PETALING JAYA: Malayan Banking Bhd (Maybank) today unveiled its 10-minute approval digital financing solution for small and medium sized enterprise (SME) segment, Maybank SME Digital Financing – the first in the market to offer an end-to-end digital experience, with full straight-through processing, from application to approval and disbursement.
Machine learning enabled, the entire process from application to approval is designed to be completed within 10 minutes, setting a new benchmark for turnaround time for SME financing in the country.
With this new solution, SMEs can apply for financing online via Maybank2U or Maybank2U Biz platforms, without having to visit a branch. The application process is hassle-free requiring minimal information and no documentation for existing customers. Existing customers will be informed of the decision of the application as quickly as 10 minutes and funds can be disbursed within one minute upon acceptance of the offer for eligible customers.
New customers, however, will have to undergo a brief on-boarding verification process with no branch visit, prior to approval of application, and decisions will be provided within two working days.
Maybank group president and CEO Datuk Abdul Farid Alias said the Maybank SME Digital Financing is the culmination of the bank’s efforts to increase inclusivity for SME financing.
“The launch of this solution is a breakthrough in our SME financing as it incorporates an enhanced credit tool, which allows us to expand our lending relationships beyond what we were doing before. Using our in-house data and credit knowledge while leveraging machine learning capabilities, we are now able to measure the risks of our customers better, and provide financing even to start-ups which have only been in operation for a year.”
He added that it has been a constant challenge for banks to design an approach for SME funding where the risks will be acceptable. However, by marrying technology and finance, Maybank was now able to assess the business viability and extend financing to start-ups which often struggle to secure funding mainly due to lack of credit history or collateral.
All term financing offered via the Maybank SME Digital Financing are collateral-free, to provide quick financing to ease the immediate cash flow needs for small businesses.
Maybank 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%. This is a first of its kind digital collaboration with CGC, which shares Maybank’s focus in growing SMEs.
Registered SME businesses with turnover below RM25 million, including non-Maybank customers are eligible to apply for financing via the SME Digital Financing. Approved applicants are able to obtain financing from as low as RM10,000 to a maximum of RM250,000 with a repayment tenure of up to five years.
SMEs can apply for a loan/financing on Maybank SME Digital Financing via Maybank2U or
Maybank2U Biz, 24 hours a day, seven days a week. Currently, three types of loan are offered
via the digital channel, which are 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.