Maybank, CGC announce additional tranche of RM500mil under the SME Digital Financing scheme

KUALA LUMPUR: Malayan Banking Bhd (Maybank) and Credit Guarantee Corporation Bhd (CGC) have launch the first-of-its-kind direct application programming interface (API) platform for SME Digital Financing.

This integration effects faster CGC guarantee approval process through real-time approvals, empowering the small and medium enterprises (SMEs) with instant access to cash upon loan acceptance.

Maybank and CGC also announced the launch of an additional tranche of RM500mil under the SME Digital Financing scheme during a signing ceremony held at Menara Maybank recently.

“Through the collaboration with CGC since 2013, Maybank has approved a total financing of close to RM9bil for more than 26,000 SMEs.

“The enhanced SME Digital Financing platform through the embedded API will help achieve the bank’s overall target of disbursing over RM10bil in loans to SMEs this year, of which over RM5bil has since been drawn down as at first half of the year,” Maybank said in a statement.

The bank said the financing facility under the portfolio guarantee (PG) scheme through Maybank’s SME Digital Financing also saw an increase in financing quantum from RM250,000 to RM500,000; and for SMEs with a turnover of up to RM50mil compared with RM25mil previously.

Approval time is within 10 minutes, to provide quick financing and ease the immediate cash flow needs of small businesses.

President and chief executive officer Datuk Khairussaleh Ramli said Maybank understood the challenges and changing landscapes of SMEs in the country, which is now rebuilding after the recent market slowdown.

“In line with its mission to humanise financial services, the bank endeavours to continuously reimagine its SME banking customer journey by offering value-added services within and beyond banking,” he said.

Khairussaleh said since the launch of SME Digital Financing in 2020, it has supported over 26,000 SMEs with total financing of RM2.8bil.

“As of June 30, out of the RM2.2bil balance outstanding for the SME Digital Financing, about 60% or RM1.3bil falls under this PG scheme. Previously, the take-up from our non-borrowing customers was less encouraging but with the launch of the SME Digital Financing, we observed a positive traction of 77% successful applications from our existing non-borrowing customers for SME Digital Financing; from its launch up to June 2023. This indicates the viability of its convenience for the SME segment.

“We hope that this continued collaboration will ensure greater participation from the SME segment given the faster CGC-guaranteed approval through straight-through processing (STP) in real-time from the enhancement of the API-embedded platforms,” he said.

Meanwhile, CGC president and chief executive officer Datuk Mohd Zamree Mohd Ishak said: “CGC is proud to announce that Maybank is our first financial institution partner to implement API. Through API, Maybank Group and CGC will be able to speed up the end-to-end journey, from application to disbursement, for MSMEs’ financing applications guaranteed by CGC. This will further promote the financial inclusion agenda for Malaysian MSMEs.”

For more information, visit: www.maybank2u.com.my/smefinancing or contact the Maybank SME hotline at 1300 80 8668.