This is part 3 of the article series about auction financing technology (auctiontech).

Key points:

  • Market Invoice and Platform Black enhance liquidity for SMEs in the UK by allowing them to auction trade receivables to a mix of investors, including institutional ones and even government entities.
  • Launched in 2019, Fundo has revolutionized Indonesian securities auctions by introducing stringent risk management and a strong legal framework, making financial markets more efficient.
  • Auctiontech platforms like Fundo and Market Invoice illustrate how technology is simplifying access to capital, improving user experience, and fostering innovation within the financial sector.

In the fast-evolving world of financial technology, the auction financing sector stands out with its rapid integration of innovative technologies and strategies. Several key players are reshaping the industry with innovative approaches and technological integration. Here are the 3 key players in the auctiontech industry, focusing on how they are reshaping the landscape to offer more efficient and accessible financial solutions for businesses around the globe.

1. Market Invoice

Market Invoice is a pioneering online platform in the UK that was launched in early 2011. It facilitates a unique auction process where SMEs can raise finance by auctioning their trade receivables invoices to finance providers. These providers are mainly institutional investors, including hedge funds and asset managers, as well as wealthy individuals. In some instances, even the UK government has participated as a finance provider since August 2013. Market Invoice’s process allows businesses with turnovers exceeding £10m to gain liquidity by selling their invoices at auction, typically several times a year, ensuring steady access to working capital.

2. Platform Black

Platform Black, also from the UK, began its operations in June 2012 and offers a similar online auction platform tailored for SMEs to secure financing through the sale of trade receivable invoices. Their auction typically lasts one to three days, with fixed borrowing periods of 30, 60, and 90 days, though early repayment is an option. Platform Black charges transaction fees ranging from 0.5% to 0.9% depending on the borrowing period, with a minimum fee applied. This platform allows finance providers to bid on portions of an invoice, facilitating risk distribution and enhancing competition among bidders.

3. Fundo

In Southeast Asia, Fundo has emerged as a significant disruptor, particularly in Indonesia. Launched in 2019, it has quickly become the nation’s premier securities auction fintech platform. Fundo’s innovative approach to securities auctions breaks away from traditional methods, offering a model that combines stringent risk management with a robust legal framework. This strategy has not only positioned Fundo at the forefront of Indonesia’s fintech scene but also attracted considerable attention for its substantial impact on the financial market.

Under the leadership of CEO Aida Sutanto, Fundo has achieved remarkable success, with transactions exceeding IDR 3.6 trillion (approximately over USD 250 million). This milestone highlights Fundo’s influential role in modernizing securities auctions, making them more efficient and accessible. The platform’s success is a testament to the potential of fintech innovations to transform traditional financial landscapes.

The collective efforts of these auction financing platforms underscore the critical role of technology in redefining the financial sector. By focusing on enhancing accessibility, reducing complexities, and streamlining processes, these platforms are not only facilitating easier access to capital but also promoting a shift toward more user-friendly and technologically advanced financial solutions. As they continue to innovate, these auctiontech players exemplify the successful fusion of financial acumen and technological prowess, driving progress within the industry.

The auctiontech industry’s evolution reflects a broader trend towards digitization and technological integration in finance. As key players like Market Invoice and Fundo continue to innovate and redefine the norms of auction financing, their impact extends beyond immediate business benefits, fostering broader economic growth and financial inclusivity. Their journey represents a beacon for future developments in the financial sector, where technology and strategic insight blend to create more dynamic and inclusive financial ecosystems.

Dive deeper into the transformative power of auctiontech and its game-changing role in modern finance by exploring the next part of this article.