Malaysia’s homegrown digital bank, Boost Bank, is set to offer small and medium enterprise (SME) loans starting in October, according to The Edge.
This will be rolled out after the completion of loan book transfers from its micro-financing arm, Boost Credit, which is expected by September.
Launched in June, the digital bank consortium is a joint venture between Axiata’s fintech arm Boost, which holds a 60% stake, and RHB with the remaining 40%.
Axiata’s CEO, Vivek Sood, shared that these loan book transfers will enable Boost Bank to provide crucial financing services, such as working capital and supply chain loans, to its SME customers.
The loan interface within the Boost app is anticipated to go live in October, following the successful transfer of customers.
Sood emphasized that while Boost Bank aims to expand its offerings, the priority is to ensure a seamless customer experience.
He also revealed that the bank’s total loan book and deposits currently stand at approximately RM100 million each.
In addition to SME loans, Boost Bank is also gearing up to launch a debit card in September and is actively pursuing partnerships to expand its reach.
Axiata’s financial results, released on Wednesday, revealed a 7.1% year-on-year increase in Boost Bank’s revenue for the first half of the year.
Additionally, the bank’s earnings before interest and taxes (EBIT) loss decreased by 17.2%, due to lower marketing and staffing costs.
Boost Bank’s ecosystem also showed growth, with Boost Life users rising by 2% year-on-year to 11.2 million, and the number of Malaysian merchants increasing by 8.1% to 656,000.
