The First Peer-to-Peer(P2P) Lending of Thailand By AQUA & NEWS
AQUA Plc has joined with News Network Corporation (NEWS) to launch Thailand’s first peer-to-peer (P2P) lending platform, the two companies announced on Friday.
The platform will provide smart financial solutions, from borrowing to lending, for individuals and small and medium-sized enterprises (SMEs).
Speaking at the press conference in Bangkok on Friday, AQUA managing director Chaipipat Kaewtrairat said the platform will address a pain point in the credit industry where SMEs and individuals who don't have many assets are unable to borrow from traditional banks.
Fintech was the solution to this problem of credit inaccessibility for small operators in society, he said.
"Fintech is a global megatrend that is growing exponentially around the world as this innovation serves people’s personal loan needs. We see it as a lending system that can help solve problems for those who are rejected by banks and major financial institutions. It will also reduce Thai people’s dependence on the informal loan system," said Chaipipat
AQUA has collaborated with NEWS to establish the Peer For All (PFA) company to operate the P2P platform, with a license from the Bank of Thailand. The project is worth 500 million baht, with 60 percent of investment coming from AQUA and 40 percent from NEWS.
PFA holds the management rights for Nestifly Plc, which operates a P2P lending platform via the ShareLoan application. The platform is expected to generate loans totaling around 3 billion baht in the first year of operation, reaching 10 billion baht within the next three years.
Chaipipat added that in the first phase, the platform would target borrowers who own securities as assets. The next phase would be to accept other collateral assets such as vehicles, property and housing, he said. The platform also expects to offer unsecured loans for people with no assets or credit but with data to prove creditworthiness.
Shine Bunnag, (acting) president and director of AQUA, said the first and only P2P lending platform in Thailand will be available by the fourth quarter of this year.
The platform and its blockchain technology are now being tested while talks are underway to secure Liberator Securities Plc as its legal custodian.
"This is a new type of borrowing that will replace the familiar borrowing from commercial banks and financial institutions,” said Shine. “Nestify is the first such operator in Thailand to be granted a business licence. We want Peer for All to help solve financial problems for Thai people in the long run."
Shine is also CEO of Nation Group.
Kritsada Pruitipat, CEO and director of NEWS, said he was very satisfied with the AQUA collaboration.
NEWS is currently undergoing organisational transformation to boost stability and long-term expansion.
"NEWS is now expanding its fintech business to offer investment services including via securities brokerage firms and securities companies. Liberator Securities Plc, which is an indirect subsidiary of NEWS, is now in the final stages of meeting legal requirements of the Securities and Exchange Commission (SEC) and related agencies to be able to fully engage in the securities business and provide investment services to the public,” said Krisada.
Paphon Mangkalathanakun, CEO and co-founder of Nestifly, said individuals and SMEs were underserved by mainstream banks. Hence, the P2P lending platform will be an alternative credit service provider with low-risk collateral securities.
"With blockchain technology and smart contracts, the platform can effectively secure each transaction from fraud and default. It will also fully protect personal data, meaning users will feel confident in our security," said Paphon.
