Saturday,25 May 2024

AmBank brings digital onboarding to small businesses

5 min read

Iswaraan Suppiah, AmBank’s group chief operating officer and Aaron Loo, managing director of retail banking, discuss the bank’s AmAccess Biz digital account that enables the seamless onboarding of MSME customers who face challenges accessing financial services

Malaysia, the sixth most populous country in Southeast Asia, has a nominal gross domestic product exceeding $370 billion, boasting over 1.2 million micro, small, and medium enterprises (MSME). These businesses contribute significantly to the country’s economy and make up 97% of all business enterprises.

Since 2016, the services sector has accounted for over 80% of small businesses and the primary source of MSME growth. By 2021, the services sector represented nearly 84% of the MSME segment, followed by construction and manufacturing.

However, small businesses in Malaysia face various challenges daily. These include the escalating cost of raw materials, labour, transportation, and fluctuations in foreign exchange rates. In addition, traditional financial institutions do not offer the type of timely products and services that small businesses need in order to function efficiently. To overcome these obstacles, they look to financial institutions that can better address their needs and support them.

AmBank recognises this and is actively developing more flexible methods of onboarding and financing underserved businesses. Through new digital customer-centric models such as AmAccess Biz, the bank aims to offer improved services to serve businesses in the MSME sector.

Keywords: MSME, Digital Onboarding, API
Institutions: AmBank
Country: Malaysia
Region: Southeast Asia
People : Iswaraan Suppiah, Aaron Loo
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