Country _ Name
Loan services / factoring / loan broking / finetrading
FinTechs belonging to this category act as a loan creditor (even short and very short-term loans), are broking loans or receivables or conduct factoring of loans, which were given to private or business customers. In this business area you also find “peer-to-peer” (P2P) services, in which FinTechs enable a multitude of users to give loans (and brokered by the FinTech-platform) to other users or companies.

Finetrading is hereby a financial service of FinTechs, where they buy due receivables and grant the debtor an extension of payment time.

As an ancillary service some FinTechs offer alternative credit assessment services to check the solvency of a borrower.


Attitude of the country towards loan-giving-, factoring-, brokerage-, finetrading- and ancillary services

Licensed moneylenders have often been confused for loan sharks and inadvertently, the public’s perception towards moneylenders is known to be generally poor.

Legal affairs

Obligations and requirements to provide loan-giving-, factoring-, brokerage-, finetrading, and ancillary services described above

FinTechs within this segment must obtain a moneylender’s licence from the Ministry of Housing and Local Government (“KPKT”) pursuant to the Moneylenders Act 1951 prior to commencing operations and must have a minimum of RM2,000,000 of minimum paid up share capital. The licence fees are RM2,000 for a period of two (2) years or part thereof.

On 13 November 2020, KPKT issued guidelines to allow existing licensed moneylenders to apply to provide loans online (“Online Moneylending Guidelines”), which has included guidance on the utilising of digital or electronic platforms for customer profiling purposes and execution of moneylending agreements electronically. The moneylender must also take steps to implement proper security measures to protect its online platform from cyber risks. 

Note that P2P operators that are registered with the CMSA are exempted from having to obtain a moneylender’s licence.

Additional comments regarding the legal situation for loan-giving-, factoring-, brokerage, finetrading-, and ancillary services or what FinTech’s must be aware of in this business area

Moneylenders are only permitted to transact moneylending services at its registered address. Further, advertising of moneylending activities is restricted and is subject to the approval of the Registrar of Moneylenders.

Only P2P platforms authorised by the SC may offer P2P services described above.

Economic conditions

Market size for loan-giving-, factoring-, brokerage-, finetrading- and ancillary services and biggest companies in this business area

No data available.

Additional comments regarding the economic situation for loan-giving-, factoring-, brokerage-, finetrading- and ancillary services or what FinTech’s must be aware of in this business area




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