similar process of empowerment is driving a
growing focus on customer experience and
client journeys – a qualitative and long-term
view which prioritises clients’ needs. And
this is where alternative lending companies
in Singapore have an impact: we provide
new ways for participants in the economy
underserved by traditional lenders to access
capital in a transparent, responsible, ethical
and seamless manner. In the short term, this
relieves cash-flow pressures on sole traders
and businesses; in the longer term, it can raise
communities’ quality of life and provide a
significant boost to the larger economy.A RESPONSIBLE APPROACH TO LENDING
Accessing capital for those who need it
urgently should be simple rather than onerous.
Companies need the right support to help
them realise their aspirations and prosper, and
not tied into an exploitative relationship.
In Singapore, SMEs account for around
two-thirds of the workforce and a large
chunk of GDP growth. In 2018, roughly219,000 SMEs contributed S$196.8 billion
to the economy; between 2013 and 2017,
SMEs generated half of the nation’s growth.
The average Singapore SME in employs 10
people and adds S$900,000 to the economy
every year.
Even smaller businesses, the micro small
and medium enterprises (MSMEs), are a key
part of this ecosystem, with a similar need to
access working capital that can sustain their
operations and help them grow. Lacking the
scale to access traditional bank financing,
these businesses’ failure to thrive has a
choking effect on the economy. By providing
the means for these enterprises to prosper,
we can ensure that the greater economy
remains healthy.
A key element to this purpose-driven
process is technology: thanks to the growth of
digital and mobile technology, business owners
have access to more and more information and
are able to make informed supply decisions
that suit their requirements – voting with their
wallets. Service companies are able to harness
new insights from clients’ data, analysed using
artificial intelligence, to provide better services
and enhance the customer experience.
It is imperative to leverage innovation
and digitisation as new technologies offer
the potential to transform the lending sector.
Innovation has driven numerous services
designed to support borrowers and eliminate
the pain-points they may have experienced
previously when seeking credit arrangements.
Setting out the complex reasons
for why the ethical approach works is
challenging, but trust – between a lender,
its borrowers and its employees – is core
to the explanation. Lenders must be a
trustworthy partner to borrowers because
trust is the basis of any successful long-term,
mutually-beneficial relationships. The SME
sector in Singapore can thrive if it is driven
by a model of sustainable lending driven
successful partnerships between lenders and
borrowers and underpinned by innovation
and responsibility.JAMES CHEOW IS CAPITAL C
CORPORATION’S CEO & CO-FOUNDER.