SME Bank aims to boost market share to 7pc

SMALL Medium Enterprise Development Bank Malaysia Bhd, the new name for SME Bank, hopes to increase its financing market share to seven per cent by 2015.

Source from (Bernama): http://www.bernama.com/bernama/v7/bu/newsbusiness.php?id=961025
Published: July 05, 2013

Source from (Business Times): http://www.btimes.com.my/Current_News/BTIMES/articles/rup44/Article/
Published: July 05, 2013

Source from (The Malaysian Insider): http://www.themalaysianinsider.com/business/article/sme-bank-out-to-increase-market-share-by-2015/
Published: July 05, 2013

Managing director Datuk Mohd Razif Mohd Yunus said the bank's current market share stands at only four per cent.

"We are trying to establish how many per cent of that has been captured in the "unserved" or "underserved" market. If it is 100 per cent for these markets, then we will know what our target will be, while fulfilling our mandatory (development) role to the maximum," he said at a media briefing after the launch of the bank's new logo yesterday.

The bank is currently undertaking an assessment with other related agencies.

It is understood that the underserved market represents mostly those who do not have bank accounts. This has enabled financial institutions to tap this area and increase their revenue.

Mohd Razif said the underserved market also includes those that come under the the new growth industries, which are not defined under the financing eligibility.

The main activities of the bank are to provide financing as well as financial and business advisory services to SMEs in predefined categories (by the National SME Development Council).

The bank plans to expand the number of enterprise centres in the country from 22 last year with additional network outlets in Klang, Taiping, Sungai Petani, Kemaman, Sandakan and Lahad Datu by the end of the year.

It is looking into enhancing and strengthening its core banking system as well as mobile banking for easy repayment methods for its customers.

On the change in name and logo, he said it will help dispel any perception that the public may have and confusing it with commercial banks.

Replacing the original blue are orange and grey, the latter to represent intellect while orange represents vibrance.

It has, however, retained the SME Bank name as part of its branding.

Second Finance Minister Datuk Seri Ahmad Husni Hanadzlah, who launched the new logo, praised the bank for its 2012 performance.

The bank reported an operating profit of RM146 million, giving an impressive year-on-year growth of 92 per cent.

Last year, total financing approvals rose by 70.5 per cent to RM2.9 billion from RM1.7 billion in the previous year, benefiting 1,803 small and medium enterprises, both in terms of capital investments as well as working capital.

Ahmad Husni said more than two thirds of the total credit extended in 2012 were for the National Key Economic Areas sectors. The top three financed sectors were business services, oil, gas and energy and education.