Fintech firm AsiaCollect bags $4.5m in funding from SIG Asia Investments

The firm helps banks and non-bank lenders recover overdue consumer loans.

Singapore-based financial startup AsiaCollect, has raised USD4.5 million to date after closing its recent funding round led by global technology investment firm SIG Asia Investments.

AsiaCollect is a Credit Management Services (CMS) provider whose services include CMS Outsourcing, CMS Advisory Services, Debt Purchasing, and Software-As-A-Service (SaaS). 

At present, the fintech helps bank and non-bank lenders recover their nonperforming loans (NPLs) by reaching out to customers through automated SMSs, interactive voice recordings, and predictive dialling systems. 

The company’s proprietary technology streamlines and automates a majority of debt collection processes, whilst minimising the need for field collection, a concern often associated with high reputational risk for lenders and a distressing experience for consumers.“Over the medium to long-term, purchasing NPL portfolios off banks’ balance sheets is likely to be a major driver of revenue growth for Asia Collect,” said CEO and co-founder Tomasz Borowski.

The firm is keen on buying off bad loans following an earlier portfolio purchase from a large financial institution in Vietnam.

Through psychometric analysis enabling operators to communicate with varying personality types, AsiaCollect aims to increase the likelihood of reaching targeted customers and in the process, increase the recovery rates of bad loans.

“As we move into the purchasing segment of the value chain, we are increasingly attracting significant investor interest, both from an equity and debt standpoint. Over the medium to long-term, purchasing NPL portfolios off banks’ balance sheets is likely to be a major driver of revenue growth,” Borowski added.

AsiaCollect will use the new funds to support growth initiatives, including client acquisition, enhancements to its SaaS solution, expansion of its collections infrastructure and teams, and purchasing NPL portfolios.

In addition to carrying out collections on behalf of lenders, AsiaCollect also licenses its technology using a SaaS model and provides bespoke advice for clients with nascent in-house collections processes.