How does Boost serve unserved and underserved MSMEs with financing?

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Boost Facilitates Access to Financing for Unserved and Underserved MSMEs Through Data-Driven Lending

Boost provides alternative financing solutions to micro, small, and medium enterprises (MSMEs) by leveraging their transaction data to assess creditworthiness and disburse loans, effectively reaching businesses previously excluded from traditional banking channels. This approach has enabled the company to disburse nearly RM1 billion in loans over the past four years, with a significant portion concentrated in the last 24 months, demonstrating a substantial impact on financial inclusion.
Alternative Financing Based on Transaction Data

Boost's core strategy for serving unserved and underserved MSMEs lies in its ability to offer financing without requiring traditional bank statements. Instead, the company utilizes a data-driven methodology to pre-score businesses based on their transaction history with Boost. This allows them to grant loan facilities to merchants who may not qualify for conventional bank loans, thereby bridging a critical gap in access to capital for these enterprises.
Significant Impact on New-to-Credit Businesses

A notable outcome of Boost's financing model is its success in reaching a substantial segment of "new-to-credit" merchants. Over 40% of the businesses that have received loans from Boost had never taken out a loan prior to this initiative. This statistic underscores Boost's effectiveness in bringing previously unbanked or underbanked MSMEs into the formal credit ecosystem, with a low non-performing loan rate of two to three percent indicating the sustainability of this approach.
Flexible Loan Offerings and Digital Business Solutions

Boost offers flexible loan amounts, with an average loan size of approximately RM20,000, but capable of providing facilities as small as RM1,000. Beyond financing, the company actively supports MSMEs in their digital transformation journey. Features like Boost Payment Link, introduced during the Covid-19 pandemic, enable merchants to collect payments via shared links, simplifying transactions. This digital push has led to the onboarding of approximately 45,000 merchants, including over 5,000 in Penang between 2020 and 2021, showcasing a broad reach and commitment to enhancing business operations.

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How does Boost serve unserved and underserved MSMEs with financing?

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