By Lydia Nathan / Pic By TMR
Peer-to-peer (P2P) financing is the preferred investment tool among millennials for its higher returns and shorter duration options, according to Funding Societies Malaysia.
In its inaugural investor survey, it found millennials opted for P2P financing due to high-interest rates, monthly compounding effects and short-term tenure, including the stringent due diligence process undertaken by the P2P financing platform on small and medium enterprises.
Funding Societies co- founder and CEO Wong Kah Meng (picture) said 70% of its investor portfolio in Malaysia are millennials.
Wong said 79.3% of respondents chose the P2P financing platform as a preferred form of investment, with stock market coming in second at 63.2%.
“The survey showed 41.1% were keen on real estate investment trusts, while property was 34.5% and the last was unit trust at 32.6%,” he said.
Wong said the platform strives to keep default rates low — the current rate is at around 1%.
The survey stated that higher interest rate returns, which reach up to 14%, are among the biggest attractions for participation in P2P financing.