Funding Societies, Southeast Asia’s largest digital financing platform, have teamed up with Singapore Management University (SMU) to develop a case study explaining the role of fintech and P2P lending for small businesses.
This is the first such case covering a P2P lender that SMU has developed, and involved in-depth research into the industry and the workings of the homegrown fintech.
Authored by SMU marketing associate professors Chang and Michelle Lee, and produced by the University’s Centre for Management Practice, the published case study is entitled Using Fintech to Support Small Businesses in Singapore.
It examines how fintech companies can stand out in the trade with an innovative service, and how they can, through careful market segmentation and targeting, gain a competitive edge in acquiring and retaining customers.
It focuses on Funding Societies’ use of technology to reduce customer pain points, and also analyses the fintech’s outreach efforts employed to educate the Micro Small and Medium Enterprise (MSME) segment on how its products can close financing gaps unserved by traditional financial institutions.
“While relatively young in Singapore, P2P lending has become a major form of alternative financing for SMEs and alternative investment for the public, because of its accessibility and convenience. As it continuously evolves, we believe it will become mainstream finance, attracting and nurturing more local talent, and further contributing to the local FinTech space as a whole,” said Kelvin Teo, co-founder and Group CEO of Funding Societies.
Associate Professor Michelle Lee, who is also Associate Dean (Undergraduate Matters) at SMU LKCSB, said: “P2P lending is a burgeoning area within FinTech and every business student ought to have some understanding of the industry. This case provides them with that understanding and prompts them to think deeply about how a company in that space can compete effectively. It sharpens their thinking about a firm’s value proposition vis-à-vis direct and indirect competition, as well as how a competitive advantage can be sustained.
“Since its inception, SMU has held to the principle of preparing students well for industry and this has meant ensuring the currency of its curriculum and teaching material. This case is one example of how that is brought about.”