When one comes across the term Fintech, the first thing they will do is either run a search online or ask around. To make it easier for you, we have a clear outline of what it is. Fintech is referred to as a line of business that is purely based on the use of technology in providing financial services. As the world goes more global and digitally advanced, the steps that financial service providers take to continue growing.
The word fintech comes from two words, financial technology. Every day when you get a newspaper, chances are very high that you will stumble across this word. Most people pass it because they do not understand a thing about it. One of the areas in which this idea is growing at a rapid rate is in Malaysia. When you mention fintech Malaysia, you will be surprised at how much people will have heard about here in this country.
One of the areas that experiencing great growth through fintech is peer-to-peer, commonly referred to as P2P lending. The term P2P is used to point to a situation where an online platform is used to help in matching borrowers with lenders while bypassing banks. That should also explain why banks in Malaysia have in the past opposed this development.
The development, P2P lending, has also over time attracted big firms and names which makes its rating go up. It has now earned itself the number one position as the largest online credit marketplace to happen online. Apparently, it has had a notable effect on blockchain companies stock over time.
Some of the fintech entities in Malaysia have been known to make big and needful strides. Some of them are well known for enabling users to exchange their currencies at midrates which saves them up to 3% of their transactions. Others have become a source of help for people who need to locate the outlets that offer the best exchange rates. This helps the user get outlets that will make them avoid any extra or hidden costs that are accrued from the usage of ATMs and credit cards.
Notably, some of these start-ups are credited with being the savior for students. There is a list of them that helps students who are seeking funds and scholarships for higher education. This is done by way of crowdfunding.
Despite the banks in Malaysia opposing this platform, they are gradually giving in to the competition. It might not be a full financial competition per se, but they claim to be losing on the money that no longer has to pass through them. To make sure they are still reaping, some of them are coming up with their fintech innovations or even working with start-ups.