Core Insights - VCI Global's fintech subsidiary, Credilab, has received conditional approval for a digital moneylending license from Malaysia's Ministry of Local Government Development, enabling the company to provide AI-driven microloans and SME financing nationwide [1][2][4] Company Overview - Credilab is focused on delivering same-day loans with near-zero non-performing loan rates, utilizing a proprietary decision-making engine that processes real-time behavioral, transactional, and alternative credit data [2][5] - The platform allows for fully automated, end-to-end digital loans, with approvals and disbursements completed in as fast as two minutes [2][3] Operational Efficiency - The license permits Credilab to operate without physical branches, facilitating nationwide scalability with minimal overhead [3] - A fully paperless onboarding process, AI-driven credit scoring, and instant KYC verification enable borrowers to access capital in real time using just a smartphone [3][5] Market Potential - Malaysia's microfinancing market is projected to reach US$11.68 billion by 2032, growing at a CAGR of 17.5% from 2024 to 2032, driven by an expanding middle class and increasing demand for accessible credit solutions [6] - Favorable fiscal policies and government support for fintech innovation are creating a conducive environment for sector growth [6][7] Strategic Positioning - Credilab is well-positioned to meet the credit needs of underserved consumers and SMEs, driving financial inclusion and enhancing economic resilience [7][8] - The digital lending license is seen as a major inflection point in VCI Global's fintech growth journey, reinforcing the commitment to building AI-first financial infrastructure [8]

Industry Overview - In 2024, the global mobile payment industry made significant progress, with over 2 billion registered accounts and more than 514 million monthly active accounts, reflecting a year-on-year growth of 14% and 11% respectively [26][41][46] - The industry contributed an additional $720 billion to the GDP of countries with mobile money services in 2023, representing a 1.7% increase in GDP [26][7][28] Business Growth - The transaction volume in 2024 reached approximately 108 billion transactions, with a total value exceeding $1.68 trillion, marking a 20% increase in transaction volume and a 16% increase in transaction value year-on-year [28][31] - Merchant payments accounted for the highest transaction value, surpassing international remittances, with customers paying over $100 billion to merchants via mobile money in 2024, a 21% increase from 2023 [28][31] Regional Development - Sub-Saharan Africa remains the core region for mobile payments, with over 1.1 billion registered accounts, while East Asia and the Pacific, as well as the Middle East and North Africa, are emerging as significant growth areas [9][42] - In 2024, the number of registered mobile money agents increased by 20% to 28 million, with 10 million active agents monthly, indicating improved accessibility for users [26][31] Regulatory and Policy Trends - The regulatory environment has become more favorable for mobile payment providers, with many benefiting from supportive regulations, although challenges such as fraud and cross-border data transmission remain [2][29] - Approximately 60% of mobile money providers have initiated digital skills programs to enhance financial literacy and combat fraud, which is crucial for the industry's sustainable growth [11][29] Socio-Economic Impact - Mobile payments have positively impacted financial inclusion, providing services to underserved populations and supporting sectors like agricultural insurance and renewable energy [5][2] - The gender gap in mobile money account ownership persists in eight out of twelve surveyed countries, highlighting the need for increased awareness and accessibility for women [20][29]

Earnings Results 1Q25 1Q25 Overview Financial Highlights • Net income COP 1.7 trillion and NIM 6.4% Credit Risk Other Highlights • ROE 16.3% ; ROTE 20.4% • Loan book down -0.3% QoQ and up 7.0% YoY • Deposits down -1.1% QoQ and up 12.8% YoY • Basel III CET1 Capital Ratio of 11.16% and Total Capital Ratio of 12.91% • Net provision charges amounted to 1.1 trillion up 18.3% QoQ equivalent to a quarterly annualized CoR of 1.6% • 90 days PDLs Coverage ratio of 162.5% • Allowances represent 5.2% of total loans • S ...