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Why Minterest's Business Model is so successful?

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Minterest’s Company Overview


Minterest is a leading Singapore-based online financial services solutions provider, specializing in the domain of peer-to-peer (P2P) lending. The company is committed to delivering value and serving the financial needs of individuals and small and medium enterprises (SMEs). Minterest leverages cutting-edge technology and financial acumen to bring together investors and borrowers on its unique platform. The company is licensed by the Monetary Authority of Singapore (MAS) and operates with a commitment to transparency, diligence, and integrity. Minterest's team comprises professionals with deep expertise in finance, law, and technology, ensuring a reliable and efficient service for all users. Minterest's business model revolves around its innovative P2P lending platform. The platform works by connecting borrowers, primarily SMEs, with investors willing to lend funds for an agreed interest rate. Minterest conducts due diligence on the borrowers to ensure their credibility, thereby reducing the risk for investors. The company essentially democratizes the lending process, allowing individuals and businesses to bypass traditional banking institutions for their lending or investment needs. The revenue model of Minterest is primarily based on charging fees for the services it provides. For borrowers, Minterest charges a platform fee that varies depending on the risk profile and loan duration. This fee is deducted from the loan proceeds. For investors, Minterest charges a service fee on the interest earned from the loans they fund. This fee is deducted from the repayments received from borrowers. Therefore, Minterest's revenue is directly linked to the volume and value of loans facilitated through its platform.

https://minterest.com/

Country: Singapore

Foundations date: 2016

Type: Private

Sector: Financials

Categories: Financial Services


Minterest’s Customer Needs


Social impact:

Life changing: motivation, affiliation/belonging

Emotional: provides access

Functional: saves time, simplifies, reduces risk, integrates, connects, reduces effort, reduces cost, informs


Minterest’s Related Competitors



Minterest’s Business Operations


Alternative currencies and banking:

Alternative currencies (also known as private currencies) are units of value issued by a private entity, such as a business or a non-profit organization. A private company or organization usually produces a private currency to serve as an alternative to a national or fiat currency, usually the country's standard unit of value. For example, mutual credit is a kind of alternative currency, and therefore any loan that does not go via the banking system qualifies as an alternative currency.

Aikido:

The aikido business model is often characterized as using a competitor's strength to get an edge over them. This is accomplished through finding weaknesses in a competitor's strategic position. In addition, it adds to marketing sustainability by exposing rivals' flaws, finding internal and external areas for development, and attracting consumers via specific product offers that deviate from the norm.

Crowdfunding:

Crowdfunding is the technique by which a large number of people contribute to a project. Contribute modest sums of money to support a new business endeavor. Crowdfunding leverages the ease of accessing vast networks of people, connecting investors and entrepreneurs through social media and crowdfunding websites. It can increase entrepreneurialism by widening the pool of investors further than the traditional ring of owners, relatives, and venture capitalists.

Codifying a distinctive service capability:

Since their inception, information technology systems have aided in automating corporate operations, increasing productivity, and maximizing efficiency. Now, businesses can take their perfected processes, standardize them, and sell them to other parties. In today's corporate environment, innovation is critical for survival.

Disruptive banking:

The banking industry's disruptors are changing the norms that have been in place for decades. These new regulations, however, will only be effective until the next round of disruption occurs. Banks and credit unions must thus be nimble and responsive. We need audacious tactics. 'Disruptive Innovation' is a term that refers to the process whereby a product or service establishes a foothold at the bottom of a market and then persistently climbs up the value chain, ultimately replacing existing rivals.

Transaction facilitator:

The business acts as an acquirer, processing payments on behalf of online merchants, auction sites, and other commercial users for a fee. This encompasses all elements of purchasing, selling, and exchanging currencies at current or predetermined exchange rates. By far the biggest market in the world in terms of trade volume. The largest multinational banks are the leading players in this industry. Around the globe, financial hubs serve as anchors for trade between a diverse range of various kinds of buyers and sellers 24 hours a day, save on weekends.

P2P lending:

P2P lending removes the intermediary layer from borrowing and lending, making financing a feasible financial choice for individuals. Peer-to-peer lending (P2P) is a kind of debt financing that allows people to borrow and lend money without using a traditional financial institution. Peer-to-peer lending eliminates the intermediary but requires more time, effort, and risk than conventional brick-and-mortar lending.

Two-sided market:

Two-sided marketplaces, also called two-sided networks, are commercial platforms featuring two different user groups that mutually profit from the web. A multi-sided platform is an organization that generates value mainly via the facilitation of direct contacts between two (or more) distinct kinds of connected consumers (MSP). A two-sided market enables interactions between many interdependent consumer groups. The platform's value grows as more groups or individual members of each group use it. For example, eBay is a marketplace that links buyers and sellers. Google connects advertising and searchers. Social media platforms such as Twitter and Facebook are also bidirectional, linking consumers and marketers.

Private level banking:

Private label banks allow any business with a sizable client base, brand, or unique technological solution to operating as a private label bank. Private banking refers to the customized financial and banking services to its affluent high net worth individual (HNWI) customers. HNWIs generally have more money than ordinary individuals, enabling them to access a broader range of conventional and alternative assets. Private banks' goal is to connect such people with the most suitable alternatives.

Innovative retail banking model:

The design has no resemblance to a bank but more to a coffee shop. There is free wifi and a large number of iPads accessible for internet use. Automated teller machines (ATMs) are located around the perimeter of the coffee shop, allowing customers to conduct financial transactions. The workforce consists of a mix of coffee shop patrons and banking personnel who circulate and make themselves accessible. If you need services not available through an ATM, fully trained bank personnel can offer all services typically available at a conventional bank branch.

Take the wheel:

Historically, the fundamental principles for generating and extracting economic value were rigorous. Businesses attempted to implement the same business concepts more effectively than their rivals. New sources of sustained competitive advantage are often only accessible via business model reinvention driven by disruptive innovation rather than incremental change or continuous improvement.

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