Marvelstone Tech partners with Korea Creadic Life (KCL) to build SME financing business in Korea
Singapore-based Marvelstone Tech, a fintech focused financial group that facilitates Fintech initiatives across Asia, has inked an MoU with Korea Creadic Life, an mPOS provider and O2O platform based in South Korea on 9th March.
Marvelstone Tech aims to provide financial products and solutions through innovative methods via an integrated platform. With this MoU, Marvelstone Tech will kick-off its business through big data driven SME financing in Korea.
KCL currently services over 470,000 merchants in Korea through their mobile payment and O2O services platform, and also have partnerships with credit card companies since their inception in 2008.
The partnership will see KCL sharing merchant sales data with Marvelstone Tech to develop big-data based credit analysis in order for the company to issue loans to the small and medium sized businesses (KCL merchants) in Korea.
Tae Jung, CEO of KCL shares, “Small and medium business financing has been a growing and pressing issue in South Korea. We are happy to work alongside Marvelstone Tech to tap into our extensive merchant base and help with their financing through factoring arrangements.”
“Asia is highly fragmented and different markets have varying demands, needs and behaviours. We believe that with Marvelstone Tech’s deep-rooted and extensive expertise across the region, we will be able to foster a great working relationship to build the platform together and expand our services to other markets in Asia.,’ Steve Lee, the CSO of KCL further added.
According to the Asia SME Finance Monitor 2014, 96% of registered companies are small and medium enterprises and they employ 62% of the total labour force. Nonetheless, they only contribute to 42% of economic output. This illustrates the need for SMEs in Asia to be more competitive, which will mean providing SMEs with more access to financing opportunities. Since the global financial crisis, SME lending has deteriorated severely, whereby they have only received 18.7% of the total bank loans between 2008-2014.
“We are excited to work with KCL, to improve ease of accessibility to financing and improving user experience” said Joe Cho, founder and CEO of Marvelstone Tech. “The SME finance gap remains one of the biggest issues pertaining to the need of fintech solutions in Asia, and we believe that this partnership will help close some gaps in the region of South Korea.”
The KCL team will be flying over to Singapore next month. ‘We are excited to head over to Singapore next month for the Cards & Payments Asia conference, to be a part of the growing Asian payments ecosystem and meet other players in the region,’ Jung added.
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