Sat. Mar 6th, 2021

World Trades

Finance Blog

Digital Lending Platforms Spearheading Hong Kong’s FinTech Industry in 2021

3 min read

Hong Kong is one of the biggest and fastest growing financial hub in Asia, with more than 200 thousand people employed in the financial sector, and contributing to nearly 20% of Hong Kong’s total GDP. Hong Kong’s financial technology industry had been focusing on important segments such as insurtech, blockchain technology, online payment processing, regulatory technology, and virtual banking services.

Though digital lending platform is a segment that not as significant as the others when it comes to development and mass adoption, the Hong Kong region does in fact witnessed its own success stories in the online lending space.

WeLab

WeLab is a local Hong Kong FinTech unicorn business, and is one of the three spearheads leading Hong Kong’s rapid online lending industrial development. According to South China Morning Post in May 2018, WeLab’s Founder and Chief Executive Officer (Mr. Simon Loong Pui-Chi) had illustrated their ambition expanding into the virtual banking space after its success in becoming a listed company on the Hong Kong Stock Exchange (HKEX).

The company is operated by Wolaidai, one of the best and leading lending platforms, WeLend, Hong Kong’s most iconic online lending gateway, and AWDA, an Indonesian FinTech JV, which had been recognized as one of Asia’s increasingly popular FinTech startups.

Oyster Pie

Oyster Pie is an up and coming lending platform which is a joint venture of Credit Gain Finance Company Limited and Enova Decisions LLC. Enova Decisions LLC is a wholly-owned subsidiary of Enova International (NYSE listed: ENVA, hereinafter referred to as “Enova”). Enova is an online financial service provider headquartered in Chicago, USA. Its business scope covers the United States, the United Kingdom, Brazil and other countries. It has provided more than $20 billion in loans to more than 50,000 customers.

Credit Gain is a wholly-owned subsidiary of China Financial Services Holdings Limited (listed on the Hong Kong Stock Exchange: HK.605). According to our earlier interview with China Financial Services Group Finance and Treasury Manager (Mr. Victor Chiu UeWa), we have understood that after introducing Enova’s advanced technology in financial technology and smart approval, Oyster Pie will continue to inherit the rich experience of China Financial Services Group in marketing, credit management, customer service, and uphold “professional and innovative” spirit, and continue to provide customers with quality loan services.

MoneySQ

Another notable P2P lending player which emerged in the recent years is MoneySQ, which is known to be Hong Kong’s first and ever net-based crowdfunded lender, designed for both professional investors, as well as mass market players.

Aside from its P2P lending operations, MoneySQ had also been working closely with Deloitte to create a brand new platform by the name of trustME, a business process optimization platform that leverages on blockchain and distributed ledger technology, and is aimed to help small and medium-sized enterprises (SMEs) in China, Hong Kong, as well as Taiwan.

As consumer lending continues to grow, the prospects for services such as crowd funding and digital lending platforms continues to look increasingly positive. According to industrial sources, it forecasts that consumer lending outstanding balance may reach up to more than 2.7 billion HKD in 2023.

Leave a Reply

Your email address will not be published. Required fields are marked *