Press Release 2018
UOB Malaysia and Funding Societies to help start-ups and small businesses accelerate their business growth with access to alternative funding solutions
Kuala Lumpur, Malaysia, 31 May 2018 - United Overseas Bank (Malaysia) Bhd (UOB Malaysia) today announced it will partner with Modalku Ventures Sdn Bhd (Funding Societies), a regional peer-to-peer (P2P) digital financing platform, to connect start-ups and small businesses with alternative financing options to help them progress faster through different stages of growth.
Through the partnership, start-ups and UOB Malaysia's small business customers can access Funding Societies' global investor network to raise additional working capital. UOB Malaysia's customers will be able to raise up to RM500,000 in capital directly from individual and institutional investors using Funding Societies’ online P2P platform without the need to pledge collateral.
Mr Raymond Chui, Executive Director and Country Head of Business Banking at UOB Malaysia, said that the partnership with Funding Societies reinforces the Bank's commitment to support Malaysia's small businesses as they progress through different stages of growth.
"At UOB Malaysia, we have a deep understanding of the opportunities and challenges that small businesses face and the support they require. We recognise that businesses in the early stages of growth can sometimes find it difficult to gain access to additional working capital due to a lack of collateral, credit history, or business track record. By working with Funding Societies, we can offer new business owners who are just starting out a viable alternative to traditional bank loans."
"Our teams will also help businesses improve productivity by providing scalable digital solutions that help streamline and automate their administrative systems and processes. As these businesses increase in scale and establish a track record, we will be able to extend a wider range of term-financing solutions to them. This ensures we can help companies to progress through different stages of growth more rapidly,” Mr Chui said.
Mr Ryo Gim, Business Development Director of Funding Societies Malaysia, said the partnership with UOB Malaysia will help build greater awareness of P2P lending with Malaysia's start-ups and small business owners.
"Since we launched the Funding Societies platform in February 2017, we have grown from strength to strength. We have so far disbursed more than RM40 million in financing to businesses while maintaining a zero per cent default rate and serving more than 10,000 investors."
"As P2P financing is still in its early stages of development in Malaysia, we have focused on and will continue to focus on building greater awareness among Malaysian business owners on how Funding Societies complements the traditional banking sector. We are here to provide short-term collateral-free financing solutions for small and medium-sized enterprises to expand their business or to support them through challenging times," Mr Gim said.
SMEs who are interested to learn more about the alternative funding opportunities provided by UOB Malaysia and Funding Societies can visit UOB Malaysia branches nationwide for more information.
1 Peer-to-peer lending, or P2P lending, is the practice of lending money to individuals or businesses through online services that match lenders with borrowers.
2UOB Malaysia defines its small business customers with RM40 million turnover and below.
3UOB Malaysia defines startups as businesses which are registered and have been in operation for less than three years.
About United Overseas Bank (Malaysia) Bhd
United Overseas Bank (Malaysia) Bhd (UOB Malaysia) is a subsidiary of Singapore-based United Overseas Bank Limited (UOB) and has had a presence in Malaysia since 1951. UOB Malaysia offers an extensive range of commercial and personal financial services through its branches, subsidiaries and associate companies: commercial lending, investment banking, treasury services, trade services, cash management, home loans, credit cards, wealth management, and bancassurance products. UOB is a leading bank in Asia with a global network of more than 500 offices in 19 countries and territories in Asia Pacific, Europe and North America. Since its incorporation in 1935, UOB has grown organically and through a series of strategic acquisitions. UOB is rated among the world's top banks: Aa1 by Moody's and AA- by Standard & Poor's and Fitch Ratings respectively. In Malaysia, UOB Malaysia receives AAA/Stable/P1 financial institution rating from RAM Ratings. Over more than eight decades, generations of UOB employees have carried through the entrepreneurial spirit, the focus on long-term value creation and an unwavering commitment to do what is right for our customers and our colleagues. We believe in being a responsible financial services provider and we are committed to making a difference in the lives of our stakeholders and in the communities in which we operate. Just as we are dedicated to helping our customers manage their finances wisely and to grow their businesses, UOB is steadfast in our support of social development, particularly in the areas of art, children and education.
For further information, please visit www.uob.com.my.
About Funding Societies Malaysia
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