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Maybank’s Fully Digitalised Process for SME Financing
September 18, 2020 News


The demand for faster and better services by financial services institutions continues to see more banks looking into new technologies to serve their customers better. With businesses wanting faster access to financing, especially SMEs, banks need to be able to offer them services at a pace that is desirable for both customers and the bank.

With that said, Maybank unveils the first end-to-end digital experience for SMEs via Maybank SME Digital Financing. The machine learning-enabled solution allows SMEs to complete an entire financial application process to approval online within 10 minutes, setting a new benchmark for turnaround time for SME financing in the country.

Maybank’s Group President and Chief Executive Officer, Datuk Abdul Farid Alias, said there is a strong need for more digitalised services from banks especially in allowing SMEs to have better and more convenient access to financial services. 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. Datuk Farid added that he and other Maybank C-level executives had undergone Python training to understand coding, the credit framework and the design of the decision-making processes.

The solution, which was developed in house, uses the banks in-house data and credit knowledge to leverage machine learning capabilities, to accurately measure the risks of the bank’s customers better and provide them with the financing. This includes start-ups which have only been in operation for a year.

The solution will be fully automated without any human intervention needed should the applicant be an existing Maybank customer with complete data, both internally and externally. Maybank’s credit tool will then run the data and leverage their machine learning algorithms to calculate the risks and come up with the approval.

The launch of Maybank SME Digital Financing also 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,” said Datuk Farid.

New customers, however, will have to undergo a brief onboarding verification process with no branch visit, prior to the approval of the application, and decisions will be provided within two working days.