KUALA LUMPUR: RHB Banking Group has partnered Funding Societies Malaysia, a regional peer-to-peer (P2P) financing platform, to expand funding opportunities for the underserved small and medium enterprise (SME) segment in the country.

In a statement, group managing director Datuk Khairussaleh Ramli said RHB’s SME business had grown at a compounded annual growth rate of 17% per annum from 2014-2016.

“As we continue to focus on growing our SME customer base, substantial energy and resources will be devoted to creating a differentiated and tailored value proposition for SME owners and their businesses, as the SME sector forms the backbone of Malaysia’s economy,” he said.

About 97% of business enterprises in Malaysia are SMEs.

Khairussaleh said Funding Societies would provide a platform for the SMEs to borrow directly from investors while RHB would provide the former with transaction banking services, trustee services for investors and Know Your Customer services.

Under the partnership, the first collaboration between a Malaysian bank and a P2P financing platform, investors are given the opportunity to invest on the platform from as low as RM100. — Bernama