At Funding Societies, we have engaged Vistra, a Monetary Authority of Singapore-registered International Trustee, to hold your funds. Vistra is an escrow agency, and it receives and disburses money or documents for the primary transacting parties, with the disbursement dependent on conditions agreed to by the transacting parties.
This helps to mitigate concerns over mismanagement of funds, ensuring that your funds are appropriately received and handled. Without an escrow account, your funds will be transferred into the business account of the platform instead. This brings into question whether the funds are handled properly as there is no guarantee that your funds actually go to the SMEs as loans. Similarly, SME borrowers will want to ensure that their repayments go to investors like you, instead of being held by the platform itself.
It also ensures that the borrowers and investors are Know-Your-Customer (KYC) compliant, which is a compliance process to verify the identity of our investors and borrowers, and the monetary transactions are in compliance with the Anti-Money Laundering Act.