Tag: Mambu

Indonesia – SMEs in Indonesia rely heavily on personal funds to launch their business, according to a report by SaaS cloud banking platform Mambu; but of those that don’t rely on friends and family, short-term loans are the most popular source of funding (46%), followed by business term loans (41%), and then startup loans (24%).

According to the report, of those that are trying to secure funding, it’s the application process that represents the biggest obstacle. SMEs in Indonesia identify the greatest barriers as an arduous application process (51%) and too much paperwork and admin (37%) before a lack of sufficient starting capital (31%). 

Such barriers have meant that in the last five years, 55% of SMEs in Indonesia have been unable to secure sufficient or any funding to cover the needs of the business on at least one occasion. The top three problems they face as a result include cash flow issues (37%), being unable to launch new products or services (37%), and struggling to pay back creditors (35%). 

Overall, 22% of SMEs in Indonesia say securing funding is easy, while 18% say they find it to be difficult. 

In Indonesia, the top three considerations when SMEs choose a lender are low-interest rates (95%), a short application process (93%) and long-term repayment plans (86%).

Meanwhile, when it comes specifically to the application process, Indonesian SMEs are most interested in faster loan decision processing (92%), low or no collateral requirements (90%) and more flexible loan conditions (89%).

Singapore – SaaS cloud banking platform Mambu, which has presence in Singapore and Australia, has just recently launched a fully flexible digital solution for SME lenders that aims to cut costs and time to market.

Mambu provides banks and fintechs with loan management technology and access to an ecosystem of partners such as web-based identity authentication, credit checks, and loan origination. These partners are vital to lenders wanting to offer speedy loan approvals which has proven to be a key competitive advantage.

The new SME lending solution by Mambu is designed for fast new product launches and offers flexibility in order to quickly adapt to changes. It offers a variety of options to adjust loan conditions in order to support borrowers that are in financial difficulties. This flexibility helps clients to better serve SME companies and to release financial burdens during pandemic times.

According to the International Finance Corporation (IFC), it is estimated that there is an unmet financing need of US$5.2T every year across 65 million firms or 40% of formal MSMEs globally. At the same time, there is more pressure on SME lenders to deliver low-risk decisions quickly via a fully digital customer experience.

Elliott Limb, Mambu’s chief customer officer, shared that whether it is starting a new company or growing an existing one, there’s never been a bigger requirement for SME lenders to offer the services their customers need. 

“With Mambu’s composable approach, we provide an agile way for our clients to build and shape new financial services around the businesses they want to help,” said Limb.