Since 2017, FinEX Asia launched a series of funds dedicated to investing in U.S. consumer loans that are originated by online marketplace lending platforms, carefully selected by our team of investment experts. Our funds aim to deliver superior returns to investors by actively investing in these loans, and we believe our proprietary platform, technology enabled investment strategies and risk modelling capabilities, enable us to provide better returns for our investors, while diversifying risk across thousands of fully amortizing debt securities.
Led by a seasoned team of investment professionals and industry experts, FinEX Asia invests solely in fintech companies and projects. Through our broad network of relationships, deep industry experience and value creation resources, we help our partner companies develop high growth to become industry leaders in technology solutions, at the same time bringing better returns to our investors.
FinEX Asia connects Asian investors to U.S. consumer credit and other high-quality and low-volatility assets. Consumer credit is a superior, but often overlooked, asset class for many investors. Importantly, consumer credit is resilient to market movements and enjoys a high-yield, fixed income return that outperforms other asset classes over time. It is also a short tenor asset class that allows flexibility.
Though U.S. consumer credit is an attractive asset class, several access hurdles remain for Asian investors:
Investors wanting to invest in U.S. consumer credit must onboard themselves with the marketplace lenders and each platform’s onboarding requirements are different. Onboarding processes such as Know-Your-Customer (KYC)/ Anti-Money Laundering (AML), as well other due diligence can be time consuming and costly.
Due to the onerous onboarding process, a typical investor will likely only onboard with one or two marketplace lenders. That works against asset diversification.
Unless an investor fulfils an elaborate U.S. tax-withholding exemption, the investment returns will attract up to 47% in U.S. withholding tax, which limits the attractiveness of this asset class. Additionally, unfamiliarity with the U.S. market or the underlying product, coupled with language barriers, are other potential problems.
FinEX Asia's FinTech market platform utilizes the award-winning Tuan Tuan Zhuan (TTZ) technology, which enables investors to allocate their funds to hundreds of thousands of loans assets in real time. In case a single or a few loan defaults occur, investment income will remain unaffected. With its advanced FinTech infrastructure, FinEX Asia platform provides risk modelling, blockchain-based data security systems, real-time performance monitoring and liquidity in the secondary market, enabling investors in making better investment decisions.
Through applying big data algorithms, FinEX Asia can provide investors with instant access to information about cross-border and cross-platform investment, such as content of all investment projects, contracts, yield changes, default status, among other information. Compared with traditional AMCs that only show the top ten shareholding status, giving full transparency of all investment projects to investors in real-time.