facebookThere are so many platforms to choose from. What is the main feature that sets you apart from your competitors? - Seedly

There are so many platforms to choose from. What is the main feature that sets you apart from your competitors?

why should I choose yours over your competitors?

SeedlyTV S1E07

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Luke Ho

20 Jul 2019

Founder and Director at CFX Money Maverick Pte Ltd

I'm writing answers on a Sunday whilst traveling around Singapore for an appointment, so hello Zhi Rong. It's hard to comment on Minterest and Capital March, since I've never spoken to them.

I was fairly impressed with the Funding Societies crowd at the Seedly Convention, they seemed to really know their stuff, which is important.
CoAssets tends to be a bit more personal, which is good if you like Consultants. It's not like there's an additional price for talking to them, anyway. I've not found their yields to be as high as I would like, but they do tend to have decent safety measures in place.

SeedIn is similar to CoAssets but in a more impersonal way - its almost entirely digital and you have to DIY it. There are obvious pros and cons to this, but some people would be very comfortable and find it very efficient to do so compared to a longer sales pitch.
Most importantly, all 3 platforms have claimed to have 0% default so far, even with the updated definition for default. If I'm not wrong (I could be), default refers to both Time and Return on Investment, and nothing to do with whether it actually defaults or not.
So you have a traditional definition for default:

1) Failure to repay loan according to the required payment on their debt obligation

And then you have the P2P definition

1) Failure to repay loan regardless of the initial requirement payment structure within a specific time frame (3 - 6 months).
The definition difference suggests that what does tend to happen is that P2P companies do actually default on their loans in the traditional sense. As you may know, Bonds are technically not security backed (e.g. its not like a mortgage where they can take your house away).
But P2P platforms like CoAssets/SeedIn/FS do have measures to do something similar even if that isn't TECHNICALLY the case, so a P2P company will typically end up finding a new way to pay for the loan and within the period I stated (within 3 - 6 months).
To me, that's the primary reason why anyone should invest in P2P - how effectively they keep their default rate and the methodology for doing so.

That is why you should choose a particular company over their competitors.

Look at that long answer. Do your own due dillgence, but drop me a message if you'd like! (haha)
https://www.facebook.com/luke.ho.54
Luke

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Alex Chua

20 Jul 2019

Seedly student Ambassador 2020/21 at Seedly

Here are my 2-cents thoughts.
As much as p2p is a tech driven fintech, it is still a service industry nevertheless. To me, whatever technology features such as auto-invest will soon be commonly used by the platforms. Without them, they will lose an edge. So you could start by asking yourself what would you like to have as an investor or a borrower.
For a borrower, would be probably necessary financial advice so that they will get sufficient funds. Etc.

For an investor, you want as lower risk loan as possible. Is there a sufficient supply of loans? Which platform provides a better investing experience? the extensiveness of platform providing the loans. How receptive are the platform to feedback and their responsiveness in changes? Having a good customer base, along with a good support team could improve your rewards and user experience. Furthermore, having 0% default rate is ideal. However, is your funds put into desirable rewards investment? This also questions the response of the platform in a situation of defaults.

In choosing the platform, ask yourself what gives you a better piece of mind. Is it within your risk-reward? Which loan product do you prefer? (there is some difference in loans offered among the platform) what is your ability? (your fund size and risk tolerance ).

You should also filter the reviews and forums of the platform. Remember this is a service industry. In my opinion, a good service, or user experience should be the main factors in choosing the platform. A good service attracts more borrowers and in turn attracts more investors. A good service is what drives the platform to innovate and constant improve themselves. Do your due diligence. Feel free to Facebook msg me if you have any queries.

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