Maybank-CGC SME digital financing provides instant cash via API-embedded platforms

SME Banking
21/08/2023 News

Maybank and Credit Guarantee Corporation Berhad (CGC) announced the launch of the first-of-its-kind direct Application Programming Interface (API) platform for the 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 RM500 million 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 RM9 billion 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 RM10 billion in loans to SMEs this year, of which over RM5 billion has since been drawn down as at first half of the year.

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 RM50 million compared with RM25 million previously. Approval time is within 10 minutes, to provide quick financing and ease the immediate cash flow needs of small businesses.

The strategic partnership was signed by Dato’ John Chong, Group CEO, Community Financial Services and Sean Tan, Chief Business Officer of CGC; and witnessed by Dato' Khairussaleh Ramli, Group President and CEO of Maybank and Datuk Mohd Zamree Mohd Ishak, President and CEO of CGC.

Dato’ Khairussaleh said that Maybank understands 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.

“Since the launch of our SME Digital Financing in 2020, we have supported over 26,000 SMEs with total financing of RM2.8 billion. As of 30th June this year, out of the RM2.2 billion balance outstanding for the SME Digital Financing, about 60% or RM1.3 billion falls under this Portfolio Guarantee scheme. Previously, the take-up from our non-borrowing customers were 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.”

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Meanwhile, Datuk Mohd Zamree, 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.”

The seamless and quick access to cash is based on Maybank’s proprietary tools that leverage machine learning and a holistic digital management system to assess the viability of loan applications with minimal documents submitted. Maybank has also digitalised the submission of board resolution documents which eliminates manual physical submission at branches, making it more time-efficient and convenient for its customers.

Through its M25+ strategy, Maybank is poised as an orchestrator within select digital eco-systems to offer improved products and services, solidifying its commitment to support the growth of the SME sector in Malaysia which is an integral contributor to the Malaysian economy and in line with the Madani Economy framework announced by the Prime Minister recently. This has earned CGC’s recognition whereby Maybank was awarded the Top Financial Institution Partner - Commercial Bank Award in their 28th FI/DFI & SME Awards 2022 ceremony recently.

Maybank’s SME Digital Financing is an end-to-end digital proposition that allows SMEs to apply for financing without the need to visit a branch. It is an unsecured term loan facility, available from RM3,000 up to RM500,000 with a maximum of 7 years. The quick and hassle-free financial solution facilitates fast approval with automatic disbursements for SMEs, including start-ups with minimal financial history. No documentation is needed for existing Maybank customers with minimal required documents for new customers. SME Digital Financing is accessible around the clock, on both M2U and M2U Biz platforms.

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