Funding Societies, a leading fintech platform in Southeast Asia, is experiencing a remarkable resurgence in its lending business in 2025, fueled by declining interest rates across the region.
This revival comes after a challenging period of reduced loan disbursements in 2023, as reported by earlier updates, highlighting the firm’s ability to adapt to changing economic conditions.
Understanding the Impact of Falling Rates on Fintech Lending
The drop in interest rates, driven by central banks’ efforts to stimulate economic growth post-2024, has made borrowing more affordable for small and medium-sized enterprises (SMEs), a core focus for Funding Societies.
According to recent data, the company saw an 11.5% revenue increase to US$54.3 million in 2024, with significant contributions from its payments business, setting a strong foundation for its lending recovery.
A Historical Perspective: Funding Societies’ Journey
Founded in 2015, Funding Societies has grown into a key player in the region’s fintech ecosystem, raising over $242 million in funding across multiple rounds to support its mission of financial inclusion for underserved businesses.
The company faced headwinds during the high-interest-rate environment of 2022-2023, which tightened credit conditions and reduced loan demand, forcing a strategic pivot toward diversifying revenue streams.
The Broader Economic Context and SME Support
With Southeast Asia’s economies showing signs of recovery in 2025, SMEs are increasingly seeking accessible financing, a gap that Funding Societies is well-positioned to fill with its digital lending platform.
The broader fintech sector in the region has also seen mixed trends, with startup funding hitting a six-year low in the first half of 2025, yet specific niches like fintech lending are gaining traction due to favorable monetary policies.
Future Outlook: Sustaining the Momentum
Looking ahead, analysts predict that sustained low interest rates could further boost Funding Societies’ loan portfolio, potentially positioning it for record growth by the end of 2025.
The firm is also expected to leverage technology, such as AI-driven credit assessments, to enhance risk management and expand its reach to more underserved markets across Southeast Asia.
However, challenges remain, including tighter commercial lending standards globally and economic uncertainties that could impact SME repayment capacities, requiring Funding Societies to maintain a cautious yet innovative approach.
As this fintech giant continues its comeback, its story underscores the critical role of adaptive strategies and favorable economic conditions in shaping the future of digital lending in the region.
Maria Lourdes
