This is supported by Malaysia’s strong and broad economic recovery which in turn supports customers and borrowers alike while boosting the banking sector’s financial performance amid banks being cautious against higher interest/profit rates and a global economic downturn, although asset quality risks remain contained. Announcements made during the recent revised Budget 2023 on providing additional loan facilities and financing guarantees to benefit Small and Medium Sized Entrepreneurs (SMEs) with a total value of up to RM40 billion will augur well to generate growth to the sector in Malaysia.
In addition to financing initiatives, the government has allocated RM1.2 billion to accelerate digitalisation efforts within the sector, that includes providing financial assistance for digitalisation, such as subsidies for e-commerce platforms and digital marketing initiatives. This will help Malaysian businesses, including those in the fintech sector, to reach a wider audience and expand their operational base.
Bank Negara Malaysia (BNM) will separately incentivise SMEs with a RM1 billion facility for process automation and operational digitalisation such as adopting accounting and inventory management software that could be provided by fintech start-ups who are based either locally or globally.
The issue here is that for the small business players, the pandemic also spelled out their doom as it was difficult to attain working capital, prices of raw materials sky-rocketed and uncertain supply chain issues meant their businesses were simply unsustainable.
AFFIN BANK’s Relationship Model
Established in 1975, Affin Bank Berhad (AFFIN BANK) today has advanced as a financial institution with products and services that meet the demands of start-ups and SMEs, and consistently making impactful progress in building a strong relationship with the sector.
AFFIN BANK’s Enterprise Banking division caters to businesses from start-ups to ACE market, with a special focus on SMEs through a comprehensive financial product and service offerings that include financing, transactional, business protection, payments, as well as advisory and support. These products and services are designed to help mitigate the current challenges that they face, while staying competitive and continuing to build their business capabilities in the market.
Making a difference to the SME has always been AFFIN BANK’s top priority. The Enterprise Banking Division focuses on deepening relationships and personal touches while providing broad services and unique financial solutions to help businesses succeed. A ‘happy’ and engaged SME would then recommend related players or peers to start a similar banking relationship if they received good products and services. And thus, creating lasting portfolios and growing customer base.
Since its inception in 2016, AFFIN BANK’s Enterprise Banking Division has introduced segment-specific propositions to bolster the unserved and underserved, starting with AFFIN ASPIRA (an all-encompassing proposition for start-ups that addresses Transactional, Financing, Protection, Advisory and Support needs), AFFINWRKFZ (a business development and talent management tool for SMEs), AFFINGEM (a women entrepreneur-centric proposition to help them Grow, Empower and Manage their businesses), as well as the multi-award-winning SME Colony app (recognised for its product innovation in serving SMEs comprehensively as a digital tool at the Global SME Finance Awards 2021 by International Finance Corporation (IFC)).
These niche offerings as well as the customer relationship-based model will showcase Enterprise Banking’s capabilities to grow, nurture and sustain the SME community not just as a premier banking partner through unrivalled customer service, but also as a community pillar through mutually beneficial collaborations.
Trust: Key determinant of growth and addressing competition
Enterprise Banking is fundamentally an industry of trust – built on reliability to fulfil promises and the goal to deepen relationships – that prioritises SMEs and its stakeholders’ interests.
AFFIN BANK has clearly surpassed both expectations with decades of experiences and its current market capitalisation. It is important to note that trust drives engagement, increases loyalty and has a direct impact on the Bank’s bottom line. Oftentimes, customers feel good when placing their trust in AFFIN BANK as their financial services partner, given the wide range of available products and services that are readily available, the fit with their business requirements and immediate needs, as well as the Unrivalled Customer Service.
To denote trust, AFFIN BANK and its banking subsidiaries recently received the coveted AA3 ratings – endorsing the bank as a stable organisation having weathered through the pandemic relatively well while reflecting its positive asset quality trends as assessed by RAM Ratings. This augurs well to the extent of the Bank’s commitment in providing exceptional services to its customers.
President and Group Chief Executive Officer of Affin Bank Berhad said, “The Bank is keenly focusing its efforts on amplifying Enterprise Banking as it has demarcated opportunities for growth in these avenues within the SME segment.”
“Despite headwinds such as inflation coming in and the tightening of disposable income with the hikes in overnight policy rates (OPR), we still see pockets of opportunities for growth from enterprises,” he added.
“Always About You”
AFFIN BANK provides a suite of offerings through the Bank’s network of 116 branches across Malaysia and via internet personal banking. AFFIN BANK’s “Always About You” tagline is expressed in the depth and width of its products and services; with a special focus on enhancing the experiences of Enterprise Banking customers including:
DEPOSITS: Current Account/Current Account-i
Basic Current Account/-i – a non-interest/hibah* bearing current account/-i which can be opened with an initial deposit of RM500 with easy online access to AFFINMAX, AFFIN BANK’s digital banking solution. This account provides a monthly statement at a lower rate of fees and charges.
Company Current Account/-i – Provides flexibility to manage fund for business needs and convenience of online banking transactions.
SMEdge/-i Current Account – this interest/hibah* bearing account type offers specific features and onboarding benefits to business entities which large floats and balances.
*Note: Hibah is referring to the historical Hibah rate paid by the Bank to depositors. The Bank is not obliged to grant the Hibah to the depositors and declaration of the Hibah rate is at sole discretion of the Bank.
LOANS and FINANCING
Working Capital & Capital Expenditure (CAPEX) Loan/Financing-i – these products allow customers to attain working capital or CAPEX based on their business plan via Term Loan/Term Financing-i, Overdraft/Tawarruq Cashline-i and Trade Facilities/Trade Facilities-i. Collaterals can be provided by the customer for this facility such as cash or Fixed/Term Deposit-i and property (Commercial, Industrial, Residential and Land).
SME Property Financing (SPF/SPF-i) Types of Facilities – provides Term Loan/Term Financing-i and Overdraft/Tawarruq Cashline-i to finance the purchase of a new business property or refinance customer’s business property to free up cash, with features such as margin of financing and property as collaterals.
Term Financing-i – the Shariah-compliant facility offers possible access to business cash flow and funds business expansion via Istisna’ Term Financing-i, Murabahah Term Financing-i, Ijarah Term Financing-i, Musharakah Mutanaqisah Term Financing-i and Tawarruq Term Financing-i.Other facilities offered are the guarantee schemes by Syarikat Jaminan Pembiayaan Perniagaan (SJPP) and Credit Guarantee Corporation (CGC), BNM Funds, Green Financing and Special Programs; for more details go to: https://www.affinalways.com/en/sme-loans-financing
TRADE FACILITIES/-i
For customer that wanting to transcend their businesses across borders, AFFIN BANK offers facilities for Import, Exports and Other Trade Services, learn more about these at https://www.affinalways.com/en/corporate-trade-finance
PROTECTION
AFFIN BANK also offers various protection and risk management schemes including Business Financing Protection, General Protection and Life Protection; learn more at https://www.affinalways.com/en/sme-protection
AFFIN BANK continues to progress with milestones and achievements backed by its AIM-22 Metamorphosis Plan despite the challenging pandemic situation. The plan, Affinity in Motion 2022 (AIM22) for FY2020-FY2022, emphasised key areas including return on equity, lowering overall cost of fund by re-engineering balance sheet, digital transformation to reduce the Bank’s gap with its peers, people and productivity and improved risk management. The achievements could not have happened without the support and trust of its customers, and the strength of team members who remained resilient throughout the challenging times.
