Innovation in digital credit for SMEs in Myanmar

• Aug 8, 2025
• 1 min

Myanmar’s small and medium industries (SMEs) have various unmet credit needs that stifle their growth. MSC was tasked to assess the market in detail to identify the financing needs of SMEs within Myanmar’s supply chains. We used these insights to collaborate with Proximity Finance and design new financial products, such as invoice discounting, supplier credit lines, and embedded supply chain lending models.

As part of this intervention, we developed an AI-powered risk-based lending framework to enhance credit risk evaluation. The framework integrated alternative credit scoring mechanisms and predictive analytics. The team also drafted a credit manual and an operation manual to ensure seamless implementation, along with training manuals for institutional capability-building. Additionally, we provided technical assistance in regulatory compliance and digital transformation to ensure the new credit models were both scalable and sustainable.

The project expanded access to working capital financing for SMEs, which enabled these small businesses to better manage their supply chain operations and scale efficiently. Proximity Finance introduced several new digital credit solutions to enhance operational sustainability and lending efficiency. This initiative equipped Myanmar’s micro and small enterprises with AI-driven financial tools, improved their access to credit, and reduced their dependency on informal financial sources. It has positioned MSMEs for long-term growth through its efforts.

The International Finance Corporation (IFC) commissioned the project.