South East Asian lender DBS Bank has inked cross-referral agreements with two peer-to-peer (P2P) lending platforms under which the bank will refer some of the smaller businesses that the bank is unable to lend to.
The two platforms are: Singapore-based Fintech start-up Funding Societies and crowd-financing platform MoolahSense.
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In exchange, Funding Societies and MoolahSense will refer borrowers to DBS for larger commercial loans and other financial solutions such as cash management.
DBS said that the bank and P2P lenders will only share information when they have obtained borrowers’ consent in advance to safeguard borrowers’ privacy.
DBS group head of SME banking Joyce Tee said: "DBS’ partnership with Funding Societies and MoolahSense is a good example of how traditional and alternative finance providers can work together to support the funding needs of small businesses. Such partnerships are becoming common in markets such as the UK and we are pleased to partner two leading p2p lenders in Singapore in this pilot programme."
Funding Societies co-founder Kelvin Teo said: "We are honoured to collaborate with DBS, making this the first tie-up in Singapore between a p2p lending platform and an established bank. This is a win-win relationship that helps SMEs gain access to capital at all phases of their growth journey.
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By GlobalData"We are confident that this partnership will greatly benefit both SMEs and investors, bringing more quality opportunities in alternative financing and alternative investment to the society
MoolahSense CEO Lawrence Yong: "As the pioneer platform in marketplace lending, this landmark partnership culminates our early engagement with DBS and sets the stage for deeper collaboration between established financial institutions and emerging fintechs.
"MoolahSense is honoured to partner DBS, a leading financial institution and a frontrunner in banking innovation. Through this partnership, the funding continuum is being extended with more financing solutions to support the growth of local SMEs – the backbone of our economy."
