Finology Secures Pre-Series A Funding For Innovative Embedded Finance Solutions
- by Yun
Finology announced the successful closing of a pre-Series A funding round of an undisclosed amount.
The round was led by Silverlake Group and featured participation from The Hive Southeast Asia, a recipient of the Dana Penjana Nasional programme under the purview of Penjana Kapital (a wholly owned subsidiary of Malaysia’s Ministry of Finance) and Malaysian Technology Development Corporation (MTDC).
The investors were attracted by Finology’s innovative approach to improving financial access through its lending and insurance API-driven solutions.
Founder & Group Executive Chairman of Silverlake Group, Goh Peng Ooi, shared, “Finology has a distinctive approach to advancing financial inclusion, providing cutting-edge clients with embedded finance solutions to maintain a competitive edge. The company’s vision and mission align with our shared goal of transforming the financial services industry. We are proud to support Finology as they solidify their position as a leader in the Asia-Pacific region.”
While Silverlake Axis Ltd Deputy CEO, Cassandra Goh added, “In Silverlake, we make every effort to bring new financial ecosystem propositions, from user-centric applications to AI-driven solutions, to our customers.”
Moreover, Taufiq Iskandar, CEO of Penjana Kapital, remarked, “Finology makes financial products widely and easily accessible, opening financial services to more people than ever. Its collaboration with our partner The Hive Southeast Asia perfectly aligns with Penjana Kapital’s core mission of nurturing innovation and driving economic growth through our strategic venture capital investment. We foresee a substantial and positive impact on both the industry and the broader economy.”
Meanwhile, the Group CEO and Co-Founder of Finology, Robin Ang, commented on the funding, saying, “Our mission is to bring financial inclusion to the APAC region through embedded finance. We are grateful for our partners’ trust and support as we work to improve our technology and make financial products accessible and seamless for everyone everywhere.”
Advancing Financial Access with Embedded Finance
Despite the availability of technology and financial resources, a significant gap remains between financial services and end consumers. A study by Google, Temasek, and Bain & Company revealed that over 70% of the world’s adult population remains unbanked or underbanked, with limited access to financial services.
Cognisant of this matter, Finology aims to increase access to financial products and services by integrating them into non-traditional platforms through embedded finance. The company plans to bring its solutions to financial institutions and consumer-facing brands in the APAC market to increase financial inclusion and support the underbanked, addressing barriers such as lack of credit history and difficulty in accessing conventional banking products.
“For example, embedded finance can be a valuable solution for first-time home buyers, like the ones who found their perfect property but struggle to secure favourable loan rates due to lack of credit visibility. The lack of visibility can also cause issues for property developers and agencies, as it can lead to cancellation of property bookings”, Ang shared.
He continued, “By providing loan pre-approval, embedded in the home buying process, the visibility to both buyer and seller on the loan eligibility at an early stage can save time for both parties. It can also be a valuable tool to advise buyers on their property purchase options that they are eligible for while enabling financial inclusion.”
Additionally, embedded finance represents a paradigm shift in the way financial products are made available to consumers. The company has recognised the potential of this solution to revolutionise the lending and insurance landscape and has therefore expanded its offerings to include a wide range of products such as mortgages, personal loans, hire purchases, and insurance.