Just six months into its launch, Maybank SME Digital Financing has reportedly cleared RM1 billion (appr. $240 million) worth of financing, serving over 8,200 SMEs, of which around 85% or 6,950 are startups and micro-enterprises based in Malaysia.
Maybank stated that all applications that were eligible or qualified for “instant” decisions got their approval and disbursements within minutes.
Maybank’s management also noted that their SME Digital Financing solution is the first in the market to provide an end-to-end or completely digital experience, with straight-through processing, from application to approval and then finally disbursement.
Qualified existing clients may receive the approval status for their application within only 10 minutes, and the money may be disbursed within a minute upon acceptance of each offer. All term financing provided through the Maybank SME Digital Financing is collateral-free. This type of financial assistance aims to offer quick financing to help with the immediate cash flow requirements for SMBs.
Maybank’s Group CEO of Community Financial Services, Dato’ John Chong stated that the digital solution has received a really good response since its introduction, averaging hundreds of applications daily.
“Maybank SME Digital Financing was introduced last September at the height of the pandemic with 2 objectives in mind. First, to provide a quick and hassle-free financing to SMEs during this critical period when liquidity is crucial. Secondly, we wanted to ensure that financing is accessible to smaller enterprises, such start-ups and microenterprises, which often face difficulty in securing funding due to their lack of credit record or collateral. We are very pleased that the market has responded positively to this solution so far and most importantly, SMEs are getting the assistance they need.”
Dato’ John also mentioned that of the 6,950 startups and small businesses which obtained approval for financing from Maybank SME Digital Financing, about 2,000 have only been in offering services for around 2 years or even less.
John also noted:
“This is a breakthrough in our SME financing, to be able to expand our lending relationships to new business enterprises. By using our in-house data and credit knowledge while leveraging machine learning capabilities, we are able to better measure the risks of start-ups which often lack credit history and extend financing to them.”
Through Maybank’s SME Digital Financing, small businesses may apply for financing online through Maybank2u or Maybank2uBiz without being required to visit a physical branch location. Registered small businesses with revenue of less than RM25 million, including non-Maybank clients, are eligible or may qualify to apply for financing through the SME Digital Financing platform. Approved applicants can get financing from around RM10,000 to a maximum of RM250,000 with a flexible repayment schedule of up to 5 years.
In February 2020, Maybank also launched “instant” account opening for small businesses through Maybank2u, with no introducer needed. The convenience offered was crucial during the movement control order (MCO) in Malaysia. More than 90,000 business accounts have now been opened through Maybank2u despite restrictions due to the MCO (as of March 31, 2021).
Dato’ John added:
“SMEs represent the largest business segment in the country and is the backbone of our economy. We hope that the financing provided will be able help them sustain and recover, keeping many more Malaysians employed in their stead and in turn, helping families get through this challenging time.”