Latest news with #Atome
The Sun
3 days ago
- Business
- The Sun
Consumer Credit Act will foster trust, transparency and more responsible credit usage: Atome
KUALA LUMPUR: The incoming Consumer Credit Act will foster trust, transparency and more responsible credit usage, said Atome Malaysia's head of BNPL (buy now, pay later), Danny Lim. The legislation will also help enhance confidence in BNPL services and the industry, he added. 'In terms of what we focus on, in the short term, we want to make sure that we are supporting the regulators as they finalise the Bill. That's our commitment, working with the regulators, seeking their advice, and also doing what's required,' he told SunBiz. Lim said Atome fully supports the introduction of the Act as many still don't have access to bank credit. There are still underserved segments without access to regulated financial services, and we're bridging that gap by supporting their short-term financing needs.' Lim stressed that Atome aims to improve financial literacy and ensure users understand how to use BNPL as a budgeting tool and not for overspending. He pointed to a survey by the Consumer Credit Oversight Board, which found that 73% of BNPL users earn less than RM5,000 per month and of which 69% say that this is their only source of financing as they don't have access to or are not served by any bank. However, Lim acknowledged that public perception of BNPL is negative, largely due to regulatory gaps and lack of awareness. 'And, of this, I think it's important to ensure that we give public confidence, so these regulators' view coming up to us is a good positive move, so that users are more confident in using this. That's how we see it.' Atome compliance lead Inderjit Singh said its internal frameworks are modelled on regulatory standards from other countries where BNPL is already supervised, such as Singapore and the Philippines. 'We've got no regulation here (Malaysia) now. Internally, whatever we develop, our risk management frameworks, our business strategies, compliance framework, is based on what we've done in other markets.' Inderjit said when Malaysia's Consumer Credit Act comes into force, only minor adjustments will be needed. 'We already have something in place that should be sufficient from a regulatory perspective. Operationally, regulation won't impact us too much.' According to news reports, Deputy Finance Minister Lim Hui Ying said BNPL transaction volumes rose from RM83.8 million in the second half of 2024 to RM102.6 million in the first half of this year. During the second reading of the Consumer Credit Bill 2025 in the Dewan Rakyat on July 21, Hui Ying said the surge in BNPL activity poses risks to consumers, especially low-income groups and those with poor financial literacy, who are vulnerable to unmanageable debt. The total value of BNPL transactions increased 31%, from RM7.1 billion in second-half 2024 (H2'24) to RM9.3 billion in H1'25. The number of active BNPL accounts rose from 5.1 million at the end of last year to 6.5 million as of end-June. To address this and protect the interests of credit consumers, the government will establish a statutory body known as the Consumer Credit Commission (CCC) under the Consumer Credit Act. The commission, under the Ministry of Finance, will regulate currently unregulated sectors through a licensing and registration framework. Hui Ying said the Bill is part of the government's broader effort to introduce comprehensive consumer credit legislation and restructure Malaysia's credit landscape. It is designed to address two major challenges – the presence of unregulated industry players and the fragmented oversight of the credit sector by multiple authorities. 'The Bill's core aim is to protect consumer interests by ensuring proper conduct and responsible lending by all credit-related businesses, while promoting a fair, efficient, and transparent credit ecosystem,' she said. The Bill outlines the CCC's responsibilities, including advising the government on national consumer credit policy, promoting fair and responsible market practices and granting licences based on a 'fit and proper' evaluation. 'With this Bill, the government affirms its commitment to creating a safer credit ecosystem for the rakyat,' said Hui Ying. The deputy finance minister tabled the Bill for its first reading in the Dewan Rakyat on March 4. It was passed during the second reading through a majority voice vote on July 21. The Consumer Credit Bill 2025 paves the way for regulating non-bank credit and credit service providers amid rising concerns over BNPL scheme proliferation. Under the Bill, six types of businesses will come under the commission's oversight. Three will require licences from the CCC to operate – BNPL providers, leasing companies and factoring services providers (including syariah-compliant offerings). In financial terms, factoring involves a business selling its unpaid invoices to a third party, or 'factor', at a discount to raise working capital. The other three – debt collection, acquisition of non-performing loans or financing, and debt counselling or management services – must register with the CCC. In total, 253 businesses across these six categories will be regulated. Additionally, under the new law, the Ministry of Housing and Local Government will be responsible for licensing syariah-compliant pawnbroking (Ar-Rahnu) and syariah-compliant credit facilities.
Business Times
09-06-2025
- Business
- Business Times
Atome to get US$75 million from Lending Ark as credit demand grows
[HONG KONG] Atome, South-east Asia's biggest buy now, pay later provider, secured a US$75 million asset-backed financing facility from Lending Ark, as demand for affordable credit grows in the Philippines. The financing will help Atome to broaden its credit offerings and expand financial access in the Philippines, according to a statement on Monday (Jun 9). Atome is owned by Singapore-headquartered Advance Intelligence Group, which is backed by investors including SoftBank Vision Fund 2, Warburg Pincus and Northstar. As traditional credit markets in the US and Europe falter, private credit investors are turning their attention to emerging markets such as the Philippines, drawn by the promise of stronger growth and higher returns. Atome offers insurance, savings, cards and lending services. Lending Ark, advised by Citic Securities CLSA Capital Partners, has deployed more than US$1 billion across Asia-Pacific, according to Monday's statement. Atome Financial, the digital finance unit of Advance Intelligence Group and operator of Atome and Kredit Pintar, said its 2024 revenue jumped 45 per cent to US$280 million. BLOOMBERG
Malaysian Reserve
09-06-2025
- Business
- Malaysian Reserve
Smart spending or slippery slope
OVER the past few years, Buy Now, Pay Later (BNPL) services have gained remarkable traction in Malaysia. Platforms such as Atome, Grab PayLater, SPayLater and hoolah have become household names, offering consumers the chance to split their payments into manageable installments without the need for traditional credit checks or interest rates — at least at first glance. While these services have democratised access to consumer credit, especially for younger Malaysians and those underserved by traditional banks, they also come with considerable risks. As we look at the benefits and drawbacks of BNPL in Malaysia, it's clear that although this payment option can be helpful, it should be used carefully and with proper monitoring. Increased Financial Accessibility One of the most significant benefits of BNPL is its ability to provide credit access to individuals who might otherwise be excluded from traditional financing options. Many Malaysians, particularly younger consumers and gig economy workers, lack sufficient credit history or stable income to qualify for bank loans or credit cards. BNPL platforms sidestep these barriers, allowing more people to participate in the consumer economy. BNPL offers a convenient way to manage cashflow. Especially for salaried individuals who face short-term liquidity constraints, being able to spread out payments without paying interest (if payments are made on time) can be highly beneficial. This can be particularly useful for big-ticket purchases such as electronics or household appliances. Many BNPL services advertise them- selves as 'interest-free' if payments are made on time, which can be more affordable than traditional credit card debt that typically comes with high interest rates. For disciplined users, this can be a more cost-effective financing method. BNPL also provides a boost to local e-commerce and retail industries. By lowering the barrier to purchase, it encourages higher consumer spending. This is especially evident during major sales events like 11.11 or Aidilfitri promotions, where BNPL plays a key role in enabling consumers to buy more while spreading their expenses. Technological Convenience The user experience with BNPL apps is generally smooth, quick and integrated directly into the checkout process. Many Malaysians, who are increasingly digital-savvy, appreciate this seamless, app-based access to credit compared to the paperwork-heavy bank loan process. Despite the convenience and flexibility that BNPL services offer, it is important not to overlook the potential risks they pose. Consumers should approach these services with caution, evaluating their financial situation and the necessity of their purchases. Without careful consideration, what seems like a helpful short-term solution could turn into long-term financial strain. The most significant concern with BNPL is the ease with which consumers can accumulate debt. Because the barrier to entry is low and the approval process is quick, many users take on multiple BNPL plans simultaneously. Without a consolidated credit check across different platforms, it's easy for consumers to lose track of how much they owe — leading to over-indebtedness. Malaysia's regulatory framework for BNPL is still in its early stages. While Bank Negara Malaysia (BNM) and the Ministry of Finance (MOF) have signalled intent to regulate this space, the current environment allows BNPL providers significant leeway in their operations. This regulatory grey area poses risks to consumer protection, especially in terms of transparency, data privacy and dispute resolution. Although BNPL is often marketed as 'interest-free', many platforms charge significant late fees if payments are missed. These penalties can quickly add up, making what seemed like a good deal an expensive one. For financially vulnerable consumers, this can lead to a cycle of missed payments and escalating fees. BNPL inherently encourages spending beyond one's means. Because consumers are not required to pay the full price upfront, they may be tempted to make unnecessary or luxury purchases they would otherwise avoid. This can distort financial priorities, especially among younger users with less financial literacy. Unlike credit cards or traditional loans, most BNPL platforms in Malaysia do not report repayment behaviour to credit bureaus. This means that even responsible BNPL users gain little to no benefit in building their credit scores, which could affect their ability to access more substantial credit in the future. Impact on Malaysian Consumers The impact of BNPL on Malaysian consumers is deeply nuanced. On one hand, BNPL has become a crucial financial tool, especially amid rising living costs and economic uncertainty. For many Malaysians, particularly the bottom 40% (B40) and middle 40% (M40) income groups, BNPL offers a financial lifeline to purchase essential goods without overburdening their monthly budgets. However, the same flexibility that makes BNPL attractive can also be dangerous. According to reports by the Credit Counselling and Debt Management Agency (AKPK), there has been a noticeable uptick in the number of young Malaysians seeking debt management assistance — many of whom cite BNPL as one of their liabilities. This trend indicates a growing reliance on short-term credit solutions without corresponding financial education or planning. Another area of concern is the lack of transparency and standardised terms across platforms. Some BNPL providers impose different fees or require access to personal data that might be used for targetted marketing or even resold to third parties. This lack of uniformity can confuse consumers and lead to poor financial decisions. To address these challenges, Malaysian authorities must accelerate the implementation of regulatory frameworks that protect consumers without stifling innovation. The Financial Services Act and forthcoming updates to the Consumer Credit Act could provide the legal infrastructure needed to govern BNPL practices, enforce fair lending standards and ensure that providers operate with transparency. Moreover, financial literacy campaigns are crucial. Malaysians, particularly those in younger demographics, need to understand that BNPL is a form of debt — not a free pass to consume. Education efforts should emphasise budgeting, understanding interest and fees, and the importance of timely repayment. BNPL in Malaysia is a double-edged sword. While it provides a flexible, accessible credit alternative that can help consumers better manage their cashflow and make necessary purchases, it also poses significant risks when used irresponsibly. The growing adoption of BNPL reflects changing consumer behaviour and a broader shift toward digital financial services — a trend that is unlikely to slow down. For BNPL to be a force for good, it must be matched with responsible lending practices, clear regulations and informed consumer behaviour. Only then can it truly support Malaysia's financial inclusion agenda without creating a new generation of debt-strapped consumers. Intan Baha is the chief sub-editor/ production editor of The Malaysian Reserve. This article first appeared in The Malaysian Reserve weekly print edition
Yahoo
09-06-2025
- Business
- Yahoo
Atome secures $75 mln financing from Lending Ark to expand in the Philippines
SINGAPORE, June 9 (Reuters) - Southeast Asian "buy now pay later" provider or fintech firm, Atome, said on Monday that it has secured a $75 million asset-backed financing facility from Lending Ark Asia Secured Private Debt Fund to expand in the Philippines. Atome is part of Singapore-headquartered Advance Intelligence Group, which is backed by investors including SoftBank Vision Fund 2 and Warburg Pincus. Lending Ark, advised by CITIC Securities CLSA Capital Partners (HK) Ltd, focuses on secured private credit opportunities in Asia Pacific. "The Philippines is a key growth market for Atome," Andy Tan, Atome's Chief Commercial Officer, said in the statement. "This financing reflects the continued confidence in Atome's ability to deliver inclusive, risk-managed credit at scale." Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Bloomberg
09-06-2025
- Business
- Bloomberg
Atome to Get $75 Million From Lending Ark as Credit Demand Grows
Atome, Southeast Asia's biggest buy now, pay later provider, secured a $75 million asset-backed financing facility from Lending Ark, as demand for affordable credit grows in the Philippines. The financing will help Atome to broaden its credit offerings and expand financial access in the Philippines, according to a statement on Monday. Atome is owned by Singapore-headquartered Advance Intelligence Group, which is backed by investors including SoftBank Vision Fund 2, Warburg Pincus and Northstar.
