11 Feb 2021 Posted in Announcements
- The Ministry of Law (MinLaw) has extended a programme to pilot new business models for moneylending by one year to 2022, to allow more time for the licensees (“Pilot licensees”) to run their new business models.
- In 2019, moneylending licences were granted to six firms which were selected to pilot new business models for moneylending, as part of an initiative to better protect borrowers through business-led improvements. The Pilot licensees have established new moneylending business models with features, such as more comprehensive use of data to assess the creditworthiness of borrowers and digitalised processes, that have the potential to lower the cost of credit and make operations more efficient, amongst other benefits.
- The Pilot licensees were granted a total of 15 places of business and allowed to operate for up to two years, from 2019 to 2021. The Pilot licensees are:
a) Accredit Pte. Limited
b) 1 2 Lend Pte. Ltd.
c) Credit Culture Pte. Ltd.
d) IFS Consumer Services Private Limited
e) Minterest Money Pte Ltd
f) Lending Bee Pte. Ltd.
- Most Pilot licensees had only operated for one year or less before the onset of the COVID-19 pandemic, which has negatively affected the moneylending sector. MinLaw has therefore extended the Pilot by one year, to 2022. This will provide more time for the sector and the Pilot licensees to recover from the pandemic. In turn, this will enable MinLaw to more accurately assess the impact of the Pilot on moneylending, which would inform our efforts to enhance the moneylending regulatory regime.
Past Press Releases: 11 Dec 2018 and 11 May 2018
MINISTRY OF LAW
11 FEBRUARY 2021
Last updated on 11 Feb 2021