Kuala lumpur: Digital bank GX Bank Bhd and CGC Digital have announced a strategic partnership to extend digital guarantees for credit access, offering up to RM150,000 to micro, small, and medium enterprises (MSMEs).

According to BERNAMA News Agency, CGC Digital, the fintech division of Credit Guarantee Corporation Malaysia Bhd, has collaborated with GX Bank to enhance credit accessibility for MSMEs. The agreement allows GX Bank to accept personal bank statements for business account applications and credit assessments via its upgraded GX Business Banking Suite. This development aims to assist sole proprietors in establishing a verifiable business credit history, tackling Malaysia's RM90 billion MSME credit gap.

The joint statement from both entities emphasized the introduction of a digital-first guarantee by CGC Digital, which serves as the foundation for higher approved credit limits. The statement highlighted that more than half of the customers have organically opted for this service, indicating a strong demand for scalable credit solutions as MSMEs aim to expand beyond micro-financing.

GX Bank's CEO, Kaushik Chowdhury, noted the positive outcomes since the launch of the GX Business Banking Suite, with over 1,000 users of the GX FlexiLoan and a 70 percent loan utilization rate within the business banking segment. He reported that the partnership with CGC Digital had facilitated over RM3.3 million in loan approvals in just 30 days, leveraging alternative data and digital guarantees to bridge credit history gaps. The bank is further easing access by accepting personal bank statements as income verification to aid entrepreneurs in scaling their businesses.

CGC Digital CEO Yushida Husin added that incorporating guarantee support within digital banking ecosystems empowers financial institutions to better serve traditionally underserved segments, offering MSMEs a fairer path to growth capital.