FinMonster’s AI shortens SME loan origination processes from months to minutes
With COVID-19 battering businesses, the Hong Kong government has launched a “Special 100% Loan Guarantee” under the SME Financing Guarantee Scheme (SFGS) to enable SMEs to raise imminent working capital for salaries and rents to keep their businesses afloat.
To help these companies initiate loan originations and benefit from the SFGS in time, FinMonster, a Cyberport FinTech start-up that runs an AI-powered corporate banking marketplace and matching platform, has co-developed a new service with CCMF alumni Datax, an AI start-up that specialises in data labelling. The service can perform the loan origination process in as little as five minutes, significantly shortening a process that traditionally takes three months to complete.
FinMonster’s system guides the applicant to submit all necessary documents to the platform; extracts and analyses the information in the documents using AI; verifies Scheme eligibility; matches the applicant with more than 70 bankers registered with the platform based on the applicant’s business nature and the bankers’ preferences; and produces up to three potential matches for free. Once the bankers receive the applications, they will have five days to respond through the platform and initiate further discussions.
More than 300 companies have signed up since the service launched in February, and over half of them have successfully secured loans.
The start-up is now exploring collaborations with virtual banks to broaden their markets, and it has signed an MoU with Refinitiv to use its loan markets intelligence to enhance access to industry-related alternative data to improve matching accuracy.
FinMonster is a member of Cyberport’s Braving the Epidemic campaign, which features a cohort of Cyberport start-ups helping Hong Kong citizens, businesses, and the government to overcome the pandemic with technology.