Newsroom

14 March 2016

Maybank to expand Retail SME financing regionally

14 March 2016

Maybank Singapore to grow Retail SME loan portfolio by 40 per cent

Maybank intends to aggressively expand its financing to the Retail SME (RSME) segment across the region following its success in Malaysia which has seen it record compounded annual growth rate (CAGR) of more than 30 per cent in loans since the full roll out of the RSME model in 2013. At the same time, the Group intends to boost micro-financing in Malaysia as it taps into the potential of the small business community which is also fast expanding. 

Maybank Group Head, Community Financial Services (CFS) and CEO, Maybank Singapore, Mr Lim Hong Tat said that the RSME segment has been an integral part of Maybank’s retail business since it was repositioned to further leverage on the Group’s distribution franchise in 2011.

"Our RSME business was a newly created segment which we identified as having great potential when we started our CFS transformation programme in 2011," he said. "In line with this, we introduced multi-pronged initiatives such as expanded touch points for improved access; faster loan processing turnaround time; innovative yet simple product packaging and hassle-free processes."

Mr Lim added that the Group was now focusing on building its RSME portfolio regionally given the increasing emphasis by the respective countries on the SME segment as they seek to tap into opportunities from the formation of the ASEAN Economic Community.

"ASEAN economies are powered by the SME segment which generates about 50 per cent of employment and some 40 per cent of GDP on average," he said. "The SME industry itself is growing by between 8-28 per cent CAGR in these markets and presents an untapped potential for growth."

Mr Lim said that given the existing Maybank consumer franchise in Singapore, Indonesia, the Philippines, Cambodia, Laos and Brunei, the Group has progressively introduced its RSME model in these countries to meet the demand of customers there.

"We started introducing our RSME business model into these markets since 2014 and have been encouraged by the success of our initiatives which included improvement of processing time by over 50 per cent in key markets and well as introduction of specific products with better financing flexibility to meet local customer requirements.

"We intend to build the RSME segment as a pillar of growth across ASEAN, and offer our customers a distinct value proposition leveraging on "speed" and our "hassle-free" access to financing," he said.

Maybank Singapore to grow Retail SME loan portfolio by 40 per cent

In Singapore, the bank has also been aggressively growing the RSME portfolio, which is defined as businesses with revenues of up to S$20 million.

Head of Community Financial Services at Maybank Singapore, Mr Choong Wai Hong said, "In the short two years since we officially launched the RSME business in Singapore, we have seen our SME loans increase by more than 50 per cent and deposits rising almost 25 per cent. Specifically for FY15, we saw revenue contribution from this portfolio grow by 52 per cent.

"We expect to grow our total Retail SME loan portfolio by 40 per cent this year," he continued.

The bank attributes its success to its belief in providing customers with a holistic solution that meets their business needs in all aspects, including transactions, liquidity, financing and protection.

"This has also seen the bank introduce a slew of online capabilities to help small business owners improve their productivity in areas such as payroll, collections, payments and even trade submissions," Mr Choong said.

Moving forward, the bank intends to introduce more innovative financing solutions for business owners that are aimed at helping them manage uncertainties around their cash flow.

The bank also recognises that with a limited domestic market, many Singaporean businesses are exploring ways to expand overseas, particularly in the region.

"Small businesses in Singapore are at a juncture where they are looking for ways to transform their business and working capital is one of the key aspects for them to do so. As the only bank with a presence in all 10 ASEAN countries, we are well-poised to help more small businesses capitalise on new opportunities to grow their business locally and access new markets in the region," Mr Choong said.

Maybank – Humanising Financial Services

Maybank is among Asia's leading banking groups and South East Asia’s fourth largest bank by assets. The Maybank Group has an international network of 2,400 offices in 20 countries namely Malaysia, Singapore, Indonesia, Philippines, Brunei Darussalam, Vietnam, Cambodia, Thailand, Hong Kong SAR & People's Republic of China, Bahrain, Uzbekistan, Myanmar, Laos, Pakistan, India, Saudi Arabia, Mauritius, Great Britain and the United States of America. The Group offers an extensive range of products and services, which includes consumer and corporate banking, investment banking, Islamic banking, stock broking, insurance and takaful and asset management. It has over 46,000 employees serving more than 22 million customers worldwide. (www.maybank.com)

Maybank is committed to bringing seamless banking and a wider spectrum of value-added financial services to our valued customers. By harnessing the latest technological advances to increase our network's effectiveness, our customers are able to conduct their banking transactions at anytime and anywhere in the world, via the traditional as well as electronic channels.

Maybank Singapore is one of the Group’s largest overseas operations. As at December 2015, Maybank's total assets in Singapore were S$61 billion. With 1,800 employees, we are well-positioned to provide highly personalised services and locally-oriented approaches, which will further enhance the Bank's standing in the local banking scene.