Maybank’s 10-minute loan approval for SMEs

Maybank’s group president and CEO Datuk Abdul Farid Alias said this solution is a breakthrough in its SME financing as it incorporates an enhanced credit tool, which allows the bank to expand its lending relationships beyond what it was doing before.

KUALA LUMPUR: Malayan Banking Bhd unveiled its Maybank SME Digital Financing solution where it takes only 10 minutes to approve loans for small and medium sized enterprise (SME) segment.

Maybank, which unveiled the digital financing solution on Friday, said this was the first in the market to offer an end-to-end digital experience, with full straight-through processing (STP), 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, ” it said in a statement.

Hence, SMEs can apply for financing online via Maybank2U or Maybank2U Biz platforms 24 by 7.

It said the application process required minimal information and no documentation for existing customers. Existing customers will be informed of the decision of the application as quickly as 10 minutes (provided the customers’ records are in order) and funds can be disbursed within one minute upon acceptance of the offer for eligible customers.

Maybank said as for new customers, they 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’s group president and CEO Datuk Abdul Farid Alias said this solution is a breakthrough in its SME financing as it incorporates an enhanced credit tool, which allows the bank to expand its lending relationships beyond what it was 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 one year, ” he said.

Farid said 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, ” he said.

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 RM25mil, 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.

Farid said the launch of Maybank SME Digital Financing marks the bank’s further expansion in the digital lending space, achieving yet another key milestone in its digital banking journey.

"The year 2020 is also the final year of our current five-year plan, which includes an aspiration to be a digital bank of choice. We have plans to introduce several other digital products to provide even better experience for our customers, including the SME Digital Financing. We will roll them out progressively during the year," he said.

Currently, three types of loan are offered via the digital channel:

i. SME Online Clean Loan/SME Online Clean Financing

ii. SME Online PGX/SME Online PGX–i (70% guaranteed by CGC)

iii. SME Online Micro Financing/SME Online Micro Financing-i