CJMY
Boost, a regional full spectrum fintech arm of Axiata, is leading the charge in Southeast Asia to enhance financial inclusion.
Recently, Boost and its consortium partner, RHB, were granted a digital bank license by Malaysia’s central bank, making headlines across the region.
With its comprehensive ecosystem and proven ability to operate at scale, Boost’s upcoming digital bank is considered a frontrunner based on industry case studies of successful digital banks worldwide.
Boost has been empowering millions of users and merchants across Southeast Asia since 2017 through its holistic fintech ecosystem.
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 higher collateral requests by traditional financial institutions (58.8%) and delays in loan approval or disbursement (23.5%) Indonesia, on the other hand, faces similar challenges, as 51% are unbanked and 26% are underbanked.
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%. This is where fintech comes in, to close the gap in financial inclusion by making financial solutions accessible.
From its all-in-one fintech app to merchant solutions, AI-based micro-financing business, and cross-border payment platform, Boost provides a range of digital financial solutions.
Through its AI-based micro-financing business, Boost has disbursed over RM2.8 billion worth of financing to MSMEs in Malaysia and Indonesia. Despite serving many new-to-credit customers, Boost maintains a low non-performing loan rate and high repeat rate on short-term financing.
Boost’s success in securing the digital bank license in Malaysia is a testament to its commitment to driving financial inclusion. With its forthcoming digital bank, Boost aims to revolutionize access to financing for MSMEs.
By embedding digital financial solutions within the existing transaction journey and purchasing cycle, Boost enables MSMEs to easily access financing through a simple digital application process.
As merchants and users eagerly await Boost’s digital bank launch, expectations are high for the positive impact it will have on MSMEs and the broader economy.
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