[ad_1]
KUALA LUMPUR: Malayan Banking Bhd (Maybank) aims to disburse around RM4-5 billion of loans through its recently launched digital financing solution for the small and medium-sized business (SME) segment called Maybank SME Digital Financing.
Community Financial Services group executive director Datuk John Chong said that for this year, with three and a half months remaining, the bank expects to disburse around RM500 million through the product.
“Overall for SMEs we are projecting to disburse around RM 35 billion over the next three years and this digital platform is expected to contribute around 17 percent of the total disbursement,” he said during the post-event virtual press conference. launching.
Chong expressed confidence that with this digital platform, despite using less human intervention, asset quality for SMEs is not a concern as it is very manageable.
“With the data from the past coupled with the data that we have from clients on credit knowledge and technology, we can manage asset quality very well,” he said.
Meanwhile, Malaysian Community Financial Services Director Datuk Hamirullah Boorhan noted that to date the bank’s loan growth for the SME segment has reached 15% compared to 12% growth last year.
“Maybank projects growth of around 18 percent this year in the SME segment with a target outlay of RM35 billion over the next three years,” he said.
Maybank SME Digital Financing is the first in the market to offer an end-to-end digital experience, with full straight through processing (STP), from application to approval to disbursement.
Machine learning allows the entire process, from application to approval, to be completed in 10 minutes, setting a new benchmark for response time for SME financing in the country, Maybank said.
Group Chairman and CEO Datuk Abdul Farid Alias, in his launch presentation, said the new product marks the bank’s further expansion into the digital lending space, achieving another key milestone in its digital banking journey.
The platform is the culmination of the bank’s efforts to increase the inclusion of financing for SMEs, he said.
He said that it has been a constant challenge for banks to design an approach to SME financing where risks are acceptable.
“Using our internal data and credit insights while leveraging machine learning capabilities, we can now better gauge our clients’ risks and provide financing even to startups that have only been in business for a year,” Abdul Farid added.
All term financing offered through the platform is collateral-free, he said, to provide rapid financing to alleviate the immediate cash flow needs of small businesses.
Maybank said it is also collaborating with Credit Guarantee Corporation (CGC) to provide guarantee coverage for its Online PGX / PGX-i financing, one of the products offered on the digital channel, with guarantee coverage of up to 70 percent.
Registered SMEs with a turnover of less than RM 25 million, including non-Maybank customers, are eligible to apply for financing through this platform, and approved applicants can get financing from as little as RM 10,000 to a maximum of 250,000 ringgit with a refund. tenure of up to five years, he added.Named
[ad_2]
