KUALA LUMPUR: A new credit scoring system will be introduced next year to help banks verify customers eligibility for loans and help consumers secure better loan rates.
The CTOS-FICO Consumer Risk Score will be a more comprehensive database of information gathered from various means, including the borrowing and repayment history as well as other information available about the individual online.
CTOS Data Systems chief executive officer Eric Chin said consumers would also benefit from the scoring system as those with high scores would have a strong case to negotiate for better interest rates on future loans.
CTOS currently has about 10 million individual records, he said.
“This CTOS-FICO score will provide a more sophisticated way to evaluate credit worthiness.
"Every consumer out there with a strong CTOS-FICO score can ask for better interest rates from a bank, and ultimately, the market will transform into a consumer market,” he told a press conference.
He said many had the wrong impression that CTOS blacklisted people based on its records.
“CTOS does not blacklist, it only compiles public information and provides it to the banks and it is the banks that decide,” he explained.
On reports that there had been instances that information provided by CTOS was not up-to-date, he said CTOS had been working on ways to strengthen its sources of information.
“We are looking at many more sources, such as the information available online and even mobile phone bills.
“Going forward, the information will become more reliable and there will be less opportunity for mistakes.”
Chin said they would also be starting a campaign next year to inform people about the “self-check” option.
“When you have 12 million records, there is bound to be mistakes.
“The idea is that anyone can log in online, or drop by our service centres to check if the information we have on them is correct.
“If not, just show us the documentary proof, and we will update it,” he said.
