A study by Visa unveils that 68 pct of Malaysian SMEs interested in digital banking

Publish date: Fri, 26 Aug 2022, 06:44 PM
KUALA LUMPUR: A study by the world's leader in digital payments Visa unveiled that 68 per cent of small and medium enterprises (SMEs) reported being interested in digital banking.
 
In its report entitled "Going Digital: The Banking Revolution", Visa said the industries that showed that most interest in using services offered by digital banks include financial services (76 per cent), manufacturing and construction (71 per cent) and professional services sector (69 per cent).
 
"Only eight per cent of SMEs are not interested to use services from digital banks, citing data security and credibility as their top concerns," it said.
 
Visa said Muslim SMEs, who bank with an Islamic main bank, also reported a much higher interest in using digital banking (83 per cent) compared to Muslim SMEs who use non-Islamic main banks.
 
"The stark difference in perception is worth exploring further to ensure non-Islamic banks can develop offerings that truly address their customers' needs," it said.
 
It said digital banks seen to solve SMEs' banking challenges with physical safety and convenience drive interest in digital banking.
 
The top reason for interest in digital banking was less risk of infections (44 per cent), faster and more convenience (35 per cent), save time from visiting bank (32 per cent), banking available 24 hours (31 per cent), lower fees (30 per cent), innovative (29 per cent) as well as less risk of robbery (26 per cent).
 
Meanwhile, it said digital banking would be the top financing solutions preferred by SMEs where the majority (44 per cent) indicated a preference for a loan duration of three to six months if given the chance to customise their loans offered by a digital bank.
 
"Forty-two per cent are more interested to take up a loan longer than six months while 14 per cent want a loan duration of less than three months.
 
"Sixty-three per cent of Malaysian small and medium businesses also prefer reduced interest rates while 37 per cent choose to go with a fixed fee," it said.
 
In terms of loan type, Visa said the majority of SMEs prefer micro-loans (33 per cent) followed by cash advances (26 per cent), Buy Now Pay Later (18 per cent), working capital loan (16 per cent) and invoice financing (seven per cent).
 
 - Bernama
Discussions
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Tobby

Digital banking is the way forward! I think Grab will dominate digital banking soon! Why, because they already build a strong network of gig economy!

2022-09-02 15:36

chinaman

pls deal with scammers first. very odd no comment from bank negara nor finance ministry despite of so many complaints. bankers = scammers?

2022-09-02 19:32

Tobby

Guys! Yeah, scary nowadays! Banks can't even protect money in their accounts!
However, the scamming and stealing of cryptocurrencies like bitcoin is far worst! Because for bitcoin, you can report to authority but they cannot take any actions! Cryptocurrencies have no central bank! So it's basically totally lawless in cyptro world!

2022-09-02 22:39

stockraider

Any one willing to lend to SME....at reasonable rates !.....The SME will be interested loh!

Not necessary Digital bank loh!

2022-09-02 23:27

Tobby

The day Digital Bank offers much lower rate loans compare to tradisional banking, that's the day our banks lose it's competitiveness!

2022-09-03 14:16

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