The project, delivered in partnership with IBM Japan, is the first deployment of Loan IQ in Japan and is intended to modernise JICA’s core system for private-sector investment finance.

This programme provides loans to private sector projects in developing countries and is expected to continue expanding.

The new system enables end-to-end management of international private sector loan transactions and supports lending in Japanese yen, US dollars, euros and local currencies.

According to JICA, the platform will help improve operational efficiency and provide flexibility to support future growth in private-sector investment finance.

“We expect that this transformation will strengthen our ability to mobilise private capital for development, and to support increasingly diverse financial structures, enhancing the foundation of JICA’s private sector operations,”

said Taketsuru Eiko, Director of Information System Division 2, Information System Department at JICA.

JICA is Japan’s main agency for Official Development Assistance, providing long-term concessional financing for infrastructure and social development projects in developing countries.

With growing demand for private funding to address economic and social challenges, the agency’s private-sector investment finance scheme is expected to expand.

Finastra’s Loan IQ platform provides lifecycle management of loans, from transaction set-up and approval to disbursement, interest and fee calculations, and repayment.

It is used by a range of commercial and development financial institutions internationally.

“JICA plays a critical role in advancing sustainable development in emerging markets,”

said Andrew Bateman, EVP for Lending at Finastra.

“We’re proud that Loan IQ now powers JICA’s private sector lending operations, enabling it to streamline processes and scale impact in line with its mission.”

The implementation was carried out by IBM Japan, which provided development, data migration, user training and operational support.

IBM’s prior experience with Finastra deployments and expertise in public-private finance contributed to the rollout.

Featured image credit: Edited by Fintech News Hong Kong, based on image by thanyakij-12 via Freepik

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The initiative introduces a free credit-checking tool that gives users access to their credit data, including their credit score, via Lendela’s platform.

The tool allows users to check their credit without affecting their scores.

The collaboration aims to improve access to credit information and offer personalised financial options.

Lendela uses a reverse auction model, allowing financial institutions to submit loan offers tailored to a borrower’s profile.

This process is intended to improve loan matching and provide consumers with more relevant and potentially cost-saving options.

Although TransUnion already provides Hong Kong residents with access to annual credit reports under the Credit Data Smart initiative, its recent Consumer Pulse Study found that 27% of respondents did not know their credit score.

The partnership with Lendela is positioned as a step toward addressing that gap.

Johnson Tsang, General Manager of Lendela Hong Kong, said,

“We believe that this partnership with TransUnion addresses a longstanding issue in Hong Kong, which is the lack of personalisation in lending, borrowing, and the financial services industry broadly. With this tool, we’re not just encouraging consumers to check their credit, we’re giving them something to do with that information.”

Terri Yang, Head of Consumer Interactive Business for Asia Pacific at TransUnion, added,

“We’re proud to collaborate with Lendela on this partnership, who shares our vision of enhancing financial accessibility by empowering consumers to make informed financial decisions through clear, actionable insights about their credit health.”

Since the beginning of 2024, Lendela has increased its global workforce by nearly 30 percent and expanded its operations in Hong Kong.

It has facilitated over half a million loan applications and partnered with more than 100 lenders in the region.

Over 2024, the platform has processed more than HK$4 billion in loan requests and claims to have helped users save a total of HK$243 million in interest.

The company was also the first fintech based outside Hong Kong to join the portfolio of Wings Capital Ventures in 2024.

The venture capital firm has previously backed companies such as Bowtie and WeLab.

Featured image credit: Lendela

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GoTyme Hong Kong says it is a licensed lender and aims to provide quick yet flexible financing for small businesses in Hong Kong. According to the post, their offerings would include pre-approvals and repayment terms that support healthy cash flows.

Its first product launch is expected to take place later this year.

Its parent company, Tyme Group, is valued at US$1.5 billion following a Series D funding round led by NuBank which raised US$250 million.

Featured image by TravelScape on Freepik

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By the end of November, the number of applications had increased by approximately 10% year-on-year. The average loan amount also surged by around 40%.

To further capitalise on the positive demand, the bank has introduced a new “Rate Watch” offer, which guarantees a cash reward of HK$ 888 for users who secure a loan at a lower interest rate from another financial institution.

The newly introduced “Rate Watch” offer ensures users benefit regardless of where they secure their loan. If applicants receive approval for a lower APR from another institution for the same loan amount and repayment period, they can submit the relevant document proof within 30 calendar days for verification. Successful applicants will earn an HK$888 cash reward without requiring a loan drawdown.

The “Rate Watch” reward will be available until 31 January 2025. ZA Bank’s Tax Loan provides express approval. Loan results are available in as fast as 30 seconds for existing users and 90 seconds for new users. Users can opt for a flexible repayment tenor of up to 60 months.

Additionally, for those applying for a designated loan on or before 15 January 2025, a ZA quest capsule with a cash reward of up to HK$188 will be provided. This reward will be given to the user upon an unsuccessful application. The user needs to maintain an active and valid ZA bank account to receive the award.

Terms and conditions apply, and users can only participate in this offer once. Click here for more details on ZA Bank’s Tax Loan.

Featured image credit: Edited from Freepik

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The event brought together over 100 participants, including SMEs in the food and beverage and retail sectors, bank representatives, and technology providers.

A key focus of the discussions was how SMEs can leverage big data to improve their operations and competitiveness.

The event highlighted the banking sector’s commitment to supporting SME digitalisation, which is a key part of the HKMA’s broader strategy to enhance the competitiveness of Hong Kong’s economy.

In October, the HKMA introduced five new measures to bolster SME support, including facilitating access to credit and promoting digital adoption.

Notably, seven banks have pledged to offer fast-track loan approvals within five working days for SMEs participating in government-backed digital transformation programs like the Digital Transformation Support Pilot Programme (DTSPP) operated by Cyberport.

These loans aim to provide upfront financing to help SMEs adjust their operations, develop new business models, and expand into new markets.

Bank representatives shared real-world examples of how they are helping SMEs adopt digital solutions, such as digital payments, online marketing, and customer relationship management tools, to enhance efficiency and drive business growth.

Specific examples included utilising digital tools for shopfront sales, implementing customer loyalty programs, and leveraging data analytics for better business decisions.

The HKMA emphasized its ongoing commitment to collaboration with the banking and commercial sectors to foster an environment that supports the development and digital transformation of SMEs, ultimately benefiting the broader economy.

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This change, along with extended loan guarantee periods, aims to provide relief for small and medium-sized enterprises (SMEs) facing economic headwinds.

The maximum guarantee period for the 80% guarantee product has been increased to ten years, while the 90% guarantee product now extends to eight years.

Additionally, new loans under both products will have the option for partial principal repayment.

These measures are intended to help businesses navigate economic restructuring and maintain stability.

HKMC Insurance Limited will work with participating lenders to implement these changes, with a target rollout by November.

SMEs are encouraged to contact their lenders to discuss how these enhancements can benefit them.

These changes were announced in the Chief Executive’s 2024 policy address.

Featured image credit: Edited from Freepik

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The programme aims to streamline the loan application process, offering pre-approved credit limits to eligible SME customers, with HSBC using its internal data to assess creditworthiness.

The initiative comes as businesses anticipate potential changes in interest rates, providing crucial capital for SMEs looking to invest after a long period of rate hikes.

HSBC will notify eligible SMEs through digital channels, with credit amounts starting from HK$50,000.

These funds will be made available within two working days of approval, without the need for collateral or financial statements.

Earlier this month, HSBC, along with 13 other major lenders, pledged to improve access to funding for small businesses and accelerate loan approval timelines.

This followed the first meeting of the Taskforce on SME Lending, which was established to address the economic challenges currently faced by smaller businesses.

This latest initiative builds on HSBC’s previous measures to support SMEs.

In March, the bank rolled out a series of offers and services, including fee waivers, loan extensions, and access to new financing options.

More than 7,000 SME customers have already benefited from these programmes.

Additionally, HSBC is extending an interest rebate offer for businesses participating in the government-backed SME Financing Guarantee Scheme.

The rebate, capped at HK$10,000, will be available until the end of 2024, extending the original deadline of September 30.

Frank Fang, HSBC’s Head of Commercial Banking for Hong Kong and Macau, noted that the bank remains dedicated to supporting businesses both during and after the pandemic, focusing on providing SME-centric, data-driven solutions to bolster financial resilience.

He added that HSBC is committed to enhancing transparency in SME lending, helping businesses make informed borrowing decisions for their operational and growth needs.

The bank also plans to further develop its data capabilities to ensure accessible financing and simplified banking services for smaller enterprises in Hong Kong.

Featured image credit: Edited from Freepik

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Lending Ark manages over US$1 billion in asset-backed credit investments across Asia.

This mezzanine financing aims to strengthen Qupital‘s e-commerce receivables-backed securitisation facility, already supported by HSBC and Citi.

The funding will help Qupital offer more flexible and cost-effective financing options to cross-border e-commerce merchants.

Qupital primarily serves merchants in China who sell to the U.S. and Europe on platforms like Amazon, eBay, Shopee, and Lazada, as well as domestic merchants on JD.com, Tmall, and Pinduoduo.

Since its founding in 2016, Qupital has provided over US$2 billion in financing driven by its AI-powered credit model.

Qupital had raised Series B2 funding in January this year to further expand its e-commerce loan portfolio.

Andy Chan, Co-founder and President of Qupital, said,

“We are thrilled to be partnering with Lending Ark to bolster our funding capabilities.

Having Lending Ark on board will allow us to deploy capital more efficiently, as well as fulfilling the strong demands for working capital from cross-border e-commerce merchants while daily online consumption continues to grow globally.”

Gregory Park, Lending Ark Fund Head, said,

“Qupital, quintessentially, represents the explosive growth opportunities across the Asia Pacific region in e-commerce.

Lending Ark is excited to partner with Winston Wong, Andy Chan and the entire Qupital team in shaping the future of cross-border e-commerce trade further contributing to the global digital economy.”

Featured image credit: Edited from Freepik

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Co-chaired by Arthur Yuen, Deputy Chief Executive of the Hong Kong Monetary Authority (HKMA), and Luanne Lim, Chairperson of the Hong Kong Association of Banks (HKAB), the meeting brought together representatives from the HKMA, HKAB, and 14 banks that are actively involved in SME lending to discuss practical solutions.

A key takeaway from the meeting was the participating banks’ commitment to maintaining their current risk appetite for SME financing and ensuring the ongoing implementation of existing SME support measures.

Additionally, the taskforce underscored the importance of fair treatment and accommodation for customers seeking financing, highlighting good practices such as increased transparency in credit approval processes and improved customer service.

The taskforce also acknowledged the need for banks to uphold effective risk management to safeguard depositor interests.

In cases of prolonged non-repayment, banks will take necessary actions while ensuring these are carried out and communicated to customers in an understanding and supportive manner.

In a bid to further support the growth and transformation of SMEs, the HKMA and the banking industry will continue to collaborate with the commercial sector, organising seminars and activities in the coming months to help SMEs leverage data and technology to boost their productivity.

The taskforce was established in August to enhance support for SMEs seeking bank financing at both individual and industry levels.

It has set up a mechanism to review individual cases of SMEs facing difficulties in obtaining or maintaining bank financing, with the HKMA referring cases to the relevant banks for resolution.

If common issues are identified among the cases, the taskforce will develop appropriate solutions for adoption across the banking industry.

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The initiative aims to address ongoing challenges faced by SMEs in securing bank financing amidst an uncertain economic environment.

Eddie Yue, Chief Executive of the HKMA, highlighted that while Hong Kong’s economy has been recovering, many SMEs still struggle with financial difficulties.

In response, the HKMA has implemented measures to support these businesses, including the nine initiatives launched in March 2024.

These initiatives, which include provisions against early repayment demands and adjustments to credit limits, have already benefitted around 14,000 SMEs with over HK$31 billion in total credit limits.

During a recent meeting with the three chairman banks of HKAB, it was reaffirmed that there will be no change in their risk appetite or credit approval standards for SME financing.

The newly established taskforce will further strengthen support for SMEs by addressing individual financing difficulties and identifying common issues that require industry-wide solutions.

Additionally, the taskforce will enhance communication between the banking sector and SMEs to better understand their financing needs.

The discussion also touched on improving transparency and efficiency in residential mortgage lending, with plans to enhance the customer experience through clearer communication and timely processing.

The taskforce will continue to work on these issues at the industry level.

Yue added,

“The HKMA and the banking sector will work together to continue providing support for SMEs seeking bank financing, and walk side-by-side with SMEs to get through this rather difficult time. Understandably, it is necessary for banks to maintain consistent and effective risk management to safeguard depositor interests.

For cases of prolonged non-repayment despite relief or restructuring provided, actions will inevitably be taken by banks, but they will ensure such actions are implemented and communicated to the customers in an accommodative manner.”

Featured image credit: Edited from Freepik

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