[10] Consultation Paper : Facilitating Securities-Based Crowdfunding, Monetary Authority of Singapore, http://www.mas.gov.sg/~/media/MAS/News%20and%20Publications/Consultation%20Papers/Facilitating%20Securities%20Based%20Crowdfunding.pdf (last visited Feb.18, 2016). In line with Government efforts, SME P2P lending is set to amplify, with intra-trade transactions as one of its priorities especially amidst uncertainties from the ongoing US-China trade war. From the characteristic of a security or security based crowdfunding business, the consultation paper also clarifies that the Advertising Restriction does not prohibit a security or security based crowdfunding business from advertising the existence of its platform to the general public. FinTechs were initially thought of as competitors to traditional financial institutions but this unexpected relationship in which incumbents and FinTechs coexist and complement each other is particularly defined in Singapore. Not only that, Funding Societies launched secured & guaranteed property-backed investment products in 2020 to provide additional level of security for investors during uncertain times. Briefly, the act requires moneylenders to hold the Moneylenders license with obligations and limitations for licensee[9]. This translates to a potential to lift the ASEAN GDP by US$1 trillion, making it not only a crucial market to serve but a lucrative one. For instance, its all-time default rate of about 1% is closer to those of high quality commercial banks than those of P2P lenders, which are typically considered to be riskier. According to the Global SME Finance Forum, the SME funding gap throughout Southeast Asia stands at US$300 billion today. P2P lending platforms facilitate P2P lending by connecting and matching the borrowers to the lenders. The nation has been quick to set in place clear P2P regulations and a strong legal framework, making room for disruptive technologies to collaborate with existing banks in an efficient and well supported space. With P2P lenders mushrooming across Singapore over the past few years, small and medium enterprise (SME) owners find themselves presented with more accessible sources of funding that are also tailored to their specific needs. Singapore also does not have a large enough market size to scale easily within the domestic scene. For example, in Singapore, lenders on P2P platforms must be accredited investors—this is strictly defined as individuals with a net worth of at least SG$2 million or an income of at least SG$300,000 in the past 12 months. Coupled with many industry players’ desire to grow headcount by 25-50% in the next 36 months, and Government programmes to hone FinTech skills, the Singapore FinTech sector is set to thrive with a large talent pool. In general, it will appeal to younger Singaporeans, in the mid-20s, who need to focus on growing their wealth. Additionally, for facilitating the establishing of security based crowdfunding in Singapore, the consultation paper was issued by MAS on 16th February 2015 for public hearing. Skip to content. Peer-to-Peer (P2P) lending is FinTech that at its core uses cutting edge technology to connect borrowers with investors via a single digital platform. Peer-to-peer (P2P) lending is the practice of lending and borrowing money without using an official financial institution as an intermediary. [7]  The Second Reading Speech by SMS Assoc Prof Ho Peng Kee on the Moneylenders (Amendment) Bill , Ministry of Law Singapore, https://www.mlaw.gov.sg/news/parliamentary-speeches-and-responses/second-reading-speech-by-sms-assoc-prof-ho-peng-kee-on-the-moneylenders-amendment-bill.html (last visited Feb.18, 2016). This is another key different of money lending law of Singapore compared to other countries in Asia such as Hong Kong which focusing more on lending activity[8]. It is grossly underserved yet, SME contribution to the ASEAN gross domestic product (GDP) is, . Regulators could consider accreditation for lenders. Peer-to-peer (P2P) lending enables individuals or small companies to obtain loans directly from other individuals. Indonesia, Malaysia and Singapore have clear regulations on P2P lending, which have encouraged the setting up of more than 40 P2P lenders in the past two years. Financial Technology, or FinTech, first flourished during the Internet explosion in the early 2000s when e-commerce models were the rage. In general, due to the characteristic of security based crowdfunding which involves an offer of security, the Securities and Futures Act (Chapter 289) (SFA) require the company which wants to make offering of its shares (the issuer company) to register with the MAS.