KUALA LUMPUR: RHB Banking Group has joined Funding Societies Malaysia, a P2P financing platform, in a partnership to expand funding opportunities for SMEs in the country.
The bank said in an emailed statement that the move is part of its strategy to grow its SME customer base.
“RHB Banking Group’s SME business has been growing at a compound annual growth rate (CAGR) of 17 per cent per annum for the last three (3) years, from 2014 - 2016.
"As we continue to focus in growing our SME customer base, substantial energy and resources will be devoted to creating a differentiated and tailored value proposition for SME owners and their businesses as SME businesses form the backbone of the Malaysia’s economy,” said RHB Banking Group's group managing director Datuk Khairussaleh Ramli.
He said that the bank has partnered with Funding Societies, whose P2P financing platform extends across Singapore, Indonesia and Malaysia, as the latter has the expertise in providing a platform for SMEs to borrow directly from investors.
As part of the deal, RHB will provide Funding Societies with transaction banking services, trustee services for investors and KYC (Know Your Customer) services, he explained.
Funding Societies is one of 6 licensed peer lending platforms in Malaysia recognised and regulated by the Securities Commission.
The banking group said that as part of the broader partnership with RHB, Funding Societies is working with Malaysian Trustees Berhad (MTB), a subsidiary of RHB, to ensure investor funds are safeguarded. MTB will perform due diligence checks on SMEs to verify the destination of the funds and ensure they are channeled for the right uses.