PolicyStreet.com, a Southeast Asia-based insurance technology startup has completed its Series A fundraising round totalling RM25 million over two tranches. The latest round is led by Altara Ventures, Auspac Ventures, Gobi Partners and the Leong…
Traditional banks tend to favor big corporations with higher volumes, while the underserved micro-businesses and SMEs must endure expensive fees and complex processes from using financial products that are catered to the big boys.
“That is why they turn to various products to cater to their business needs. However, having many fragmented financial products to serve different needs means systems are not integrated and extra costs involved too. Some examples include cross-border transfer fees, costly insurances, setting up subsidiaries, etc.” said Adrian Yap, CEO of MoneyMatch.
Adrian Yap and Naysan Munusamy who founded MoneyMatch in 2015, helped individuals & SMEs save at least MYR 16,000,000 for customers by putting costs at bay and building a great product that’s a bang for their bucks.
After a decade being in the business as bankers, hearing feedback from individuals and SMEs who transfer money abroad has proven the need to rethink finance by democratizing finance so businesses can focus on what matters the most.
MoneyMatch Pulse Platform
“We believe that having a one-stop financial technology platform can help SMEs focus on their main objectives as they venture into uncharted waters.” Said Naysan Munusamy, Co-Founder of MoneyMatch.
In MoneyMatch’s recent developments, they have upgraded their business FinTech platform called MoneyMatch PULSE Platform. Pulse offers services that business owners and their team can easily access and enjoy the convenience of using all these financial services all under one roof.
This includes cross-border transfers, invoice financing, as well as upcoming SME focused insurtech solutions, etc. So, say goodbye to crazy costs from fragmented business solutions.
Challenges SMEs face
Making payment to different countries with different currencies at high transfer costs has eroded much time, money, and effort by businesses. However, Pulse enables customers to get the best rates at the lowest transfer cost, and to send to more than 80 country destinations.
For SMEs which have salaried workers all over the world, engaging with financial entities with limited country destination coverage becomes a challenge.
For example, Bank A allows you to send money to certain ASEAN countries only, so, you will be forced to open another account in another entity for non-ASEAN countries for example. Even worse, for each entity you create an account with, there will be hefty fees and charges.
On top of that, SMEs don’t obtain bank-sufficient documentation to obtain financing or corporate credit cards since most SMEs or micro-SMEs are in their infancy stage with less than 5 years in operation.
In unprecedented times like the pandemic or economic depression, problems with bad debts become apparent and companies may not be able to function without proper cash flows to counter economic hits.
If you approach a bank, they will require documentation or a corporate credit card to release any financing to help with your cash flows. But with micro businesses & SMEs, it may be difficult to provide such documentation since the company is still new with no credit history.
Although it is still a long journey ahead to global recovery during times of endemic, more innovative and disruptive products emerge in times of crisis. Obtaining transformational tools is of an essence and Pulse by MoneyMatch is one of them.