CGC Digital

Strengthening MSME Growth Through Integrated Digital Financing Ecosystem

CGC Editor — Thu, 21 May 2026 05:18:02 +0000

by Chin Sze Yuen, Head, Partnership & Marketing from CGC Digital

Malaysia’s Micro, Small, Medium Enterprises (MSMEs) remain the backbone of Malaysia’s economic growth, innovation and employment. Yet as the financial ecosystem expands, the primary challenge has evolved. It is no longer a lack of financing, but fragmented access to it. While support is widely available across banks, fintech platforms, government agencies and advisory programmes, MSMEs often face a lack of clarity in navigating these options, resulting in uncertainty over where to begin and how to proceed.

This fragmentation extends beyond access points into how MSMEs operate. Sales, customer engagement and financial records are frequently distributed across multiple digital platforms, creating high levels of activity but limited coherence. Without a structured and consolidated business profile, even viable enterprises struggle to translate operational performance into credible financial evidence. This, in turn, affects financing outcomes, as financial institutions rely on clear visibility of revenue, records, and risk indicators when assessing applications.
Not only that, the underlying issue is therefore not capability, but confidence. MSMEs demonstrate strong market demand and growth potential, while financiers evaluate readiness through structured data and risk frameworks. Bridging this divide requires more than expanding funding availability. It requires strengthening how MSMEs present their businesses, ensuring they are easier to understand, assess and ultimately support.

At the recent Kre8tif East! Sabah 2026 hosted by Sabah Creative Economy and Innovation Centre (SCENIC) and supported by Malaysia Digital Economy Corporation (MDEC), CGC Digital shared that financing should not be viewed as the starting point of growth, but as the outcome of readiness. Sustainable business expansion depends on enterprises being visible, structured, traceable, protected, and prepared. This reframes the conversation from seeking financing alone to building the foundational capabilities that enable access to it.

In this context, digital marketplaces are emerging as critical enablers. Rather than functioning as standalone directories, they are evolving into integrated ecosystems that consolidate access to financing, knowledge, and business support. By unifying fragmented information into a structured journey, these platforms help MSMEs transition from complexity to clarity and from disconnected activity to guided progression.

“Digital marketplaces are evolving into key connectors within the MSME ecosystem, integrating financing, knowledge and support in a more holistic way,” said Chin Sze Yuen, Head of Partnerships and Marketing at CGC Digital. “As MSMEs continue to adopt digital solutions, the emphasis is shifting towards improving accessibility, enhancing clarity and enabling more confident decision-making for long-term growth.”
In response to these evolving needs, CGC Digital developed imSME, Malaysia’s first online MSME financing referral platform. Serving as a single-entry point, imSME connects businesses to more than 90 financing products across financial institutions and alternative financiers, enabling a structured process of discovery, matching and application. The platform also provides advisory support for unsuccessful applications, helping MSMEs identify gaps and strengthen readiness for future opportunities.

The impact of this integrated approach is evident. Since its launch, imSME has attracted over 3.18 million visitors, supported more than 143,600 MSMEs and facilitated RM628.6 million in approved financing. More importantly, it has transformed the financing journey from fragmented exploration into structured access, enabling MSMEs to make more informed decisions while strengthening overall business readiness.
By combining financing access with advisory support and ecosystem partnerships, CGC Digital is addressing not only the financing gap, but also the broader capability and readiness gaps that underpin sustainable MSME growth. This reflects a wider shift from product-centric solutions towards a journey-led model that supports businesses from early structuring through to expansion and scale.

As Malaysia’s MSME ecosystem continues to evolve, integrated digital financing platforms will play an increasingly important role in strengthening financial inclusion and economic resilience. By transforming fragmented access into structured and guided pathways, these ecosystems enable MSMEs to build confidence, improve readiness, and unlock sustainable growth at scale.

The post Strengthening MSME Growth Through Integrated Digital Financing Ecosystem appeared first on CGC Digital.

GXBank Expands MSME Financing with CGC Digital and Alternative Data Adoption

CGC Editor — Mon, 18 May 2026 09:16:04 +0000

PETALING JAYA, 18 May 2025 – GX Bank Berhad (GXBank) has enhanced its GX Business Banking suite, offering MSMEs a more flexible path to digital banking and financing. Supported by CGC Digital (the fintech arm of Credit Guarantee Corporation Malaysia), the Bank can offer higher financing limits of up to RM150,000. Additionally, GXBank also accepts personal bank statements for business account applications and credit assessments. These updates enable sole proprietors to build a verifiable business credit history while addressing Malaysia’s RM90 billion MSME credit gap¹.

“Sole proprietors are the lifeblood of Malaysia’s economy, yet remain underserved. Since the launch of GX Business Banking, our data-driven underwriting has led to over a thousand GX FlexiLoan users and approximately 70% loan usage rate across our business banking portfolio,” says Kaushik Chowdhury, CEO of GXBank. “In just 30 days, our partnership with CGC Digital has seen over RM3.3 million in loan approvals – bridging the credit history gap through alternative data and digital guarantees. We are now further lowering barriers by accepting personal bank statements as income verification to help more entrepreneurs scale.”

Tailored Support – The CGC Digital Partnership

The collaboration with CGC Digital introduces a digital-first guarantee that serves as the structural backbone for higher approved limits. With more than half of customers opting-in organically, this high early adoption rate underscores the clear demand for scalable credit as MSMEs move beyond micro-financing towards business expansion.

“The future of MSME financing will not be built on collateral alone, it will be shaped by how effectively we understand businesses in the digital economy,” says Yushida Husin, CEO of CGC Digital. “This collaboration with GXBank reflects our commitment to advancing more inclusive and forward-looking financing models. By integrating guarantee support within digital banking ecosystems, we are enabling financial institutions to serve segments that have traditionally been underserved, while giving MSMEs a more equitable pathway to access growth capital.”

Reducing Barrier to Entry via Personal Bank Statements

Complementing the partnership, GXBank now accepts personal bank statements for both business account registration and loan application. This move acknowledges the reality for the 70% of sole proprietors within the region who currently manage business expenses through personal accounts².

This feature serves as a transition tool, moving entrepreneurs away from the complexities of commingled personal and business finances. By providing a direct path to a formal business operating account, GXBank enables independent businesses to leverage their personal track record into a verifiable business credit history.

About GX Business Banking

Since its launch in Q4 2025, GX Business Banking has become the operational foundation for a diverse range of Malaysian entrepreneurs – primarily across the retail, food & beverage, and manufacturing sectors. The product is a partner in the growth journey, with seamless digital onboarding offering 2.5% p.a. daily interest on business deposits with zero monthly fees. By providing a revolving credit line – where interest is only paid on the amount utilised – the Bank ensures that capital remains a tool for expansion. Through these enhancements, GXBank continues to ensure the ~40% GDP contribution of MSMEs becomes a launchpad for national prosperity.

For more information on GX Business banking, click HERE.

About CGC Digital

CGC Digital is a FinTech company, established as the digital arm of Credit Guarantee Corporation Malaysia Berhad. Registered in July 2022, our primary goal is to empower Micro, Small, and Medium Enterprises (MSMEs) by creating a simpler and more seamless financing experience in the digital ecosystem.

For more information about CGC Digital, please visit www.cgcdigital.com.my.

About GXBank

GX Bank Berhad (GXBank) is a member of Perbadanan Insurans Deposit Malaysia. Regulated by Bank Negara Malaysia and protected by PIDM up to RM250,000 for each depositor – GXBank is Malaysia’s first digital bank now serving over a million Malaysians. With a majority-Malaysian workforce from the finance and technology sectors, the bank aims to disrupt the current banking industry with customised innovative solutions that empower Malaysians to be financially resilient and support their financial goals.

GXBank is a subsidiary of GXS Bank Pte. Ltd., the digital bank joint venture between Grab Holdings Limited and Singapore Telecommunications Limited (Singtel). GXBank is also owned by a consortium of other Malaysian investors, including Kuok Group.

The post GXBank Expands MSME Financing with CGC Digital and Alternative Data Adoption appeared first on CGC Digital.

Financing: Solving the gig credit conundrum

CGC Editor — Mon, 11 May 2026 08:58:07 +0000

By Vanessa Gomes

This article first appeared in Digital Edge, The Edge Malaysia Weekly on May 11, 2026 – May 17, 2026

Link to article: Financing: Solving the gig credit conundrum

For the 1.2 million gig workers in Malaysia, social mobility remains a challenge, especially since this group lacks visibility in the eyes of traditional financial institutions. Without regular pay slips or a predictable income stream, the “probability of default” models used by commercial banks often flag gig workers as high risk, regardless of their actual earnings.

Parliament passed the Gig Workers Act 2025, which came into full effect on March 31 this year, mandating that gig workers have the right to request and receive pay slips or income statements from hiring entities.

While the act is a first step towards formalising the gig segment, CGC Digital Sdn Bhd, the digital arm of Credit Guarantee Corp Malaysia Bhd (CGC), says it is working to build a more cohesive financial ecosystem for the growing gig workforce.

CGC Digital’s strategy centres on closing the gap in how financiers understand new earning models. Last year, it launched imGIG, a platform that targets three recurring challenges faced by gig workers — irregular income, lack of financial protection and difficulty accessing finance.

Sign-ups came in quickly, pointing to a workforce that is digitally savvy but underserved in key areas of support. While delivery riders make up a large share of the registrants, the data also show a significant number of contract-based professionals in IT and professional services.

“Over the past few years, as we see this segment grow … there really is limited institutional understanding in terms of how this segment actually earns, manages cash flow and interacts with financial services,” explains CEO Yushida Husin, adding that imGIG was designed to understand work patterns and financial behaviours at the ecosystem level.

“Hence, when we want to curate products, it’s really a different journey because the ‘rider’ persona is very much different from the professional services and IT services persona,” she says.

CGC is 78.65% owned by Bank Negara Malaysia and 21.35% by commercial banks in the country. Its fintech arm, CGC Digital, is mandated to support micro, small and medium enterprises (MSMEs) and gig workers through digital solutions. Its stated goal is bankability, as the lack of a banking history or a stable employment record has kept gig workers invisible to financiers.

“In the past, pay slips were basically a proxy to your income and your outflow. In the gig world, this proxy is broken,” says Yushida.

“We want to provide digital solutions that will benefit this segment, whether it is from an educational or financial literacy angle. When the data and credit assessment is possible and makes sense [to service this segment], we will work with financiers to provide financing for them. It’s just the starting point for us.”

To address the gap, CGC Digital is turning to alternative data — transaction volumes, sales records and utility data — to build a more accurate picture of a worker’s financial health. Yushida says CGC Digital currently works with a range of financiers, from banks to fintech companies, and is improving collaboration between them to offer solutions to gig workers.

The challenge, she says, is that different platforms and gig workers operate differently, and catering to this diversity requires deeper understanding.

“Some gig workers are okay where they are but some open their own companies and have their own structures within it. And interestingly, professional services form quite a major segment, not just riders. So, in terms of documentation, for example, how do you communicate it to the worker?”

CGC Digital plans to roll out a minimum viable product this year and is still shaping it based on feedback from its platform partners. Yushida says the company is in talks with several platform operators that are working on financial solutions for gig workers.

“The industry needs an outfit that can connect the dots, so we thought that we could get the ball rolling through collaboration and integrating multiple parts of the ecosystem, which includes working with players, financiers and others in the system,” she says.

“To nail down what the solution is, we are working with partners but it’s a phased approach. Definitely by this year, we want to see something that is meaningful for those who have registered. I cannot solve the whole thing on my own because everybody holds different parts of the puzzle.”

Technology, enables better financial products and solutions

Yushida says there are data points within gig platforms that can be used to curate a worker’s and a business’ financial profile, such as transaction volume and sales. Essentially, from a financial perspective, it takes more than a single data point to prove a person’s creditworthiness.

“Some fintech players are testing the viability of other data points, like platform data and utility data. The credit assessment to determine the creditworthiness of gig workers is still quite challenging, even for ourselves, when we work with financiers as the guarantee front,” she says.

Technology is central to that effort. Yushida says artificial intelligence (AI) and machine learning (ML) are needed to interpret the large volume of “thin-file” data points generated by gig activities, with patterns analysed to support modelling.

“Probability of default is important but, to get to that, AI and machine learning are very important to come up with a model that works,” she explains.

“For the riders, one model might fit. For the drivers, another model might fit. This is where we need to make sense of the data and develop models using different statistical techniques.”

With model governance, bias monitoring and explainability controls in place, CGC Digital aims to shorten the data-sifting process and develop standardised algorithms to use with financing partners.

For now, Yushida says the path ahead is not fixed as CGC Digital will be working with different ecosystem partners that must cater to different needs.

Gig Workers Act a good first step, but more needed to support financing

While some views the Gig Workers Act 2025 as the final answer to worker protection, Yushida sees it as a starting point and a useful proxy for financial discipline. She says the act’s provision on the right to request a pay slip is particularly significant for credit assessment.

“Pay slips are a good start because that gives financiers a clearer, more consistent starting point,” Yushida notes. However, she adds that it will not be the sole factor in determining credit worthiness and financiers will still look at income patterns and commitments over time.

Similarly, the mandatory Social Security Organisation (Socso) contributions under the act provide a new data point.

“Socso participation shows a worker’s financial discipline and also the consistency of their payments. This also allows industry players like CGC Digital to build the financial muscle needed for long-term sustainability,” she explains.

CGC Digital does not plan to compete with platform operators such as Grab or Lalamove, Yushida says. Instead, it sees its role as coordinating across the ecosystem. “I cannot solve the whole ecosystem because everybody holds different parts of the puzzle. The company’s role is to connect the dots between fintech players, financiers and the gig platforms themselves.”

One of the most complex challenges in this orchestration is data, specifically data portability, security and consent. For an ecosystem to work, a worker’s data must be able to move securely from a delivery platform to a credit assessment tool and finally to a bank, all while remaining compliant with the Personal Data Protection Act (PDPA) and Bank Negara Malaysia’s Risk Management in Technology (RMIT) standards.

“The data owner must [give consent] before [the data is transferred] from one institution to another,” Yushida says.

Yushida also points to the concept of a gig identity, which is a centralised, portable digital profile that lets a worker carry their credit reputation from one platform to another.

As CGC Digital prepares to roll out its products this year, Yushida says the younger generation is already moving away from the “one employer for life” model, choosing instead to “work for a few masters” across multiple digital outfits.

“Now is the time to actually crack the code. The gig economy is no longer a peripheral side hustle but a major pillar of the future Malaysian economy,” she says.

CGC Digital says it is combining the new legal framework under the Gig Workers Act with AI-based credit assessment in a bid to ensure that workers who choose flexibility are not cut off from financial services.

“At least, we’re moving somewhere,” Yushida says.

The post Financing: Solving the gig credit conundrum appeared first on CGC Digital.

Penang Nasi Campur Entrepreneur Grows Her Business with imSME by CGC Digital

CGC Editor — Thu, 16 Apr 2026 02:21:51 +0000

Iza Fazlina Binti Mohd Nor, a Malaysian entrepreneur from Georgetown, Penang, has been running her small food business for six years. From humble beginnings, her journey reflects the determination and resilience of Malaysia’s micro, small, and medium enterprises (MSMEs). With the support of imSME, a digital platform by CGC Digital Malaysia that provides financing and business solutions to help MSMEs grow, she has been able to explore new ways to strengthen and expand her business.

Nasi Campur Kak Iza has grown over the years from the goal of serving the community.

Building a Business from the Ground Up

Puan Iza started Nasi Campur Kak Iza to serve hearty, home-style dishes to her community. Like many small entrepreneurs, she faced daily challenges, from managing operations and attracting customers to maintaining a steady income.

“Running a small business comes with its challenges, but it also teaches you to stay determined and keep improving,” she said.

Her dedication to quality and service has helped her steadily grow a loyal customer base over the years.

Discovering Support Through imSME

Puan Iza first came across imSME through an online advertisement. The platform, developed by CGC Digital, offers digital solutions including financing, digital guarantees, and insurance—designed to help MSMEs strengthen and grow their businesses.

As a small business owner, she often found it challenging to secure the right support to expand her operations. Through the imSME platform, she was able to explore solutions suited to her business needs and explore financing options designed for MSMEs.

While exploring the platform, she also noticed the imSME VIP Umrah Campaign, which encouraged her to engage further with the platform’s offerings.

“The campaign encouraged me to explore imSME further and showed me new ways to grow my business,” she shared.

Customers flocking to Nasi Campur Kak Iza.

A Meaningful Opportunity

Being selected as one of the campaign winners meant more than a prize. For Puan Iza, it represented a second chance to fulfil a spiritual aspiration she had long hoped for.

“I had previously tried to perform Umrah but was unable to, so this opportunity means so much to me,” she said.

The winners of the imSME Umrah Campaign 2025.

Inspiring Others

Through her journey, Puan Iza hopes to inspire other entrepreneurs to remain resilient and take advantage of opportunities that can support their business growth.

Through imSME, CGC Digital Malaysia continues to empower the country’s MSME community by providing digital financing and business solutions tailored to their needs.

If you, like Puan Iza, want to explore financing solutions and support for your business, visit (https://imsme.com.my) today and register for free to discover how the platform can help your business grow.

The post Penang Nasi Campur Entrepreneur Grows Her Business with imSME by CGC Digital appeared first on CGC Digital.

CapBay and CGC Digital Bridge the MSME Financing Gap with First Dual-Facility Guarantee Scheme Rollout

CGC Editor — Mon, 13 Apr 2026 06:58:52 +0000

KUALA LUMPUR, 8 APRIL 2026 – Bay Smart Capital Ventures Sdn. Bhd. (CapBay), a leading Malaysian fintech company providing a Supply Chain Finance and Peer-to-Peer (P2P) financing platform, together with CGC Digital Sdn. Bhd., a wholly-owned subsidiary and the digital arm of CGC Malaysia that provides credit guarantee services through an innovative ecosystem, have announced a strategic partnership to launch a new Digital Guarantee Scheme designed to provide robust capital support to unserved and underserved Micro, Small, and Medium Enterprises (MSMEs) in Malaysia.

At its core, CGC Digital provides innovative guarantees that act as powerful risk mitigants. Through a strategic risk-sharing mechanism, this collaboration directly benefits MSMEs by lowering the financing costs through more competitive rates and empowering those lacking traditional collateral to secure essential funding. Complementing this, CapBay utilises proprietary AI-driven credit assessments to drastically reduce evaluation times, delivering capital to local MSMEs with unprecedented speed. This synergy creates a transformative ecosystem for local businesses. Notably, it marks the scheme’s first dual-facility rollout, offering both Islamic and Conventional avenues to ensure comprehensive market inclusion, leaving no viable enterprise behind.

Building on CapBay’s proven record of facilitating over RM5.4 billion for more than 2,500 SMEs, this collaboration unlocks capital from new institutional and retail investors on CapBay’s P2P platform. Backed by CGC Digital’s guarantee, this added assurance enhances the credit profile of underserved MSMEs, enabling access to financing that may otherwise be out of reach. By facilitating more inclusive risk-sharing, this partnership encourages greater participation from financing partners while supporting more favourable terms, including a reduced interest rate ceiling, effectively advancing CGC Digital’s mandate to expand financial accessibility. This rollout targets businesses with at least 51% Malaysian ownership, offering flexible capital from RM50,000 to RM500,000 with tenures of up to 60 months to drive operational growth.

“We are proud to partner with CGC Digital to make capital widely accessible to SMEs hindered by the lengthy approval processes of traditional avenues. By leveraging CapBay’s AI-driven credit assessment, we can offer seamless, rapid digital financing to serve the ‘missing middle’, viable enterprises that are often overlooked. Backed by CGC Digital’s guarantee, this strategic allocation represents our shared commitment to injecting vital liquidity into the MSME landscape so grassroots businesses can thrive in a modern economy,” said Ang Xing Xian, Co-Founder and CEO of CapBay.

From left to right: Mr. Ang Xing Xian, Co-founder and Group CEO, CapBay and Ms. Yushida Husin, CEO, CGC Digital

Yushida Husin, CEO of CGC Digital, added, “CGC Digital is committed to innovation that drives financial inclusion. Our collaboration with CapBay enables us to leverage data-driven insights to more effectively bridge the financing gap for MSMEs. By offering a guarantee scheme that accommodates both Shariah-compliant and conventional needs, we are not only providing a safety net for financiers but also opening doors for small businesses to scale. This initiative aligns with our mandate to empower the underserved with the financial tools necessary for sustainable growth.”

In line with their shared vision, CapBay and CGC Digital see this collaboration as a catalyst for a more equitable economic landscape, directly supporting the aspirations of the MADANI Economy framework and the 13th Malaysia Plan (RMK13). By combining innovative fintech solutions with reliable credit guarantees, both parties are committed to overcoming funding barriers, driving the digital transformation of the broader MSME landscape, and building a resilient, sustainable, and globally competitive sector.

About CGC Digital

For more information about CGC Digital, please visit www.cgcdigital.com.my.

About CapBay

CapBay is an award-winning Multi-Bank Supply Chain Finance and Peer-to-Peer (P2P) Financing platform that enables SMEs to unlock cash flow trapped in their supply chains through innovative financing solutions. Using a proprietary credit-decisioning model, CapBay connects businesses of all sizes to banks and investors, facilitating access to high-quality financing opportunities. The company is regulated by the Securities Commission Malaysia (SC).

Since its launch in 2017, CapBay Group has disbursed over RM5.4 billion through more than 40,000 financing notes, supporting over 2,500 SMEs. Recognized as a leader in Supply Chain Finance, CapBay has been named among CNBC and Statista’s World’s Top Fintech Companies (2023–2025), Fortune’s Fintech Innovators Asia 2024, and the FT High-Growth Companies Asia-Pacific (2024–2025).

CapBay has also received multiple industry awards, including The Asset Triple A Sustainable Finance Awards 2026 for Best Social Loan (SME) in partnership with HSBC, The Asset Triple A Digital Awards for Fintech Startup of the Year, and The Asian Banker’s recognition as the Best Fintech Platform – Digital Supply Chain Finance in Asia-Pacific.

For more information, visit www.capbay.com.

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CGC REAFFIRMS SUPPORT FOR MSMEs AMID CURRENT ECONOMIC UNCERTAINTIES

CGC Editor — Mon, 13 Apr 2026 06:44:00 +0000

Credit Guarantee Corporation Malaysia Berhad (CGC) acknowledges ongoing global and domestic economic challenges, including rising energy costs, broader cost pressures, and geopolitical developments resulting in supply chain disruptions.
CGC recognises that these conditions may impact MSMEs, particularly in operating costs and cash flow. We are closely monitoring developments and their potential implications on businesses and the financing environment.

CGC remains committed to supporting MSMEs and continues to work closely with financial institutions and stakeholders to facilitate access to financing.

MSME borrowers facing difficulties are encouraged to engage CGC early to explore suitable support options. Financial advisory services are also available through CGC’s dedicated team and branches nationwide.

CGC will continue to support Malaysian businesses and contribute to the resilience of the MSME sector during this period.

For assistance, please contact CGC’s Customer Service Centre at +603-7880 0088 or email csc@cgc.com.my. More information is available at www.cgc.com.my and https://imsme.com.my/.

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Capsphere and CGC Digital Forge Strategic Partnership to Expand SME Financing in Malaysia

CGC Editor — Fri, 01 Aug 2025 03:44:16 +0000

KUALA LUMPUR, 31 July 2025 – Capsphere, Malaysia’s first asset-based peer-to-peer (P2P) financing platform, is pleased to announce a strategic collaboration with CGC Digital, the Fintech Subsidiary of Credit Guarantee Corporation Malaysia Berhad (CGC). Together, they are launching new SME financing products underpinned by CGC Digital’s credit guarantee, designed to reduce credit risk and expand access to funding for eligible SMEs.

Through this partnership, SMEs can now apply for financing via Capsphere’s platform and benefit from credit risk-sharing support arrangement through CGC Digital. The offering includes Accounts Receivable (AR) and Accounts Payable (AP) financing. AR financing allows SMEs to access early payment on invoices, while AP financing supports timely supplier payments in enhancing cash flow, operational continuity, and supplier relationships.

“The launch of Capsphere’s AP and AR financing backed by CGC Digital Guarantee represents a key milestone in our mission to unlock fair and secure access to capital for SMEs,” said Yoon Jun Jie, CEO of Capsphere. “With CGC Digital’s support, we are raising the bar for trust and impact in Malaysia’s P2P financing space.”

This initiative reflects CGC Digital’s commitment to enabling inclusive, tech-driven financing for underserved and growing MSMEs. It also helps foster a more robust digital financing ecosystem through strategic de-risking partnerships.

“This collaboration with Capsphere is a strong addition to our expanding fintech ecosystem,” said Yushida Husin, CEO of CGC Digital. “We’re proud to support emerging digital platforms in broadening financing access while sharing risk to promote SME resilience.”

Key Features of the Capsphere and CGC Digital Initiative:

Credit guarantees on a risk-sharing basis for eligible SME transactions
Enhanced financing access for underserved and growth-stage businesses
Seamless integration into Capsphere’s asset-based financing model.

The product is now live, with the first SME financing note currently open on the Capsphere platform. SMEs across Malaysia can apply online and benefit from CGC Digital’s credit risk-sharing support in helping reduce barriers to funding while safeguarding commercial discipline.

For more information, please visit

www.cgcdigital.com.my | www.imsme.com.my | www.b2bfinpal.com

About CGC Digital

CGC Digital is a FinTech company, established as the digital arm of Credit Guarantee Corporation Malaysia Berhad. Registered in July 2022, its primary goal is to empower Micro, Small, and Medium Enterprises (MSMEs) by creating a simpler and more seamless financing experience in the digital ecosystem.

For more information about CGC Digital, please visit www.cgcdigital.com.my.

About Capsphere
Capsphere is Malaysia’s first peer-to-peer (P2P) financing platform focused on asset-based funding. As a licensed Registered Market Operator (RMO) by the Securities Commission Malaysia, Capsphere connects SMEs and investors through innovative and secured financing structures.

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Remedi, CGC Digital and Seedflex Partner to Enable On-Platform Financing for Clinics

CGC Editor — Wed, 02 Jul 2025 04:10:34 +0000

KUALA LUMPUR, 2 July 2025 – Remedi, CGC Digital, and Seedflex today announced a strategic collaboration to expand access to business financing for private clinics through embedded financing within the Remedi clinic management platform. The initiative supports SME digitalization by integrating financial services directly into the Remedi Clinic Management Platform, already used by more than 500 clinics in Malaysia.

Supporting SME Digitalization and Financial Inclusion

This innovative collaboration is aimed at improving financing access for private clinics—many of which operate as small and medium-sized enterprises (SMEs)—by embedding loan and financing options within their existing digital workflows. It forms part of a broader effort to strengthen financial resilience among healthcare SMEs through alternative data and platform-based delivery.

A Digital Platform for End-to-End Clinic Management

Remedi provides an integrated solution for managing the full range of clinic operations. This includes appointment scheduling, billing, medical records, inventory control, and patient engagement, all in a seamless digital environment. The platform also captures valuable business insights that support predictive features, such as forecasting inventory needs.

“We are committed to helping clinics digitalize not only their operations, but also their access to financial and procurement services. Embedded financing is an innovative approach and natural step in building a full-service ecosystem for clinics and ensuring their operational sustainability as well,” said Khairul Faizi Khalid, Managing Director of Remedi.

In addition, the platform has launched a built-in procurement marketplace that allows clinics to order medical supplies and consumables directly, streamlining inventory management and making operations more efficient. By embedding financing into this ecosystem, clinics will be able to access working capital and business loans directly through the platform, reducing administrative burden and improving access to tailored funding.

“This initiative allows us to bring the alternative financing ecosystem closer to the point of need—supporting SMEs with both access and affordability,” said Yushida Husin, CEO of CGC Digital.

Bridging the Financing Gap by Connecting Ecosystems

This collaboration brings together critical components of the healthcare and lending ecosystems to address long-standing challenges in accessing financing:

Remedi acts as the central hub, embedding financing tools within its operational interface and generating data to support credit evaluation.
CGC Digital plays a facilitative role by enabling risk-sharing arrangements and connecting a broader network of financing partners to the platform leveraging CGC Digital’s financing marketplace, imSME.
Seedflex provides flexible, performance-based financing tailored to clinics’ actual business activity, making capital more accessible and aligned with day-to-day operational realities.

By integrating financing into a platform already central to clinic operations, the partnership lowers barriers to funding, streamlines the application process, and enables more responsive and appropriate financing solutions—ultimately bridging the financing gap for a critical segment of healthcare SMEs.

“We’re excited to collaborate with Remedi and CGC Digital to provide flexible financing to address the real-life credit needs of healthcare clinics. This partnership allows us to continue pursuing our vision to bridge the credit gap for SMEs and give business owners of any size the same fair access to capital regardless of their background,” added Ritwik Ghosh, Co-Founder and CEO of Seedflex.

For more information, please visit

www.cgcdigital.com.my | www.imsme.com.my | www.b2bfinpal.com

About CGC Digital

For more information about CGC Digital, please visit www.cgcdigital.com.my

About Remedi

Remedi, a leading digital health company specialising in Electronic Medical Record solutions is renowned for its fast-growing cloud-based Clinic Management Solutions trusted by over 500 clinics nationwide. Remedi is dedicated to enhancing the patient experience by improving primary care healthcare service efficiency and delivery with the use of innovative automation and digitalization of workflow in clinics.

About Seedflex

Seedflex is a new way of accessing credit for cashless businesses, co-founded by two former Grab executives who built the superapp company’s fintech lending business in Southeast Asia. Seedflex provides a new frictionless form of credit to cashless businesses by underwriting and collecting loans based on online sales alone. Real-time and granular transaction data provides sufficient basis for robust underwriting driven by proprietary credit scoring and strategy, while daily settlement of sales enables an opportunity for fractional and automated collection through Seedflex’s proprietary “Pay-As-You-Sell Advance”™ solution.

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CGC Digital and B2B Finpal Partner to Expand Access to MSME Financing Through Innovative Digital Solutions

CGC Editor — Tue, 10 Jun 2025 03:00:12 +0000

KUALA LUMPUR, 9 June 2025 – CGC Digital, the fintech subsidiary of Credit Guarantee Corporation Malaysia Berhad (CGC), today announced a strategic collaboration with B2B Finpal, a leading peer-to-peer (P2P) financing platform, aimed at broadening access to financing for Malaysia’s micro, small, and medium enterprises (MSMEs).

This collaboration introduces a bespoke credit guarantee scheme by CGC Digital to support B2B Finpal’s Purchase Financing product—an innovative, short-term financing solution designed to help MSMEs meet capital needs during procurement cycles. The initiative addresses long-standing financing gaps by combining digital innovation with tailored risk-sharing mechanisms.

Key features of the Purchase Financing programme include:

Financing of up to RM300,000 – Empowering MSMEs to fulfil larger purchase orders.
Short-term tenure of up to 120 days – Supporting efficient procurement and fulfilment without immediate financial strain.
Fast approvals within five days – Ensuring quick access to funds when MSMEs need it most.

The partnership marks the first phase of a broader, scalable programme, with both parties committed to co-developing more financing products to further strengthen MSME financial inclusion across Malaysia.

In addition, the Purchase Financing product will be made available on imSME, Malaysia’s first online financing referral platform for MSMEs, operated by CGC Digital. This integration is set to increase visibility and accessibility, helping more businesses identify and secure suitable financing solutions.

“This partnership reflects our commitment to accelerating MSME growth by collaborating with alternative finance providers,” said Yushida Husin, CEO of CGC Digital. “At CGC Digital, we champion open and inclusive partnerships that go beyond platforms. By embracing innovation and collaboration, we are building a more inclusive financing ecosystem that meets the evolving needs of Malaysian MSMEs.”

Through this strategic alliance, CGC Digital and B2B Finpal are poised to make a meaningful impact on the country’s MSME financing landscape.

For more information, please visit

www.cgcdigital.com.my | www.imsme.com.my | www.b2bfinpal.com

About CGC Digital

For more information about CGC Digital, please visit www.cgcdigital.com.my.

About B2B Finpal

B2B Finpal is an approved peer-to-peer (P2P) financing platform registered with the Securities Commission Malaysia. Focused on serving the needs of Malaysian businesses, B2B Finpal connects creditworthy MSMEs with investors, offering fast, flexible, and transparent financing solutions to support business growth.

For more information about B2B Finpal, please visit www.b2bfinpal.com.

The post CGC Digital and B2B Finpal Partner to Expand Access to MSME Financing Through Innovative Digital Solutions appeared first on CGC Digital.

Digital banks and the role of strategic partnerships in delivering financial inclusion for the underserved

CGC Editor — Mon, 31 Mar 2025 06:33:43 +0000

As part of their licensing requirements, digital banks in Malaysia are expected to offer banking services to unbanked and underserved segments to promote financial inclusion. Partnering with like-minded fintechs that are working on innovative solutions to complement financial inclusion could be a significant game changer in enabling these banks to meet their mandate, while staying on track to achieve long-term sustainability.

I. The emerging digital banking landscape

In 2014, the first concept of a digital bank emerged in Asia’s banking industry landscape, when the Chinese government awarded licenses to Ant Group’s MyBank and Tencent’s WeBank[1]. Within the next decade, growth and adoption of digital banks spread across both developed and developing economies in the broader Asia Pacific region, beginning with two of Asia’s highly developed financial systems, Hong Kong and Singapore, followed by other countries like South Korea, Japan, Indonesia, the Philippines.

Malaysia too has begun its own journey towards digital banking adoption in recent years. In April 2022, BNM issued digital banking licenses to five qualified recipients[2] comprising different groups of companies or consortia, of which three were awarded conventional licenses and the remaining two Islamic licenses. At the time of writing, three of these consortia have already begun commercial operations, while two more licensees are due to launch their respective banks by the end of this year, in alignment with the approved commencement date set by the ministry of finance for end 2024[3].

II. Pursuing the financial inclusion agenda

As part of its licensing requirements, BNM has given its digital bank license holders a clear mandate to meaningfully address financial inclusion gaps and provide digital banking services for underserved and unserved segments that face limited or no access to traditional banking financing[4]. In fact, commitment to financial inclusion was a key cornerstone criteria used by the Central Bank to assess the best interest of applicants in its licensing framework, besides other factors such as character and integrity, nature and sufficiency of financial resources, and the soundness and feasibility of business and technology plans[5].

The requirement for these digital banks to focus on financial inclusion and address gaps in underserved and unserved segments underscores the Central Bank’s larger aspirations to create an inclusive financial system, as well as to address financial barriers faced by the unbanked to ensure that financial services are accessible and available to all segments of society.

III. What can digital banks offer?

According to BNM’s Financial Capability and Inclusion Demand Side Survey 2021-2022, Malaysians are fast adopting digitalized financial products and services, based on mobile banking, internet banking, payment card and mobile payments usage[6]. Moreover, the 2021 Global Findex report from the World Bank showed that 79% of Malaysian adults use digital payments, and this increased use was accompanied by a rise in utilization of other financial services, including savings and lendings[7].

The high take-up rate of digitalized financial services reflects a wider pattern of transformation in the banking industry, driven by innovative business models and the widespread adoption of advanced technologies to create financial access points through digital experiences. In line with this, digital banks have great potential to

provide better accessibility to financial services for those with limited access to conventional banking facilities.

As digital banks operate through digital apps and platforms, they remove traditional barriers to obtaining services, particularly for populations in remote or rural areas that may face difficulties travelling to a physical branch to access banking services. Moreover, by offering services in-app, digital banks have the potential to transform certain face-to-face banking processes, such onboarding, transactions, financing and others, to become more streamlined and simplified.

Some digital banks have also ventured into “embedded finance” (a term for integrating banking services with nonfinancial apps and services) which serves to enable application procedures to be done in a shorter, more efficient processes. By refining the user onboarding experience and simplifying the end-to-end journey for users, digital banks can thus promote better financial inclusivity, by making banking less of a hassle and more accessible for customers that may be less financially literate.

On the same note, digital banks can also harness data analytics to identify customers’ specific pain points and tailor products that can meet their needs. Often, underserved communities do not require elaborate services early in their financial journey. For example, credit-poor groups may benefit more from “bite-sized” affordable financing products, such as micro-savings, micro-financing, and micro-insurance. Such ‘simplified’ products can help to provide greater financial inclusion to underserved communities, small businesses and consumers alike.

IV. Balancing financial inclusion commitments with ensuring profitability

In meeting BNM’s mandate of serving the financially underserved, one of the primary challenges faced by digital banks is the question of whether they will be able to meaningfully do so, while staying on track to achieve sustainable growth and profitability in the long-term.

For context, BNM has imposed an asset growth cap of RM 3 billion for digital banks to prove their viability during the foundational phase, before graduating to become a full-fledged bank[8]. However, even with this relatively modest threshold, digital banks may face significant challenges in scaling growth, especially when it comes to managing risks and balancing their assets and liabilities to provide services to underserved communities.

Compared to established financial institutions that already have mature ecosystems and established expertise across core business areas, digital banks are still in the nascent stages of evolution and finding their footing in the industry. As a start, they will need a sound business plan that includes strategies to remain sustainable, while also delivering on the agenda of financial inclusion.

V. Collaborate with like-minded Fintech partners to spur financial inclusion

One strategy that digital banks can consider adopting is to work with FinTech companies that can offer relevant support to meet the financial needs of the underserved and unserved segments, which is a key criteria established by BNM. While the current digital banking landscape in Malaysia predominantly offers deposits and payments as service offerings, the next step to widening financial inclusion would be to expand into providing loans to underserved communities, since accessibility to such credit facilities is a common pain point.

As the digital arm of Credit Guarantee Corporation Malaysia Berhad (CGC), CGC Digital aims to empower MSMEs by creating a simpler and more seamless financing experience in the digital ecosystem, and help to close the funding gap for these enterprises[9]. To date, it has over three years of accumulated experience in partnering with players in the digital finance ecosystem, combining expertise and co-creating accessible digital banking solutions for the underserved and unserved segments.

One such solution involves innovating CGC’s digital guarantee product to help bridge the gap for MSMEs in accessing credit facilities, and championing the alternative credit scoring approach to complement traditional credit assessments. This is done through harnessing digital technology such as AI and machine learning tools to gather information on spending habits and financial behaviour patterns of loan applicants that may lack formal credit history[10]. The “alternative credit scoring” approach, or ACS, integrates these alternative data points into credit assessments, and has been shown to be useful in expanding access for “thin-file” applicants, as it helps to form a more complete picture of their risk profiles.

Since its inception, CGC Digital has built up a strong track record of collaborating with like-minded partners in the FinTech ecosystem to enhance financing access for MSMEs and tackle the challenges in their growth journey. A key focus of CGC Digital is the development of innovative digital guarantee products through a digital-first approach. These digital guarantee products are designed to broaden the scope of services available, specifically targeting underserved and unserved markets, thereby fostering greater financial inclusion.

CGC Digital’s commitment to bridging the financial inclusion gap for MSMEs largely mirrors the mandate of digital banks to reach more underserved segments and provide them with access to financial services. This shared vision underscores the potential of both players aligning to become partners, and supporting each other to make a broader, wide-ranging impact in financial inclusion. By joining forces with CGC Digital through strategic partnerships and collaborations, digital banks may well unlock new opportunities to co-create value and enhance their effort to expand financing access for underserved segments, driving greater inclusion within Malaysia’s digital finance ecosystem in the long term.

Commenting on the company’s potential of collaboration with digital banks, Puan Yushida Husin, CEO of CGC Digital, said, “As a digital first tech startup, we share similar digital DNA with digital banks, and are committed to partnering with MSMEs throughout their life stages to drive their excellence through digital guarantees and other targeted forms of developmental support to scale their impact. We believe that we can bring a strong value proposition to the table for digital banks, as the digital banking business aligns with our own aspirations to promote financial inclusivity for MSMEs in support of their growth and development.”

In this regard, digital banks that leverage on CGC Digital’s expertise may stand to benefit from reducing their exposure to excessive risk while taking on “thin-file” MSMEs that are generally deemed to be riskier clients.

VI. BNM endorses stakeholder partnerships, in line with strategic policy thrust to advance financial inclusion

In its second Financial Inclusion Framework (FIF) 2023-2026, BNM emphasised the importance of strategic collaborations and partnerships between financial service industry players to drive financial inclusion.

The FIF, which serves as a four-year roadmap to advance financial inclusion, sets out wide-ranging strategies aimed at achieving broad development outcomes and elevating financial resilience and well-being for all Malaysian residents. Significantly, under Policy Objective 5 of the FIF, the Bank has underscored the importance of strengthening the role and capabilities of financial institutions in promoting financial inclusion. Among the strategies laid out to achieve this include facilitating “greater partnerships, collaborations and capacity building” among stakeholders in the financial services industry, as well as ensuring a conducive policy environment “for digital banks to evolve business models to effectively deliver on financial inclusion commitments.”[11]

Complementing this, in addressing the Malaysian SME National Conference 2024, BNM Deputy Governor Jessica Chew stressed that the path forward to deliver an effective financing strategy for SMEs would need to include, among others, a focus on developing and deepening alternative sources of financing. She further stated that the entry of digital banks and alternative fundraising platforms offering “different business models and innovative approaches to credit assessments” would contribute to the expansion and diversification of funding sources” for SMEs[12].

These sentiments indicate that the Central Bank recognizes the role of digital banks as a significant driver of financial inclusion and encourages strategic partnerships with industry stakeholders that can offer innovative solutions in expanding access for the unserved and underserved segments. In this regard, collaborating with a digital-first, forward-looking FinTech such as CGC Digital, with its innovative product offerings and strong commitment to empower financially unserved and underserved MSMEs, presents promising opportunities for digital banks.

At the end of the day, tapping into innovative partners and proven solutions can be a game changer for digital banks. Such collaborations enhance their capabilities to expand banking services to the underserved and unserved segments, while also aligning with the goal to become sustainable and thrive in the long run.

References:

Frances Gagua, “Did Digital Banks Fail to Disrupt?,” Asian Business Review, March 28, 2023, https://asianbusinessreview.com/banking-technology/exclusive/did-digital-banks-fail-disrupt.
The five consortiums were Boost Holdings Sdn Bhd and RHB Bank Bhd; GXS Bank Pte Ltd and Kuok Brothers Sdn Bhd; Sea Limited and YTL Digital Capital Sdn Bhd; AEON Financial Service Co, Ltd, AEON Credit Service (M) Bhd and MoneyLion Inc; and KAF Investment Bank Sdn Bhd.
GXBank was the first to launch in the market in the final quarter of 2023, by a consortium made up of Grab-linked GXS Bank Pte Ltd and Kuok Brothers Sdn Bhd. Following this, two other digital banks opened its doors to the public in June: AEON Bank, a subsidiary of AEON Financial Service Co, Ltd; and Boost Bank, a joint venture between Boost Holdings Sdn Bhd and RHB Bank Bhd. The remaining two digital banking applicants that have yet to launch their digital banks are a consortium led by Sea Limited and YTL Digital Capital Sdn Bhd and a consortium led by KAF Investment Bank Sdn Bhd.
BNM, “Financial Inclusion Framework 2023-2026 Strategy Paper,” June 23, 2023, https://www.bnm.gov.my/documents/20124/55792/SP-2nd-fin-incl-framework.pdf.
“Five Successful Applicants for the Digital Bank Licences – Bank Negara Malaysia,” accessed June 27, 2024, https://www.bnm.gov.my/-/digital-bank-5-licences.
“Financial Stability Review First Half 2022,” 2022.
“The Global Findex Database 2021,” Text/HTML, World Bank, accessed November 1, 2024, https://www.worldbank.org/en/publication/globalfindex.
BNM, “Licensing Framework for Digital Banks,” December 31, 2020, https://www.bnm.gov.my/documents/20124/938039/20201231_Licensing%20Framework%20for%20Digital%20Banks.pdf.
“CGC Digital: Making Finance Inclusive and Accessible for MSMEs,” CGC Digital, accessed November 21, 2023, .
With their data driven approach, digital banks can assess financial transactions using non-traditional data sources such as payments, payroll and point of sale terminals on digital platforms. Data obtained from these digital transactions (sometimes called ‘digital footprints’) can be applied to alternative credit scoring frameworks to complement traditional credit scores, and create a more holistic picture of creditworthiness.
Bank Negara Malaysia, “Financial Inclusion Framework 2023-2026,” June 23, 2023, https://www.bnm.gov.my/documents/20124/55792/SP-2nd-fin-incl-framework.pdf.
“Deputy Governor’s Keynote Address at the Malaysian SME National Conference – Bank Negara Malaysia,” accessed June 27, 2024, https://www.bnm.gov.my/-/dgjc-spch-smenc24.

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