11 May 2023

CTOS and Alliance Bank Collaborate on Credit Transformation Capabilities

Press Release

Kuala Lumpur, 11 May 2023 - CTOS Data Systems Sdn Bhd (“CTOS”) today has been awarded a 5-year contract worth RM14 million by Alliance Bank Malaysia Berhad (“Alliance Bank”) to upgrade its Retail Loan Origination System (“RLOS”) bundled with Credit Transformation project.

The state-of-the-art project will involve digital innovation and automation to enhance existing processes and transform credit decisioning as part of the implementation. This will enable Alliance Bank to provide a fast, convenient and personalised services that are relevant to meet the changing needs of customers.

“CTOS has the expertise and capability to support the digital journey that Alliance Bank envisions. We have long evolved from being a traditional credit reporting agency into a company that provides a broad suite of innovative end-to-end digital credit decisioning and management solutions and we are delighted that Alliance Bank has recognised us as the best partner to carry out this transformation with them. Our extensive data analytics and cutting-edge solutions enable us to provide added value to our clients, such as Alliance Bank, by not only accelerating growth but also enhancing and expanding decision-making capabilities,” explained Erick Hamburger, Group CEO of CTOS Digital Berhad.

The Credit Transformation project will allow Alliance Bank to increase loan approval performance as well as to evaluate the ‘unbanked’ and ‘underbanked’ segment; consumers whose traditional credit history is so limited that they do not have credit scores and easy access to credit. Reaching this untapped market will give Alliance Bank a head-start in the proposed expansion of its consumer banking segment to target the HENRY segment (High Earners Not Rich Yet).

Sharing the same sentiment, Group Chief Executive Officer of Alliance Bank, Kellee Kam said, “As a Bank focused on customers’ needs, we are committed to delivering excellent service and supporting customers in their growth journey supported by technology. Today’s award signing with CTOS marks the continuation of a long-standing relationship between the Bank and CTOS to provide faster, better and personalised solutions for our customers. To this end, we constantly emphasise on continuous digital transformation to empower the Bank towards our vision of becoming ‘The Preferred Banking Partner’. With the introduction of the new Retail Loan Origination System (RLOS) and embarking on a credit transformation project through this collaboration, we are demonstrating our commitment to providing exceptional customer experiences and meet the evolving needs of our customers across the country.”

The new Retail Loan Origination System will also feature credit transformation capabilities which will serve as tools to improve productivity and turnaround time. What this entails is threefold:

  • Using data analytics to see where we can adapt our credit scoring to offer credit to traditional customers that potentially may have fallen outside of our current lending guidelines.

  • Using alternative credit scores to help the Bank accurately score more consumers — identifying creditworthy borrowers who might otherwise be automatically denied because they don’t qualify for traditional credit scores.

  • Once the new RLOS gets up and running, it will be able to automatically identify how we can adapt our criteria to offer the best possible experience for each customers. All of these factors will allow us to broaden our consumer base considerably.”

The new loan origination system will be built on a platform from JurisTech, the fintech company that CTOS acquired a 49% stake of in 2022. JurisTech is a Fintech enabler that specialises in bringing about digital transformation for banks. This new loan origination system will also be embedded with CTOS solutions such as CTOS Application and Decisioning, CTOS eKYC and CTOS Score, with the project scheduled to be completed within two years.