B2B Finpal Review

After trying Fundaztic and Funding Societies Malaysia, I've decided to try out the rest of the P2P operators in Malaysia. Next in line is B2B Finpal. Read on for my review of this company.

B2B Finpal Review

Signup Process

The whole signup process is not that complicated but I found it a bit tedious. After the usual online registration, you'll have to print out some agreement forms and sign. Just follow the instructions in the email and you should be fine

Features & User Friendliness

This is the part where I have major issues with the platform. The first impression I had upon logging into the website was how bare-bones it was. 

After your registration is approved, you will have to deposit at least RM1000 to activate your 'virtual account'. Do note that your money is actually deposited into a trust account which is in line with Bank Negara's best practices.

Trying to deposit fresh funds was a bit confusing, as there is no integration with any major online payment processors such as FPX. There wasn't any information to begin with, which I found quite frustrating. You will have to find the information in the email and do an online transfer manually. Subsequently just fill in the information by clicking the 'Deposit' button in your dashboard and wait for your funds to be confirmed.

That being said, confirmation of deposit was fairly quick during normal business days. I got my RM1000 deposit confirmed within 2 hours.

They have auto-invest options so that is a good point. You can even set your own 'risk grade' to tune your exposure to investment notes based on their risk grading, so this is something new.

B2B Finpal investment opportunities

Unlike Fundaztic or Funding Societies, I feel B2B Finpal's funding opportunites to be quite limited.

I have yet to invest into any of the notes so far, so stay tuned for updates on the performance.


It's too early to tell how B2B Finpal will fare in the future. As with all things, there are certain risks involved when investing into P2P funding.

I will definitely update this post in the future to gauge the company's performance. Stay tuned! Do like my FB page to get updates.

P2P Lending Malaysia: A Comprehensive Guide for Beginners

P2P Lending Malaysia

Peer-to-peer lending, otherwise known as P2P lending or financing is a relatively new concept in Malaysia and the government has taken progressive steps to regulate the industry with the Securities Commission announcing the regulatory framework for P2P financing in 2016 and the official approval of 6 peer-to-peer financing operators later in the year [1].

This has provided an alternative avenue for investors to seek higher-than normal banks’ fixed deposit returns in an increasingly challenging and inflationary economy.

What is P2P lending?

P2P lending in the Malaysian context refers to the opportunity for lay persons to pool together their money and invest in small-to-medium enterprises (SMEs) and businesses in Malaysia which are in need of capital for their operations.

Traditionally these businesses can only obtain financing via banks, which pose a hurdle as banks typically require some sort of collateral or at least a proven track-record. This means that new or small enterprises often encounter difficulties to obtain funds to sustain their operations or to expand their business.

SMEs as a group is a major engine of growth for the Malaysian economy and this obstacle to financing has been a major inhibitor to their growth. It was calculated that there is a RM80 billion gap in financing that has not been met. Thus, it is hoped that P2P lending can help fill that gap.

Worldwide, P2P as an alternative form of financing is fast becoming a proven alternative, given that over US$25 billion was raised on P2P platforms globally in 2015. That total is projected to grow to about US$96 billion by 2025, according to Securities Commission chairman Tan Sri Ranjit Ajit Singh. [2]

P2P financing operators act as platforms where companies can get access to funds directly from investors, resulting in a shorter turnaround time. All these are done online which means lower costs compared to traditional banks.

From another perspective, investors act as ‘banks’ that provide financing for these companies. In return, they earn a higher return on their investments compared to traditional fixed deposits.

Is P2P lending safe?

The main risk involved in P2P lending is the default risk whereby the company is unable to repay the loans. In the unfortunate event of default, investors only lose whatever amount they put into the particular investment.

Another risk event would be the shutting down of the P2P financing platforms, which is highly unlikely given that the platforms themselves are only acting as third party enablers that provide the underlying technology for the lending activities.

Who are the P2P Platform Operators in Malaysia?

Currently there are 6 official P2P platforms in Malaysia.

Platform OperatorWebsiteDescription
Funding SocietiesWell-established regional player with largest market share
B2B FinpalOwned by B2B Commerce, a supply chain management software provider
FundazticRobust P2P platform led by ex banking veterans and industry leaders
AlixCoOwned by FundedByMe, a Swedish-based equity crowdfunding platform
QuicKashOwned by ManagePay Systems berhad, an e-payment public-listed company
Nusa KapitalWorld's first shariah-compliant P2P lender

Why invest in P2P?

P2P is a great alternative avenue for investment. Let’s look at some of the advantages below:

Higher returns compared to fixed deposits

Investors get potentially higher return. Most of the investment notes offer rates higher than 5%.

Choose who you want to lend to

Before you part with your hard-earned money, you can check the company’s profile, sales and revenue figures as well as their plans for the purported loan.

Low Initial Starting Capital

You can start with as little as RM50. Most of the platforms allow miminum investments as low as RM100.

Compound Your Investment Returns

Reinvest your returns into new investment notes and compound your returns over the long run. Some of the P2P platforms offer auto-investing features based on preset conditions, which means you can essentially park your money into your account, set up the auto-investment feature and let your money compound itself without having to lift a finger.

P2P Lending Malaysia – A Solid Alternative Investment Avenue

P2P Lending in Malaysia is here to stay and the industry will only get exponentially bigger as more people accept it.

I sincerely hope you find this article useful. Do check out my other articles in which I review the different P2P platforms.



[1] https://www.sc.com.my/digital/list_rmo/
[2] http://www.theedgemarkets.com/article/special-report-new-shot-funding-creditworthy-smes