Funding Societies partners VPBank to facilitate SME financing access in Vietnam
The company will connect potential borrowers to VPBank through its new financing application, SmartSME
[SINGAPORE] Digital finance platform Funding Societies on Friday (Jun 20) entered a commercial agreement of an undisclosed value with Vietnam Prosperity Joint Stock Commercial Bank (VPBank) to help small and medium-sized enterprises (SMEs) access financing from the lender.
The partnership aims to address the financing gap SMEs face, which, according to financial data provider FiinGroup, stood at US$24 billion or around twice the lending levels for such businesses as at August 2024.
Kelvin Teo, co-founder and group chief executive of Funding Societies, said: “We bridge the SME financing gap by reaching, assessing and channelling viable SME borrowers with one of Vietnam’s most trusted banks.”
Funding Societies plans to connect potential borrowers to VPBank through its financing application, SmartSME, to facilitate the loan process.
By drawing on its expertise from prior ventures in countries across South-east Asia – including Singapore, Malaysia and Indonesia – it will identify eligible SMEs that are seeking financing, and bring them on board the SmartSME platform, which was launched on Tuesday.
Funding Societies will use artificial-intelligence-driven credit technology to screen potential borrowers’ ability to service the loan repayments, thus mitigating risks. This is necessary, as SmartSME offers unsecured business loans, among other financing options, such as overdraft facilities and business credit cards.
The fintech startup said the collaboration to enhance access to capital resources is in line with the Vietnam government’s new directive, Resolution 68, which outlines the role of the private sector as a key driver of growth for the nation.
Funding Societies is a digital-financing platform focused on SMEs in South-east Asia. Since its 2015 launch, it has disbursed more than US$4.6 billion in business financing to around 100,000 SMEs.
It is backed by investors such as SoftBank, Maybank and Malaysia’s sovereign wealth fund Khazanah Nasional, among others.
Copyright SPH Media. All rights reserved.
