operating in Hong Kong, including Kickstarter, Indiegogo and Indian Monexo. But Hong Kong also has some homegrown players.
Founded in 2013, WeLab is a prominent peer-to-peer lending player in Hong Kong. The company operates online lending platforms which provide unsecured personal loans to borrowers. These include Wolaidai, one of China’s leading mobile lending platforms, and WeLend, Hong Kong’s leading online lending platform.
Online lending platform WeLend doesn’t require borrowers to be present. All they need to do is to provide their Facebook and LinkedIn profiles. The platform aims to offer the lowest interest rates and fastest approval turnaround. It has its own proprietary credit rating software, WeDefend, to determine the credit worthiness of their borrowers.
WeLab completed a US$160 million funding round in January 2016. The firm’s US$220 million of combined Series B+ equity and debt strategic financing round, closed in December 2017, brought WeLab’s total funding to US$425 million.
Best Lend claims to be the premier peer-to-peer lending platform in Hong Kong. The company is a subsidiary of Hai Tong International Securities, a prominent stock broker from mainland China. Hai Tong has more than 10 branches in Hong Kong, Macao and Singapore in addition to its 240 branches in mainland China.
Best Lend conducts vigorous credit rating assessment on borrowers before deciding on the appropriate interest rates for them. The platform connects individual borrowers with institutional and individual investors.
EasyLend‘s motto is “0 branches, 0 document, 0 waiting time.” Loan applications are processed entirely online including express private loans, mortgages and revolving loans to meet the needs of different customers.
The company claims an application can be approved the fastest in 15 minutes but the processing time varies depending on the particular circumstances of individual applications.
Borrowers can choose a repayment period ranging from two months to 60 months.
EasyLend is a member of the Hong Kong Finance Group (Stock Code 1273), a listed company established in 1996.
Finance One specializes in personal loans and claims its goal is to provide affordable financial services through digital channels.
The company provides an online application process as the only channel of its business platform so that its operating costs are minimized. This ensures that the company is able to provide clients with consumer finance services with affordable monthly payments. Users can apply for a loan by just spending a few minutes anytime, anywhere through our 24/7 Internet platform.
Finance One doesn’t charges any fees.
MoneyMonkey is a young fintech startup that specializes in online lending services for Hong Kong customers. The company aims to provide customers with fast, flexible and smart loan services.
MoneyMonkey uses big data analytics to analyze and understand customers’ repayment ability more accurately. An automated loan approval process allows it to reduce manual intervention so loans can be approved and delivered quickly.
Top Profit Finance
Top Profit Finance is an online lending platform that provides private loans of up to HK$2 million with flexible repayment periods ranging from six months to ten months. Top Profit Finance also provides mortgages.
The company claims loan applications are approved in only ten minutes, it can take as fast as 30 minutes from the loan approval to actually receiving the loan.
Top Profit Finance specializes in mobile lending services.
One of the most recent platforms is MoneySQ. The company announced an allegiance with asset management firm Bridgeway Prime Shop Fund Management Ltd in 2016 to create the online lending service and Hong Kong’s first investment platform designed for professional investors.
Fundraising is arranged by Bridgeway, a SFC licensed firm, while MoneySQ, a licensed money lender, manages the online lending platform.
MoneySQ claims it aims to create new solutions to better meet the financing needs of individuals and businesses while lowering costs and providing access to new avenues for wealth creation.