Free Essay

P2P Lending in Singapore

In: Business and Management

Submitted By AmnaMalik
Words 13527
Pages 55
Abstract
This study focuses on demand of P2P market among SMEs and consumer market. The researcher has developed a framework based on how peer to peer lending platforms are important for SME’s and what are the governmental regulations to promote online lending platforms, how SMEs play an important role in the development of economy, how important is the peer to peer platform to them and the future position of peer to peer market in Singapore. The focal point lies on the demand of peer to peer lending platforms among small and medium enterprises and consumer market. The study illustrates a high demand of peer to peer lending among small and medium enterprises regardless of less security of investment. This study also includes risk and regulations associated with peer to peer lending and the impact of social behaviours and social connections on the decision of investors related to investment in online platforms.

Acknowledgement
I owe a debt of gratitude for working adults and SMEs for providing me accurate data and their feedback regarding their loan preferences. I would like to thank all for their precious time and respond. As this work would not be possible without their time and effort.

Tables of Contents
1.0. Introduction 4
1.1. Peer to peer lending platform 5
1.2. Background of the research 7
1.3. Objectives 8
1.4. Research Rationale 9
2.0. Literature Review 9
3.0. Research Methodology 19
4.0. Data analysis 21
5.0. Results and Finding 22
6.0. Strengths and limitations 28
7.0. Conclusion 29
Bibliography 31
Appendix 34

Table of Figures
Figure 1 Non-performing Loan of Singapore 17
Figure 2 Framework 19
Figure 3: Working Adults' preference to peer-to-peer lending 20
Figure 4 SMEs' preference for peer-to-peer lending 21
Figure 5 Government support in Peer-to-peer lending 21

Role of peer to peer lending in the development of SMEs in Singapore
1.0. Introduction
Increasing popularity of peer to peer lending has caused a huge financial integration to countries such as United Kingdom, United States, and China etc. According to forbes.com, Peer to peer accounts up to 90% of capital deployed in financial industry. Presence of Peer to peer lending is now an alternate financing platform to investors and companies without going through traditional methods of approaching banks or financial institutions due to fact that they offer higher returns.

For Singapore, peer to peer lending is still considered as a new and developing sector. Singapore economy mainly consists of Small and Medium Sized Enterprises (SME), whereby most new start-up SMEs face problems in getting loan from bank or financial institutions due to lack of goodwill. This means, peer to peer lending in Singapore bridges the SMEs gap of getting loans for business development. This research mainly focuses on the future of Peer to peer lending in Singapore that is useful to have a practical insight of Peer to peer lending and its implications in Singapore.

Peer to peer lending took a huge lead in financial industry during last few years and their accelerating presence holds a deep impact on financial sectors. Peer to peer lending is growing rapidly in terms of its service and also in other financial areas to surpass normal banking services. With the known popularity of peer to peer lending, it has definitely bridged the gap in financial industry by allowing investors directly lend money via online platform to companies without any middle man that result in effective cost savings.

Therefore, the information, framework and methodology gathered through the selected paper will enhance our knowledge on social factors that contribute to risks, rewards and implications after introducing peer to peer lending in Singapore.

1.1. Peer to peer lending platform
Most peer to peer lending platform expands during the recovery period of the economic crisis 2008. Zopa.com is one of them. In 2005, it claimed to have one of the best loan performances among the entire peer to peer lending platform with post-crisis since 2010. Despites the growth, there were many peer to peer lending platform that experienced greater lose due to the economic downturn.

UK being the third largest national crowd funding economy after USA and China, its peer to peer lending platform has gathered and created their own self-regulating organization, the Peer-to-peer Finance Association (P2PFA). Members of this platform tend to help themselves to higher standards as compare to others lending platform. These peer to peer lending platforms are rewarded for setting up the organization by gaining a huge amount of public and governmental goodwill within UK.

Peer to peer lending platform setup a database for borrowers to find suitable investment match. The business model for every country varies; some investors are directly linked to borrowers while others, borrowers are required to create accounts, providing information, for the purpose of loan, loan amount, income and debts in order to link investors. Even between peer to peer lending platform , interest rate treatment can also be different, for example in Zopa.com, throughout the whole bidding process interest rate is flexible and the loan is funded starting with the lowest interest rates proposed. This makes the interest rate variable for every individual fund invested to that particular loan, whereby in Prosper.com the interest is pre-determined and remain constant throughout every single loan.

With a platform filled with potential borrower’s details and requests allows lenders look through and select suitable requests. Borrowers request for loan by creating and listing details such as loan amounts, interest rate, repayment percentage, and bid period ranging from 3 to 5 years for the completion of loan. A huge range of loans and market type is one of the advantage. Such as Prosper.com has introduced free market, where anyone is able to scan a loan listing, lenders is determined through a bidding system but some of the borrowers are able to successfully raise 100% of the requested sum to get loan.

Following are the major peer to peer lending platforms working in Singapore. These platforms, plays an important role in the development of SME and help them raise finance.
• Funding societies www.fundingsocieties.com
• Capital Match- http://www.capital-match.com
• Moolah Sense - https://moolahsense.com
• Crowdo - https://www.crowdo.com
• Fundacity -http://www.fundacity.com
• Entreexchange -http://www.entrexchange.com/en/w
• Kyepot (incubator stage, participants of StartupbootcampFintech SG) -http://www.kyepot.com
• New Union - https://www.newunion.sg
• Silver bullion https://www.silverbullion.com.sg
Moolah- Sense, Capital Match and Funding Societies have recorded the highest fund raisers for SMEs that is more than $10 million.

Besides these peer to peer lending platform there are many other home based lending platforms working in Singapore. These homegrown peer to peer lending includes Fundhere and New Union. These small sites face problem either on lender side or borrower side. Olive Green, the company that has established a success story in peer to peer lending platform. It provides eco-friendly packages on peer to peer lending with it more than 2,500 registered investors. . It has set an example of bright future outlook of peer to peer lending platforms.

Peer to peer lending operates online, resulting in lower overhead cost. Such social networks are able to solve problems such as lack of borrower's creditworthiness information. In the case of borrower defaults or delay in payments some platforms claim on behalf of investor. Such as RateSetter.com, it has provision funds that can be claimed on behalf of investors so that there should not be any delay in repayments. Not all peer to peer lending platforms have such provision; they are not obliged to bears any responsibility for borrower defaults.

Banks look at a long criteria before approving the borrower's loan, the ability of the borrower to repay loan, pledging of collaterals, ability to place down payment, meeting the conditions affecting the loan and lastly the character of the borrowers to a certain trustworthiness. Some of the factors that induce the borrowers to choose peer to peer lending over traditional banks are link directly to the interest rates and term of loan. Banks charges lower interest rates if borrowers able to repay the loan within a shorter loan term, which is opposite of what most borrower is look for. Collateral is also an issue for borrowers, their concern is the risk of losing their collateral if they are unable to pay. Without the need of collateral on peer to peer lending is one huge advantage over traditional banks for both investors and borrowers.

Introduction of peer to peer lending platform benefits borrowers in various ways. As Compared to traditional banks, online application of loan provides an ease of computer access anywhere, time and the amount of information for application is relatively lesser, approval of loan wait was also significant shorten. As the natural of the loan on peer to peer lending platform, funding of small loan under $5000 typically only take a few days to less than a week to be funded, giving quicker access to cash. Another benefit for borrowers are attractive interest rate that peer to peer lending platform able to provide, going as high as 7% Annual Percentage base on borrower payback timeline and credit history.

1.2. Background of the research
Jeopardy has become a global giant issue due to high volatility of market. This loss of investment is associated with different types of risks, most important of them is credit risk that deals with inability of borrower to repay the borrowed money. Many researchers have tried hard to create a model that can minimize this risk and have overcome the issue to some extent. Chances of loss of investment got increased by many folds when two parties do not know each other. Same is the case in peer-to-peer lending. That has created a cloud to connect lenders and bowers from different regions to gain investment.

Motivation behind this research is an increasing trend of social lending that has brought an ease to the process of getting investment. This research paper examines demand associated with social lending and the future of peer-to-peer lending in Singapore. There are many researchers like Katherine Ren, Traci L. Mach, Courtney M. Carter, and Cailin R. Slattery, Ian Galloway, Peter Baeck, Liam Collins and Bryan Zhang and many other, who have researched on this topic, its effects on economy, its trend and how helpful it is for the investors. Peer-to-peer lending is mainly fruitful for small and medium enterprises as they mainly face problems in getting investment due to no goodwill and relation in the market.

1.3. Objectives
Objectives of this research is to highlight the importance of peer to peer lending in the development of SMEs that in term flourishes economy as 99% of enterprises in Singapore are Small and medium size enterprises. . Peer to peer lending has brought forward a new financial platform that allows investors to lend and borrow money online without interference of any middle man. The researcher also discusses how peer to peer lending eliminates middle man that results in effective cost savings. This means that borrower can enjoy lower interest rates and lenders will yield a higher return. The cost savings benefits are embedded with financial risks such as credit risk. The term credit risk is actively discussed throughout the paper and is defined as the inabilities of borrower to repay its principle plus interest amount.

Further this research aim to address issues related to online lending platforms. Prospers.org also provides online forums, allowing users freely discuss their personal views, share their expertise, experience and interact with each other. Often or not, peer pressure plays extensive impact on individual’s decision making process as well (Turkle 2011).

With the growing trend of peer to peer lending, it causes disintermediation to banking functions. Financial regulations also affect growth of peer to peer lending, hedging and diversification of various risk factors. This is a crucial part and parcel of it shows how it influences individual preference in peer to peer lending marketplaces under different financial situations.

1.4. Research Rationale
Rationale behind this paper is to understand better that how social factors in peer to peer lending can impact an individual’s decision making and credit risk preference in different financial situations. This examines the gap of potential future implications after introduction of peer to peer lending in Singapore and it also reads ¸ how a decision making process can convert risk factors into reward structure.

Current Singapore’s regulations and legislation have little limitations on peer to peer lending because peer to peer lending in Singapore is still in growing stage. Singapore has always adapted a comprehensive ruling on its financial industry. Will the future peer to peer lending maintain, sustain and expand with the regulations implement by the government?

2.0. Literature Review
Peer to peer lending is a financing method online where unrelated individuals obtain loan from others without going through traditional banks and financing companies. Because the availability and quick access of internet everywhere makes it no longer a requirement for individuals in a group to live close another or to actually know each other. Borrowers can either take loans through social network, online platforms, investors sites, or even directly receive loan from lenders to household borrowers.

Peer to peer lending is an alternative whereby strangers can obtain loan from one and another without any intermediary such as banks and financial institution. Borrowers can get a loan from home just a few clicks away on the internet which makes it super easy compared to banks (Anon., 2015).

There is a large role of SMEs in the economic development of Singapore as 70% of the workforce in Singapore is associated with SMEs and these SME contribute 50% of Singapore’s income.1.52 billion citizens are involved in the operations of SMEs. In this way these SMEs play a role of backbone of Singapore’s economy (Singapore, 2015).
Peer to peer lending platforms are striving hard to generate a level of trust, confidence and acceptance in Singapore as these platforms are important for SMEs because 99% of Singapore’s enterprises are SMEs. This highlights the importance of peer to peer lending platforms that should be in portfolio (Sense, 2015). These platforms also provide opportunity to investors to generate higher return than that of traditional banks.
In 2013 it was estimated that 66% of the Singapore workforce is involved in the employment related to small and medium enterprises (Tan, 2015). Government has taken many considerable stamps to promote small and medium enterprises in the region. Government has spends $45 million in skills future mentor programs to promote and boost the development of small and medium enterprises. Investors are keen to make Singapore a prime country to invest in especially in small and medium enterprise sector of the country. In order to rationalize this, government has serious considerations.

According to an SME report in Singapore only 13% applications of loan request from SMEs were approved during 2012 in Singapore. SMEs choose to start their operations in Singapore due to robust regulation and legal framework (Hobey, 2015). Business environment and opportunities are developing in Singapore that has attracted many investors. To support these investors of Small and medium Enterprises Singapore’s online platform regulation committee is investing in the development of these platforms.

Less interference in the loaning process makes online lending an optimal choice for borrowers that promotes an anonymously connection between lender and borrower. These online platforms enable borrowers apply for loan through a structured process that is online application process (Lim, 2013). Crowd funding has the potential to disrupt consumer finance as it provides as disinter mediated finance has been continuously capturing market (Morse, 2015).

Social lending helps borrowers take loans at lower interest rate than that of market and provide lender an opportunity to invest at a higher rate of return than from banks and other alternatives. With the passage of time it has strengthen its roots and has gain its position at a major online business. There are many online websites that act as an intermediate between lenders and borrowers. Prosper. Com is the first online platform that provides these facilities. This site was launched in USA in 2005 and now has become second largest having 1.5 million members and $380 million of funded loans. Prosper. Com describes itself as an “eBay for loans” (Chena, et al., 2013). Prosper .com operates in more than one country. It fulfills needs of borrower specially small and medium enterprises. Through this channel borrowers specify their listing including the amount they need and a maximum rate of interest they are willing to accept.

The interest rate companies charge depends upon the risk involved in borrowing and lending (Anon., 2015). P2P Lending is a fruitful way and better choice than banks as it provides borrowers an access to reach a potential lender (Lim, 2013). These channels help borrowers, an individual or any financial institution; get to be used for different purposes. At any stage, if a borrower fails to return the loan, he may be delisted. In order to provide transparency to the system, all the information about borrower is verified. Lenders choose individual listing and then bid for a specific interest rate. Lenders also mention their desired interest rate and amount they want to lend. For this whole process prosper charges an equal proportion of fee (transaction fee) from borrower and service fee from lender.

Most of the lenders do not trust online plate forms for investment as there comes a high credit risk. The credit risk involves uncertainty of the repayments (Morris & Shin, 2010). Online platforms are not responsible for any fraud cases and they do not even guarantee the credit worthiness of borrower. That is the main reason many of the entities do not follow them to take loans.

Trust is created when individuals use their social connections and online platforms informally to facilitate themselves especially when they use connections as social collateral (Karlan, et al., 2009). Informal connections tend to increase power of relations. Despite rapid growth of peer to peer lending platforms the risk is still high because investment is usually made in the companies that do not have sufficient assets and are volatile in nature.

According to regulatory bodies there needs to consider these online platforms. There are some important regulations that may apply on these platforms under Security and Futures Act (Varma, 2016). Platforms working in Singapore like Capital Match and Moolah Sense have excellent growth rate. New evolving platforms are now considering to establish risk free framework by pegging its amount of loan by gold and silver reserves.

These is a significant impact of Social factors such as membership of a group on individual’s risk preferences. Being the member of a group that is risk taking or risk averse will respectively affect individual’s preference for investment (Sitkin & Amy, 1992). Group decisions are perceived to be less risky than that taken individually. Individual behavior is also affected by the group stereotyping.

Individuals having less information are reluctant to take any decision and rely on group members as they perceive their group members have more information than he and in this way an ambiguous social situation comes into being. Individual believes his group member has right information and accurate decision towards the situation (Aronson, et al., 2014).

Online community participation also effects a consumer’s risk taking abilities, but these platform do not pay attention to understand this effect that community participation leaves on an individual (Zhu, et al., 2010). Social Communities alter an individual’s behavior towards risk that is group influence.

There is a significant impact of social connections on trade and business decisions. Agents in auction learn through interaction and the information spread among bidders during auction (Chena, et al., 2013). Social network influence decisions but there is a problem in social groups that people try to be the part of a group that matches their priorities which is term does not bring any clear change. This highlights the fact that formation of groups is not random; self-selection is the part of group formation (Lazarsfeld & Robert, 1954).

Lenders personally know one another and share information among their peers. In any community such social behaviors re normal like consciousness of kind, shared rituals and 5 traditions, moral obligation manifested (Thomas & Thomas, 2001). Peer to peer market not only has structured a unique process in it but it also focuses on different aspect of human nature like social interaction , intra-group communication and engendering of social trust. These factors enable social groups perform in a productive way, through synergy of their efforts and efficiency.

Non-banking financial institutions are not allowed to charge higher interest rate than that of announced by authoritative bodies (Tsai, 2015). Research from (Lin & Viswanathan, 2009) suggests that borrowers in a group are more unlikely to defaults. That is the reason peer to peer lending involves high credit risk. Online platforms do not guarantee borrowers credit worthiness. Loss of investment prevails in lender’s mind leading towards reluctant to adapt online platforms that can be a giant reason of failure of such platforms.

(Ravina, 2012) has also highlighted that although figures are not high, African American are less likely to get their loans funded, paying higher interested rates and tend to get defaults more often than Caucasians. Borrower's employment status is one of the key information that investors actually look at. Social lending has penetrated in the market and increasing day by day. Total borrowed money in 2007 through peer to peer lending was approximately $650 million that is projected to grow in coming years (Chen & Ghosh, 2006).

According to researchers (Gao, et al., 2015) high commitment of lender is important to evaluate lender’s willingness to continue investing in social lending platform. Lender are the other side of the bridge if their commitments are not strong the platform will never be able to work effectively. No money available for loans will lead toward less trust of the borrowers due to unavailability of resources. Many borrowers have adapted this platform due to availability of multiple options to fulfill their needs. No availability of suitable resources will lead towards the failure of the platform.

Borrowed who tend to be more creditworthy have higher chances of fulfilling their needs for loan and those borrowers who are more trustworthy have better options to seek loans and their tendency of default is very less (Wang, et al., 2015). On borrower side trustworthiness is the main option that is to evaluate. Low trustworthiness leads to no fulfillment of loan and vice and versa. In order to rate the creditworthiness of a borrower his credit rate is an important factor to be considered (Altman & Anthony, 2001). Higher the credit rate, lower starting interest rate and vice versa. There are two other indicators as well that includes homeownership and web to income ratio that can be a good determinant to measure the credit worthiness of an individual.

On the lender side, lender can secure their investment by having much information about the borrower. This information may include borrowers past history, behavior and their careful selection on the basis of easy to cheese criteria. In this way lender can expect the profitability of his investment (Klafft, 2008).Behavior of the borrower can also be analyzed during auction.

Borrower’s financial strength and effort can be measured at the time of listing as that time determines the possibility of funding (Herzenstein, et al., 2008). At the time of listing needed fund borrower provides extra information as well that can be used as a tool to determine its strength. By the use of web 2.0 online platforms democratize the available information. As they emphasis on the availability of open information, dependency on social interactions and collaboration for mutual funds (Tapscott & Williams, 2007).

Lenders consider three things while bidding on a listing: being winner of the bid for ta specific listing, offered interest rate and increase the probability of being amongst winning lenders (Ceyhan, et al., 2011). These three factors play an important role in the success of auctions. Every lender wants to create a win-win solution for himself and for the bowler as well. Interest rate a lender charges depends upon the rules and regulations set by the authoritative bodies. No lender is allowed to charge the interest rate of his own choice yes variations may occur but bellow maximum limit.

(Ladd, 1982) Found that there is an impact of gender and their marital states on their credit worthiness. As banks are reluctant to fund unmarried applicants. Banks refuse mortgage applications of married men. Borrower’s race really plays an important role to determine his subjective creditworthiness (Megbolugbe, 1993). This shows race discrimination in mortgage and lending process. This not only affects the economy and social circle but also creates a sense of discourage among minorities.

As studied by (Black, et al., 1978) that states white couple tend to get loans more easily in better loan terms and conditions than black couples. Minorities pay more amount than that of black people pay (Courchane & David, 1997).

Researcher (Gonzalez & McAleer, 2011) also questioned the reliability of credit score on some of the peer to peer lending platform to act as an indicator of borrower’s creditworthiness considering that credit score is determined based on an individual's past financial behavior and records. As a results, individuals investors is having problem screening and predict the risks of losing their investment if borrowers defaults or the peer to peer lending platform site get closed down.

New Basel Accord regulations help Small and medium enterprises help financial sector recognize small and medium enterprises as they can be their major clients to seek loan. Lending institutions should rate adopt a rating system to specifically target small and medium enterprise portfolio (Altman, et al., 2008).

Peer to peer lending platform is able to compete with traditional banks by using the ease of internet access and the removal of the banking system, giving access to the large pool of borrowers and investors. Base on the article from (Freedman & Jin, 2008) on Prosper.com, it shows that platform like Prosper.com operates differently from traditional banks. The possibility of setting own interest rates and loans terms without going through traditional banks are beneficial to both the investors and borrowers. Examples such as Prosper.com and Lendingclub.com earns profit by charging 1% to 5% fee of the loan vary according to borrower's risk profile and loan duration.

After loan listing by the borrower lenders decide their decision of bidding for any specific loan. Lenders’ decisions rely on two variable interest rate they want to charge and amount of money they want to lend. After searching and having knowledge about borrowers personal and financial information lenders take their decision. On prosper. Com most of lenders’ decisions are conceptual and rely on microfinance model (Marguerite, 2001).

A notable rise in peer to peer lending came in 2007 but it still is a small part of overall lending services. But some researchers says peer to peer provides opportunity and technology but these are not the real lending platforms (Patwardhan, 2015). These platforms do not hold financial statements or do not involve credit risk that do not make them a pure lending entities. But with its ability to provide lower interest rate on loan and multiple number of investors and lenders on a single platforms, it has become popular. These platforms have not gained up to the mark government support and are still in very initial stage of their life cycle that is not even a growth stage due to lack of government support.

China and South Korea are the biggest market of peer to peer lending. According to international organization of security commission these two markets share captured the biggest part of market share in peer to peer lending. China has secured the loan of USD 940 million in 2012 and this amount is expected to increase in coming years with an rapid increase in this trend (Li, 2014).

Two largest peer to peer lending Prosper.com and Lendingclub.com, they allow investment as low as $25 to as high as $35000. It is mentioned by (Lim, 2013) lending club shows that at the end of the year 2008, they manage to fund $24 million in loan, where over more than half of which were credit card debt and debt consolidation. Even this figure is far from the amount of loan made by traditional banks, it states that huge proportion of the consumer's market prefers peer to peer lending over traditional banks.

Money lending in Singapore is supported by government regulatory authorities including Monetary Authority of Singapore, Ministry of Law and Money Lender Act. These regulatory bodies keep a check and balance on the system of lending. They prevent the intervention of unlicensed lenders and borrowers who lack credit history to save the whole online lending system from exploitation (Tegos, 2015). Capital Match ensures the security of trading through its platform as it has established relation with such government authorities. Moreover, the company says that any dab debtor of their platform can be chased because they have developed relationship with debt collecting companies. .Many researcher considers Singapore online lending industry as grey area. CEO of Capital Match claims that the in order to prevent fraud cases, online lending platforms have established a system that one can inform respected credit rating agency if any problem in repayment of the amount occurs from borrower side. This creates black credit history of particular borrower that can be used for future transections.

Talking about the security hazard of these online lending platform, researcher says these platforms are far much better and safer than banks as these platforms are bullion backed by 200% loan value in insured bullion (Kettell, 2016).

Peer to peer lending platforms are now getting viral on the basis of technology. Consumers can access these platforms on the distanced of one click. Creators of these lending platforms are now designing mobile apps to access these platforms. M-PESA is the first platform that allows payment, withdrawal, payment of public transport and for many other purposes through text messages. Companies can adapt it to distribute salaries (Chuen2 & Teo, 2015).

Research by (Freedman & Jin, 2008) shows that Prosper.com rewards incentives to group leaders when a group member loan gets funded. However, it was removed on 2007 as monitoring a loan on larger group is hard. Chances of misuse of the rewards system also increase as group leaders recruits borrowers with lesser screening due to the incentives.

Another benefit that surface from some peer to peer lending is the community’s forums, which in turn help to check on borrowers and its repayment; investors will then try to avoid high risks borrowers. (Heng, et al., 2015) Suggest that out of 45% loan requests with high credit grade borrowers, only 2.5% are from high risk borrowers.

Small and medium enterprises are the major source of a country’s income. In Singapore SMEs contribute more than half of their country’s GDP (Ata, et al., 2013). But unfortunately it is seen that financial institutions weak line for the development of SMEs. This is because of credit risk. Size of a Small and medium enterprise is the main hurdle in getting loan. Financial institutions consider SMEs a small enterprise that would not be able to return the loan amount. Beside this, lack of collateral and limited growth opportunities and capital, cash flow shortage due to long and delayed payment cycles are also the major obstacles that SMEs owners face when seeking finance for business.

Peer to business platforms are established to promote Small and Medium Enterprises. The mission of these platforms is to increase lending sources for SMEs. The purpose of these platforms is to empower individuals so they may take part in the development of economic growth (Yong, 2015).

Research shows that peer to peer lending is a viable alternative of financing. Peer to Peer lending is available to investors in certain states due to strict restrictions (Segal, 2015). Lenders cannot neglect the rules and regulations decided on bases of factual terms.

Government support of peer to peer lending is low in Singapore however government has made policies to promote SMEs and solve their lending problems. Deputy Prime Minister Harman Shanmugaratnam stated in his address in 2014 that economy should focus on the progress of SMEs in Singapore as SMEs covers a major part of country’s GDP and he communicated government’s top priorities for SMEs in coming phase to restructuring (Commitee, 2014).

The government of Singapore is committed to providing development opportunities to Small and Medium Enterprises by designing international, innovational and collaborative policies. Structure of these strategies focuses of Small and Medium Enterprises by adopting a holistic approach that the interest of local enterprises revolves around the betterment of Small and medium Enterprises.

CEO of a professional service company confessed that securing loan from commercial bank was not only difficult but also troublesome due to strict policies and legislations and personal priorities of these traditional banks (Min, 2013).

Evolution of lending clubs has helped many small players in the industry by providing them low-cost loan n to them who utilize them and increase the chances of high return through this loan cost borrowed money (Salmon, 2013). Once the lending clubs start their borrowing operations, the number of borrowers increased and that results in promising success chances. But the major hurdle in this model is that pool of borrowers is much larger than that of lenders. Due to unavailability of lending money these platforms fail. With an increase in the number of borrowers the number of risky borrowers also increases.

Silver bullion provides peer to peer loans to companies. This platform has competitive advantage by charging a lower amount of interest that is 405% per annum while other companies and online platforms charge 12%-25% per annum (Lim, 2015).

A World Bank non-performing loan of Singapore is lower than that of UK and USA this indicated a better position of the economy and credit worthiness of individuals. In 2014 non-performing loan of Singapore was 0.78 and it tends to decrease in coming years (Economics, 2014).

Figure 1 Non-performing Loan of Singapore
Source: Trade economics On Y-axis percentage amount of the non-performing loan is shown.

Despite governmental support, corporate lending efforts to promote innovation and technology among SMEs are slow (Sense, 2015). According to Loan Insurance Scheme (LIS) Government has decided to pay 50 % of insurance premium. This will secure the loans of SMEs by getting them insured against default (Liang, 2007).

The government of Singapore has focused on facilitating small and medium enterprises and consumer market by providing loans, grants, tax incentives equity financing and non-financing assistance that will help companies grow establish and grow their business locally and internationally. In 2011 with the help of government support more than 3000 SMEs upgraded their abilities that not only facilitated economy but also created a large number of employment opportunities (Centre, 2016).

Government is doing considerable efforts to promote SMEs. Government encourages banks ensure the availability of loans to SMEs. All the government owned banks make more loans available to small and medium enterprises. Government uses several peer to peer online platforms like Zopa, Market Invoice and funding circle (Flinders, 2015).

Government has designed strategies to facilitate business line including working adults from mass consumer market, starts ups and Small and Medium Enterprise through government schemes. These schemes include Innovation & Capability Voucher (ICV), Increase SME Productivity with Infocomm Adoption &Transformation, ICT for Productivity & Growth (IPG), Productivity and Innovation Credit (PIC)

PIC Bonus, Wage Credit Scheme (WCS), SME Enhanced Training Support, WordPro, Market Readiness Assistance Grant (MRA), Micro Loan Program (MLP). These schemes charge very little amount just as a services charges (Industry, 2013).
3.0. Research Methodology
The research is exploratory in nature as the research questions were aimed to understand the circumstances of peer to peer lending and underlying risks factors as well. Unit of analysis of the research is Singapore’s economy where researcher has analyzed the impact of peer to peer lending on Singapore’s Finance. To obtain primary data researcher has used Questionnaire as data collection tool. Closed ended dichotomous questionnaires are designed to prevent any ambiguity in results. Respondents for the questionnaire are working adults and Small and Medium Enterprises that are really concerned about small loans. From this defined population of Small and medium Enterprises Sample 54 SMEs and 143 working adults from mass market has been extracted to have a clear view of the trend adapting random sampling technique. Researcher has used secondary research including journal article and book related to topic and primary data is collected through questionnaire. Researcher has arranged appointment and used referrals to get access to maximum number of respondents.

For future context, this methodology has proven its worth and it can be replicated to calculate future credit risk preference or even other risks preference.

Framework
SMEs play a significant role in development of countries by creating most new employment opportunities. Since the introduction of peer to peer lending platform, rumors about replacement of traditional banks has become a common question. Introduction of the secondary lending market has somehow impacted banking& financing industries where peer to peer has been introduced. With the availability of peer to peer lending platform, business grew and generated profit during the economic downturns in 2008. As proved by the literature as well that social connections have a significant influence on individual’s decision (social influences). These influences alter individual decision and their preferences. These preferences includes their investment decisions and in case of this paper investment decisions of lenders deals with investing in online platform other than that, high demand of online platforms from SMEs has notable number of investors. SMEs prefer onl8ne bowering that is easily accessible. More developed and authorized online platforms encourage high demand from SMEs and individual consumer. Developed SMEs in term flourishes the economy as Singapore’s economy is comprises over 99% of SMEs that throws light on major role of SMEs in Singapore’s economic development. (Refer to figure 3).

Figure 2 Framework
4.0. Data analysis
Researcher has collected data from 54 Small & Medium enterprises and 143 working adults through questionnaire. Closed ended Questionnaire includes approximately 30 questions covering all the possible dimensions required for this research. Having collected, data has been analyzed on the basis of content validation that purifies the research and ensures that collected data is clear and sufficient to draw any conclusion. Data has been analyzed on the basis of percentages of positive and negative results. All the questions include different dimension that depicts a new side of the picture. (Refer to questionnaires in Appendix).
5.0. Results and Finding
On the basis of data collected from small and medium enterprises and working adults following results have been derived. 79.7% of all Small and medium Enterprises accept the reality that peer-to-peer market is a better and reasonable market that provides quick access to information and variety of loan options. Most of the Small and medium enterprises finance themselves from these online platforms. These online platforms help Small and medium enterprises rise their funds and run their operations as they play an important role in the development of the country. Those small and medium enterprises that are reluctant to approach online platform and peer to peer lending to take loan are afraid of risk involved in online platforms. These small and medium enterprise claim high rate of return and weak rules and regulations from the authoritative bodies of these platforms. This jeopardy of SMEs can be mitigate through implementation of rules and regulation to secure investments and implication of government support that would provide authentication to the platform.
Some major reason that SMEs fail to get loan from banks in Singapore are as following
• The amount of loan these SMEs require is very small due to which banks are reluctant to provide loans to them. banks do not lend less than $100K because the amount require to manage these accounts is equal to that6 is required to manage small amounts so banks lend high and earn more money by charging higher amount of interest for longer period.
• Banks do to earn enough incentives on smaller loans
• Banks take 2-3 weeks to reach any discussion regarding issuance of loan that is a long time for the borrower to wait.
• Most of SMEs fail to fulfill documentation requirements and unable to meet internal policies.
Besides SMEs, reviews of working adults have also been collected through questionnaires to examine their preferences towards peer to peer lending platforms. 84% of working adults prefer online platform to get funds for their operations. This shows thigh popularity if these online platforms among SMEs and working adults. Due to lack of authentications for these platforms 16% of the working adults are reluctant to adapt these platforms to seek loans. These reluctances are due to a fear of un-stabilization of the platform that may result in fluctuations of interest rate.
In the eye of working adults and SME’s the government regulations and support to promote online platform are not satisfactory. Majority of the SMEs finance themselves through these online platforms and negligence in the development of these platform may result serious harms. In order to promote SMEs and investment in the country government should focus on these platforms as these are the basic source to finance and get loans. These platforms are considered far much better than traditional banking regulations for seeking loans. Following are the results produced from data collected: Figure 3: Working adults' preference to peer-to-peer lending Figure 4 SMEs' preference for peer-to-peer lending

Figure 5 Government support in Peer-to-peer lending
Singapore’s government has announced some rule regarding loans provision these rule are announced by the Ministry of Law. This will help lenders calculate their loan interest on principle amount. This new release includes the following rules

• Administrative fee should not be more than 10 % of the principle amount
• Interest rate should be not more than 4% (per month) of the principle amount
• Late payment fee should not more than S $60
• Total borrowing cost should not be more than 100%

These rules were designed on 30th September 2015. These principals are applicable on loans that would be granted after the date of declaration of rules. These caps will not be applicable to business who have spent their registered time period of 2 years. The aim of these Cap regulation s is to protect borrowers who have no other choice to get loan but from registered and licensed lenders (Hui, 2015).
An individual having monthly earnings less than S $20,000 is allowed to take a loan of S $3,000. This provides lenders assurance their loan return.

On the other hand banking regulations include strict policies. Singapore’s banking regulations are the reflection of English laws. There has been made many revisions in banking regulation to help and provide general public best and secure lending and borrowing process. Personal relation with banker at the time of seeking loan are considered as a contract between borrower and the respective banker. Banks receive money from general public as save deposit. These deposits can be collected in relationship basis this endorses banker to use this money for the development purpose of the bank. Bank is subject to repay the borrowed amount at pre-decided time.

According to Singapore banking rules and regulation, a person with the age of 18 can enter into a contract. This age limit had been drooped by the Ministry of Law as a result of changes in Civil Law Act (Ooi & Wong, 2015).

During January 2015 women between ages of 40-54 had the highest loan facilities that includes mortgage loan, overdraft, motor vehicle loan, credit card balance and many other borrowings. The total amount of credit was $238,355 (Thng, 2015). Women under the age group of 40-50 are tend to take more loan than adults of that lie between the age group of 20-30.Tendency of taking loan and holding credit among women is higher than that of men in Singapore.

Majority of Singapore investors are buried under debt. Investment rate is high but it fails to create money. The main reason of loss of investment is a high debt percentage in the region. 1 of 3 investors owes debt in Singapore. 46% of Singapore’s investors are in debt. But Singapore is considered a better place to live in in term of tax deductions.

Lenders prefer companies to bank in order to lend high amount of money. As banks provide them low interest rate and they can earn a higher interest by lending the same amount to companies directly. Most of these lenders lend their money to small and medium enterprises. Peer to peer lending provides opportunity to lend money directly companies.

There is an increasing trend that banks are shifting their business towards per to peer lending and considering to have operations similar to the model of peer to peer lending. This does not indicates that banking sector is more risking but shows an increasing trend of peer to peer lending.

Most of the SMEs claim that they are unable to get loan from bank due to many reasons one of them is their short credit history. On the other hand many SMEs accept the reality that despite glowing growth and popularity of peer to peer lending platforms, this industry involves a lot risk that not only harm lenders but also borrowers.

SMEs in Singapore firmly believe their high contribution towards economic development and demands to increase supportive measurement for them that may help them establish and develop. As their development will be beneficial for the economy of Singapore as well. Findings unveil a hidden fact that many peer to peer lending platforms collaborate with escrow agencies to see money for lending as they lack direct access to lender’s money. These agencies facilitate online platforms to establish a transparent flow of funds and information to help lender and borrower as well. All the lending platform have their most prior mission to become the best lending platform with high trustworthiness. These platforms are striving hard to become the member of Fintech and Innovation Group (FITG).

According to Co-founder of Funding societies, he believes government will play a significant and active role in the development of peer to peer lending platforms. As these platforms facilitate SMEs in solving their pain pint and flourish in a better way. He further adds that government cannot neglect the importance of SMEs in Singapore economy. As these SMEs are the backbone of their economy. He believes government will put efforts to develop a risk free framework for these platform which will not only help the economy but the pillars, lender and borrower, of the platforms as well by setting up rules and regulations and investment security measures.

Online platforms are working to fill the gap of seeking investment in current global financial conditions as they provide better choices with low cost of administration, screening, capital and service. Peer to peer lending platforms has strengthen its role in mature economies like China, UK and USA where government sees a very supportive role of these platform in flourishing small and medium enterprises. These economies admit the better working of online platforms in providing comparatively low interest rates to borrowers and attractive and promising return to investors Moreover Chines government has declared to support these platforms at official level. Singapore economy has bright chances to take these platform at peek through its clear glance of high demand of loan by Small and medium enterprises, stable economy and high well established investor base. Impact of Social connections
Being in a group, borrowers are able to secure loan better than an individuals. Group leaders can set conditions for joining group such as providing additional information, such as personal information on their identity income or employment verification is common for joining some group. This way group leaders act as additional screening of borrowers for investors, although loans and investment between group members rarely occurs. Each borrower are only allow to join a group at a time, if borrowers wishes to leave group they are required to pay off all current loans before leaving.

In the case of less information about the borrowers' quality, investors may use borrower's gender as a screening guideline, as they thinks that gender is related to the chance of defaults. With two borrowers of similar characteristics, chance of selecting a female borrower is higher than choosing male borrower, due to the perspective that probability of female borrower defaults is relatively lower as compare to that of a male borrower. Gender discrimination also can be seen within lenders where they may have preference against borrowers of a particular gender due to prejudice. And these lenders may also request additional condition even that those borrowers may not be more risky than others borrowers. Although the results show that gender only have a small percentage the effects probability of default as compare to other characteristics of borrowers. It can be seen that investors fund loan to either male or female borrowers as long as the offered interested rate is high, and the borrower’s credit score is high or low.

Research data shows borrowers who are sole proprietors and retirees, offers the highest interest rate compare to that of a borrower who is self-employed. As investors come from different aspect of employment, they tend to shows some favor over certain employment of the borrowers. Many investors and borrowers have shown their interest I peer to peer lending due to its quick access and fast operation. There is an increasing number of repeating buyers and sellers of tis platform who are re-investing and resending their loan applications.\

Many small and medium companies were able to take advantage of these platforms after 2008 9 financial crisis when banks made strict regulations on provision of loan. Peer to peer lending provided them quick and faster access to their request solution without the involvement of any third party.

Importance of peer to peer lending for SMEs
Before the Introduction of peer to peer lending platform, Banks were the only source of lending credit to SMEs. Peer to peer lending platforms boomed after financial crisis of 2008, where a lot of SMEs failed securing loans from traditional banks. Most of SMEs were small scaled and had publically traded equity. Banks were reluctant to provide loans to SMEs because they tend to be more risky due to the fact that they were small scaled, had poor goodwill, highfailure risk and high exposure to the downturn of economy.

After financial crisis (2008), traditional banks and financial institutions had a drop in asset value, resulting in threshold loans. As SMEs were the most affected one during financial crisis, without the availability of peer to peer lending market, a lot of SMEs faced problem recovering effects of financial crisis. The effects of financial crisis was more obvious, with falling sales, weaken assurance and increased risk preventing investors and banks providing loans to borrowers. Strict screenings and banking regulations further reduced the numbers of SMEs, needed loans.

Financial crisis (2008) led to failure of many community banks, ideal banking places for SMEs to get loans, this created room for peer to peer lending in consumers’ market. The use of internet also allows investors gain access to more information about borrowers to examine risk and borrower's credits. With this, investors are able to better judge on risk assessment and the type of loans they wished to invest to generate high profit.

The constant growth in peer to peer lending platform has introduced a number of benefits and its profitability shows a positive survivability in near future. Although peer to peer lending platform has to proof its ability to fully replace traditional banks yet it still have room for improvement. The survivability of peer to peer lending depends upon the number of borrowers and investors available at same time on the platform. Over supply of funds can cause hedging of listing, which may result in adaption of traditional banking.

Many small and medium enterprises have established their borrower profile on peer to peer lending that help them secure loan easily. Companies who do not have any profile face difficulty due to their unstable revenue and no personal relation in the market. Such companies fulfill their loan requirements by securing short term loans.

Future of peer to peer lending
In 2015 these has been an increasing trend in crowd funding from small and medium enterprises. Singapore has developed crowd funding on the basis of two models 1. Community 2. Financial return. Community based crowd funding includes rewards and donations. It does not involve issuance of security or the prospect of financial returns. In Singapore there are many online platforms that are working on donation-based crowd funding and are easily assessable for the public.

Regulators who are involved with banking regulations may surpass peer to peer lending platforms as they play an important role in economic stabilization and consumer protection along with economic growth. Despite this fact, many regulating banks are looking forward to establishing such platform by creating opportunities for start-ups that in term may benefit them. As these platforms support small and medium enterprises that is important for economic growth. Consideration of banks to join lending through peer to peer lending platform has also risen. Regulations have been slow when it comes to forming of new online finance, which in return promotes growth for new companies.

Traditional banks still lack interest in direct competition with peer to peer lending platforms shows traditional bank views that peer to peer lending has the ability to challenge its core businesses in the finance market. On the other hand, growing peer to peer lending platforms have initiated Initial Public Offering (IPO); Lendingclub.com $5.4 billion IPO on the New York Stock Exchange mapped the potential of peer to peer lending platform. With a growth in industry, institutional funds have brought it to a better financial platform, gradually bringing peer to peer lending loans to a more complex asset types which requires more convenient exit options.

Singapore’s Government puts serious consideration for the promotion of Singapore Crowd funding as it facilitates many small and medium enterprises. Strict banking regulations of financing loans to SMEs affected bank’s lending and they continue promoting peer to peer lending at rate of 10% per year. As peer to peer lending market continued to grow, it possessed a challenge when more strict regulations were introduced. Although many of the market leaders claim that implementation of uniform regulations actually help in their business, it still remains a fact that there is danger of losing win- win situation to individuals with poor credit history..

In Singapore these platforms target small and medium enterprises. With a launch of silver bullion platform that is based on peer to peer lending model but a bit secure than those platforms. Silver Bullion has pegged its investment with large amount of silver and gold as a reserve. Since its launch, it has provided loan of S $250,000 in total as a result of loan application received of worth S $3 million (Tan, 2015). This platform is growing at a high speed and has entered a partnership with Monetary Authority of Singapore. Silver bullion provides secure loan with policy of high reserves.

Further development in this sector are expected to come with the serious consideration of Monitory Authority of Singapore. It has recently established Financial Technology and Innovation group to ensure the implementation of these policies.

Despite the fact, loans provided by these platforms are unsecure, many retail investors earn from the provision of small loans. P2P platforms claims that many SMEs turn to them due to ease of access, no requirement of collateral and firm’s weak credit ratings.

Taking about the establishment of peer to peer lending in Singapore one can say that 8 leading peer to peer lending platforms that are currently working are well established and are keen to promote themselves at best level.

Risk and Regulatory

High numbers of investors and borrowers have decreased the efficiency of peer-peer lending platforms. This has increased the amount of information to screen and approve loan requests that is time consuming. This is a big issue for borrowers with time sensitive loans.

Research has shown that the trend of paying off the loan is declining that may case recession to this industry but all the provided loans are not at a risk to default.

Although, peer to peer lending platforms have high operational flexibility as they have no obligation to check outdated data or fraud data provided by borrowers that has increased risk that investors faced at the time of taking investment decision.
Peer to peer lending is non-compliance to the country’s regulations, resulting in high risk of lawsuits, financial reform, and civil and criminal liability.

Increased popularity of peer to peer lending platform has increased defaults cases. In United Kingdom, Financial Conduct Authority has started regulating peer to peer market from April 2014, requires lending platform to keep clients’ money separate in a third party account.

Having maximum and minimum investment caps help inexperienced investors diversify their investments. At the time of failure, investors face difficulty in recovering their investment because platform is not responsible for debt collection, transfer and custodian services.

As peer to peer lending platform is unable to confirm non-financial information of borrowers on it platform sites, it is hard for investors to know if the borrowers is being rejected by banks due to bad credit or reason of loans is something against what the investors wanted to fund (Peer-pressure, 2015).
6.0. Strengths and limitations
The researcher has highlighted possible limitations of this study that deals with fact that lenders have higher credit risk during on-financial crisis period and lenders have lower credit risk during financial crisis period. It lacks supportive records and historical data, historical data might not be indicative of the future data. Moreover key factors such as disintermediation of banking functions, impact of financial regulation, hedging and diversification of various risks factors is not discussed.

Some Factors to support the framework and methodology’s accuracy and reliability are not discussed that shows over dependency on data collected. The methodology, arguments, attributes and calculation techniques are heavily dependent on the one single source, questionnaire and its analysis, this should not be the case as it does not validates the method of sampling and also it places too much emphasis on one single source of information.

Thus, the research can be revised by including different variables that may provide better insight and highlight other factors affecting the whole process and growth. Despite the high popularity of peer to peer lending platforms, financial experts do not consider them in a direct competition with banking sector.
7.0. Conclusion
The researcher has built up a theoretical framework from Social influence, demand of P2P, SMEs and their impact on economy to illustrate the demand for peer to peer lending and how important these are for any economy. Framework also illustrates the importance of Small and medium enterprises and how they get fund and their contribution to run economy. The research outline higher risk preference during non-financial crisis period, whereas lower risk preference during financial crisis period proven by the use of regression model.

It draws out framework. Hence, the paper contributes to an in-depth understanding the individuals’ credit risk preference in financial market.

All these findings are proven useful in addressing social factors that contribute to risks and rewards after the introduction of peer to peer lending and its future implications. The research also reflects how framework findings, credit rating preference, and prior behavior of working adults and small and medium enterprises towards online platform to seek loan, can better manage risk management and how it can affect individual in their decision making in accordance to their risk profile under the influence of social factors including their social groups.

It comes to a conclusion that a number of SMEs turning to alternate lending platform have no significant sign of regression in near future, taking a larger portion of consumer market has adapted way other traditional financing methods. Peer to peer lending has also caught the attention of policy makers in various countries and policy makers keep a closer eye on both the level and terms of lending. As they have come up with more newer and stricter regulations to enforce peer to peer lending process to reduce risk of defaults and fraud cases. It has also surfaced from the literature that peer to peer lending market has not been fully explored and have room for improvement. Even after comparing the pros and cons, introducing peer to peer lending into country such as Singapore with over 79% make up of SMEs shows that there are significant advantages over disadvantages to its financial platform. Remaining percentage of SMEs that are reluctant to approach online platforms indicates cells to be improved that can bring a surprising increase in numbers of consumers of online platforms.

Peer to per lending is the best option for SMEs as they get loan easily and directly from lenders. Small and medium enterprises confessed that getting loan from online plate forms is far easier than that from traditional banks. Online lending platform provide multiple options, accessible and no strict policies of loan.

Government support is not up to the mark to promote peer to peer lending platforms. SMEs lending trend has been decreasing since last 3 years due to less support of government but in coming years the graph is expected to grow high as government has turned its focus and considering the growth of SMEs lending through peer to peer lending platforms. Moreover peer to peer lending platforms are striving hard to collaborate with authoritative agencies that may provide them security and make them trustworthy. With a high financing demands from small and medium enterprises, well established investor base and stable economy, peer to peer lending is expected to flourish at high growth in Singapore.

Bibliography
Altman, E. & Anthony, S., 2001. Credit risk measurement: Developments over the last twenty years. Journal of Banking and Finance, Volume 21, pp. 1721-42.
Altman, E. I., Sabato, G. & Wilson, N., 2008. The Value of Non-Financial Information in SME Risk Management. n.a(n.a).
A. M. M. & Thomas, O., 2001. Brand Community. Journal of, Volume 27 , pp. 412-32.
Anon., 2015. Capital Match: Singapore’s Peer-to-Peer Lending Fintech. [Online]
Available at: http://sgwealthbuilder.com/2015/03/capital-match-singapores-peer-to-peer-lending-fintech/
[Accessed 13 2 2016].
Aronson, E., Wilson, T. D. & Aker, R. M., 2014. Social psychology. 5th Edition ed. s.l.:social psychology.
Ata, A., Shukla, M. & Singh, M., 2013. Financing the SME Value Chains. SWIFT INSTITUTE WORKING PAPER NO. 2012-002.
Black, H., Robert, S. & Mandel, L., 1978. A Canonical Analysis of Mortgage Lending. American Economic Review, Volume 68 (2), pp. 186-91.
Centre, S., 2016. Government Grants & Schemes. [Online]
Available at: http://www.smecentre-sicci.sg/en/resources/government-grants-schemes
[Accessed 26 2 2016].
Ceyhan, S., Shi, X. & Leskovec, J., 2011. Dynamics of Bidding in a P2P Lending Service:Effects of Herding and Predicting Loan Success. p. 10.
Chena, N., Ghoshb, A. & Lambert, N. S., 2013. Auctions for Social Lending: A Theoretical Analysis. Games and Economic Behavior, p. n.d.
Chen, N. & Ghosh, A., 2006. A Market Clearing Solution for Social Lending.
Chuen2, D. L. K. & Teo, E. G., 2015. Emergence of FinTech and the LASIC Principles, n.d: Singapore Management University.
Commitee, S., 2014. RECOMMENDATIONS FOR BUDGET 2015, s.l.: Singapore Business Federation.
Courchane, M. & David, N., 1997. Discrimination Resulting from Overage. Journal of Financial Services Research,, Volume 11 (1-2), pp. 133-52.
Economics, T., 2014. Bank nonperfoming loans. [Online]
Available at: http://www.tradingeconomics.com/singapore/bank-nonperfoming-loans-to-total-gross-loans-percent-wb-data.html
[Accessed 26 2 2016].
Economics, T., 2014. Bank nonperfoming loans in Singapore. [Online]
Available at: http://www.tradingeconomics.com/singapore/bank-nonperfoming-loans-to-total-gross-loans-percent-wb-data.html
[Accessed 26 2 2016].
Flinders, K., 2015. Why peer to peer lending is such a threat to banks?. [Online]
Available at: https://www.capital-match.com/news-four.html
[Accessed 7 2 2016].
Freedman, S. & Jin, G. Z., 2008. Do Social Networks Solve Information Problems for Peer-to-Peer.
Gao, X. et al., 2015. UNDERSTANDING THE ROLE OF COMMITMENTS IN.
Gonzalez, L. & McAleer, K., 2011. Determinants of Success in Online Social Lending: A Peak at US Prosper & UK Zopa. pp. pp. 26-41.
Heng, S., Meyer, T. & Stobbe, A., 2015. Implications of Web 2.0 for Financial Institutions.
Herzenstein, M., ANDREWS, R. L., DHOLAKIA, U. M. & LYANDRES, E., 2008. The democratization of personal consumer loans? Determinants of success in online peer-to-peer lending. papers.ssrn.com.
Hobey, E., 2015. Singappore P2P Lender Capital Match Launches: Target SMEs. [Online]
Available at: http://www.crowdfundinsider.com/2015/04/66134-singapore-p2p-lender-capital-match-launches-targets-smes/
Hui, C., 2015. New moneylending regulations to take effect Oct 1. [Online]
Available at: http://www.channelnewsasia.com/news/business/singapore/new-moneylending/2160588.html
Industry, T. S. M. C. o. C. a., 2013. 10-Must-Know Schemes for Your Business. [Online]
Available at: http://www.smcci.org.sg/page.cfm?id=8915
[Accessed 26 2 2016].
Karlan, D., Mobius, M., Rosenblat, T. & Szeidl, A., 2009. Trust and Social Collateral. The Quarterly Journal of Economics,, Volume 124(3), pp. 1307-1361.
Kettell, C., 2016. Singapore Gold Dealer – Why Bullion Secured P2P Lending is Safer than Bank Credit. [Online]
Available at: http://palisade-research.com/gregor-gregersen-singapore-gold-dealer-why-bullion-secured-p2p-lending-is-safer-than-bank-credit/
[Accessed 10 2 2016].
Klafft, M., 2008. Online peer-to-peer lending: A lender’s. EEE, n.a(n.a), p. n.a.
Ladd, H., 1982. Equal Credit Opportunity: Women and Mortgage Credit. The American, Volume 72 (2), pp. 166-70.
Lazarsfeld, P. & Robert, M., 1954. Friendship as a social process: A su-stantive and methodological analysis. Freedom and Control in Modern Society, p. 18–66.
Liang, B. T. W., 2007. SME Development in Singapore, s.l.: The Policy Environment for the Development of SMEs.
Li, K., 2014. Hong Kong's first P2P online lender to expand in Asia. [Online]
Available at: http://www.scmp.com/business/banking-finance/article/1450259/hong-kongs-first-p2p-online-lender-expand-asia
[Accessed 10 3 2016].
Lim, A., 2015. The World’s First Bullion Secured Peer to Peer Loan Platform Launches In Singapore, Singapore: Silver Bullion pte Ltd.
Lim, T., 2013. The Rise of Peer-to-Peer Platforms and the Change in the Borrower’s Rational Choice, s.l.: s.n.
Lin, M. & Viswanathan, S., 2009. Judging Borrowers by the Company They Keep: Social Networks.
Marguerite, R., 2001. The Microfinance Revolution: Sustainable Finance for the Poor, New York: World Bank Publications .
Megbolugbe, J. C. :. I., 1993. A research note on the Federal Reserve Bank of Boston study on mortgage lending, Washington DC: Federal National Mortgage Association working paper,.
Min, S. Y., 2013. Value of SME loans grows at slower pace’. [Online]
Available at: http://www.straitstimes.com/business/value-of-sme-loans-grows-at-slower-pace
[Accessed 26 2 2016].
Morris, S. & Shin, H. S., 2010. Liquidity componants of Credit Risk. [Online]
Available at: http://www.princeton.edu/~smorris/pdfs/Morris-IlliquidityComponentofCreditRisk.pdf
[Accessed 7 3 2016].
Morse, A., 2015. PEER-TO-PEER CROWDFUNDING INFORMATION AND THE POTENTIAL FOR DISRUPTION IN CONSUMER LENDING. HAAS SCHOOL OF BUSINESS,.
Ooi, E. & Wong, E., 2015. SECTION 1 INTRODUCTION TO BANKING LAW IN SINGAPORE. [Online]
Available at: http://www.singaporelaw.sg/sglaw/laws-of-singapore/commercial-law/chapter-22
[Accessed 10 3 2016].
Patwardhan, A., 2015. Peer-to-peer lending: banking industry's wake-up call. [Online]
Available at: http://www.nationmultimedia.com/business/Peer-to-peer-lending-banking-industrys-wake-up-cal-30270747.html
[Accessed 10 3 2016].
Peer-pressure, 2015. to support the framework and methodology’s accuracy and reliability , s.l.: PWC US financial Service.
Ravina, E., 2012. Love & Loans: The Effect of Beauty and Personal Characteristics in Credit Markets.
Salmon, F., 2013. The evolution of Lending Club. [Online]
Available at: http://blogs.reuters.com/felix-salmon/2013/09/30/the-evolution-of-lending-club/
[Accessed 10 03 2016].
Segal, M., 2015. Peer-to-Peer Lending:A Financing Alternative for Small Businesses, Washington, DC 2: s.n.
Sense, D. a., 2015. 3 Reasons Why Peer-To-Peer Lending Should Be In Your Portfolio. [Online]
Available at: http://dollarsandsense.sg/3-reasons-why-peer-to-peer-lending-should-be-in-your-portfolio/
Sense, M., 2015. A menifesto for peer to peer lending in Singapore, s.l.: MoolahSense Private Limited..
Singapore, T. W. F. B. S. P. t. P. L. P. L. I., 2015. How Peer-to-Peer Lending Can Help SMEs. [Online]
Available at: http://dollarsandsense.sg/how-peer-to-peer-lending-can-help-smes/
Sitkin, S. B. & Amy, L., 1992. Reconceptualizing the Determinants of Risky Behavior,. Academy of Management Review,, 17 (1),(n.a), pp. 9-38.
Tan, A., 2015. Funding Societies sees bright future for P2P lending in Singapore. [Online]
Available at: http://www.enterpriseinnovation.net/article/funding-societies-sees-bright-future-p2p-lending-singapore-2103163837/page/0/1
[Accessed 10 03 2016].
Tan, N., 2015. Peer-to-peer lending platforms seek new ways to increase investor confidence. [Online]
Available at: http://www.channelnewsasia.com/news/business/singapore/peer-to-peer-lending/2031982.html
[Accessed 10 3 2016].
Tapscott, D. & Williams, A. D., 2007. The New Science of Sharing. Business Week.
Tegos, M., 2015. New startup brings P2P loans to Singapore’s small businesses. [Online]
Available at: https://www.techinasia.com/capital-match-loans-businesses-p2p-lending
[Accessed 10 3 2016].
Thng, S., 2015. Easy ways to get out of credit card debt. [Online]
Available at: http://www.herworldplus.com/solutions/solutions/easy-ways-get-out-credit-card-debt
[Accessed 10 3 2016].
Tsai, K. S., 2015. Financing Small and Medium. HKUST: institute of emerging marlket studies. .
Varma, A., 2016. Getting a business loan in two hours. [Online]
Available at: http://www.straitstimes.com/lifestyle/getting-a-business-loan-in-two-hours
[Accessed 10 3 2016].
Wang, H., Chen, K., Zhu, W. & Song, Z., 2015. RESEARCH Open Access. Financial Innovation, 1:3(n.a), p. 2.
Yong, L., 2015. Crowd-Investing Democratisation & Digitisation of Finance, Singapore: CFA society Singapore.
Zhu, R., U. M. D., Chen, X. & Algesheimer, R., 2010. Does Online Community Participation Foster Risky Financial Behavior?.. Journal of Marketing Research., Volume 49 (3), pp. 394-407.

Appendix
Questionnaire # 1
A study on: Peer to peer lending in Singapore
Dear Professionals
You are invited to take this survey conducted among working adults in Singapore as a part of my Dissertation studies for Master of Science in Finance. All information gathered will only be used for the undertaken study and I will guarantee on confidentiality of information. Total time taken to complete these questions would be less than 15 minutes.

No. Questions Positive Negative
1 Age
 18-25
 26-35
 36-45
 Others
2 Gender
 Male
 Female
3 Race
 Chinese
 Malay
 Indian
 Others
4 Job Function
 Business/Accounting/Banking/Finance
 Human Resource/ Admin
 Engineering
 Information Technology
 Design
 Sciences/Laboratory/ R&D
 Others
5 Income Range
 0-2000
 2001-4000
 4001 and above
6 Are you
 Employed
 Self- Employed
7 Are you working for
 Small and medium-sized enterprises
 Multinational corporation
 Others
8 Have you heard of Peer to peer lending? Yes No
9 Where do you heard Peer to peer lending from
 Internet
 Newspapers
 Television
 Others
10 Your company took loan from
 Banks
 Peer to peer lending online platform
 Financial institutions
 Others
11 If you start a business, will you take loan from
 Bank
 Peer to peer lending online platform
 Financial institution
 Others
12 Do you have difficultly obtained a loan from bank? Yes No
13 What is the difficulty faced when obtaining a loan from bank?
 Amount
 Tenure
 Too much paper work and documents needed
 Long approval
 Others
14 Have you seek a loan from Peer to peer lending platform before? Yes No
15 What is stopping you from borrowing from Peer to peer lending online platform
 Credit Default Risk
 Length of platform establishment
 Goodwill
 Reputation of Founders and Investor
 Lack of Government Regulation
 Others
16 Do you think that Peer to peer lending platform is established in Singapore? Yes No
17 Do you think that Peer to peer lending website is professional and easy to navigate? Yes No
18 Do you think that applying loan on Peer to peer lending website is fast and hassle free? Yes No
19 Do you think that Peer to peer lending screening is more lenient in comparison to banks? Yes No
20 Do you think that Peer to peer lending is easier to get loan in comparison to banks? Yes No
21 Do you think that Peer to peer lending is cheaper financing option in comparison to banks? Yes No
22 Do you think that Peer to peer lending is high in risk in comparison to banks? Yes No
23 Do you think that Peer to peer lending is secure, reliable and trustworthy in comparison to banks? Yes No
24 Do you think that Peer to peer lending offer better financing options in comparison to banks? Yes No
25 Do you think that Peer to peer lending is beneficial to the financial economy of Singapore? Yes No
26 Will you choose a loan with lower rates in return of slightly higher risk? Yes No
27 Will future Peer to peer lending possessed an impact on the bank loan business? Yes No
28 Will future Peer to peer lending sustain and expand in Singapore? Yes No
29 In your opinion, what will bridge to successful peer to peer lending
 Historical good track records
 Reputation of Founders and Investor
 Good marketing strategy
 Secured Website
 Attractive Interest Rates with low risk
 Government initiatives to promote platform
 Others
30 Do you think Singapore government intervention play a very important role in the sustainability of peer to peer lending? Yes No
31 In general, are you satisfied with Peer to peer lending? Yes No
32 Will you recommend Peer to peer lending to your family and friends? Yes No

Questionnaire # 2
A study on: Peer to peer lending in Singapore
Dear Professionals
You are invited to take this survey conducted among Small and Medium Enterprises as a part of my Dissertation studies for Master of Science in Finance. All information gathered will only be used for the undertaken study and I will guarantee on confidentiality of information. Total time taken to complete these questions would be less than 15 minutes.

No. Questions Positive Negative
1 What is your Company name?
Your Answer:________________
2 Age
 18-25
 26-35
 36-45
 Others
3 Gender
 Male
 Female
4 Race
 Chinese
 Malay
 Indian
 Others
5 Job Function
 Business/Accounting/Banking/Finance
 Human Resource/ Admin
 Engineering
 Information Technology
 Design
 Sciences/Laboratory/ R&D
 Others
6 Income Range
 0-2000
 2001-4000
 4001 and above
7 Have you heard of Peer to peer lending? Yes No
8 Where do you heard Peer to peer lending from
 Internet
 Newspapers
 Television
 Others
9 Your company took loan from
 Banks
 Peer to peer lending online platform
 Financial institutions
 Others
10 Do you have difficultly obtained a loan from bank? Yes No
11 What is the difficulty faced when obtaining a loan from bank?
 Amount
 Tenure
 Too much paper work and documents needed
 Long approval
 Others
12 Have you seek a loan from Peer to peer lending platform before? Yes No
13 What is stopping you from borrowing from Peer to peer lending online platform
 Credit Default Risk
 Length of platform establishment
 Goodwill
 Reputation of Founders and Investor
 Lack of Government Regulation
 Others
14 Do you think that Peer to peer lending platform is established in Singapore? Yes No
15 Do you think that Peer to peer lending website is professional and easy to navigate? Yes No
16 Do you think that applying loan on Peer to peer lending website is fast and hassle free? Yes No
17 Do you think that Peer to peer lending screening is more lenient in comparison to banks? Yes No
18 Do you think that Peer to peer lending is easier to get loan in comparison to banks? Yes No
19 Do you think that Peer to peer lending is cheaper financing option in comparison to banks? Yes No
20 Do you think that Peer to peer lending is high in risk in comparison to banks? Yes No
21 Do you think that Peer to peer lending is secure, reliable and trustworthy in comparison to banks? Yes No
22 Do you think that Peer to peer lending offer better financing options in comparison to banks? Yes No
23 Do you think that Peer to peer lending is beneficial to the financial economy of Singapore? Yes No
24 Will you choose a loan with lower rates in return of slightly higher risk? Yes No
25 Will future Peer to peer lending possessed an impact on the bank loan business? Yes No
26 Will future Peer to peer lending sustain and expand in Singapore? Yes No
27 In your opinion, what will bridge to successful peer to peer lending
 Historical good track records
 Reputation of Founders and Investor
 Good marketing strategy
 Secured Website
 Attractive Interest Rates with low risk
 Government initiatives to promote platform
 Others
28 Do you think Singapore government intervention play a very important role in the sustainability of peer to peer lending? Yes No
29 In general, are you satisfied with Peer to peer lending? Yes No
30 Will you recommend Peer to peer lending to your family and friends? Yes No

List of SMEs invited to attempt the questionnaire
1. Kelter International Pte Ltd
2. High Notes Music Solutions
3. G Spa Pte Ltd
4. Pretious Solution Pte Ltd
5. Beautebrow.Com
6. The Dermatology Practice
7. LivingShack
8. Yeo Build Management
9. Tupperware
10. Tokyo Components (S) Pte Ltd
11. Teka Singapore
12. Sunlight Furniture Co
13. Strangelets
14. Straaten International
15. South Valley Enterprise Ltd
16. PastryDen
17. Big O Café & Restaurant
18. Zion Riverside Cafe
19. Ark Global Management Services
20. Cornerstone Alliance Llp
21. Mtm Skincare Pte Ltd
22. Enston Corporate Services Pte. Ltd.
23. Wu Wai Hong & Co
24. Tkc Associates Pte Ltd
25. Parex Group Pte Ltd
26. Menon Network
27. WDS Global
28. Cera Lifestyle Pte Ltd
29. Enrich Management Consulting Llp
30. Gac Group
31. Consulting
32. Wyndra Studio Pte Ltd
33. Altum Global Pte Ltd
34. Udders
35. Outlook Express
36. Mr The Tarik
37. Itdea (It-Solutions) Pte Ltd
38. Vangard Pte Ltd
39. Global Merchant Funding
40. Toolbox Design Pte Ltd
41. Samiksha Consultancy Services Pte Ltd
42. Create and Concept Pte Ltd
43. Salted Caramel
44. H2Hub Pte Ltd
45. Bee Cheng Hiang
46. Zircom Networks Pte Ltd
47. Z-Nix Trading Pte Ltd
48. Yk Technology Services
49. WinsysPte Ltd
50. Wf Technologies Pte Ltd
51. X'it Services Pte Ltd
52. Wall Street Electronics Pte Ltd
53. Totsworld Pte Ltd
54. Yen's Studio Pte Ltd
55. Yapi Pte Ltd
56. Crocodile international Pte Ltd
57. Wykidd Bespoke
58. White Weddings
59. Modo Investment Pte Ltd
60. Akimi Technology
61. Grep Tech Pte Ltd
62. Eazeetec Technologies
63. CebitsPte Ltd
64. Cornus Technologies
65. Alpha Web
66. Kooolweb
67. MancaliciousPte Ltd
68. Maxicom Global
69. Mod Venture Ptd Ltd
70. Optimal Health Network
71. Ubi Dental Clinic
72. Slappycakes.com.sg
73. SymmatrixPte Ltd
74. SG Comp-Tech Pte Ltd
75. Angel Sky8
76. Pretty 360 Salon
77. At Beauty Wellness Pte Ltd
78. Old Hong Kong Kitchen Singapore
79. Tung Lok Seafood
80. Seoul Good Korean Resturant
81. Mitraa InnPte Ltd
82. Tailor Me Online
83. Spectrum Hair Inn
84. Makan Bagus
85. www.mainzent.com
86. Ki.id concept and creator Pte ltd
87. USG Asia Pte Ltd
88. VNT Holiday Pte Ltd
89. Transerve
90. Prudence Consultancy Group
91. Janesce Skin Solutions
92. Smilearts Pte LTd
93. Care Lyna
94. Roff Pte Ltd
95. My Bag Empire
96. ASP Innovative Pte Ltd
97. MiniSQ
98. Financial Alliance Pte Ltd
99. Hong Nan Motor Agency
100. Money IQ Singapore
101. Financial Alliance Pte Ltd
102. Orion Corporate Solutions Pte Ltd
103. DMG Partner Securities Pte Ltd
104. Shooklin&Bok
105. DTZ(sea) Pte Ltd
106. Minghan Electornice(s) Pte Ltd
107. Syed Alwi Ng &co
108. Nikko AM
109. STM&P
110. DP Architects Pte Ltd
111. SME Funding Advisory Pte Ltd
112. Springlife Development Pte Ltd
113. Blue Reef
114. Rikecool Automotive Film Pte Ltd
115. CKS Property Consultants Pte Ltd
116. Home Loan Whiz
117. Pachealthholdings
118. Miracles Realty Group
119. Vision Law Llc
120. Kkkl Travel & tours

Similar Documents

Premium Essay

Singapore

...Singapore: The Cultural Aspects Within ANT101: Introduction to Cultural Anthropology Instructor: Ronald Bolender Elena V. Parker June 12, 2011 The Cultural Aspects of Singapore I. Introduction II. The Primary mode of Subsistence III. Kinship A. Marriage B. Family IV. Social and Political Organization A. Religion B. Race C. Culture V. Conclusion Singapore: The Cultural Aspects Within The Singapore Culture consists of various ethnic backgrounds. They are alike in some ways and different in others. The culture consists of different organizations that describe the many aspects related to its culture. I hope to learn more as I continue my research of the Singapore culture. I think that I will find it quite similar to that of the American culture. Singapore was a part of the British Malaya for many centuries. The British came to an island and set up a port and colony, in the year 1918. For over two centuries the British ruled Singapore and its port. During this time Singapore attracted many migrants. Singapore became a republic, independent nation, after World War II. It remains the same today. The Singapore Population is made up of Chinese, Malays, Indians, Caucasians, and Eurasians. Singaporean culture is best described as a melting pot of mainly Chinese, British, Malay, Indian cultures; A reflection of its immigrant history. Despite rapid industrialization, the majority of Singaporeans celebrate the major......

Words: 1518 - Pages: 7

Premium Essay

Singapore

...Introduction Singapore- officially the Republic of Singapore, is a Southeast Asian island city. Singapore was founded as a British trading colony in 1819. It joined the Malaysian Federation in 1963 but separated two years later and became independent. Though physically small, Singapore is an economic giant. Singapore has been Southeast Asia's most modern city for over a century. Singapore has a highly developed and successful free-market economy. Since independence, Singapore is the world's fourth leading financial centre, and its port is one of the five big ports in the world. The economy depends on exports and refining imported goods, especially in consumer electronics, information technology products, pharmaceuticals, and on a growing financial services. Real GDP growth averaged 8.6% between 2004 and 2007. In the global financial crisis, Singapore rebounded quickly 14.8% in 2010, with per capital GDP equal to that of the leading nations of Western Europe and the third highest per capital income in the world. Singapore has attracted foreign investments in technology production and will continue efforts to establish Singapore as Southeast Asia's high-tech hub. Entrepreneurship Independent of the stage of economic development, entrepreneurship plays a significant role for the expansion, job creation and overall economic health within a country. Entrepreneurship is relatively common in Singapore, with the country taking pride in a sense that the country was built on......

Words: 1063 - Pages: 5

Premium Essay

Singapore

...My Singapore with Cruise (July – Sept’13) 5 Nights & 6 Days Destination: Singapore Singapore Blessed with a tropical climate, Singapore is warm throughout the year and anytime is a good time to visit this vibrant place. The wettest months are November and December while the hottest are May and June. However, to capture the true essence of the city, the festival season is considered by many as a good time to explore Singapore. Whether it is culture, cuisine, arts or architecture, Singapore offers everything. Get acquainted with this cosmopolitan as you start with the city tour. Explore fascinating attractions like the Jurong Bird Park, a unique Night Safari or Singapore’s famous playground- the Sentosa Island. Of all the things, do not miss on shopping and the Great Singapore Sale. If adventure is on your mind, watch the F1 track on the Singapore Formula One Racing circuit or try water sports at different beaches. 1|Page Group Escorted Tour – an escorted tour indicates assistance of an MMT Tour Manager during the tour. He will be there for any kind of assistance required by our guests during the duration of the tour. Please note a tour manager is different from a tour guide. A tour manager is there to manage the entire group whereas the tour guide will be there to guide you and provide you all the information you need to know about the destination . Tour Highlights         Return Airfare on economy class 03 nights stay in Singapore with daily hotel......

Words: 2394 - Pages: 10

Premium Essay

P2P Networks

...Laura Gatell Perez BAMA with Media and Cultural Studies, Yr 3. School of Creative Enterprise. Digital Media: Report. 13.11.2009 What effect have Peer to Peer networks had on consumerism such as the selling of films and music? “In a P2P network, the "peers" are computer systems which are connected to each other via the Internet. Files can be shared directly between systems on the network without the need of a central server.” (http://www.techterms.com/definition/p2p) It is essential to understand the meaning of “Peer to peer” in order to study the subject in depth. This report aims to analyse and explore the effects of Peer to Peer networks in the music and film industry, and it’s effect on consumerism. In order to fully understand P2P networks, it is essential to study it’s historical and social context first. Peer to Peer networks started with the so called ‘Internet Boom’ in the late 1990’s. The first online file sharing services operating between 1999 and 2001 was Napster, created by Shawn Fanning. It was the first technology who allowed people to share their MP3 files with others. At the beginning only audio tracks were available for download and it took approximately 30 to 45 minutes for a song to download. Nowadays it takes about a few seconds for a song to download and from 10 to 20 minutes for a movie. However, Napster was soon shut down as it lead the music industry to accuse them of “massive copyright violations”. Moreover, in 10 years the number of......

Words: 1881 - Pages: 8

Premium Essay

Singapore

...The Patissier Cake Shop Singapore The Patissier… a delightful marriage of traditional French baking and exciting, fresh flavours We are a Singapore-grown patissierie that takes the very best of traditional French baking techniques and translates them into innovative and original sweet indulgences. Our handcrafted cakes and pastries, always freshly-baked with the finest ingredients, are perfect for a special occasion or as a treat for everyday. The Patissier 4, Mohd Sultan Road #01-01 S(238955) Operation hours: Mon - Fri: 10am - 8pm Sat - Sun: 10am - 5pm Tel: 6737 3369 Email: enquiry@thepatissier.com Join us on Facebook! Design Concierge Operation hours: Mon - Fri: 10am - 6pm Sat, Sun and Public Holiday: Closed Tel: 6220 5565 Email: design@thepatissier.com Halal Restaurants 1 MARKET BY CHEF WAN Let Chef Wan take you on a heritage culinary journey through South-East Aisa’s legendary Spice Trail and be inspired by his exotic recipes from the regional cuisines of Malaysia, Thailand, Indonesia, Vietnam. His gastronomic cuisines consist of 80% of heritage recipes, whilst 20% of his other recipes are drawn from his extensive travels from all over the world. Example, be surprised with his superb creations of Japanese sushi. Other than the exquisite buffet spread, Chef Wan has a cooking studio within the 450-seat restaurant, where he will hold live cooking demonstrations whenever he is in town. The restaurant will also carry his signature rumpah...

Words: 480 - Pages: 2

Premium Essay

Singapore

...A Customer’s Journey –Singapore International Airlines Section 1: Singapore airlines deals with thousands of passengers every single day, when one situation arises, dealing with that certain situation should be compared, related and confirmed with previous history and events to ensure the most swift and efficient response and action. When Paul Denver walked in to Newark airport with his family, and sick daughter, Singapore airlines was very helpful and empathetic. Using emotional connections instead of blind automatic function she took appropriate action to ensure the comfort and success of the family’s flight. She did an excellent job, went through all the correct channels to ensure this success. However during the flight it can be noted that some actions were taken very automatically and without much present thought. Paul Denver was fast asleep when the stewardess woke him up with no apology to deliver champagne. She should have been more courteous and thoughtful asking his wife who was awake first for permission. She did however without hesitation make up for her mistake buy bringing games for their ill daughter Allie. Both parents were very grateful for that generosity. The entertainment on the flight was very accommodating all passengers including the twins in economy had full access to this amenity. In terms of one of their main pillars of customer service, treating customers as employers rather than nuisances, they excelled on the first leg of the trip. All issues......

Words: 686 - Pages: 3

Free Essay

Singapore

...Singapore a small country with nearly 5 million people located in the south of Malay Peninsula, has been considered one of the most powerful global economies. Despite of the remarkable growth experienced during the period 2000-2007, in 2008-2009 coinciding with the financial crisis, the economy constrained causing a sharp deceleration in the GDP growth. Surprisingly, the country recovered so fast achieving an unprecedented growth of 14.8% in the year 2010. How can a small country like Singapore avoid the economic recession and become one of the world-fastest growing economies? This study tries to response these questions analyzing different social, economic, political and cultural aspects. Manufacturing industry and exports driving growth recovery Singapore´s economy is very dependent on the global trade. In contrast with other recessions, this one has affected all the industries and services sectors globally, damaging the economy of the country. Manufacturing is the most important industry and the cornerstone of the country economy, accounting for 20% of Singapore´s GDP. In the course of the economic downturn Singapore evidenced a substantial downtrend in the manufacturing industry. Having overcome the worst of the global crisis, 2010 marked a strong change in the productive trend of Singapore when the Industrial production Index rose by 29.7% over the previous year mainly led by the biomedical manufacturing sector especially by pharmaceutical products. In addition......

Words: 495 - Pages: 2

Premium Essay

Singapore

...Singapore Airlines Introduction Singapore Airlines is a standout amongst the most decently prestigious names in the worldwide airline industry. It started the air transport operations under the name of Malayan Airways in the year 1947 when Singapore was a bit of a settlement. After the end of the British Empire, Malaysia and Singapore together transformed into one country and the name of the transporter was changed to the Malaysia-Singapore Airline in 1966. Later, Singapore reported self-sufficiency and the air transport association got divided into the two substances. Likewise, Singapore Airlines began to exist in the year 1972 (SIA, 2013). Disregarding the way that it was guaranteed by council of Singapore, it was still treated as an exclusive business which also expected to pay charges. The Singapore Airlines showed amazing improvement and progression by securing new planes like Boeing-747 and going into new markets and things like familiarizing burden organizations with the city of San Francisco. Discussion Workforce Management Program Singapore Airline had the ability to offer its splendid organizations all through the 1970s on the establishment that they had a low work bring as diverged from the ethereal transports in the zone and around the globe. Notwithstanding, the affiliation began confronting issues in giving quality after the year 1978 in light of the way that the costs of fuel augmented essentially. Furthermore, the specialist's organizations......

Words: 487 - Pages: 2

Premium Essay

Singapore

...Singapore Singapore is located in Southeastern Asia, islands between Malaysia and Indonesia. “There are wide income and wealth differences, but the country is more differentiated by ethnicity than by class. All the ethnic groups have experienced upward occupational mobility. There is an intense focus on education. Good marks are a sure path to good positions with good wages. In this respect, Singapore is a meritocracy” (Leone,2014). The crime rate in Singapore is very low, the reason being is because they still enforce the death penalty and they still impose caning as punishment. Singapore is a republic with a parliamentary system. The head of state is the president, who is elected for a fixed term of six years and the cabinet is the executive organ of the state, and execution of government policies is carried out by ministries and statutory boards. Older people ideally are treated with respect, but wealth and status may supersede age distinctions. A social superior or an authority is treated with much formality. There are great differences between formal and informal events, situations, and places. In social interaction, a certain physical distance is kept, especially between men and women. Food rules of the ethnic groups are always respected (Sierra, 2014) Singapore is located in Southeastern Asia and they speak many varieties of languages. Some of the languages they speak are English, Malay, Tamil, and Standard Mandarin. English is the most common language there and...

Words: 771 - Pages: 4

Premium Essay

P2P Lending Presenation

...Peer-to-Peer (P2P) Lending Abstract: This paper evaluates the efficacy of the peer-to-peer lending model. While we primarily discuss the consumer loan market, the structure, principles and associated risks are fairly similar for other end markets as well. Contrary to popular opinion, empirical evidence from the limited available market data proves that P2P platforms do not have a lower cost as a percentage of loan receivables at this point compared to traditional banks. As these higher costs are primarily due to marketing activities, going forward, with scalability, they are poised to generate significant cost savings. Through our research, we conclude that P2P lending has a strong value proposition and the potential to disrupt the existing lending market, however, data quality, regulation and investor confidence will play a monumental role in determining the speed and magnitude of its success. What is peer-to-peer lending? Technological evolution, along with changing consumer behaviour, has led to a new era of innovation in financial services and subsequently more transparent and easy-to-use platforms. One of the new business models that has evolved, is peer-to-peer (P2P) lending. In essence, P2P lending is a form of debt financing which allows borrowers and lenders to bypass traditional banks. P2P platforms are sophisticated web-based platforms that significantly reduce the time needed to process a loan. Even though the products offered by P2P platforms......

Words: 4792 - Pages: 20

Premium Essay

Singapore

...In the poem “Singapore” by Mary Oliver, there is a very important lesson of social acceptance. The poet speaks of encountering a woman in an airport bathroom stall, cleaning an ashtray in the toilet, and the disgust that she first feels towards this woman and her job. The speaker does however, express that she moves past the judgment that she first feels towards the woman in the stall. She imagines parts of nature and wishes to put the woman in a beautiful place in life. In this poem, the poet uses imagery, connotation, metaphor and symbolism to describe what she is really seeing compared to what she is imagining and would like to see. Significantly, the speaker begins the poem by saying, “A darkness was ripped from my eyes” (line 2). The darkness that she is speaking of is the judgment that she places upon this woman in the stall. She first has a closed mind, a disturbed perception if you will, towards the cleaning lady. To say that it “was ripped from my eyes” (line 2) implies that she did attain a better perception of her. The speaker knew that she should not be so judgmental towards this woman and the job she is performing. It is obvious that she understands she should not feel this way when in the second stanza she states, “Disgust argued in my stomach” (line 6). For that feeling to argue, it exhibits her capability to understand. Bewilderment and dismay overcame the speaker. She feels disgusted by what most people consider such a degrading job, yet so displeased with......

Words: 353 - Pages: 2

Free Essay

Singapore

...Singapore, in the airport, A darkness was ripped from my eyes. In the women’s restroom, one compartment stood open. A woman knelt there, washing something in the white bowl. Disgust argued in my stomach and I felt, in my pocket, for my ticket. A poem should always have birds in it. Kingfishers, say, with their bold eyes and gaudy wings. Rivers are pleasant, and of course trees. A waterfall, or if that’s not possible, a fountain rising and falling. A person wants to stand in a happy place, in a poem. When the woman turned I could not answer her face. Her beauty and her embarrassment struggled together, and neither could win. She smiled and I smiled. What kind of nonsense is this? Everybody needs a job. Yes, a person wants to stand in a happy place, in a poem. But first we must watch her as she stares down at her labor, which is dull enough. She is washing the tops of the airport ashtrays, as big as hubcaps, with a blue rag. Her small hands turn the metal, scrubbing and rinsing. She does not work slowly, nor quickly, like a river. Her dark hair is like the wing of a bird. I don’t doubt for a moment that she loves her life. And I want her to rise up from the crust and the slop and fly down to the river. This probably won’t happen. But maybe it will. If the world were only pain and logic, who would want it? Of course, it isn’t. Neither do I mean anything miraculous, but only the light that can shine out of a life. I mean the way she......

Words: 627 - Pages: 3

Free Essay

Singapore

...sophisticated system. The impetus SIA could stick on its promise was the subsidiaries it wholly owned and joint venture, which, in turn, provided operational support to not only SIA but also majorities of airlines operated in Singapore. SIA was extremely open to embrace new technologies. They attempted to bring their customers conveniences and a brand new experience from the ticket booking process to destination baggage handling. It was not merely some physical actions, but embedded their emotion and truly, sincerely treated people. SIA possessed the latest equipment. They seriously took care of the fleet, and updated the fleet frequently. Thus, SIA stocked a high quality of pool of talents. They carefully selected the fleet and designed interior structure to gain signal values, which was part of the differentiation strategy. A finely tuned recruitment and training strategy fostered a system meld the human assets into a formidable source of competitive strategy. SIA has exceptional people and enjoyed a steady stream of success. Deregulation and privatization in airline industry boosted the competition. SIA could spread its wing into more intercontinental routes with the help of alliances. But skies-open also meant more and more carriers would engage in Singapore; threaten to its market share. The lack of a common standard among airlines could significantly erode SIA’s brand value under so-called code-sharing system. On the other hand, the more urgent problem was......

Words: 529 - Pages: 3

Premium Essay

Singapore

...1. About the country Singapore is a member of Association of Southeast Asian Nations (ASEAN) and Asian Pacific Economic Cooperation (APEC) and it is an island country of the southern tip of the Malay Peninsula in Southeast Asia. Singapore has a strategic location for Southeast Asian shipping routes and also it is separated by the Straits of Johor from Singapore and Indonesia’s Riau Islands by the water side a decade ago. This country has highly development free market economy in which the economy is open and corruption-free. And the chief of state is the President and the head of government is the Prime Minister. 2. Political Characteristics In Singapore politics have been dominated by the People's Action Party (PAP) since the general elections of 1959, when Lee Kuan Yew became the first prime minister of Singapore. Foreign policy analysts and several opposition parties, including Workers' Party of Singapore and the Singapore Democratic Party (SDP) have argued that Singapore is one of state. This facto single party has led Freedom House to consider Singapore as not an appropriate electoral democracy. Singapore left the Common wealth in 1963 to join the Federation of Malaysia but was expelled from the federation in 1965 after Lee Kuan Yew disagreed with the federal government in Kuala Lumpur. Former Supreme Court of Singapore’s legal system is based on English common law, but with substantial local differences. Despite this , in the most recent parliamentary elections in...

Words: 561 - Pages: 3

Premium Essay

Singapore

...Singapore I. Introduction Singapore officially the Republic of Singapore, is an island city-state located at the southern tip of the Malay Peninsula. The population of Singapore including non-residents is approximately 4.86 million. Singapore is highly cosmopolitan and diverse with Chinese people forming an ethnic majority with large populations of Malay, Indian and other people. English, Malay, Tamil, and Chinese are the official languages. Singapore is a parliamentary republic, and the Constitution of Singapore establishes representative democracy as the nation's political system. In 2009, the Economist Intelligence Unit ranked Singapore the tenth most expensive city in the world in which to live—the third in Asia, after Tokyo and Osaka. The 2009 Cost of Living survey, by consultancy firm Mercer, has ranked Singapore similarly as the tenth most expensive city for expatriates to live in. II. Body Singapore has a highly developed market-based economy, an export driven economy hugely dependant on export of goods to other countries. The economy depends heavily on exports and refining imported goods, especially in manufacturing. The manufacturing industry is well-diversified with significant electronics, petroleum refining, chemicals, mechanical engineering and biomedical sciences manufacturing sectors. Gross Domestic Product: Singapore has one of the highest GDP per capita in the Southeast Asia. Singapore is proclaimed as one of the four Asian Tigers......

Words: 1150 - Pages: 5