From SC’s Insights to microLEAP’s Impact: A Bold Leader in the Fintech Revolution for Financial Inclusion

ByAfif Azhar

As Malaysia’s first Shariah-Compliant and Conventional P2P Financing platform, microLEAP is dedicated to spearheading financial inclusion and innovation. Aligning with the Securities Commission Malaysia’s 2023 Annual Report, which highlights the significant growth of alternative fundraising by 27.8%, microLEAP stands out as a leader in this paradigm shift, particularly in the realm of Shariah-compliant financing.

microLEAP’s commitment to Shariah-compliant financing has been evident since its inception, reflecting its dedication to catering to diverse investor preferences while ensuring stringent regulatory compliance. This dedication is underscored by the substantial growth in Shariah-compliant financing within the industry witnessed in 2023, with total funds raised reaching RM524.8 million, a significant increase from RM140.8 million in 2022, predominantly attributed to the surge in P2P financing activity.

“To drive sustainable growth in the fintech sector, it’s imperative to prioritise investor education and transparency,” says Tunku Danny Nasaifuddin Muzaffar, Founder, and CEO of microLEAP. “By empowering Investors with knowledge and fostering a culture of trust, we pave the way for a more resilient and inclusive financial ecosystem.”

Total Financing Disbursement Soars:

microLEAP’s exceptional performance is evident in its substantial increase in total financing disbursement over the years, soaring by 101.4%. From RM30,909,500.00 in 2022, microLEAP surged ahead to disburse RM62,177,800.00 in 2023, marking an impressive growth trajectory. While the industry experienced a commendable increase of 27.8% in financing disbursement, microLEAP’s growth far outpaced this figure, showcasing our ability to outperform market standards and set new benchmarks for success in the P2P financing landscape.

Matthew Fernandez, Chief Operating Officer at microLEAP, emphasized, “The journey to reach the RM100 million milestone in December 2023, spanning from October 2019, has been nothing short of remarkable. It underscores our unwavering commitment to excellence and demonstrates the profound trust and confidence bestowed upon us by our esteemed Investors and partners.”

Average Funding Amount Reflects Investor Confidence:

The average funding amount facilitated by microLEAP witnessed a significant uptick, showcasing growing investor confidence in the platform’s capabilities. In 2022, the average funding amount stood at RM339,664.84, which escalated by 57.9% to RM536,015.52 in 2023. In contrast, the industry saw 67% of P2P Financing campaigns consisting of smaller fundraising amounts, approximately RM50,000, highlighting a prevalent trend towards smaller-scale investments. This significant disparity underscores microLEAP’s ability to attract larger investments and reflects the trust Investors place in the platform, thereby amplifying its impact on the entrepreneurial ecosystem.

Shortened Average Tenor Signifies Efficiency:

Based on the Securities Commission Annual Report, the industry trend shows a preference for shorter-term investment notes, with 54% having a tenure of 3 months or less. In contrast, microLEAP has exhibited exceptional efficiency by significantly reducing the average tenor of financing provided from 19 months in 2022 to just 11 months in 2023. This demonstrates microLEAP’s agility in meeting businesses’ financing needs and aligning with investor preferences. Looking ahead, microLEAP is likely to continue offering shorter tenor notes, ensuring quicker returns for Investors and enhancing overall liquidity within the P2P financing landscape.

To address concerns surrounding investment scams that have risen by 321% according to SC’s Annual Report, particularly affecting male Investors, microLEAP prioritises investor education initiatives, equipping Investors with the knowledge and tools needed to navigate the financial landscape safely. We recognize the importance of building trust and transparency within our ecosystem, safeguarding the interests of Investors and businesses alike.

Central to our operations is a focus on technological innovation and digital transformation, enhancing user experiences while upholding the highest standards of security and accessibility. “Innovation is at the core of microLEAP’s DNA,” says Zackrey Omar, Head of Strategy at microLEAP. “By leveraging technology and strategic partnerships, we continue to drive impactful solutions that empower businesses and Investors alike, shaping the future of fintech in Malaysia.”

Through strategic collaborations with government agencies like SME Corp, MTDC and Halal Development Corporation (HDC), microLEAP amplifies its impact, driving economic growth, supporting MSMEs, and advancing Islamic fintech solutions.

Looking ahead, microLEAP remains steadfast in its commitment to sustainable growth, driving financial inclusion, and promoting responsible investing practices. With a continued emphasis on regulatory compliance, innovation, and investor protection, microLEAP is poised to reshape the fintech landscape, ensuring that all stakeholders are empowered on the journey towards economic prosperity and success.

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