Analysis: How the Regulatory Framework for Crowdfunding Platforms in Southeast Asia Will Benefit SMEs and Investors
Peer-to-peer (P2P) lending has come a long way since its early days as a casual crowdfunding platform. Today, individual borrowers and small and medium-sized enterprises (SMEs) can access loans without the hassle of going through banks and lengthy financial assessments.
Still, P2P lending is a relatively new industry. Investors are worried about the security of their investments and the legitimacy of P2P platforms facilitating the loan transactions.
In Southeast Asia (SEA), countries like Singapore, Indonesia, and Thailand have set up a regulatory framework to provide legal protection to borrowers and investors and strengthen the growing P2P market. Collaboration between industry players and regulators will help to integrate and establish P2P lending as a serious contributor to the fintech industry.
Simply put, SMEs, investors and P2P platforms will stand to gain from having a supportive and unified regulatory framework.
Photo courtesy of Fabian Blank.