Grab's GX Bank calls for expansion of government-backed credit guarantees to digital lenders

KUALA LUMPUR: GXBank has urged the government to broaden credit guarantees for digital lending platforms as part of the 2027 Budget's plans to boost financing for micro, small and medium enterprises (MSMEs). Chief executive officer Kaushik Chowdhury suggested expanding guarantee schemes, like the planned RM10 billion Bank Negara Malaysia-Credit Guarantee Corporation facility, to digital lenders.

This move would enable these banks to offer lower-cost loans to MSMEs by utilizing alternative data sources such as real-time cash flows and e-commerce transactions. Kaushik emphasized the 2027 Budget's chance to ease administrative burdens in micro-financing, proposing to expand duty exemptions for small-ticket loans, thereby reducing the burden on low-value borrowings.

He also advocated for tighter integration between digital banks and government digital systems via low-cost application programming interface connections. This would cut onboarding time and expenses while enhancing financial access for rural communities, gig workers, and those in underserved areas. Additionally, Kaushik proposed tax incentives and public matching grants for banks investing in AI-driven fraud detection and scam prevention, treating anti-scam measures as vital infrastructure to maintain robust security without imposing overhead costs on lower-income consumers.