LENDING & CREDIT | Cesar Tordesillas, Malaysia

SME Bank taps BSN branches for collection

With better a collection system, SME Bank expects its NPLs to decrease to 15% by year-end, from 17% last year.

The bank is also collaborating with Bank Simpanan Nasional to help customers make their monthly payments according to schedule.

“There are issues and challenges facing Malaysian SMEs in spite of all the recognition and assistance given," said SME Bank Managing Director, Datuk Mohd Radzif Mohd Yunus.

“Many still lament the difficulty in obtaining financing while some face an uphill task accessing markets,” he added,  after the signing of a memorandum of understanding between both parties to facilitate a payment gateway collaboration.

Mohd Radzif said the tie-up would enable SME Bank to tap BSN's vast network of 392 branches throughout Malaysia, especially in rural areas.

Deputy Finance Minister Datuk Dr Awang Adek Hussin said it was vital for financial institutions to explore areas of cooperation locally and internationally besides competing in the open and globalised world.

“This collaboration is an illustration of good synergistic efforts whereby BSN's extensive branches nationwide can be leveraged by SME Bank customers to service their loans,” he said.

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