FinTech plays important role for SME growth: Hong Leong Bank

PETALING JAYA: Hong Leong Bank Bhd (HLB) said it sees the robust and fast-growing financial technology (FinTech) landscape as an important co-facilitator with the banking industry to spur small-and-medium sized enterprises (SME).
HLB said in a statement that it has provided numerous platforms to support and develop SMEs and start-ups, such as its HLB LaunchPad mentorship programme, which was developed to nurture tech savvy start-ups in reinventing the financial services industry.
HLB's LaunchPad, together with HLB Group SME Banking, have recently partnered with the FinTech Association of Malaysia (FAOM) for the inaugural “FAOM Presents” event entitled “Internet Finance & Accessing Credit".
The event was attended by over 100 participants, including representatives from the Securities Commission Malaysia, Bank Negara Malaysia, Malaysia Digital Economy Corp as well as SMEs and entrepreneurs, it added.
Furthermore, HLB’s head of group SME banking Terrence Teoh said that the peer-to-peer (P2P) financing providers within the FinTech space are important enablers, together with conventional banking facilities to support financing at different stages of a company’s growth.
“We see P2P financial providers complementing the banking institutions by reaching the underserved SMEs, especially those who do not meet the requirements of banking credit assessment, while conventional banks can take over that support when they grow in size and traction.
“It is imperative that banks collaborate with FinTechs which can add collective value towards helping to grow this very important business segment in Malaysia, which made up 98 percent of businesses in the country. Ultimately, P2P lenders will complement banks where collaboration will allow both to enhance the service level to SMEs,” Teoh added.