As of today, there are over 10 P2P Financing companies in Malaysia that are focusing on various sectors & types of financing. There are too many out there that you may not know which company to invest in. Personally I have been investing in both Funding Society & Fundaztic for almost 2 years. Both companies are the market leaders in P2P Financing in Malaysia where you may notice that they have quite a number of investors & borrowers as well.
Prior investing with them, I was looking for some low & high risk investments to balance my investment portfolio so I started to open an account & deposit some cash into it. To be honest, looking at their interest rate. their payout is pretty attractive but there is a risk that your investment will be defaulted as P2P Financing companies are targeting SME that may have issues or difficulty getting loans from banks. That means, your investment amount may be defaulted if borrowers are unable to pay back the money.
Which Is A Better P2P Financing Platform?
They are the leader in P2P Financing in Malaysia with the highest amount of fund raised. Their borrowing amount range up to RM1,000,000 with financing up to 24 month. Their focus is mainly on borrowers that require higher borrowing & borrowers are able to borrow multiple times with different notes. In order to open an account with them, you need to deposit a minimum RM1000. The minimum borrowing amount is RM100 per note.
What I like about Funding Societies is, I am able to setup auto invest where I can easily automate based on the setting that I prefer & just monitor from time to time on the investment return. In other words, I just have to do a one off setup & I am good to go. Their app also offers Touch or Face ID which enable investors to login in a matter of seconds.
What I don’t like about Funding Societies platform is, I am not able to invest in every single investment notes although I have additional funds or I have setup the auto invest due to high amount of investors. They will mention that I am able to invest manually once the note is available but whenever I tried, they usually reach the maximum funding within minutes. Since borrowers are able to borrow multiple times, there are chances that they are still paying for their existing notes but they are still able to borrow additional fund from investors. This was one of my experiences with Funding Societies where I had few default notes from the same borrower.
Fundaztic mainly focuses on SME’s with maximum notes of RM200,000 with financing up to 36 month. From my conversation with Fundaztic representative, their company usually don’t practice repeated notes to minimize the percentage of default. Their Risk Profiling also helps to determine what type of risk the investors are lending such A1, B3, D7 & many more. This will really help investors to determine their potential risk. They also offer Principal Protect for investors to protect their investment so they will not incur any capital losses. They have minimum criteria which you can find in their FAQ. They have no minimum amount to deposit upon registration & you can start to invest with a minimum of RM50.
What I like about Fundaztic is, I am able to invest in most of the notes since their notes do not hit the maximum funding as fast as Funding Societies. That means I can randomly login to my Fundaztic account & there are high chances that I am able to invest as long as I have a minimum balance of RM50. Although SME may have higher default rates, I feel safer knowing that they only issue 1 note per borrower. Their Principal Protect feature is definitely another plus point for me but I have yet to hit 100 notes. It may be a good or bad thing to have longer financing timeline but for me longer financing timeline is a good thing because borrowers are able to pay lesser for a longer time & investors like me are able to get higher interest.
What I don’t like about Fundaztic platform is their app. Honestly their app is confusing & to login to the app requires password & verification code. I can rarely find any app that uses password anymore except Fundaztic. Comparing their app with Funding Societies, Funding Societies app is more easily understandable by investors but in terms of information, Fundaztic have very detailed information but it may be confusing at the same time. Their Smart Invest requires minimum RM2000 in your balance to setup & they can only setup up to 5 notes. Imagine minimum RM2000, setup up to 5 notes & no Touch or Face ID. Honestly it is not so user friendly for investors.
After investing in both P2P Financing platforms, there are both pros & cons in terms of the risk & app. I personally like Funding Societies app & auto invest but I don’t like the fact that I am not able to manually choose the notes that I want to invest in. The fact is I don’t like Fundaztic app but the perks of able to manually select the notes that I want to invest in, minimum investment amount of RM50 plus their Principal Protect is definitely a bonus. Both companies have default rates & for me, I prefer to invest in both so I am able to minimize my investment risk. Like what they always say “Don’t put all your eggs into 1 basket”.
Which do you think is a better P2P Financing Platform? Do leave your comments on your thoughts at below column so I am able to hear from you.
I have previously written multiple articles on P2P Financing as below :
You may also use my link or promo code to enjoy some benefits as BBM readers :
Funding Societies PROMO CODE : j7khvfoc to receive RM30 upon RM1000 deposit
Fundaztic PROMO CODE : BBM019 prior confirming your order or upon check out.