Tag: SMEs

Philippines – Mastercard launched a charitable partnership with the technology firm Boost Capital aimed at providing access to digital financial services for over 10,000 small enterprises in the Philippines, notably those run by women. This new alliance, backed by the Mastercard Center for Inclusive Growth, will use technology to help Filipino small businesses gain access to money, knowledge, and resources.

The initiative expands on a previous collaboration between the two groups in Cambodia and shows how improved financial literacy and digital onboarding channels may reduce risks and improve lending to small firms. In order to empower financial service providers to improve access to digital financial services by improving merchant onboarding procedures and providing financial literacy training to their small business clientele, this program in the Philippines will draw lessons and experiences from Cambodia. 

Small businesses are easily integrated using channels like Facebook Messenger, Telegram, and WhatsApp—channels that are already popular by Filipino entrepreneurs—by means of Boost Capital’s white-labelled technology platform. The company’s chat-based technology, enhanced with AI capabilities, allows service providers to digitally onboard a greater number of small business clients. 

Once on board, small businesses can then access financial services anytime, anywhere, from their cell phones. Everything about the process is automated, from choosing the goods to contracting, disbursing, and using AI for verification. 

Boost Capital will collaborate with Philippine financial service providers with funding from Mastercard Strive, a project managed by the Mastercard Center for Inclusive Growth. Their goal is to use technology to bring more women who own small businesses into the official financial system and provide them with specialised services to grow and support their businesses. 

In addition to increasing access to financial services, the program will help small business owners strengthen their long-term financial security. This will be accomplished by integrating chat-based financial education into their financial services journey in a seamless manner. Prior research conducted in Cambodia demonstrated that small enterprises that received financial education had an 8 percent higher likelihood of making loan repayments on schedule. 

More than a million micro, small, and medium-sized businesses (MSMEs) in the Philippines have benefited from Mastercard’s efforts. By 2025, Mastercard aims to bring 50 million small and micro companies and 1 billion individuals into the digital economy on a global scale. As part of this program, since 2020, the organisation has helped 27 million women entrepreneurs grow their businesses by providing solutions. 

Speaking about the partnership, Shamina Singh, founder and president of the Mastercard Center for Inclusive Growth, said, “The results from our partnership in Cambodia clearly demonstrated the value that pairing credit with capacity building can have on unlocking capital for underserved small businesses. By building on that work, our aim is to empower more small businesses in the Philippines and facilitate their transition to the digital economy.” 

Meanwhile, Lucinda Revell, co-founder of Boost Capital, expressed, “We are excited to be working with Mastercard Strive to unlock and expand credit for Filipino small businesses. This new grant will extend our technology to a wider set of partners and de-risk its adoption by smaller financial service providers, who might otherwise be hesitant to go digital. Encouraging them to explore new client onboarding channels will unlock access to a wealth of digital financial services to support small business growth.” 

Lastly, Simon Calasanz, country manager for the Philippines, Mastercard, stated, “Micro and small businesses are vital engines of economic growth across the world, including in the Philippines. By fostering digital inclusion – one of the country’s strategic development priorities – this partnership with Boost Capital will provide much-needed support to Filipino small businesses and empower them to thrive. Further, by focusing on women-led enterprises, this partnership can help address the barriers faced by women entrepreneurs, enabling them to unlock their full potential.” 

He added, “This latest collaboration deepens Mastercard’s commitment to the Philippines, driving social impact in a locally relevant way, while supporting the country’s efforts to digitizing and growing small businesses, and advancing inclusive growth.” 

Jakarta, Indonesia – After multiple reports suggesting business talks between TikTok and GoTo in Indonesia, TikTok has announced that is investing a total of US$1.5b investment into GoTo. In it, Tokopedia and TikTok Shop Indonesia’s businesses will be combined under the existing PT Tokopedia entity.

In an official statement, both entities have said that this arrangement will allow both TikTok and GoTo to each serve Indonesian consumers and MSMEs more comprehensively.

Moreover, GoTo will benefit from the growth of the enlarged entity and will remain an ecosystem partner to Tokopedia, through its digital financial services via GoTo Financial and on-demand services via Gojek.

Going forward, TikTok, Tokopedia and GoTo will transform Indonesia’s e-commerce sector, creating millions of new job opportunities over the next five years. 

Some of those planned joint ventures include promotion of Indonesian products on Tokopedia and TikTok’s platforms, building the capacity of Indonesia’s MSMEs through a holistic program focusing on skills development, supporting merchants to sell products online, helping local brands to promote their products in international markets, amongst others.

The transaction, which is expected to close in the first quarter of 2024, is in line with the GoTo Group’s strategy to strengthen its financial and strategic position by growing its total addressable market.

Moreover, a committee under the enlarged entity will be established to facilitate transition and integration, chaired by GoTo Group CEO Patrick Walujo, with support from members of both businesses.

These talks come after TikTok Shop announced the shutdown of its local operations in Indonesia in October 2023 following local orders. The company was forced to close down after the country’s government passed a regulation prohibiting the use of social media for e-commerce transactions.

Singapore – Straits Interactive has announced the launch of Capabara, a suite of software designed to empower SMEs by harnessing the power of generative AI, featuring ChatGPT-like capabilities, to support their business objectives. 

The Capabara platform, which is consisted of the Capabara AI Assistant, the Knowledge System, and Capability Management; delivers a comprehensive solution for organisations to develop, govern, and manage their digital transformation goals, all while promoting the safe and responsible use of AI.

For the company, said solution aims to address the top pain points SMEs face when adopting Generative AI for their enterprise – leakage of corporate data, training an external AI model, and staff’s concern about job obsolescence.

Moreover, asides from offering a library of ready-to-use AI capability tools, enterprises can now craft their own prompts to develop unique Generative AI utilities tailored for in-house applications. 

This feature empowers organisations to customize workflow activities powered by AI, thereby enhancing productivity and efficiency across all aspects of their operations. Staff can now take control and harness generative AI effectively to increase their value in their current and future positions.

In addition, the Capabara Knowledge System assists SMEs in their digital transformation by incorporating a repository of SME funding options available in Singapore. With Straits Interactive’s prompt tuning technology, it is now possible for SMEs to easily query and explore such complex information.

Kevin Shepherdson, CEO at Straits Interactive, said, “We envision the Capabara capability-as-a-service to be a platform ecosystem meticulously designed for the AI business professional. These are the trailblazers equipped to harness generative AI tools, create value, and integrate AI ethically, responsibly, and effectively within their organisations.”

Mandaluyong, Philippines – As part of the Powered Up campaign, UnionBank has recently unveiled ‘UB Negosyante’, an innovative solution for micro, small, and medium enterprises (MSMEs) in the country. 

Through this initiative, the banking firm intends to support MSMEs in elevating their business and entrepreneurial journeys, regardless of whether they are business owners, sole proprietors, or microentrepeneurs. 

In particular, part of this campaign builds on the benefits of the bank’s business banking application, which has now levelled up to provide more comprehensive insights about business and enhanced tools to further their use. 

‘UB Negosyante’ features a more accessible tool kit allowing SMEs to transfer cash, pay bills, collect payments, and deposit checks on the go. This revitalized version of the app now includes Bizstarter, a basic checking account that requires a sustaining balance of only Php 5,000 pesos.

Meanwhile, the rebranding of the application’s name was derived from the sentiments of business owners and bank’s existing MSME clients.The survey uncovered a strong preference for simplicity and relatability which the company used to spice up the name of the app.

Dino Velasco, institutional segment marketing head at UnionBank explained the goal of the rebranded name, stating, “Compared to MSME Business Banking, the new UB Negosyante brand is more relatable, easy to understand, and more inclusive. That was the intent behind the rebranding.” 

On the other hand, Jaypee Soliman, business banking head at UnionBank, affirmed their support to advancing the business landscape in the country and said “SMEs face so many challenges due to various pain points which can be discouraging to them. We wanted to address those pain points, so we put together a single user experience through the UB Negosyante app that will address those pain points, may they be related to collection, reconciliation,disbursement, just to name a few.” 

The launching commenced with a gathering of MSME clients and prospects on November 8 at the podium hall in Mandaluyong. 

Hong Kong – Over 90% of SMEs consider virtual banks with advanced technology services as convenient and efficient, a survey from the Hong Kong Association of Banks (HKAB) revealed. 

The results of the survey showed a predominantly positive impression of virtual banks, with over 70% of the 1,000 individual respondents saying that virtual banks are innovative and convenient.

Interestingly, SMEs are found to have an even better perception of virtual banks. The majority, or over 90% of respondents, considered virtual banks with technology-enabled advanced services as convenient and efficient.

Virtual banks have various usage offerings and are typically used for general banking services. The most frequently used banking services for individual respondents were deposit or savings (63%), followed by credit card and debit card services (49%), and rewards such as cash rebates and free gifts (45%).

Deposits or savings (38%) also topped the list for SMEs’ most-used banking services, followed by investment funds (28%) and money transfers (28%).

With these offerings, the use of virtual banks has also been steadily rising, with 45% of the surveyed individuals opening virtual bank accounts. Additionally, 30% of respondents expressed an intention to sign up for a virtual bank account in the next three months.

High deposit interest rates, rewards for opening an account, and convenience were among the key factors that motivated individual respondents to open virtual bank accounts.

And with the increasing number of individuals and businesses utilising virtual banks for transactions, the survey also delved into how the public perceives and understands virtual banks.

The results from the survey revealed that more than half, or 52%, of individual respondents believed the advantage of virtual banks lay in reduced document requirements. Meanwhile, 50% believed virtual banks were innovative, and 48% believed virtual banks had lower fees.

Furthermore, more than 50% of individual respondents also considered themselves knowledgeable about and favourable towards virtual banks, as they perceived virtual banks’ services as essential to their financial needs.

On the corporate front, a staggering 90% of the surveyed SMEs expressed that virtual banks were convenient, as they provided fast and efficient service and contributed to enhanced operational efficiency. The results are reflected in the number of SMEs that have integrated virtual banking services into their business operations.

A significant 76% of the surveyed SMEs also possessed virtual bank accounts, while 79% also had accounts with traditional banks. This shows that there is an open interest in opening new accounts with virtual banks despite the existing traditional bank accounts, as SMEs are also found to be relatively concerned about service efficiency and convenience, brand and reputation, and the interest rate of savings.

HKAB’s survey also showed that there is a clear understanding of virtual bank regulations, with 75% of individual respondents stating they are aware that virtual banks are also licenced and regulated by the Hong Kong Monetary Authority (“HKMA”). This awareness rate is much higher among SMEs, at 79%.

Additionally, 65% of individual respondents and 62% of SMEs were also aware that deposit accounts in virtual banks are currently entitled to up to HKD 500,000 in protection.

According to the report, the deepening public understanding and interest in virtual banks can be attributed to their features, which offer convenient and secure services to customers.

One of these features is the robust security infrastructure and stable systems that effectively detect and prevent fraud, ensuring the utmost security for user accounts. Virtual banks now have high-value user security and mobile-binding authentication functions on top of their other identification features. Some mobile apps also feature a “report lost card” function to protect lost cards from unauthorised transactions.

Virtual banks now also prioritise transparent privacy management, placing a high value on the non-disclosure of customer information to third parties without the customer’s consent. Additionally, virtual banks, being part of the Hong Kong Deposit Protection Scheme, ensure that their depositors enjoy the protection of deposits up to HKD500,000.

And lastly, virtual banks also deliver innovative banking services that empower individuals and businesses to accomplish their financial objectives, all by harnessing the power of fintech.

A spokesperson for the Virtual Banking Education Taskforce of the Hong Kong Association of Banks stated, “The survey results demonstrated that over the past four years, the public has developed a more accurate and in-depth understanding of virtual banks. They recognised that virtual banks are no different from traditional banks in terms of regulation and deposit protection for account holders.”

They also added, “With this in mind, virtual banks can offer customers convenient experiences through fintech; for example, virtual banks provide 24/7 banking services and reduce the time required for account opening and loan approval. Overall, we are pleased to see the improvement in public and business perceptions of virtual banks. Going forward, the VBE Taskforce hopes to deepen public understanding of the features of virtual banks through intensified promotional efforts. As the public’s understanding of virtual banks deepens, it is widely believed that the popularity of virtual banks will continue to increase, further promoting fintech development in Hong Kong.”

Singapore – Enterprise automation company Workato has announced its digital automation and integration solution offering to come onboard the Infocomm Media Development Authority’s (IMDA) Advanced Digital Solutions (ADS) scheme, under the ‘SMEs Go Digital’ programme.

Through the scheme, Workato aims to onboard over 1,500 SMEs and help them access funding, resources and opportunities to scale up their digitalisation efforts across human resources, marketing, sales, and finance.

The ADS is IMDA’s scheme aimed at supporting enterprises to pilot solutions such as advanced/integration, sustainability such as carbon management and resource optimisation and e-commerce. With Workato on ADS, they will provide SMEs with automation and integration solutions through its community of ecosystem partners.

Workato is also seeking to invite more technology partners to join its ecosystem to help SMEs derive value from their digital transformation efforts.

Allan Teng, founder and senior advisor for Workato APJ, said, “Workato’s goal has always been to empower businesses to harness the power of automation for transformative business growth. Using Workato’s low-code, no-code integration and automation platform, we look forward to collaborating with IMDA and innovative ecosystem partners in Singapore to create a vibrant ecosystem that will support SMEs in unlocking the full potential of digital.”

Singapore – Innovation platform Plug and Play, in partnership with government agency Enterprise Singapore, has announced the launch of the ‘Global Innovation Alliance (GIA) San Francisco Acceleration Programme’, providing an excellent opportunity for Singapore startups to explore and expand their products in the tech focused regions of San Francisco and the US.

Set to begin this October, the programme will be aiming to empower and assist Singapore-based startup tech companies with the resources and knowledge to thrive in one of the world’s largest and most diverse markets.

The GIA San Francisco Acceleration Programme will be having three main offerings for the companies involved. Firstly, participant companies will be receiving practical training through interactive workshops accompanied by one-on-one discussions through office hours to provide personalised guidance.

In line with this, each startup will be matched with a mentor who will provide tailored support across various aspects, including marketing, product development, partnership building, investment assistance, and pitch polishing.

Lastly, the programme will culminate with a 2-week in-market immersion in San Francisco, providing startups with an opportunity to pitch and showcase their solutions to a regional network of corporate partners, investors, and industry leaders.

Commenting on the program, Jupe Tan, managing partner at Plug and Play APAC, said, “We believe that the GIA San Francisco Acceleration Programme will be an exceptional opportunity for Singapore startups to tap into the innovation culture and networking opportunities in Silicon Valley. Through our tailored mentorship and business development support, we aim to empower startups to make valuable connections and accelerate their growth trajectory.”

Meanwhile, Lim Seow Hui, director for Americas at Enterprise SG, mentioned, “We are very heartened to partner Plug and Play to support tech startups in building connections and capabilities to grow their businesses as they expand into the United States as it presents immense opportunities as a market for business growth. San Francisco is also a good starting point for Singapore companies and startups, in many areas of tech such as biotech, fintech, sustainability and digital economy.”

Kuala Lumpur, Malaysia – Banking company RHB Bank and media group Star Media have teamed up to launch #JomSapot BeliLokal 2.0, an online platform that helps small and medium-sized enterprises (SMEs) spread brand awareness as well as boost sales and revenue. 

Said online platform, which is the second iteration of its kind this year, onboards celebrity actress, TV host, and entrepreneur Sazzy Falak as the brand ambassador for participating SMEs. 

The platform was first conceptualised in 2022 to give SMEs a leg up after the pandemic and help the economy recover and thrive. 

SMEs can get a free video advertisement specially curated for their brand, products, and services. AI technology is also added to the mix, using voice and facial recognition software to recreate Sazzy Falak’s face and voice patterns to match the details provided by the SMEs. 

For Lydia Wang, chief business officer at Star Media Group, the platform not only provides SMEs opportunities to market their products and services, but also helps them to leverage celebrity power to grab customer attention.

“SMEs are the backbone of the economy, and we are continuing these efforts, working together with partners such as RHB to help these businesses get back on their feet. One of the biggest challenges for SMEs is marketing, primarily from the aspect of cost and effectiveness,” she said.

Wang added, “By partnering with Sazzy Falak, this campaign enhances their brand’s reputation with ‘star power’ – giving charm to the brands and helping them gain a competitive edge in the market.”

She also noted that the platform would feature the Awesome Lokal Guide which increases customer engagement and traffic for the participating SMEs.

Meanwhile, Yip How Nang, SME banking head at RHB Bank, commented that with SMEs facing multiple macroeconomic headwinds, these businesses need help to stay on a growth trajectory.

“Our goal is to rally the nation to support local businesses by buying from SMEs. We have already helped over 8,000 business outlets that signed up with us since our campaign’s launch. Under this campaign, SMEs get to list their businesses on both RHB #JomSapot and SMG’s BeliLokal platforms at no additional charge,” he said.

Lastly, Falak said, “As an entrepreneur myself, I can relate to the struggles that local businesses face. I understand how hard it can be to build and grow a business in today’s world. Since the Covid-19 pandemic and the multiple lockdowns, the business landscape has changed so much. So I’m delighted to be partnering with RHB and Star Media Group in #JomSapot BeliLokal 2.0, as local businesses need all the help they can get in this competitive market.”

Singapore – Tech giant Google has teamed up with the statutory board Enterprise Singapore and tech trade association SGTech to offer 15,000 Google Career Certificate (GCC) scholarships to 300 local small and medium enterprises in the country.

The GCC scholarships will provide SMEs with free access to flexible online training programmes to upskill in areas such as digital marketing, e-commerce, data analytics, IT support, and more. No prior experience is needed, and learners will earn an industry-recognised credential in three to six months of part-time studies.

Said scholarships were given out at the first Grow with Google for Small and Medium Enterprises (SMEs) event, which was graced by Alvin Tan, Minister of State, Ministry of Trade and Industry & Ministry of Culture, Community and Youth.

Google will also expand its GCC and scholarship offerings to include advanced Certificates in these areas. Designed and taught by Google experts, the Certificates provide participants with hands-on experience with tools such as BigQuery, Python, and Tableau.

Ben King, country managing director at Google Singapore, said, “To fully unlock the potential of Singapore’s economy, we must ensure that SMEs and their employees have a chance to pick up new skills and knowledge to stay relevant in a fast-changing landscape. A recent Google study found that workplace training and online learning are major sources of skills attainment among Singapore employees, and 6 in 10 rely on government awareness programmes as their primary source of information.” 

He added, “Strategic public-private initiatives can help cultivate greater awareness and provide more learning opportunities for SMEs to pursue their growth ambitions locally, regionally and globally.”

Google has helped over 9,400 local SMEs since 2020 advance their business with digital tools and training, including through the Digital Practitioner Programme (DPP), developed in partnership with EnterpriseSG. This helps SMEs and heartland enterprises deepen their in-house capabilities in digital marketing and basic data analytics, through a two-month training programme and a three-to-six-month practicum with dedicated Google Specialists.

Manila, Philippines – Courier delivery services Flash Express in the Philippines has launched a local campaign to offer sustainable business opportunities for local MSMEs as well as long-term commitment to its employees.

Through the Flash Express’ ‘Juan Asenso’ Campaign, Flash Express’ partners and customers will have better support in terms of business training and access to the Flash Home Branch System and Flash Express Key Account (KA) System, respectively.

Flash Express announced in August that it has reached a total of 1,000 Flash Home Partners across the country after eight (8) months from its soft launch last December 2021.

Flash Home is another business opportunity opened by Flash Express to enable budding entrepreneurs and MSMEs to generate income at a minimal investment cost. Through Flash Home, Filipinos intending to start their own business could utilise their residential or commercial spaces as drop-off points. 

During the internal launch of Flash Express’ ‘Juan Asenso’ Campaign, Flash Express’ Consultant Alvin Chew, said that one year is not enough to showcase what Flash Express can bring. He reiterated that this year is just the beginning of a more promising future for the company including its stakeholders, customers, clients, business partners, and its employees. 

“Within a span of one year, Flash Express was able to achieve several milestones within the frame of the company’s vision and goals. We were able to expand all over the Philippines in just a couple of months after we kicked off our operations, we were able to disrupt the market, and most importantly, we were able to improve the logistics industry in the country”, Chew said.

Flash Express aims to further improve its overall operations by putting in extensive support to its manpower, expanding business tie-ups, and acquiring more customers to increase more parcel volume by utilising its resources to continuously provide more employment and business opportunities among Filipinos.