23 January 2024

Alliance Bank and CGC Digital Ease Access to Financing for New Businesses

Press Release

Kuala Lumpur, 23 January 2024 - Alliance Bank Malaysia Berhad (“Alliance Bank” or the “Bank”) and CGC Digital Sdn Bhd (“CGC Digital”) are embarking on a strategic partnership to launch a new digital guarantee scheme to help new companies as young as six months capitalise on their early growth opportunities by providing them simplified access to working capital.

Called the Alliance Digital SME Startup Financing, this scheme with CGC Digital, a wholly owned FinTech subsidiary of Credit Guarantee Corporation Malaysia Berhad (“CGC”), expands on the Bank’s existing collaboration with CGC to 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 (6 months’ bank statement) to apply for a bank loan in a fully online process which is accessible anytime, anywhere.

To improve the customer experience, the Bank is also introducing its Bank Statement Analyser (“BSA”), a tool aimed at streamlining financial operations. 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 to make banking solutions faster, better and more personalised in order to broaden financial access for more MSMEs. The specific applications and mechanisms of the BSA, while sophisticated, are part of the Bank’s commitment to leveraging cutting-edge technology to redefine the banking experience.

“The MSME segment, who are contributors to the economy and creation of job opportunities, face 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,” said Mr. Raymond Chui, Group Chief SME & Commercial Banking Officer of Alliance Bank, adding that the collaboration aims to help over 100 micro and small SMEs.

Pn. Yushida Husin, Chief Executive Officer of CGC Digital said, "CGC Digital continues to push the envelope in advancing financial inclusion by providing more underserved MSMEs with better access to finance through our innovation of CGC’s 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 in this Proof-of-Concept 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."

CGC Digital is committed to innovating CGC’s products for offering via digital platforms, provide MSMEs with a one-stop digital marketplace for better access to finance and more targeted assistance to scale up, enhance financial literacy and increase digital adoption among MSMEs, and forge strategic partnerships similar to the partnership with Alliance Bank today.

The Bank will continue its velocity in growing its 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.

For more information on Alliance Bank Digital SME solution, please visit https://www.alliancebank.com.my/digitalsme.