4 FinTechs driving the SME Financing sector in Malaysia

By Gloria Mathias

SME financing, catering to the financial needs of SMEs, has gained traction globally due to several interconnected factors. SMEs are recognised as vital contributors to economic growth and employment, prompting governments and financial institutions to prioritise support for these businesses.

The advent of FinTech has revolutionised SME financing, offering innovative solutions that streamline processes and provide easier access to capital through platforms like peer-to-peer lending, invoice financing, and crowdfunding. Additionally, governments have implemented policies and initiatives to facilitate SME financing, including loan guarantees and tax incentives.

Changing consumer behaviour, with increasing reliance on digital platforms for financial transactions, has further accelerated the popularity of online lending and digital banking services, making SME financing more accessible and efficient. These trends collectively reflect a growing recognition of the importance of SMEs and the evolving landscape of finance, underscoring the significance of SME financing in driving economic development globally.

Listed below are 4 FinTech platforms offering SME financing solutions in Malaysia: 

• CapBay

CapBay operates as a supply chain finance platform that provides SMEs with access to working capital by connecting them with investors looking to fund their invoices or purchase orders. CapBay connects investors with SME borrowers without requiring any intermediary entity, such as a bank.

• du-it

du-it is a Malaysia-based Islamic financial technology company that provides instalment solutions to businesses. du-it’s Buy Now, Pay Later (BNPL) business model aims to make financing accessible and hassle-free for businesses.

• PitchIN

PitchIN is a prominent equity crowdfunding platform in Malaysia that is not exclusively focused on SME finance. It allows SMEs to raise capital by selling shares or equity stakes to a large number of investors.

• QuicKash

QuickCash is a Malaysian financial technology (FinTech) company that offers P2P financing and investment platforms. QuicKash’s mission is to make funds more accessible to small and medium-sized enterprises (SMEs). It is an online lending platform in Malaysia that provides quick and convenient financing solutions to SMEs through a hassle-free application process.