CTOS launches SME score solution


  • SMEBiz
  • Monday, 19 Aug 2019

Working together: (from left) OCBC Bank CEO Datuk Ong Eng Bin, Martin and Peoplender CEO Kristine Ng hope to provide better access to SME financing by validating SMEs’ creditworthiness.

CTOS Holdings Sdn Bhd’s unit, CTOS Data Systems Sdn Bhd has launched ‘CTOS SME Score’ to provide an easy and universal assessment for creditworthiness for the small and medium enterprises (SMEs).

CTOS Holdings group chief executive officer Dennis Martin said the solution would empower SMEs with confidence to make quick, consistent and objective decisions as they assess the businesses and owners to whom they will potentially extend loans, leases and trade credits.

“The solution would serve to drive SME growth in Malaysia by providing an easy and universal assessment of creditworthiness to get the best terms and offers from potential creditors and other SMEs.

“In an increasingly congested SME financing segment, we also anticipate that the quick decisions turnaround time and comprehensive access to data offered by the solution would be the trigger point for SME decision makers when looking for financing, ” he said at the launch last week.

In addition to reducing SMEs’ exposure by flagging high-risk customers in an existing portfolio, the CTOS SME Score also helps generate business leads by identifying potential customers as the pre-screening process of potential customers will improve prospecting, sales and operational efficiency.Developed in partnership with FICO, the de facto standard for credit scoring in the US, Martin pointed out that the solution was also able to provide updates on SMEs’ current financial standings, allowing lenders for pre-emptive actions against potential bad debt or late payment.

As a comprehensive industry score, he said the solution sourced its data from CCRIS (Central Credit Reference Information System) Company Credit Data and CCRIS Consumer Credit Data from Bank Negara, filing data maintained at national registrars, as well as financial data and ratio and business information and proprietary CTOS Data maintained by its bureau partners.

Currently, there are almost one million SMEs in Malaysia making up 98% of local businesses, he said.

Martin said based on CTOS SME Score analyses, out of one million SMEs in Malaysia, 54% of companies, 60% of partnerships and 52% of sole proprietors have recorded a score of 290 or more, indicating average to excellent creditworthiness.

The event also saw CTOS inking a Memoranda of Understanding with OCBC Bank (Malaysia) Bhd and Peoplelender Sdn Bhd for the validation of the solution.

“Based on the feedback, the validation had gone through well and OCBC had cited that they might be able to double the amount of lending they did before with the solution.

“This is positive as it would help GDP and the growth of the economy, and Malaysia as a whole. I need to clarify that when people look at CTOS and Scores as stopping people from getting financing...this is quite the reverse, ” he added. – Bernama


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