KUALA LUMPUR, Malaysia, June 15, 2023 /PRNewswire/ — Access to financing has long been a point of contention for micro, small, and medium-sized enterprises (MSMEs). In Malaysia, it is reported that some of the financing difficulties faced by small businesses include the higher collateral requests by traditional financial institutions (58.8%) and delays in loan approval or disbursement (23.5%)^[1].  Indonesia, on the other hand, faces similar challenges, as 51% are unbanked and 26% are underbanked^[2].

It signifies a huge gap of financially underserved communities amongst small businesses, which if addressed could potentially boost the GDP of a country’s local economy by up to over 30%^[3]. This is where fintech comes in, to close the gap on financial inclusion by making financial solutions accessible.

One such fintech company in Southeast Asia that’s leading the charge in financial inclusion is Boost, a regional full spectrum fintech arm of Axiata. It recently made headlines across the region, alongside it’s consortium partner, RHB, as one of the five winners of the digital bank license granted by Malaysia’s central bank.

Based on industry case studies of digital banks across the globe^[4], Boost’s upcoming digital bank is considered as a frontrunner due to its distinct advantage as an incumbent fintech player with a comprehensive ecosystem and a proven capability to operate at scale, which meets the criteria of a successful digital bank.

Through its holistic fintech ecosystem spanning its all-in-one fintech app, merchant solutions, AI-based micro-financing business, and cross-border payment platform, Boost has a proven track record of empowering millions of users and merchants across Southeast Asia since 2017.

Since inception, Boost’s AI-based micro-financing business has disbursed over RM2.8 billion worth of financing to MSMEs across Malaysia and Indonesia, as of early 2023. Even with previous studies estimating that nearly half of Boost’s customers being new-to-credit, Boost maintained a healthy single-digit non-performing loan rate, along with a high repeat rate on short-term financing, of about 90% in both countries.

This is possible through Boost’s holistic fintech ecosystem and technology, where digital financial solutions are embedded within the existing transaction journey and purchasing cycle of businesses. Through Boost’s digital micro-financing solutions, MSMEs can have access to financing through a simple 5-minute digital application journey, with fund disbursement within 48 hours upon approval.

It is for these reasons that there was no surprise that Boost was a receiver of the digital bank license in Malaysia. All eyes are now on Boost in the coming months as merchants and users alike look forward to its much-anticipated digital bank.