CBM to launch digital transaction-based MSME loans

1 MARCH 2026

 

THE Central Bank of Myanmar is planning to offer loans through digital transaction records of Micro, Small and Medium Enterprises (MSMEs), substituting collateral-based lending.

 

CBM is focusing on implementing digital credit for MSMEs, stepping forward to a Cashless Society. MSMEs, the main driving force of Myanmar’s economy, are experiencing challenges in obtaining loans with collateral.

 

The use of digital data footprints generated by QR payments like MMQR and mobile wallets helps build credit profiles and will allow lenders to assess creditworthiness as it functions as digital collateral, substituting traditional and physical assets.

 

Adopting a cashless society will encourage MSMEs to enter the formal financial sector and bring about benefits, including smoother retail transitions.

 

Building a comprehensive cashless ecosystem is extremely difficult to accomplish through the banking sector alone. Collaboration not only with banks but also with other government digitalization will reap a fruitful result. — ASH/ KK