How does Boost leverage transaction data for micro-financing MSMEs?

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Boost Utilises Transaction Data for MSME Micro-financing Through a Data-Driven Scoring System

Boost employs a data-driven methodology, leveraging transaction data from its partnerships with micro, small, and medium enterprises (MSMEs) to provide alternative financing. This approach allows the company to pre-score the financial standing of these businesses and offer loan facilities without the necessity of bank statements. This strategy has proven effective in reaching businesses that might otherwise be excluded from traditional financial services.
Alternative Financing Based on Transactional Insights

The core of Boost's micro-financing strategy lies in its ability to analyse transaction data generated through its platform. By examining these patterns, Boost can gain insights into a business's cash flow and financial activity. This information is then used to create a financial score, which serves as the basis for approving loan applications, effectively bypassing the need for conventional bank statements.
Significant Loan Disbursements and Reach to New-to-Credit Businesses

In the past four years, Boost has disbursed close to RM1 billion in loans, with a substantial portion of this lending occurring in the last 24 months. Notably, over 40 per cent of the merchants who have received these loans were new to credit, indicating a significant expansion of financial inclusion. This demonstrates Boost's commitment to serving segments of the MSME market that have historically faced barriers to accessing credit.
Low Non-Performing Loan Rate and Flexible Loan Sizes

A key indicator of the success of Boost's data-driven approach is its consistently low non-performing loan (NPL) rate, which currently stands at two to three per cent. This suggests a robust risk assessment process. Furthermore, Boost offers flexible loan amounts, with an average loan size of approximately RM20,000 per merchant, but with the capacity to disburse loans as low as RM1,000, catering to a wide spectrum of MSME financial needs.

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How does Boost leverage transaction data for micro-financing MSMEs?

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