Alliance Bank Malaysia Bhd (ABMB) and CGC Digital Sdn Bhd (CGC Digital) partnered to launch a new digital guarantee scheme to help over 100 micro, small and medium enterprises (MSMEs) with simplified access to working capital.
Called the Alliance Digital SME Startup Financing, the scheme with CGC Digital, a wholly-owned fintech subsidiary of Credit Guarantee Corporation Malaysia Berhad (CGC), will enable more businesses without collateral to obtain financing.
“The partnership paves the way for eligible new businesses, 6 months old onwards, to obtain financing ranging from RM20,000 to RM100,000 via Alliance Bank’s Digital SME.
“Customers need to only provide a single document, a 6 months’ bank statement, to apply for a bank loan in a fully online process which is accessible anytime, anywhere,” it said in a statement today (Jan 23).
Simultaneously, the Bank also introduced its Bank Statement Analyser (BSA), a tool aimed at streamlining financial operations, as part of its commitment to leveraging cutting-edge technology to redefine the banking experience.
“This system is developed with advanced computational frameworks, integrating adaptive algorithms and AI-driven analytics. Its primary function is to optimise operational efficiencies, ensuring robust and dynamic processing capabilities.
“The BSA is part of a strategic proof-of-concept project that the Bank and CGC Digital are embarking on in an effort to continuously refine and enhance its credit approach.
“(This is) to make banking solutions faster, better and more personalised in order to broaden financial access for more MSMEs.
Alliance Bank group chief SME and commercial banking officer Raymond Chui said the MSME segment faces unique challenges accessing financing as they typically lack adequate collateral and credit history.
“This collaboration with CGC Digital helps broaden financial inclusivity and will help young MSMEs access the banking ecosystem.
“Our business customers will find added value in our full-suite of banking and non-banking solutions which can support them throughout their lifecycle.
“The Bank’s refreshed strategy, Acceler8, puts businesses as our core focus and digitalisation is a key enabler in our efforts to in building fast, seamless and personalised solutions to help our customers thrive in a dynamic marketplace,” Chui said.
CGC Digital chief executive officer Yushida Husin said it strives for better financial inclusion by providing more underserved MSMEs with better access to finance through its innovative credit guarantee that considers alternative data in our risk assessment.
“We aim to co-create value with MSMEs, especially start-ups, and support them throughout their stages of growth. We are delighted to collaborate with Alliance Bank given our shared vision to develop more financial products that are suited to the needs of MSMEs, especially the thin file ones, in the digital ecosystem,” she added.
CGC Digital added it is committed to innovating CGC’s products for offering via digital platforms, to provide MSMEs with a one-stop digital marketplace and forged partnerships such as with Alliance Bank.
“(The marketplace will allow) better access to finance and more targeted assistance to scale up, enhance financial literacy and increase digital adoption among MSMEs.”
Meanwhile, the bank said it will continue in growing in SME segment through its ongoing digital transformation which aims to offer relevant and customised solutions to its customers
Its initiatives such as BizSmart® Solution, #SupportLokal and Halal in One continue to add value to the experience of customers, enabling their growth journey including adopting ESG practices.
