Funding Societies, CGC Digital To Develop Shariah-Compliant Financing Solution

Funding Societies, CGC Digital To Develop Shariah-Compliant Financing Solution

Funding Societies, one of the largest unified SME digital finance platforms in Malaysia, has partnered with CGC Digital, the FinTech subsidiary of Credit Guarantee Corporation Malaysia Berhad (CGC).

This partnership aims to provide digital credit guarantee through a Shariah-compliant digital supply chain financing (DSCF) solution.

Cater to financing needs of local micro, SME

It will also better address the financing needs of Malaysian micro and small enterprises who are also the most underserved segments

Both parties signed a Memorandum of Understanding (MoU) that showcase their commitment to collaborate on a Proof of Concept (POC) project and innovate products that could enable wider financing access for underserved and unserved MSMEs.

The partnership will see CGC Digital developing a new digital credit guarantee product for CGC. It will offer financing up to RM4 million as a start, benefiting up to 100 creditworthy micro and small enterprises.

Industry-leading DSCF solutions

This will be offered via Funding Societies’ industry-leading DSCF solutions, leveraging alternative data for MSMEs’ credit risk assessment

“Following our entry into the SME Portfolio guarantee program of CGC in April this year, we are fortifying this collaboration with CGC Digital.

“The digital-first approach leverages alternative data, enabling MSMEs with broader and more affordable access of MSMEs to digital guarantee and transformative financing. CGC Digital’s innovation of CGC’s credit guarantee would mitigate risk for investors and reduce cost of financing for MSMEs.” states Wong Kah Meng, Group Chief Operating Officer of Funding Societies.

Yushida Husin, Chief Executive Officer of CGC Digital said, “CGC Digital broke new ground in this collaboration with Funding Societies. This MoU signifies our mutual dedication to fostering innovation and co-creating value with MSMEs.

“CGC Digital seeks to provide MSMEs with a one-stop digital marketplace for better access to finance and more targeted assistance to scale up. Given this, we are committed to collaborating with like-minded strategic partners in the digital ecosystem to accelerate financial inclusion of MSMEs in Malaysia.”

Are you an MSME in need of Shariah-based financing? Head over here to grow your business with collateral-free and fast approval financing.

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