KUALA LUMPUR (September 18): Malayan Banking Bhd (Maybank) is targeting 18% growth in its loans to small and medium enterprises (SMEs) this year, outpacing 15% loan growth for this segment last year, according to Maybank Group Chief Executive Officer (CEO) of Community Financial Services Datuk John Chong.
This follows today’s launch of the banking group’s Maybank SME Digital Financing solution, a digital financing solution that approves SME loan applications in 10 minutes.
Chong said the bank plans to disburse more than RM500 million over the next three months through Maybank’s digital SME finance platform.
“Overall, as a business for SMEs [segment]we plan to disburse RM35 billion over the next three years and this digital lending platform will account for approximately 17% of our total [disbursement]“, added Chong during a virtual launch event today.
Asked if the banking group is concerned about asset quality, Chong said the group’s asset quality for the SME portfolio as a whole is currently “very manageable.”
“It encourages us a lot. Secondly, as I mentioned earlier, we’ve used data from what we’ve done in the past, as well as the data we have on customers on our credit knowledge and technology, with which we’ll be managing very asset quality well,” Chong added. .
As of June 30, 2020, Maybank’s net impaired loan ratio was 1.29%, compared to 1.33% as of December 31, 2019.
Maybank Group Chairman and CEO, Datuk Abdul Farid Alias, said: “By using our internal data and credit insights while leveraging machine learning capabilities, we are now able to better measure our clients’ risks and provide funding even to start-ups that have only been in operation for a year. »
He added that it has been a constant challenge for banks to design an approach to financing SMEs where the risks will be acceptable. However, by combining technology and finance, Maybank is now able to assess the viability of the business and extend funding to start-ups which often struggle to secure funding primarily due to a lack of funding. credit or warranty history.
Maybank’s digital SME finance is “the first in the market to deliver an end-to-end digital experience”, according to the banking group in a statement.
“Enabled by machine learning, the entire process from application to approval is designed to be completed in 10 minutes, setting a new benchmark for turnaround time for SME financing in the country. “, he added.
SMEs can request financing from Financement Numérique PME via its digital platforms, the Maybank2U or Maybank2U Biz platforms, 24 hours a day, 7 days a week, without having to go to a branch. Currently, three types of loans are offered through the digital channel, consisting of SME Online Clean Loan/SME Online Clean Financing, SME Online PGX/SME Online PGX–i (70% guaranteed by CGC) and SME Online Micro Financing/SME Online Micro-Financing-i.
Maybank said the application process requires minimal information and no documentation for existing customers.
“Existing clients will be notified of the application decision as quickly as 10 minutes (provided client records are in good standing) and funds can be disbursed within one minute of offer acceptance for eligible clients. “, he added.
Maybank noted that new customers will, however, have to undergo a brief onboarding verification process without a branch visit, before the application is approved, and decisions will be made within two business days.
Registered SMEs with a turnover of less than RM25 million, including non-Maybank customers, are eligible to apply for funding through Digital SME Finance. Approved applicants can obtain funding from RM10,000 up to a maximum of RM250,000 with a repayment term of up to five years.
Farid said Maybank understands the central role SMEs play in the country and is constantly evolving to develop new solutions that support their growth.
“The introduction of Maybank SME Digital Financing allows us to offer a new experience to SMEs, one that provides fast, convenient and hassle-free service, through our Maybank2U and Maybank2U Biz platforms. We pilot tested it in August with very encouraging results and a positive response among SMEs.Our clients who had applied for funding through the channel during the pilot period were very pleased with the speed and convenience of the process, as the quick decisions allow them to better plan their company. “
“2020 is also the final year of our current five-year plan, which includes the aspiration to be a digital bank of choice. We plan to introduce several other digital products to provide an even better experience for our customers, including SMEs Digital finance We will roll them out gradually over the year,” said Farid.