Singapore-based FinTech startup Credit Culture has secured $29.4 million in funding from RCE Capital Berhad, a Malaysian investment holding company, according to reports.
In a statement, Credit Culture said this is the “first time that a startup in Singapore has secured significant funding before the launch of services.”
Credit Culture, which was started by former bankers, is going to use the money to grow its operational abilities. Last year, the Singapore Ministry of Law specifically picked Credit Culture as one of six organizations to assist in professionalizing the country’s personal loans industry.
In addition to providing loans, the company will use a proprietary credit-scoring application that will allow potential loan recipients to get personalized terms right away.
Edmund Sim, Credit Culture’s founder and CEO, said this will simplify the lending process.
“The system reduces the need for manual and cumbersome processes. This increases transparency and brings costs down, which allows us to pass it on to consumers,” he said.
Singapore’s FinTech scene has been flourishing lately. Funding for the burgeoning sector topped nearly a billion dollars in 2017, reaching $983.6 million. Hong Kong, by comparison, saw $596.8 million in funding for FinTechs at the time.
Singapore overtook Hong Kong in FinTech funding in 2016. In that year, Singapore pulled ahead of Hong Kong with $310.5 million in funding compared to Hong Kong’s $191.2 million. And Singapore was on pace to continue besting Hong Kong in FinTech funding in 2018. In the first six months, FinTech funding in Singapore had reportedly reached $838.1 million compared to Hong Kong’s $70.8 million.
Singapore also boasts a $52,960 gross domestic product (GDP) per capita, along with strong infrastructure and good internet accessibility. More specifically, Singapore has fiber-optic infrastructure throughout its borders, and the country’s mobile subscription penetration is over 100 percent, which ASEAN Briefing notes are “factors that are key for FinTech growth.”