CJMY
CTOS Data Systems Sdn Bhd (CTOS) has been awarded a five-year contract worth RM14 million by Alliance Bank to upgrade its Retail Loan Origination System (RLOS) bundled with the Credit Transformation project.
The move will involve digital innovation and automation to enhance existing processes and transform credit decisions as part of the implementation. This will enable Alliance Bank to provide fast, convenient, and personalised services that are relevant to meet the changing needs of customers.
Erick Hamburger, Group CEO of CTOS Digital Berhad, said that CTOS has evolved from being a traditional credit reporting agency into a company that provides a broad suite of innovative end-to-end digital credit decisions and management solutions.
He further added that CTOS has the expertise and capability to support the digital journey that Alliance Bank envisions. The extensive data analytics and cutting-edge solutions of CTOS enable them to provide added value to their clients, such as Alliance Bank, by accelerating growth and enhancing and expanding decision-making capabilities.
CTOS project to increase loan approval performance
The Credit Transformation project will allow Alliance Bank to increase loan approval performance as well as to evaluate the unbanked and underbanked segments. These consumers have limited traditional credit history, which makes it difficult for them to access credit.
By reaching this untapped market, Alliance Bank will gain a head-start in the proposed expansion of its consumer banking segment to target the HENRY segment (High Earners Not Rich Yet).
The new Retail Loan Origination System will feature credit transformation capabilities that will serve as tools to improve productivity and turnaround time. Using data analytics, the bank can adapt its credit scoring to offer credit to traditional customers who may have fallen outside of its current lending guidelines.
Additionally, using alternative credit scores will help the bank accurately score more consumers, identifying creditworthy borrowers who might otherwise be automatically denied because they do not qualify for traditional credit scores.
JurisTech’s Platform to build New Loan Origination System
The new loan origination system will be built on a platform from JurisTech, the fintech company that CTOS acquired a 49% stake 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. The project is scheduled to be completed within two years.
Alliance Bank’s Group Chief Executive Officer, Kellee Kam, said that the bank is 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 their customers.
With the introduction of the new Retail Loan Origination System (RLOS) and embarking on a credit transformation project through this collaboration, the bank is demonstrating its commitment to providing exceptional customer experiences and meeting the evolving needs of its customers across the country.
The partnership between Alliance Bank and CTOS will enhance the bank’s capabilities to provide better and faster credit decisions to its customers, including those who are unbanked or underbanked.
The project’s focus on digital innovation and automation will transform credit decisions and help the bank to expand its consumer base considerably. With the completion of the project, Alliance Bank will be well-positioned to achieve its vision of becoming the preferred banking partner for its customers.
