I have been investing in peer-to-peer (P2P) lending on Funding Societies Malaysia and Fundaztic for two years. I feel it is time for me to make a choice between these two platforms.
Funding Societies Malaysia vs Fundaztic
Below are some basic statistics about these two platforms.
Funding Societies Malaysia offers three types of investment products. These are invoice financing, business term financing and dealer financing. The tenure ranges from one to 24 months with service fee of up to 2% per annum on repayment or 30% on interest received. Up to 13 August 2019, it has crowdfunded 866,985 notes with a total amount of RM 2.32 billion. The minimum investment amount is RM 100.
Fundaztic offers just one type of investment product. The tenure ranges from 24 to 36 months. It charges a flat service fee of 1% of monthly repayments. Fundaztic has funded 739 notes with a total amount of RM 56,215,400. The minimum investment amount is lower than Funding Societies Malaysia (RM 50).
Default rate
As on 13 August 2019, the official default rate on Funding Societies Malaysia is 1.23% (Link) while it is 2.62% on Fundaztic (Link).
However, as Fundaztic has a write-off system, thus the actual default rate may be higher than reported. As for Funding Societies Malaysia, I could not find any documentation about similar system, so I am going to take its official default rate at face value.
How about my personal default rate on these two platforms?
Based on total number of notes invested, my default rate on Funding Societies Malaysia is 1.52% (but there are another 2 missed repayments currently). It is 8.11% (including write-off) on Fundaztic (but there are another 5 missed repayments).
Based on the total principal invested, my default rate on Funding Societies Malaysia is 0.14% while it is 3.95% on Fundaztic.
My choice
As we can see from their performances above, Funding Societies Malaysia fares better than Fundaztic. Furthermore, the tenure of notes on Funding Societies Malaysia is generally shorter than Fundaztic. So, we will be getting our invested money back faster on Funding Societies Malaysia. Thus, I am going to stop investing in new notes on Fundaztic till end of the year. If the returns are not good, I think I will pull out of the platform. Until then, I am going to recommend Funding Societies Malaysia as my preferred P2P platform.
Referral link
Below is the referral link to Funding Societies. By clicking on this link, I may gain referral rewards from your registration with the platform. If you think I have done a good service in explaining the topic, please click on the link below if you have interest to register. Otherwise, you can always search Funding Societies Malaysia with Google and register yourself.
Funding Societies Malaysia: Link here – If you register and invest through this link, both of us will get RM 30*.
*Terms and conditions apply.
