Kuala Lumpur, 28 June 2021 – Axiata Digital’s fintech holding arm, Boost Holdings Sdn Bhd (Boost Holdings), through its subsidiary Axiata Digital Capital Sdn Bhd (Aspirasi) today became the first digital banking license aspirant to collaborate with Credit Guarantee Corporation Malaysia Berhad (CGC) for a potential digital bank guarantee. The Memorandum of Understanding (MoU) aims to accelerate financial inclusion for the underserved and unserved segments.
The MoU was signed between CGC and Boost Holdings’ subsidiary Axiata Digital Capital Sdn Bhd, also known as Aspirasi, a homegrown digital brand established in 2019. Aspirasi provides fully digital micro-financing and micro-insurance solutions to financially assist and empower underserved micro-small and medium enterprises (MSMEs) in the region.
The MoU executed today encompasses two key parts: The first being a commitment to explore extending a Portfolio Guarantee for the future Digital Bank’s SME focused loans, which will be an extension of Aspirasi’s current discussions for a similar facility with CGC, and the second for Aspirasi to collaborate with CGC in taking up referrals to provide financing for eligible MSMEs without collateral. In connection with this CGC will onboard Aspirasi onto its imSME, an online one-stop platform that provides an array of financing products and services for MSMEs.
CEO of Axiata Digital and Chairman of Boost Holdings, Mohd Khairil Abdullah said, “We are continuously looking for the right partners to enlarge our presence and collaboration with like-minded and experienced partners like CGC. The MoU with CGC today strengthens our ability to meet the financial requirements of the underserved and unserved segments. Over the last few years, our digital-first approach using AI and
machine learning has enabled us to provide relevant solutions to solve pain points faced by MSMEs, and we have built a solid track record of serving the underserved. Often our facilities are the only ones available to ‘thin file’ MSMEs without traditional data sources. These are precisely the segments that will benefit the most from a CGC guarantee, enabling them wider and more affordable access to transformative financing.
As we embark on our journey to build a Digital Bank, an established institution like CGC will further achieve our ambition to provide comprehensive digital financial services for the region.”
Sheyantha Abeykoon, Chief Executive Officer of Boost Holdings said, “CGC and Boost Holdings share the same aspiration to promote financial inclusivity for MSMEs in support of their growth and development. This MoU complements our existing initiatives to finance micro entrepreneurs and businesses who lack access to traditional means through simple and convenient digital solutions available on their smartphones. The combination of Boost Holdings’ deep fintech and AI experiences and CGC’s credibility will expedite the growth of the ecosystem for a vibrant and competitive MSME landscape.”
President & Chief Executive Officer, Datuk Mohd Zamree Mohd Ishak, said, “CGC has held discussions with several digital banking license aspirants and looks forward to collaborating with digital banks once they commence operations. This MoU signifies the commitment to further promote the financial inclusion agenda. CGC is optimistic of finalising the discussion leading to a Portfolio Guarantee Scheme with Axiata Digital for its Aspirasi product. We are also pleased to onboard Aspirasi on imSME - Malaysia’s 1st online financing/loan referral platform.
CGC made its maiden entry into FinTech with the launch of imSME on 9 February 2018, and there are currently 26 Participating Financial Institutions offering more than 60 financial products, 10 Peer-to-Peer financing platforms, 3 Equity Crowdfunding platforms, 3 Alternative Funding agencies and 3 Capacity Building agencies onboard this platform built for MSMEs. In August 2020, imSME won “The Asset Triple A Islamic Finance Awards for Best Digital Banking Solution”, a recognition of its innovative solution to provide MSMEs with convenient online access to apply for financing products, anywhere, anytime.
In our previous 5-Year Strategic Plan 2016-2020, we made further progress in CGC’s digital transformation journey. Setting more ambitious targets to outdo ourselves in our 5- Year Strategic Plan 2021-2025, CGC aims to partner with MSMEs throughout their life stages by providing end-to-end financial offerings, driving their excellence through
targeted developmental support and becoming a digitally savvy organisation to propel scale and speed of MSME impact. In this regard, CGC is delighted to collaborate with Axiata Digital, leveraging each other’s strengths to serve Malaysian MSMEs more efficiently and effectively.”
Boost Holdings utilises in-house data and machine learning capabilities to provide a 3- minute application journey with fast approval process to meet the financial needs of the underserved and unserved segments. In the first quarter of 2021 alone its micro-financing and micro-insurance service provider, Aspirasi, funded 1,907 merchants, disbursing 13,721 loans amounting to RM134.43 million. CGC’s portfolio guarantee and imSME support will enable a larger market of underserved and unbanked customers to be served by Aspirasi and Boost Holdings.
Boost Holdings’ portfolio includes Aspirasi, recently named Asia Pacific ICT Alliance 2020 Award - Finance & Accounting Solutions (Fintech) winner, and Boost, the leading homegrown e-wallet and lifestyle app with over 9 million users.
