KUALA LUMPUR: The digitalisation trend in the lending space is expected to continue in 2021, with more innovation in the industry, said Direct Lending founder and director Hui Yik Seong.
This would especially benefit the underserved segment of the population who do not have access to formal banking credit channels, Hui told the New Straits Times.
"At Direct Lending, we are excited for 2021 and working diligently to leverage on technology to enable every hardworking adult to have access to safe and affordable financing."
Direct Lending is an online personal lending marketplace, enabling borrowers to find, apply and receive financing that best suit them.
Financing products on the fintech companys's platform are Shariah-compliant and are provided by RCE Capital Bhd (a Bursa Malaysia listed company), Public Islamic Bank, Koperasi KOBETA, Koperasi KOPUTRI and Koperasi Ukhwah.
Direct Lending also collaborates with JCL Credit Leasing.
Hui said while Covid-19 had affected the livelihoods of many Malaysians and concerns grew about the industry's loan book quality, the silver lining was that the pandemic had accelerated the adoption of digital lending.
"Lenders have been able to deliver financing in a more cost-efficient manner moving forward. This will hopefully then be shared with borrowers in the form of lower financing rates and a better borrowing experience."
In line with the trend, he added, Direct Lending had seen an increase in borrowers using the company's platform to check their eligibility for loans and apply for financing that was most suitable to them.