CapitalBay, a fintech company, leading the way for SCF in Malaysia has announced that it has received two separate awards from the prestigious Asian Bankers Awards in Beiging, alongside top international transaction banks such as Bank of America, Deutsche Bank and Mizuho Bank. Also present at the awards, was Tan Sri Zeti Aziz, former bank governor of Bank Negara Malaysia.
The first award CapitalBay managed to bag was “The Best Fintech Platform - Digital Supply Chain Finance” under the Asia Pacific Frictionless Transaction Awards programme. This comes dues from consistent meetings with industry players, regulators and tireless hard work to develop the platform in order to provide the best digital technology for small businesses to gain financing.
Supply Chain Finance is a fast-growing space, especially in Malaysia and Southeast Asia as more large corporations have started adopting ERP systems. Gone are the days where people have to bring hard copy invoices to their banks just to draw-down on invoice financing. CapitalBay allows businesses to draw down against their outstanding receivables from their customers automatically through integration to ERP and account systems. CapitalBay’s CEO commented that they strongly believe that the time has come for Supply Chain Finance automation in SEA, and they want to ride the wave.
The second award “The Best Financial Supply Chain Management in Malaysia” was awarded to both CapitalBay and Hong Leong Bank, for their joint-collaboration effort in rolling out an innovative Supply Chain Finance program via the CapitalBay platform. CapitalBay was the only FinTech company among the Top 5 finalists of Hong Leong’s LaunchPad Program last year.
On the occasion, Founder and CEO of CapitalBay, Ang Xing Xian, commenting on the feat, “While there has been growing interest from financial institutions, the supply chain finance scene in Asia Pacific is still in its infancy stage and facing a unique set of problems. We aim to support the industry’s growth through our technology and to help SMEs through our Supply Chain Finance solutions. As it is, SCF has been growing rapidly globally. The award is a strong recognition to the value proposition we can bring to the industry as well as our financial institution partners”.
SMEs and micro-enterprise suppliers in Malaysia have to wait 50% longer to collect their invoice payments than just 3 years ago, as payment terms from large corporate buyers continue to lengthen. While receivable financing and loans already exist in the market today, these options often involve a long application process with strict requirements that can require upfront collateral– a mismatch for smaller businesses who often do not tick all the boxes. Furthermore, the processing costs for short-term and micro-financing are usually prohibitive due to the amount of paper work involved. Typically, SMEs can’t afford to wait that long. Thus why CapitalBay was established to bridge the gap of funding issues in Malaysia.
CapitalBay started in mid-2016. Since then the company has grown and manage to raise a seed round of investments of over RM2 million last year from Singapore-based KK Fund and Cradle, a subsidiary of Malaysia Ministry of Finance. CapitalBay provides a multi-bank supply chain platform operating in Malaysia, providing Invoice Financing and supply chain financing solutions. The company was set up in hopes to help SMEs grow and to help unlock cash flow stuck in their supply chain by providing financing solutions to the companies.